Forest Service Pays Less to States

Dateline 2/27/2000

You may not know it but the U.S. Forest Service helps support local government in states with national forests.  This is not necessarily because the Forest Service has a kind heart. By law they have to reimburse states for "in lieu tax money".  Many U.S. counties would lose major revenues from their "non-taxable" national forest lands if not for this "in lieu" payment program.

The Forest Service pays out 25 percent of its annual revenues collected from timber sales, grazing, recreation, minerals, and land uses to states in which national forest lands are located.  Forty-one states and Puerto Rico will share about $208 million from national forest receipts to fund schools and roads for fiscal year 1999. Oregon receives the largest final payment, $20.3 million, followed by California, $8.7 million, and Washington, $6.5 million.

"These payments represent a continued commitment between the Forest Service and rural America. These payments allow rural communities to share in the assets of our public lands." Agriculture Secretary Dan Glickman said.  Glickman noted that payments to states have declined dramatically since 1989 due to decreased timber harvests over the past decade.  However, the Administration has been working with Congress to try to stabilize payments to counties and schools.

This drop in timber sale revenue, which translates to county payments, has local governments seeing red.  Local revenues to schools are off as timber cutting is down to 1955 (see chart) levels.

"The Administration is committed to providing both stable payments for schools and roads as well as sound management and protection of our National Forests. We don't have to sacrifice one for the other. We believe we can balance both these social imperatives," Glickman said.''

On Oct. 15, 1999, the U.S. Department of Agriculture's Forest Service made interim payments of $149 million to states based on estimated national forest revenues for the year. A final payment of over $59 million, based on actual receipts collected during the year, was paid January 14 of this year.

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What is Your State Paid?
USDA Forest Service Payments to States 
from National Forest Receipts (Fiscal Year 1999) 

Further Reading:

Changing Economics of the National Forest Timber Sale Program
"It now appears that the Forest Service’s Timber Management Program has evolved from a large-scale enterprise focused mainly on fiber production to a smaller-scale enterprise focused largely on using timber sales to help promote forest and ecosystem health."

Should We Harvest Timber on U.S. Forest Service Lands?
The U.S. Forest Service believes that there are "critical environmental reasons to retain timber harvest as a component of national forest management."

Quarterly Sold and Harvest Reports
Total volumes and values of forest products sold and harvested from the National Forest System.

1905 Use Book - Timber Regulations
Gifford Pinchot's instruction and regulation book that has guided U.S. Forest Service policy.

National Forest Counties and Schools Coalition

 

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