Washington, DC – The Senate has approved a bipartisan measure to authorize a five-year extension of the Secure Rural Schools and Community Self Determination Act, U.S. Senators Dianne Feinstein and Barbara Boxer (both D-Calif.) announced today.

The measure, which authorized approximately $5 billion for rural schools, counties and communities through 2012, was approved as an amendment to the Fiscal Year 2007 Supplemental Appropriations bill. Passage of the bill on the Senate Floor is expected later this week. Under the measure approved today, California’s counties would receive $283 million from FY 2007 – 2011 under the Secure Rural Schools Program.

The FY’07 supplemental bill also includes $425 million of emergency funding for a one-year extension of the Secure Rural Schools Program. This is in addition to the $100 million that would otherwise have been available from timber harvest receipts.

“The Senate today voted to ensure that California’s rural communities will have a steady stream of funding for their schools and road improvement projects for the next five years.  Without the funding provided by the Secure Rural Schools Program, California could stand to lose $57 million this year alone. This could have resulted in school bankruptcies, teacher layoffs and the elimination of student services,” Senator Feinstein said. “So, the Senate has approved a program that would provide full funding for one year of the Secure Rural Schools Program, and then would put in place gradual reductions in funding over the next four years, rather than a sudden, catastrophic loss of funds.”

“I am so pleased the Senate has acted to restore funding for schools in rural counties throughout California that have been struggling to make ends meet.  I want to thank my colleagues who have worked tirelessly on this issue to ensure that all children, no matter where they live, are given the opportunity to learn in a nurturing environment,” Senator Boxer said.

This is a multiyear proposal to restore about $2.8 billion funding through 2012 for the Secure Rural Schools and Community Self Determination Act.

Additionally, the plan includes five years of full funding for Payment in Lieu of Taxes (PILT), which compensates states for loss of tax revenue from Federal lands in the state.  Full funding of PILT would also provide California with an estimated $11 million or more additional dollars annually on top of the $21 million California currently receives from PILT. 

Over 700 counties in 39 states received funding under the Secure Rural Schools and Community Self Determination Act of 2000, which was allowed to expire in September 2006.  Despite repeated efforts by the Senators to reauthorize the bill last year, the Congress and Administration could not agree on a funding source for the legislation.

Last year, California’s rural counties received a total $69 million under the Secure Rural Schools and Community Self Determination Act. For example:

• Siskiyou County received $9.58 million;
  Trinity County: $7.99 million;
  
• Plumas County: $7.5 million;
  
• Shasta County: $4.15 million; and
  
• Lassen County: $4.01 million.

Unless the program is extended, counties in California would receive only approximately $12 million from forest timber receipts, or less than 20 percent of current funding. Without an extension of the program, California could stand to lose $57 million for schools and road projects in 2007 alone.

The amendment has the support of the National Association of County Officials, the National Forest Counties & Schools Coalition, and the National Education Association.

Summary of the Secure Rural Schools Extension and Reformulation & Full-funding for PILT

• Provides $2.8 billion in funding over five years for a multi-year extension of the Secure Rural Schools program.
• Provides $1.9 billion to fund the Payment in Lieu of Taxes (PILT) program for five years, from 2008 through 2012.  This program compensates states for the loss of tax revenue from Federal lands in the state.
  
• Provides funding beyond Fiscal Year 2007 that is fully offset, primarily by increased penalties for those filing inaccurate or fraudulent federal tax returns.
• Provides California, Oregon, and Washington with additional transition funding in the early years to minimize the effects of the overall decline of the total authorization level to $379 million in 2011 under the Secure Rural Schools program.
• The additional transition funding for these states (California, Oregon, and Washington) would also help counties with adjusting to the new funding formula under the Secure Rural Schools program. 
  
• The new funding formula would be based on the current formula of historical payments and the current acreage of U.S. Forest Service and eligible Bureau of Land Management lands, along with a mechanism to focus support on those communities in greatest economic need.

Senator Feinstein’s Role
       
Earlier versions of the proposal would have cut California’s share in the first year by approximately 13 percent – a total of $9 million.

Based on Senator Feinstein’s efforts, the proposal was revised to hold California harmless in the first year.  Feinstein also fought to include a provision that requires that counties would receive only gradual reductions in secure rural school funding over the next five years, rather than a sudden, catastrophic loss of funds. 

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