An update from Rep. Schwaderer

Timber management in Mineral and Sanders Counties can see a revenue benefit to local services, as well as the economic boost of increased work and wages. The local revenue is known as “county payments”, which are traditionally 25 percent of gross revenues paid to the state, allocated to the county based on forest acreage. These payments help make up for the fact that counties miss out on control and revenue on these lands but still have to provide basic services for the entire area.

This is not to be confused with PILT (payments in lieu of taxes), which will be covered in a later letter.

In 2000, Congress passed the Secure Rural Schools and Community Self-Determination Act. Due to the volatility of timber markets this act allowed communities to choose to receive the average of the three highest payments from 1986-1999 (instead of the standard 25 percent). Volatility can result in sharp increases in local taxation due to funding shortfalls. The act was set to expire in 2006, has been renewed repeatedly until now where it is likely to expire. The funding for Secure Rural Schools has been decreased with each renewal.

This act brought some stability to communities, however one House Resolution is seeking a more permanent fix.

H.R. 1526, Restoring Healthy Forests for Healthy Communities Act, introduced by Representative Hastings (Washington), may provide more county stability and support our timber industry.

The Act establishes minimum volume management levels per a “forest revenue area” to stabilize timber economies and payments to counties. The Act also extends Secure Rural Schools until the Forest Reserve Revenue Areas are fully operational. HR 1526 is compliant with current sideboards on timber management while also providing that harvesting levels remain lower than the annual yield. This ensures that our timber resource is sustained indefinitely while reducing fuel levels that can produce catastrophic wildfires.