Rural counties welcome recent OK of federal appropriations

GRANGEVILLE — The inclusion of the Secure Rural Schools and Payment in Lieu of Taxes appropriations in the year-end funding package signed recently by President Donald Trump was a relief to local counties dependant upon federal reimbursements for nontaxable land.

But the year-to-year uncertainty of the renewal of those dollars remains a headache to county budget writers, who would like a more reliable way to plan yearly income and expenditures.

“I’d like to see something done with it permanently,” said Clearwater County Commission Chairman Rick Winkel. “We’re going to have to make major changes in how we do business. A lot of people are complaining about the fact that, without those monies, we have got to be very sparing with the resources we have. Otherwise, we’re not going to have enough to make it through the winter. That’s part of the problem with taking these kinds of payments. It’s a short-term fix for long-term problems.”

The end-of-year funding package includes a two-year authorization of the Secure Rural Schools program to help rural communities in Idaho and elsewhere. The Payment in Lieu of Taxes appropriation was approved for one more year.

The Secure Rural Schools and Community Self-Determination Act was enacted in 2000 to financially assist counties with public, tax-exempt forestlands. Critical services at the county level have historically been funded in part with a share of timber receipts from U.S. Forest Service lands. As those revenues have fallen or fluctuated because of reduced timber harvest and market forces, SRS payments helped bridge the gap to keep rural schools open, provide road maintenance, support search and rescue efforts, and other essential county services. In recent years, however, Congress has allowed SRS funding to lapse and decrease, creating massive uncertainty for counties.

The SRS fund is divided between school districts in the county and road departments. PILT money, on the other hand, is deposited in the counties’ general funds and can be used for a variety of expenditures. PILT also supplants what rural, forested counties cannot collect in private property taxes.

According to the Idaho County Clerk’s office, Idaho County received $6.7 million in SRS payments in 2018. That same year, the county received $1.7 million for PILT. Payments are made a year after they are approved by Congress. The checks have not yet been cut for fiscal year 2019.

Clearwater County received $510,595 for the county’s road and bridge fund in 2018, according to the county clerk’s office. It received $772,457 that year in PILT payments, which was used for current expense, justice and indigent budgets.

Winkel said the money Clearwater County expects to receive this year will be used mainly to purchase heavy equipment needed for road maintenance.

Idaho County Commission Chairman Skip Brandt said there was an attempt in the U.S. Senate to craft a bill that would have set up something like a trust fund, with the intent that counties could draw on the interest each year, maintaining the balance and a continuous source of income, rather than relying on congressional approval every year or so.

That proposal didn’t get anywhere before the end of the year, Brandt said, so Congress put forward the funding plan that has been used in the past, although SRS payments are expected to be decreased by about 5 percent this year.

“It’s really a train wreck in multiple ways, but in the end we’re very thankful for getting two more years of SRS and one more year of PILT,” Brandt said.

“Two years ago we didn’t think SRS would come in, so we levied (the amount needed to balance the budget) and then the check came in,” Brandt added. “So we set those funds aside that we did levy for that rainy day, if SRS doesn’t come in.”

Hedberg may be contacted at kathyhedberg@gmail.com or (208) 983-2326.