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Monday, April 23, 2012

Payments to timber counties could continue if Congress keeps them in bill to extend road funding

Federal subsidies paid to timber-producing counties could be extended if the Senate's version of a proposed transportation bill is combined with the House's temporary extension of transportation funding, reports Jeff Barnard of The Seattle Times. Counties with national-forest land have received subsidies since 2000 to recover their share of federal timber revenues that dropped when logging in the forests was cut more than 80 percent. The subsidies have now run out.

Oregon is being hit hard by the end of subsidies. Josephine County, which has long depended on timber payments, is struggling with a $12 million budget shortfall. Officials are considering quadrupling property taxes, and say they will have to lay off 125 people if the funding extension doesn't happen. The general fund is falling by 25 percent in Lane County, which receives the highest amount of timber payments.

The Senate proposal would distribute $346 million to 700 counties in 41 states, which would be a 5 percent drop from 2011 payments. Congress isn't likely to vote on the proposals before May 15. Oregon Sen. Ron Wyden said if no one in the House actively opposes the timber payment extension, the measure could be in the final bill. (Read more)

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