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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Forest Funds For Counties Get Trimmed

Schools and county road departments throughout Idaho will get significantly less money from the national forests this year because of accounting errors, falling timber prices and falling harvest.

Shoshone County will suffer the greatest loss - nearly $1 million. Kootenai County is losing nearly $300,000.

The U.S. Forest Service gave Idaho $400,000 too much last year and is making the adjustment by cutting this year’s allotment, according to the State Treasurer’s office. That mistake won’t cost North Idaho.

But drops in timber prices and harvest will significantly reduce what Panhandle counties receive. That’s one more argument for fixing Idaho’s method of funding schools, so the state pays more of the bill, some school officials say.

The Kellogg School District has been planning on smaller checks from the Forest Service for quite some time, Superintendent Greg Godwin said. “Obviously forest funds are an integral part of our total budget,” Godwin said.

This year’s drop, nearly $1 million for all of Shoshone County, is the most significant reduction in recent history. It could mean a supplemental levee or budget cuts, Godwin said.

As a result, “it’s our goal to have the state fund education in a thorough enough manner that we don’t have to depend upon forest funds or supplemental levies supported by local taxpayers,” Godwin said.

Counties receive 25 percent of the money the Forest Service is paid for timber sales, recreation activities and grazing within a particular counties boundaries, or they are paid a minimum fee in lieu of property taxes - whichever is greater. That money goes to schools and county roads.

Benewah County received $76,801 last year and that drops to $62,435 in 1997. Bonner County’s share will drop from $971,001 to $565,691 and Boundary County’s check will go from $978,616 last year to $549,790 this year.

Kootenai County’s forest revenue was $800,936 last year and will be $492,483 this year. Latah County’s drops from $240,985 to $196,347.

Declining county payments often are blamed on the Forest Service reducing timber sales. That’s not the case in North Idaho this year.

The Idaho Panhandle National Forests sold 70 million board feet of timber in 1997 vs. 60 million board in 1996. Timber companies, however, chose to cut 80.7 million board feet of timber from the Panhandle Forests in 1996.

These companies cut only 56.9 million board feet of the timber they had purchased in 1997. Counties aren’t paid for the timber until it is harvested.

Timber prices also affect county payments. Ample production combined with a weak Asian market are expected to continue to pull those prices down.

Reductions in property tax assessments for timber mills also is sharply reducing property tax revenue. Crown Pacific sued Bonner and Kootenai counties over the assessment of its mills.

Those suit were settled, with Crown Pacific getting an a $315,000-a-year cut in its tax bill.

, DataTimes MEMO: This sidebar appeared with the story: FOREST FUNDS Where it comes from Counties receive 25 percent of the money the Forest Service is paid for timber sales and other activities within their boundaries.

Benewah County 1996 $76,801 1997 $62,435 Bonner County 1996 $971,001 1997 $565,691 Boundary County 1996 $978,616 1997 $549,790 Kootenai County 1996 $800,936 1997 $492,483 Where it goes The money goes to school districts and county roads.

This sidebar appeared with the story: FOREST FUNDS Where it comes from Counties receive 25 percent of the money the Forest Service is paid for timber sales and other activities within their boundaries.

Benewah County 1996 $76,801 1997 $62,435 Bonner County 1996 $971,001 1997 $565,691 Boundary County 1996 $978,616 1997 $549,790 Kootenai County 1996 $800,936 1997 $492,483 Where it goes The money goes to school districts and county roads.