PORT ANGELES — Former state Rep. Jim Buck warned business leaders that declining timber revenues from county forest trust lands could lead to higher taxes or fewer public services in Clallam County unless residents pressure state and local officials to better manage the lands for its beneficiaries.
Buck, who represented the 24th Legislative District from 1995-2007, delivered his presentation Tuesday to the Port Angeles Business Association during its weekly breakfast meeting at Jazzy Joshua’s.
He outlined what he described as fiduciary and management failures by the Legislature and the state Department of Natural Resources in overseeing the Clallam County Forest Board Trust, for which the Legislature is the legal trustee, and DNR sets policies and approves major decisions about timber sales, land exchanges and leases.
There are three categories of trust lands in the state: county forest trust lands, federal grant lands and state forest lands.
Buck emphasized that legislation specifically names the county and junior taxing districts — not the entire state — as the sole beneficiaries of county forest trust lands.
Revenue to junior taxing districts funds fire districts, schools, libraries, hospitals and ports.
Among the projects Clallam County Forest Board Trust timber revenue has supported are the new Sequim library, the new Fire District 4 station in Joyce, Monroe Playfield in Port Angeles and Spartan Stadium in Forks.
The state’s obligations as trustee require undivided loyalty, prudent management and protection against conflicts of interest — standards, Buck said, are not being met and have an adverse impact by diminishing the trust’s ability to generate revenue.
Of the 538,920 acres of county trust land across the state, about 94,323 acres – or 17.5 percent — is in Clallam County.
Buck estimated Clallam County Forest Board Trust Lands’ total value at $2.3 billion, with annual revenue of about $6 million, yielding what he said is as an unacceptably low return of 24 percent.
“By law, 75 percent of county forest trust revenue is supposed to go back to the county and its junior taxing districts, with 25 percent retained by the Department of Natural Resources,” he said.
State Commissioner of Public Lands Dave Upthegrove’s policy on timber sales that has delayed or reduced harvests already has cost the county millions of dollars in lost or deferred revenue — another example of the state’s failure to manage the trust solely for its beneficiaries, Buck said.
Upthegrove’s action has imperiled mills, truckers and other workers in an industry that needs a steady timber supply to stay operational, Buck said.
Among the issues threatening county trust lands are actions by environmental groups through legal challenges, vandalism and sabotage that delayed harvests and created expensive delays, the Elwha Watershed Study that would remove land from the trust, and trust land transfer set-asides, Buck said.
Set-asides that remove forest trust lands from commercial timber harvesting to meet conservation, habitat or other objectives reduce timber revenue and shift costs to local taxpayers, he said. Such actions, as well as replacing timber revenue with cash, do not replace the jobs tied to logging and processing wood.
The city of Port Angeles is not a trust beneficiary, although it can advocate for restrictions, land swaps or protections involving county forest trust lands. However, any loss of timber revenue falls on the county and its junior taxing districts, not the city itself.
That disconnect, Buck said, illustrates a frequent pattern with county forest lands, with parties attempting to shape policy without regard for those who have to shoulder the financial consequences.
Audience members questioned the effectiveness of lobbying state lawmakers, with some expressing frustration that previous efforts have failed. Buck acknowledged the challenge, saying legislative solutions appear unlikely in the near term, but broader coordination among counties and taxing districts could strengthen the case for reform.
He urged local officials, school boards, fire commissioners and hospital districts to speak collectively about the importance of trust revenue. He also called for public education campaigns to explain the connection between forest management, jobs and local tax burdens.
Buck said the state must either manage the trust according to its fiduciary obligations or compensate counties fully for any revenue lost to policy decisions.
“This is about protecting local services and quality of life,” he said. “If the revenue disappears, the choice is simple: fewer services or higher property taxes.”
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
