In ongoing meetings with intergovernmental partners at federal agencies and in Congress, participants are advocating for full PILT funding and speedy reauthorization of the Secure Rural Schools program, which together support critical infrastructure in America’s public lands counties.
This is money that rural counties with a lot of federal land desperately rely on to provide essential services because the tax base is often so measly due to that ownership.
“Even though they are not able to collect property taxes on federal land, county governments must still provide essential services for both residents and visitors, from road and bridge maintenance, to law enforcement and emergency services, to solid waste disposal,” said NACo Executive Director Matthew Chase.
“Given how essential these funds are for sustaining county responsibilities, counties are asking for full funding of the PILT program, and for that program’s authorization to be made permanent.”
The impacts of inadequate funding
“Since the program’s expiration at the end of the last Congress, payments to the over 700 rural counties reverted to the 1908 timber receipt formula. This impact is profound for these SRS payment counties, which have experienced an 80% average decrease in funding and in some cases, resulting in funding cuts of more than 90%,” wrote Sen. Mike Crapo, R-Idaho, and Rep. Doug LaMalfa, R-Calif., to GOP leaders in Congress in a letter dated Tuesday.
“This drastic drop in revenue forced many counties to immediately delay critical road and bridge maintenance, reduce school funding and scale back emergency and law enforcement services. These are not abstract policy impacts, they are real-world consequences for counties hosting untaxable federal lands.”
In 2023, the rural schools program delivered $232 million to roughly 700 counties, but with reauthorization now lapsed, many face severe budget shortfalls, officials said.
“Together, PILT and SRS represent crucial resources for ensuring the financial stability of America’s public lands counties,” Chase said.
“Swift reauthorization of Secure Rural Schools and full funding for Payments in Lieu of Taxes will ensure counties are able to continue providing the services we are mandated to provide on all land within our borders — including federally owned land.”
“Together, PILT and SRS represent crucial resources for ensuring the financial stability of America’s public lands counties,” Chase said.
Utah’s push for funding
A 2020 Utah legislation resolution identified $534 million as the minimum current annual property tax equivalency for all federal lands in the state of Utah, under the lowest, fair property tax equivalency scenario, compared to the less than $41 million that the state received for 2019.
In 2023, Utah received $40 million payment in PILT money, but state leaders argued that it was a paltry amount that did not come close to meeting rural counties’ needs.
In addition to over 80 meetings with federal officials and congressional offices, county leaders in Washington for the fly-in participated in a forum on oil, gas and timber revenue sharing programs, hosted by NACo’s National Center for Public Lands Counties.
The forum featured remarks by U.S. Sen. Ron Wyden, U.S. Rep. Cliff Bentz, and speakers from the U.S. Department of the Interior.
Nearly 610 million acres are eligible for federal investments through the PILT program, but the funds have gone wanting.
Kane County Commissioner Celeste Meyeres said the impacts have been dramatic.
She noted that 25% of revenue from nearby timber production on federal lands is supposed to go to support local schools and communities.
But decreases in logging and timber harvesting have led to decreases in school and community funding. And, she noted, less than 25% of the money is making it to schools and the community.
She added that retirement of the program in 2024 resulted in 90% reduction in funding for Kane County Schools and community this year.