The revival of funding painted as bringing $333,967 to Jefferson County was the topic of celebratory statements by both of Montana’s senators last week, even though only one of them voted in support of the funding.
And despite the celebratory statements, Jefferson County Commissioner Bob Mullen says the action does not amount to any “net” new funds for the county.
The senators said the renewed Secure Rural Schools (SRS) initiative will deliver $14 million to Montana to help fund critical county-run services like law enforcement, schools and roads. Congress let the program expire in 2015, but Sen. Jon Tester, a Democrat, spearheaded an effort to revive the funding.
Tester was also the only member of Montana’s Congressional delegation to vote to reauthorize SRS funding.
“Over the last few years folks across Montana have experienced, firsthand, the severe consequences of letting SRS expire,” Tester said. “Roads go unpaved, emergency services suffer, and schools lose out on critical resources. That’s why I’ve been relentless in my efforts to reauthorize SRS and bring this much-needed funding back to Montana counties as we look for more responsible ways to cut debt and spending.”
Sen. Steve Daines, a Republican, voted in March against the annual government funding bill that included the SRS funding. At the time, he was quoted by the Billings Gazette as saying, “The omnibus bill is a fiscal disaster that will take us deeper into debt and threaten our economy.”
Last week, after the Forest Service released payment levels for the counties, Daines issued a statement touting the SRS funding without mentioning that he voted against reviving the funding.
“These much-needed funds are critical for Montana’s rural counties who have fallen on hard economic times due to declining timber harvests and natural resource production,” said Daines.
“I will continue to fight for long-term solutions that strengthen the health of forests and create good-paying jobs so rural counties can invest in their communities,” he added.
Congress passed SRS in 2000 to compensate forested counties for lost revenue due to declining timber production on federal lands. For the next 15 years, more than two dozen Montana counties received annual SRS payments to help fund schools, roads, jails, and other essential services. However, when Congress let SRS expire in 2015, the annual payments dropped by more than 85 percent. As a result, total SRS payments to Montana counties went from $18 million in 2015 to just over $2 million in 2016 because payments without SRS are determined by an older formula that allots significantly less funding.
“It is nice to see Congress’s re-approval of the SRS authorization as a commitment to local government and promises made previously,” said Commissioner Mullen.
“Unfortunately, despite much anticipation, it doesn’t amount to any ‘net’ new funds for the county,” he said. That is because another source of federal funding, PILT or payments in lieu of taxes, is reduced by an offsetting amount.
“There may be a way around having the funds offset from PILT,” said Mullen. “I am pursuing that possibility now. If it is allowable to avoid the offset, then the funds mean real dollars to the county and, potentially, economic development initiatives such as recreation and trails.”
