A one-year extension of two rural county funds will lead to Clallam and Jefferson counties receiving unexpected funding.
Congressional action Friday sends a bill to the White House that would extend the Secure Rural Schools and Community Self-Determination Act and the Payments in Lieu of Taxes programs through fiscal year 2013.
That enacts a one-year extension of federal timber payments that will distribute $346 million to 700 rural counties in 41 states, with Washington getting $21.3 million.
What that means for Clallam and Jefferson counties is uncertain now — though it is expected to be several hundred thousand dollars — but county administrators said whatever they receive is more than they had expected.
Shortly after the House approved it, the Senate passed Friday a compromise version of a national transportation bill that included an amendment that extends the two programs, said Janeen Heath, spokeswoman for Sen. Maria Cantwell, D-Mountlake Terrace.
It now awaits President Obama’s signature. (See related story, Page D3 today.)
‘Wonderful news’
“It’s a piece of wonderful news,” said Jim Jones, Clallam County administrator.
“We budgeted expecting zero. It will be real helpful in building next year’s budget.”
Money earmarked for schools, roads and county governments in North Olympic Peninsula counties through the two programs is an estimated combined total of $1.4 million in Clallam County and $1.5 million in Jefferson County.
But much of that funding is diverted to the state and other agencies for use in the counties, Heath said.
The amount expected to go directly to counties is about $387,000 to Clallam County and about $486,000 in Jefferson County — money through the Payments in Lieu of Taxes program — she said.
Philip Morley, Jefferson County administrator, said this year he had hoped for $342,000 but wasn’t certain the legislation would be passed.
The final numbers for each county, school district and roads fund are expected to be released to counties in about a week, Morley said.
Jones said he had no idea how much money the Clallam County government would actually receive but said any money is better than none.
The Secure Rural Schools program — which helps compensate for lost timber revenue — had expired Sept. 30.
The Payment in Lieu of Taxes program was due to end with 2012 payments unless it was reauthorized.
The fiscal year 2012 funding was set at 95 percent of the payments for 2011, Heath said.
Morley said he had planned for a 20 percent reduction if the money arrived at all.
In 2011, Jefferson County received $428,000.
“Four years ago, we got $1.3 million,” Morley said.
At one time, Clallam County received between $8 million and $10 million annually from timber taxes, Jones said.
“It’s supposed to replace that money,” he said.
Use of funds
All funds in Clallam County will go to the roads department, to the Clallam County Sheriff’s Office and to rebuild trails, Jones said.
Morley said the funds will go into the general fund to pay for essential services.
The Secure Rural Schools funds are expected to arrive in December and the Payments in Lieu of Taxes funds in June.
“It’s too late to spend it this year. It rolls into the 2013 budget,” Morley said.
The current bill is for one year only, Heath emphasized.
After the vote Friday, lawmakers said their focus is shifting to finding a long-term solution to the issue of generating more revenue for counties dominated by federal lands since protections for fish and wildlife in danger of extinction forced sharp cutbacks on logging in national forests in the 1990s.
Schools
Funding for school districts is directed to the state, with no money going directly to the district, said Jones, who is a former school district administrator.
Public school officials have said in the past that the state deducts the amount a district receives.
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Reporter Arwyn Rice can be reached at 360-452-2345, ext. 5070, or at arwyn.rice@peninsuladailynews.com.
