Lincoln County stands to lose $2.5 million without PL 106-393
Reporter's comments from the Commissioners Department Heads Luncheon
January 26, 2007
An economic bomb is sitting on the Lincoln County horizon.
It is the failure of Congress to so far reauthorize Public Law 106-393, the Secure Rural Schools and Community Self-Determination Act. This legislation provided counties and schools safety net payments for loss of income from federal lands.
If Congress does not reauthorize this legislation, and it does not look good, Lincoln County will lose $3.5 million in revenue it has received over the last six years, the majority of which goes to schools and roads. The last check has been cashed. As of now, there is no more money coming.
The impact on the schools is recoverable by a 22-mil permissive levy the schools can implement without voter approval.
For the County, it is not that simple. The interest from the invested road funds have been transferred to the general fund to reduce taxes on residents. Offsetting the loss will result in reduced county services, increased county taxes, or a combination of both.
Should the Commissioners need to dip into the road fund principal, it will yield progressively less interest and eventually produce nothing.
The Commissioners are looking for ways to deal with this substantial financial hit that will have a devastating effect on county government, its employees, and the services the residents expect the county to provide. It is going to be painful. The Commissioners are identifying legally-mandated services and departments; ones they cannot eliminate. They are identifying non-essential services; ones that can be eliminated. Included in the considerations are part-time offices and staff, closure of satellite offices, eliminating or cutting employee health benefits, hiring freezes, lay-offs, a voted levy, and a voted county gasoline tax.
Story by KLCB Libby News Radio, www.todaysbestcountryonline.com
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