The deal, supported by all six members of Oregon's congressional delegation, would extend the life of the county timber payments program for five years, bringing Oregon as much as $400 million in gradually decreasing installments. That would give the counties, Gov. John Kitzhaber and others time to find a more permanent solution to financing schools and other crucial services.
"This is really good news," said Kitzhaber, who is in Washington this week. Rural counties in Oregon "are teetering on the edge."
The federal program was created in 2000 to reimburse local communities for lost income from the sale of timber on federal lands. Counties get 25 percent of the revenue from federal timber sales, but when logging plummeted, so did revenue.
More than 700 counties in 41 states have received payments. But western states are the biggest recipients and Oregon, where more than 50 percent of the land is owned by the federal government, has been at the top. The program ended in 2008, but was temporarily renewed. It ended again Sept. 30.
Thirty-three of Oregon's 36 counties get payments, but rural communities are the most dependent. In most of those counties, the federal government owns the majority of the land, pinching the property tax base and limiting local officials' ability to develop their local economies.
Without the money, counties face closed libraries, shorter school years, cuts in sheriff's patrols, and in extreme cases, bankruptcy. If the counties fail, the state would be forced to help, sending a financial ripple through services statewide.
Eric Schmidt, spokesman for the Associated Oregon Counties, said an extension simply means a continuation of the cuts to federal spending that already have put deep strains on county services. "While we certainly appreciate what Sen. Wyden and the rest of Oregon's congressional delegation have done, we're certainly hopeful that ... they will be able to work with their colleagues to improve the funding."
Douglas County Commissioner Doug Robertson said his timber-dependent community needs all the help it can get.
"Even though the amount is disappointing and the ramp down over five years is disappointing, it keeps the issue in front of Congress, and that's very important," he said.
In a joint statement issued by Wyden, Kitzhaber, Sen. Jeff Merkley, Democratic Reps. Earl Blumenauer, Kurt Schrader, Peter DeFazio and Republican Rep. Greg Walden, the lawmakers said the deal could provide the momentum needed to push the payments into law.
Under the plan, Sen. Jeff Bingaman, a New Mexico Democrat, will introduce a bill for the program next week. Bingaman chairs the Senate Energy Committee, and is a crucial gatekeeper in making sure the bill gets to the Senate floor.
Wyden said Bingaman's support clears most – but not all – hurdles in the Senate. The goal, supporters say, is for the Senate to approve the legislation with a solid majority so it can be added in the House to a giant spending bill that will keep the government operating for the rest of the fiscal year, which expires Sept. 30, 2012.
"If it passes the Senate with a substantial majority, that puts us in a good position" to be part of a larger funding bill, DeFazio said in an interview.
"I don't believe there's any way to bring the bill up separately in the House under Republican rules. You can't pay for it by closing tax loopholes; you can't pay for it by raising revenue. All you can do is cut something else. So what are we going to do? Eliminate the Forest Service?"
Walden, the delegation's lone Republican, said he's committed to pushing a bill forward in order to buy time.
"For the long term, we have to get back to using our own resources to generate the jobs and revenue," he said in an interview. "Frankly, that's what the counties want, what the schools in these communities want; it's the best alternative."
To get there, the counties must have "bridge funding," he said. "The situation has only grown more desperate in the rural communities."
The most promising idea is to put certain federal lands in trust status. Some would be used to raise revenue that would go to local communities while other lands would be more highly protected as wilderness.
Both DeFazio and Walden are working on plans.
Harry Esteve of The Oregonian staff contributed to this story.
-- Charles Pope
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