Yesterday, Secretary of the U.S. Department of Agriculture Tom Vilsack announced that counties would receive payments for 2014 under the Twenty-Five Percent Fund Act of 1908.  This announcement was made in light of the Congress’ inability to reauthorize the Secure Rural Schools and Community Self-Determination Act (SRS) for 2014.  In an absence of SRS reauthorization, the 1908 Act mandates that States receive 25 percent payments from timber sales and other enterprise activities on National Forest lands.  California’s counties are expected to receive $8.6 million in lieu of SRS payments for FY 2014, compared to more than $35 million counties would receive under SRS – a near 75 percent decrease.  

If Congress were to enact SRS funding for 2014, it is expected such an action would need to occur in the coming weeks to avoid exercising the 25 percent rule; however, it is expected, that if reauthorization were to occur much later, adjustments to SRS payments would be made to account for monies being forwarded to counties that receive payments from the 1908 Act.  Complicating matters is that Federal Payment in Lieu of Taxes (PILT) payments would also need to be adjusted in light of an absence of SRS reauthorization.  Federal PILT readjustments would occur at a much later date.

RCRC continues to advocate for reauthorization and long-term funding for SRS, and has recently launched a multi-pronged advocacy and media strategy urging Congress to reauthorize funding and to retroactively fund Fiscal Year 2014 SRS.  RCRC will be attending the National Association of Counties Annual Legislative Conference at the end of February to meet with federal Congressional members, as well as Agency and Congressional staff, to discuss the need for these critical funds to support our local schools and roads.