County discusses funding concerns for schools and roads
34 Montana counties stand to lose millions in lost payments
March 21, 2007
Montana counties could get a $65-million increase in payments from the federal government under a proposal announced by Montana’s Senator Max Baucus, one of the Senate’s most ardent opponents of a Bush Administration proposal to sell off public lands to pay for the Secure Rural Schools program.
The Secure Rural Schools and Community Self Determination Act expired at the end of last year. Without Congressional action, 34 Montana counties, including Lincoln County, stand to lose millions in lost payments. The program compensates counties for lost tax-revenue from federal lands, funds that are used to pay for education, road construction, and emergency services. The Bush Administration had proposed selling off as many as 300,000 acres to renew the program, a move met with grave resistance in Western states like Montana.
Baucus indicated the new proposal will have to be included in an Emergency Supplemental Spending bill in the Senate next week. The proposal could change the formula used to distribute funds across the nation in a way that’s more fair to all states. Currently, three states – California, Oregon, and Washington – receive 75 percent of the total amount available in the program.
Baucus, chairman of the Senate Finance Committee with jurisdiction over taxes, helped broker the agreement by developing a solution to pay for the program that neither sells public lands nor drives the nation deeper into debt.
Under the proposal, Montana’s share of funding could spike by an estimated $65 million starting in fiscal year 2007 through 2011, for an overall total of as much as $150 million to Montana counties, up from about $14 million.
The Secure Rural Schools and Community Self Determination Act was a topic of discussion at the Tri-City-Lincoln County Commissioners meeting on Tuesday, March 20th. The loss of $3.9 million dollars a year to Lincoln County has been a grave concern of the Commissioners. Lincoln County uses interest from the invested road fund portion, about a million a year, to transfer to the general fund.
Without the Secure Rural Schools and Community money, the commissioners have been constructing a game plan which would include reduced services, staff reductions, increased fees, and the possible addition of local gasoline taxes.
“We’re not specifically looking at any cuts at the moment,” Commissioner Rita Windom told the Mayors and City Councils of Libby, Troy and Eureka. “I’m not going to tell you what we’re thinking with the press and the radio station in the room,” she said. “This is a premature conversation,” said Windom.
“No decision has been made. I don’t want to speculate,” said Commissioner Marianne Roose. “We are extremely encouraged,” added Roose.
Tied to the Iraq War funding, through the Emergency Supplemental Appropriation Bill, this is still not a done deal. Bush has threatened a veto if the bill contains a pullout deadline for troops.
The Tri-City-Lincoln County Commissioners meeting was called by Libby Mayor Tony Berget in hope of finding ways for the communities and the county to work together in solving the economic challenges facing the county. “We need to get back into the forest industry,” said Commissioner John Konzen.
“The cities need to work to develop an economy to create jobs,” said Windom. “It is critical that the communities be on board with economic development,” she added.
Story by KLCB Libby News Radio, www.todaysbestcountryonline.com
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