Missoula and Ravalli counties could lose around $800,000 each. Flathead County stands to lose $1.9 million and Sanders County just less than $1 million.
Lincoln County faces the biggest blow, with a potential loss of $3.6 million, according to figures tabulated by the Montana Association of Counties.
“(People) may think it's just a reduction to the county, but so much of that translates into jobs and programs,” said Harold Blattie, MACO executive director. “This is truly a thing that can tear at the fabric of communities.”
Missoula County's potential loss includes $400,000 to its transportation budget, which means the county would continue to use road graders more than two decades old, said Public Works Director Greg Robertson. That money also buys asphalt and rock to maintain paved roads.
At issue is the expiration of the federal Secure Rural Schools Act, established by Congress in 2000 as a six-year funding cushion for counties affected by slumping timber sales. Counties that are home to national forests receive 25 percent of the proceeds from timber harvesting, mineral resources, grazing fees and recreational activities.
In some cases, this also reduces federal money coming to Montana through the Payment in Lieu of Taxes (PILT) program, which pays local governments for lost revenue on nontaxable federal land.
Total losses to counties in Montana could be as high as $15 million, said Blattie, which is why he's recommending counties start finding ways now to make up the shortfalls.
“Don't wait until July before dealing with this possible loss,” he said.
Congress extended the program in 2006, but only for one year, and it has not yet been reauthorized. Just this month, county governments in Montana received their last paychecks from the program.
Mineral County could lose nearly $1 million, as
85 percent of its acreage is national forest land.
“Basically, you'd have to raise taxes to your county or reduce services immensely,” said Mineral County Commissioner Clark Conrow. “Montana counties and schools really face a crisis with this.”
To make up for that kind of loss, he said, a Mineral County resident owning a $100,000 home could expect a tax increase of $1,500 - or see fewer services.
It's too soon to call it a crisis, Blattie said, but “it's getting a little more so every day and every day and every day. It reduces the chances of something getting done.”
In Missoula County, Commissioner Larry Anderson encouraged the public to speak up about the potential cuts. Before becoming a commissioner, Anderson was a field representative for U.S. Rep. Denny Rehberg, R-Mont.
“This was the one question county commissioners always asked,” said Anderson, referring to the status of PILT funding. “That is an important part of these county budgets.”
Whatever portions of these federal funds don't go to Missoula County's transportation budget go either to the general fund, fuel mitigation or to rural schools. Missoula County Schools Superintendent Rachel Vielleux said a small amount goes to schools, so if the money gets cut, tax increases would be minor.
Montana's congressional delegation favors reauthorizing the money, but county commissioners hope more public feedback will help the delegation better persuade their undecided congressional colleagues.
There's still hope the Secure Rural Schools Act will be reauthorized, but likely not until spring. Even that, Blattie said, “doesn't give any of us any warm fuzzy feelings.”
Reporter Chelsi Moy can be reached at 523-5260 or at Chelsi.Moy@Missoulian.com.
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