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R.V. counties have a lot at stake By PETER WONG Though local property taxes are growing and federal payments shrinking as income sources, Jackson and Josephine counties still have millions riding on whether future payments should be linked to logging in the Northwest's federal forests. The position of the Association of O&C Counties, reaffirmed it Dec. 4 at its annual meeting in Springfield, is that western Oregon counties should have a choice between fixed payments and future shares of actual timber sales. As important as the payments are to county governments, said Jackson County Commissioner Sue Kupillas, a senior O&C board member, "jobs and economic stability also are important." But the association's president, Douglas County Commissioner Doug Robertson, said there is reason for optimism. "We have stated unequivocally that we cannot go forward with legislation that excludes `either/or' language for the counties," said Robertson, who grew up in Medford. "But I think we are much closer than many think we are in reaching an agreement with those who appear to occupy the other side." To cushion losses to county governments after agencies reduced logging in the Northwest's federal forests to protect habitat for the northern spotted owl, Congress approved a 10-year guarantee of payments to counties in 1993. The payments, based on 1986-90 averages of timber sales proceeds to counties, decline 3 percent annually through 2003-04. About 257 million board feet was offered on western Oregon O&C lands this past year, a quarter of the 1 billion board feet cut annually in the late 1980s. Bureau of Land Management payments to Jackson County, the second largest recipient of timber sales from lands formerly owned by the Oregon and California (O&C) Railroad, have declined gradually from $12.3 million to about $10.2 million. Payments to Josephine County, the fourth largest recipient, have declined from a high of $9.5 million. Both also receive Forest Service payments. Unlike national forest proceeds, which must go to roads and schools, O&C payments can be used for any governmental purpose. This declining "safety net" ends in five more years. Clinton's proposal would stabilize Jackson County's O&C amount at $11 million, and Josephine County's at $8.5 million. Jackson County now receives more in property taxes than from O&C payments, but it and Josephine County still rely on them for general operations. Timber funds: Time for a change? By JOHN HUGHES The Associated Press WASHINGTON -- Ninety years ago, Uncle Sam made a deal with towns near national forests: The Forest Service sells federal timber, counties get a cut of the proceeds. Local governments since then have used billions of dollars in timber bounty to educate children and pave roads. This year, the Forest Service is shipping nearly $220 million to 41 states, mostly in the West. Now the Forest Service wants to change the way it gives out the cash. Payments would be frozen, no longer tied to the number of logs it sells. The agency touts the change as bringing stability to counties and schools, who otherwise see payments fluctuate wildly depending on the cut and market conditions. "Why should the education of rural school kids and other social services be contingent on what level of timber harvest we have?" said Forest Service spokesman Chris Wood. Environmentalists cheer the idea, saying it would remove an incentive to log federal forests. Some counties also want to sever the link between timber sales and federal checks, saying the system pressures counties to push for logging. "Leave us out ... on the issue of how to manage federal forests," said Peter Sorenson, a Lane County commissioner. But other county officials want to be involved. Gordon Ross, a Coos County commissioner, said logging is critical to his area's economy and has been reduced too much already. He worries that changing the payment system would remove his say in managing forests. Republicans in Congress also oppose the change. They helped kill it when the Clinton administration proposed it earlier this year. But the proposal is expected to be back when Clinton unveils his budget early next year. Nobody disputes that counties and schools need the cash. Many of the areas are surrounded by miles of non-taxable federal lands. These counties have struggled to adapt to federal payments that are roughly $140 million lower than they were in 1989, due to a sharp decline in federal logging. Loggers typically took 10 billion to 11 billion board feet from federal forests between 1962 and 1988. In recent years, the take has fallen to about 3 billion board feet. The drop was especially sharp in western Washington, western Oregon and Northern California, areas that are protected for the northern spotted owl. Congress in 1993 gave the "spotted owl" counties a break. The counties through 2003 are allowed to collect payments based on logging receipts from 1986 to 1990, when the timber harvest was more robust. Lane County, for instance, gets $32 million under the "spotted owl" break, instead of the $11 million it would receive if payments were tied to the most recent timber harvest. The Forest Service wants the rest of the counties to be able to get the same arrangement. So when the agency introduced its plan this year, it expected payments to rise by $37 million, mostly because non-owl counties in Washington, Oregon, Idaho, Montana and California were expected to want their payments based on the 1986-1990 harvests. For those counties with a 1997 harvest higher than the 1986-1990 average, the Forest Service would freeze payments at 1997 levels. The idea had few takers, but all sides hope to work out a compromise after the new Congress convenes in January. Ross and the Association of Oregon Counties favor a flexible payment system. Counties would get payments based on the current year's harvest or 1986-1990 levels, whichever is greater. Rep. Peter DeFazio, D-Ore., has a plan that would add an annual inflationary increase to the Forest Service's frozen payments. It would also give counties five years to decide whether they want to sever the link between the payments and logging. DeFazio said a new plan needs to be passed before the "spotted owl" break expires in 2003. "It's critical this be continued," DeFazio said. "We've got an opening here. We don't know that the next president will support this guarantee in revenue." Mail Tribune Copyright � The Mail Tribune 1998, Medford, Oregon USA