Forest Lands Funding to Rural Schools -- Rural Policy Matters, Volume 1, Number 9 (November 1999)

In last month's RPM issue we had a report from Idaho that noted the declining revenues available to many rural counties with large tracts of National Forest and forested Bureau of Land Management land. A 1908 law requires 25% of the government's timber receipts from this federally owned real estate be returned to the states to help such counties offset the loss of local property taxes. Changing markets and environmental concerns are some of the factors that have resulted in a reduction of timber revenues in recent years, especially in western states. Many affected counties are facing severe school budget cuts as this historically stable funding stream dries up.

As we go to press, Congress is ironing out what looks to be a workable compromise between competing bills favored variously by timber interests, environmentalists, and the impacted schools and communities. As with many such compromises, no one will likely be totally satisfied with the outcome; however, it may work to solve the current crunch for our friends in Idaho and elsewhere.

(On-line update: On November 3, 1999, the House passed H.R. 2389, known as the County Schools Funding Revitalization Act of 1999.)