NOELLE STRAUB Star-Tribune Washington bureau | Posted: Thursday, February 14, 2008 12:00 am
WASHINGTON - Interior Secretary Dirk Kempthorne faced hard questioning Wednesday over the proposed 2009 budget and Western issues including funding for rural counties, the fate of Yellowstone National Park's Sylvan Pass and states' share of mineral royalty revenues.
Kempthorne indicated a willingness to negotiate on some of the concerns brought up during an oversight hearing of the Senate Energy and Natural Resources Committee.
President Bush requested $10.7 billion for the Interior Department for fiscal year 2009. Committee Chairman Jeff Bingaman, D-N.M., noted that Congress funded the department at $10.6 billion eight years ago. Adjusted for inflation, that means a reduction of 18 percent in its budget over Bush's two terms, he said.
Several senators objected to a proposal tucked in the budget that would extend a new law altering the previous 50-50 split between the state and federal share of mineral royalties, allowing the government to keep 52 percent. The administration has said the extra money is needed to cover administrative expenses.
Sen. John Barrasso, R-Wyo., said the change would cost Wyoming about $21 million a year. "The people of Wyoming find this offensive, they find it unacceptable," he said.
Kempthorne noted that the 2 percent charge was in place until 2000, when it was dropped, and that congressional appropriators reinstated it in the 2008 budget.
Barrasso said Wyoming spends only $5 million on administering mineral taxes in the state and suggested that the state could save money by taking over the federal administrative tasks, too.
"We'd be happy to have that discussion, and I believe we're going to," Kempthorne responded.
Sen. Ron Wyden, D-Ore., slammed the budget for reducing funding for Payments in Lieu of Taxes and for a rural county payment program, calling it a "one-two punch on the rural West." The budget includes $195 million for PILT, which is $34 million below the 2008 level. PILT compensates local governments for tax revenue lost through federal ownership of lands in their areas.
Kempthorne said no administration has ever provided full funding for PILT but added that he'll take another look at both programs. He also said allowing additional harvest of timber would help.
Barrasso asked about Sylvan Pass. The Park Service in November proposed stopping the use of explosives on the pass to clear the road for winter travelers, instead opening it to snowmobiles and snow coaches only when it's deemed safe. The decision also included a provision for officials to negotiate with the state of Wyoming, the city of Cody and Park County. The group has until June 1 to reach a new agreement.
Barrasso asked if the Park Service is prepared to make significant changes to the decision.
"We're very mindful of the desire for that pass to remain open," Kempthorne said. "We're also mindful of the safety issue with regard to avalanche. And I believe what ultimately is going to be resolved is that as long as safety is maintained, and we do not have an avalanche warning situation, that we can continue to have access through that pass."