Lane County could soon choose timber receipts over SRS funding

Presenter: One Lane County commissioner is hoping to bring the county millions of dollars more each year in timber receipts, without an increase in the cut.

But first, a decision on Secure Rural Schools money. On July 15, Budget and Financial Planning Manager, Christine Moody:

Christine Moody (Lane County, budget and financial planning manager): This is a thing that’s existed since SRS (Secure Rural Schools) began, that you have to make an election of whether you want SRS or you want timber receipts.

So it is something that the county has done multiple times. We’ve typically done a board order. We don’t have time to do that. The last couple renewals have just said, ‘hey, we’re going to assume that you’re electing what you’ve always elected.’ 

That was the last couple renewals. This one said, ‘We’re going to assume that you’re electing what you already elected for the first two years, and it’s silent on this third year, which is the current budget year.

So we received an email here very recently saying, ‘Hey, we’ve got a deadline August 1. We want to know what you elect.’

So we’ve done the analysis that SRS is still better for us because the road fund gets such a large amount from SRS. You’ve heard me say during the budget process that the general fund actually does better with timber receipts and has even before this percentage change, would have been better with timber receipts. 

But the county as a whole, we’re looking at the county as a whole and all the funds that we receive. 

Presenter: Commissioner David Loveall:

Commissioner David Loveall: We’re coming up on an election deadline on Friday for the county to decide if they want to take timber receipts or SRS funds. So I want to give you a little bit of background of what’s going on with that.

There’s obviously some still moving-target changes. And toward the end of the year, the federal administration is committed to tripling or even quadrupling our output for the O&C lands, which could change our future of our selections and our elections of taking SRS funds versus timber funds.

So I want to run a few numbers by you. I don’t want to confuse you with a lot of numbers, but I think it’s one of those complex situations. Director Moody and I and Steve Adams were talking this morning that you have to have a little bit of understanding of where things go and where we’re at.

There’s 15 counties that are within the Association of Oregon and California counties at this juncture. Five counties are better off taking timber receipts. Five counties are better off taking SRS money. And five counties are kind of on the bubble.

So that’s kind of where we’re at. Our recipient numbers equate to about $8.1 million in timber receipt money versus right now, we’re still standing at $8.8 million in SRS money. So obviously the choice is right now for $500,000 difference, it would be to take our SRS selection election.

So with that, I’d like to get some head nods from the board here to authorize staff to better digest the data of this SRS versus timber receipts. And right now it looks like—obviously the SRS money is what we’re going to be sticking with—and submit our vote to the Association of Oregon and California counties so they can submit appropriately in a timely fashion the federal vote that is due on Friday. 

Presenter: He said there’s an opportunity to get 25% more in receipts from the O&C lands. Commissioner David Loveall:

Commissioner David Loveall: Now, the thing that the O&C and the folks in the timber industry and the federal government are still working in partnership with, is to get the O&C counties funds out of the SRS money, which they’re projecting at some point would put us about 25% more money than what we’re getting.

This year’s number would be if it was out—if the O&C money was out of the SRS—we’d be getting about $12.1 million in receipts money.

So we’re right on the cusp there, of some major changes happening that the next board is going to have to look at and keep abreast of on the changing landscape of the SRS continuations and the increase in timber production that would make our timber receipts more palatable to elect.  

Presenter: Commissioner David Loveall says Lane County can increase its timber receipts, without increasing the cut. 

You’re listening to KEPW 97.3, Eugene PeaceWorks community radio.