Bipartisan Legislation Would Continue Benefits to Oregon's Rural Schools, Communities

Bipartisan Legislation Would Continue Benefits to Oregon's Rural Schools, Communities

Senate, House "county payments" bills reauthorize funding link between counties and federal land; money would continue to be invested in schools, local projects

- Members of Oregon's Congressional delegation today announced the introduction of the Secure Rural Schools and Community Self Determination Reauthorization Act of 2005, legislation that would reauthorize the successful "county payments" law for an additional seven years. Companion bills were introduced in both chambers. U.S. Senator Ron Wyden (D-OR) introduced S. 267 with U.S. Senator Larry Craig (R-ID), chairman of the Senate Subcommittee on Public Lands and Forests, and U.S. Senator Gordon Smith (R-OR). U.S. Representatives Greg Walden (R-OR), chairman of the House Resources Subcommittee on Forests and Forest Health, Peter DeFazio, senior member of the House Resources Committee (D-OR), and Darlene Hooley (D-OR) introduced H.R. 517.

Of Oregon's 36 counties, 32 received payments through the program totaling more than $273 million last year. Because of the large amount of timber historically harvested from Federal lands in Oregon, Oregon counties have received significant payments from the funding formula, with the Fourth and Second Districts receiving the most federal investment respectively.

"Reauthorization of this law is essential, especially given the funding problems facing Oregon schools. This is also a fundamental issue of federal fairness," said Walden. "The financial benefit from this law to a district like mine is directly proportional to the loss in timber jobs and the resultant harm to the economy of these same communities over the last 20 years. For much of Oregon, this really is a safety net."

"For Oregon's rural schools and communities, the county payments law has replaced financial uncertainty with economic promise. It improves education, creates jobs, strengthens infrastructure and improves forest health in places where those priorities have frequently been at risk," said Wyden. "This law has proven to be a sound investment in our children, in our working families and in Oregon's richest natural resource, and the security and independence provided by this law for the last five years should be extended into the future for the sake of all our rural residents."

"When we first introduced this idea several years ago, the biggest obstacle to the passage of county payments legislation was opposition from the timber industry and environmental groups," said DeFazio. "We sure have come a long way. Organizations from the farthest ends of the spectrum have come together to support this program in a model partnership among local, state and federal interests. Today, the biggest obstacles we face are ever-tightening budgets and growing federal deficits. So we must now redouble our efforts in hand with this unique coalition to reauthorize this legislation. It is the lifeblood of rural counties across America, who serve everyday as stewards of our federal lands."

"Oregon communities lost 35,000 jobs in the forests during the last decade with the decline of timber harvests, and their education and transportation budgets have been increasingly strained," Smith said. "Providing these payments is the very least we can do. While helping them meet their vital needs, this bill also gives them a direct role in forest management."

"This law has delivered an unprecedented level of resources for Oregon's educational needs," said Hooley. "Our Congressional delegation will continue to fight for this vital reinvestment in our state's rural areas. It is one sure way to promote Oregon's demographic diversity, helping our small towns not only survive -- but thrive."

Before passage of the county payments law, Oregon counties were receiving payments as the result of 1908 and 1937 laws specifying that the government share 25 percent of U.S. Forest Service (USFS) receipts and 50 percent of Bureau of Land Management (BLM) receipts with counties in any state that hosts Federal land from which timber is cut. These payments had been used to help finance rural schools and roads. Toward the mid- to late-nineties, however, the principal source of those revenues, federal timber sales, declined by over 70 percent nationwide. Consequently, the corresponding revenues shared with rural counties throughout the country declined precipitously, hurting school and transportation funding.

In 2000, legislation to remedy this imbalance was enacted into law, establishing a six-year payment formula for counties that receive revenue-sharing payments for USFS and BLM lands. The formula established a stable source of revenue, a safety net or "full payment amount," to be used for education, roads and county services in rural areas. The safety net amount was based on historical timber receipts.

If counties elect to use funding for projects on public lands, the projects must be developed by consensus and approved by a Resource Advisory Committee (RAC), a group designed to ensure expanded economic activity for the resource-based communities that benefit from this legislation. RACs are made up of individuals from the local area dedicated to directing a portion of the funds for projects in their respective regions. A county may also choose to use funds for search and rescue, community service work camps, easement purchases, forest-related education opportunities, fire prevention, and community forestry.

The original county payments law enacted in 2000 is expected to provide more than $1.6 billion in stable funding to Oregon counties over the life of the bill. According to the USFS and BLM, counties throughout Oregon received the following payments in 2004:

"On a bipartisan, bicameral basis, we are pursuing reauthorization of this law because the people it affects in our forest-dependent communities - educators, county leaders, and the environmentalists alike - have shown us just how well it can work," Wyden said.

"I look forward to working with Representatives DeFazio and Hooley and Senators Wyden, Smith and Craig to advance this bill for the benefit of our communities, schools and children," added Walden. "We fully understand the difficult challenge we face with record deficits and the demand to rein in federal spending. However, we also fully understand the critical role this legislation will play in the livelihood of rural communities throughout the nation. We will remain committed to educating our colleagues about its importance and moving this legislation forward."

The bills have early congressional support from regions across the nation including U.S. Senator Dianne Feinstein (D-CA) and U.S. Representatives Allen Boyd (D-FL), Wally Herger (R-CA) and Bob Goodlatte (R-VA), chairman of the House Agriculture Committee.

http://wyden.senate.gov/media/2005/02032005_countypayments.html