Timber counties face cuts

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GRANTS PASS, Ore. - Closed libraries. Gaping potholes. Sidelined sheriff's patrols. Laid-off teachers. Higher taxes.

Barring some kind of rescue, those are some consequences rural, timber-dependent counties in Western Oregon are looking at as they prepare budgets.

Congress failed to renew a safety net that has paid $2.9 billion over the past six years to 700 counties in 40 states that once enjoyed the benefit of federal timber revenues.

Oregon, long a leading timber producer where more than half the land is owned by the federal government, has been getting more than half that money, about $250 million a year for a total of $1.6 billion.

California, the next highest, has been getting about $60 million a year, Washington $40 million and Idaho $20 million. At the low end, New York has been getting about $16,000, and Maine $40,000.

"We have been very complacent," Lane County Commissioner Anna Morrison said from Eugene. "We thought this would just resolve and take care of itself. It's pretty obvious that has not happened."

Members of Oregon's congressional delegation are committed to trying to win a one-year extension of the safety net, but prospects are by no means certain, after opposition from the U.S. Chamber of Commerce shot down efforts to extend it during the lame duck session last week.

"The good news is we had the strong support of the leadership on both sides of the aisle," Rep. Peter DeFazio, D-Ore., said from his home in Springfield. "They are now aware of the magnitude of the issue, and hopefully that bodes well with the renewed bipartisan approach in the coming year."

There may be a chance to revive the payments for one more year as an attachment to the continuing resolution to fund the government, which comes up in February, he said.

But anything offered will have to produce less money for Oregon and more for the other states, he said, and the new pay-as-you-go rule for spending measures means finding something else to cut.

Historically, national forests have given 25 percent of the revenues from timber sales, instead of taxes, to the counties where the trees were growing. The money goes to roads and schools.

Eighteen counties in Western Oregon got an even bigger cut from lands once given by the government to the Oregon & California Railroad, but bought back after the railroad went broke.

The railroad was supposed to sell off the land to raise capital, at the same time generating a tax base for rural counties. Congress agreed in 1937 to pay the counties half the revenue from timber cut from the 2.4 million acres.

After lawsuits forced protection of old-growth forests for the northern spotted owl, logging was cut 80 percent on federal lands in Washington, Oregon and Northern California.

National forests around the country followed suit. The money for counties came crashing down, and in 2000 a six-year safety net was created by Congress to soften the landing. But the 18 O&C counties in Western Oregon have yet to find alternative sources of revenue, holding out for some kind of rescue.

The final payments were made this month, and counties preparing new budgets for the fiscal year starting July 1 are looking at major holes to fill.

"This will be the first time in Douglas County history we've been without a safety net or timber dollars," Douglas County Commissioner Dan Van Slyke said from Roseburg. "Unless something happens drastically, we're going to be in serious shape."

Because of the timber revenues, timber counties had lower property taxes when restrictions on raising them were imposed in 1990 and 1996, leaving little room to increase revenues without going directly to voters, who have been in no mood to pay more.

"They've said that emphatically," said Coos County Commissioner John Griffith, who is looking at losing $6 million a year that represents 50 percent of discretionary spending. "So the public … will say why are we cutting things they like, like police patrols, parks and other sorts of services they might be fond of. The answer is that's the only place we have any choice."

Jackson and Josephine counties are looking at closing their libraries to reduce the impact on sheriff's patrols and jail operations. In Coos County, libraries have their own tax district, and so will remain open. But the jail and sheriff's patrols will be hard hit. Roads will lose $1 million, one-sixth of the budget.

"That means one out of every six potholes will remain open," Griffith said. "You still break your axle, you just go a little further before you hit the pothole."

Coos County has saved enough money to cover one more year, and Douglas County two and a half years. But other counties have not.

Schools throughout Oregon will also be hurt. They shared $33 million from the safety net this year.

South Lane School District in Cottage Grove is losing $400,000, 1.6 percent of the budget of $25 million. That's enough to pay for eight teachers, and with the budget already lean, there is little to cut but people, said Superintendent Krista Parent.

The cuts come as Cottage Grove is seeing its economy diversify and improve after the timber collapse, said Parent.

"For me it's hard to replace that kind of money," said Parent. "But we've probably got to move on and look ahead."

That's a minority view.

The Association of O&C Counties has proposed selling off half the O&C lands to continue payments to the O&C counties. The half currently designated for logging would be sold, and the half designated for old-growth forest reserves would remain under federal ownership.

Though he is a Republican, Van Slyke said he was disappointed in the Bush administration's failure to come up with a solution, and was hoping Democrats taking control in the new session of Congress will do better for timber counties.

The sell-off would have been a tough sell under the Clinton administration, and will be even tougher now, said DeFazio. The Bush administration's proposal to sell surplus federal lands to fund the safety net was shot down when Republicans were in charge, and the White House will have even less influence in the new Democratically controlled Congress.

Morrison thinks Lane County may take the bold step of proposing an income tax to fill the gap. A measure to raise more than $20 million for public safety was defeated by a margin of just 2 percentage points, 51-49, in November.

"I guess maybe I'm more of a realist than some," she said.

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