Timber payments still leave county budget gaps

GRANTS PASS, Ore. (AP) - Rural county officials were happy to see the Senate pass a one-year extension of federal timber payments on Thursday, but know full well that they are not out of the woods on closing their budget gaps.
The extension is attached to a federal transportation bill, and the ultimate fate of the full legislation is uncertain.
Douglas County Commissioner Doug Robertson said he hopes there are enough jobs in the transportation bill to get the House to pass it. He added that while the money would be welcome, Douglas County would still face a gap of $2 million to $3 million if the extension becomes law, forcing them to make more cuts or tap reserve funds.
"Let's get this off our plates so counties can take a deep breath and not face insolvency in 10 months," he said.
Josephine County Commissioner Simon Hare said his county would also be several million dollars short funding law enforcement even with the extra federal money. He added that if it passes, many voters are likely to think the county's fiscal crisis is solved, and won't vote in favor of a four-year property tax increase being considered for the May ballot to raise $12 million a year for law enforcement.
"We are still going to need some other kind of funding to maintain current services," Hare said.
Both commissioners said they still were hoping Congress would come through with a long-term fix based on increasing logging on national forests, which make up large expanses of rural counties in the West.
However, they recognized that a bill to do that from Rep. Doc Hasting, R-Wash., faced a tough time in the Democratic-controlled Senate. They held higher hopes for a bill from three members of Oregon's Congressional delegation to increase logging on the so-called O&C forests in Western Oregon.
An amendment sponsored by Democratic Sen. Max Baucus of Montana would distribute $346 million nationwide over the next year as an extension of the Secure Rural Schools Act and the Payment In Lieu of Taxes program. The money goes to about 700 counties in 41 states, with the largest shares going to Oregon, California, Washington state, Idaho and Montana. The money is a mix of funds dedicated to roads and schools, and money counties can use more broadly.
The payments started in 2000 to make up for cuts in national forest logging prompted by protections for fish and wildlife. Counties get a share of revenues collected on federal lands.
The amendment cleared the Senate Thursday on an 82-16 vote. It's part of a larger transportation bill that is up for a vote next week and still needs approval from the House.
Sen. Ron Wyden, D-Ore., had been looking for a five-year extension of the payments, but was happy with the one-year deal.
"I am very pleased that we are finally moving forward with an agreement that will keep teachers in classrooms and cops on the beat while we work toward a long-term forest management solution," he said in a statement.
Copyright 2012 The Associated Press.