Title
Chief Administrative Office recommending adoption of Resolution 299-2008 making payment elections under the Secure Rural Schools and Community Self-Determination Act of 2000, as amended.
Body
Fiscal Impact/Change to Net County Cost: Revenues to the County for FY 2008-09 of $2,160,949 (Option #1) or $538,046 (Option #2).
Background: The Secure Rural Schools and Community Self Determination Act of 2000 (Act), was enacted by Congress to stabilize funding to counties for road maintenance and public schools in recognition of the decline of revenues from timber sales on federal lands. The Act was effective through the end of 2006; however Congress granted a one-year extension which provided funding in 2007. The Act was amended and reauthorized for fiscal years 2008-2011 on October 3, 2008.
Reason for Recommendation: Under the legislation, the County is required to choose a payment option and remit this information to the United States Department of Agriculture (USDA) no later than November 14, 2008. The options are:
1) "Share of the State payment"-this is calculated using a formula provided in the legislation which is based on prior payments and the amount of federal land in the county. Under this option, payments decline over the term of the legislation, and the total gross payment to schools and the County over the four-year period is $10,946,238.
2) "County Share of the State's 25% Payment" - this amount is based on a seven-year rolling average of a county's timber yield payments prior to the enaction of the Act. Under this option, annual payments over the term of the legislation would be uniform, however the total gross payment to schools and the County for the period is $4,304,364.
A table illustrating the payment options is attached. The recommendation is to choose option #1. If option #1 is chosen, the County must set aside 15% to 20% of the payment to be allocated for forest projects under Title II and Title III.
In the past, t...
Click here for full text