Late this week, key Congressional leaders unveiled the Fiscal Year 2014 federal Omnibus Appropriations Bill, and federal Payment In Lieu of Taxes (PILT) to counties were not included.  The federal PILT program compensates counties for certain federal lands that have been taken into ownership by the federal government and are no longer subject to local property tax. 

For over 30 years, Congress has compensated these counties – many of whom are RCRC-member counties due significant proceeds.  The federal PILT program expired last year, and unless reauthorized and funded, last year’s payment would be the final payment counties receive.

It was expected that the FY 2014 Omnibus Appropriations Bill would contain nearly $500 million in federal PILT payments.  The federal Omnibus Appropriations Bill must be enacted into law in the coming days in order to avert another federal government shut down.  Congressional leaders spent the last several weeks constructing this bill. 

RCRC staff spent much of this week working alongside the National Association of Counties (NACo) in advocating congressional leaders to include federal PILT payments; nonetheless, these payments were not included. 

In light of this development, it appears the most viable option to fund PILT is through the Farm Bill.  Key Congressional leaders have been working to finalize a Farm Bill, and it is expected conversations will conclude in the coming weeks regarding the last remaining items - assisting dairy producers, the level of commodity supports, and the overall commitment to fund nutrition programs.

RCRC’s letter to the Senate Assembly Committee can be accessed here. RCRC Staff will update members of the RCRC Board of Directors on federal PILT activities at the Wednesday, January 22, 2014 Board Meeting in Sacramento. 

For additional information, please contact RCRC Senior Legislative Advocate Paul A. Smith at 916.447.4806 or psmith@rcrcnet.org.