Baucus, Rehberg, Tester call for faster payments to counties

The members of Montana's congressional delegation have joined other senators and representatives in calling on the federal government to make sure Payment in Lieu of Taxes to counties go out as close to on schedule as possible.

Local county officials, though, say they are not extremely concerned about a short delay.

T h e U. S .

I n t e r i o r Department h a s a n n o u n c e d that distribut i o n o f Payment in Lieu of Taxes, which normally are distributed by June 30, will be delayed. PILT is used to make up for lost taxes on land owned by the federal government, which would generate local property taxes if privately owned.

Sens. Max Baucus and Jon Tester and Rep. Denny Rehberg joined other members of Congress in sending a letter to Interior Secretary Ken Salazar urging him to release the funds by the previously scheduled date.

"County governments, already facing a dismal economic situation, cannot wait an extra month for these funds, or simply suspend their operations for a month," the letter reads.

"They need these funds now, simply to keep their doors open." All three members of Montana's congressional delegation also commented on the delay in press releases.

"As states like Montana face budget deadlines, the federal government, which is the single biggest landowner, isn't paying its bills," said Rehberg.

"While urban states are balancing their budgets on the back of the Montana taxpayer, rural states are being ignored. This is just the latest example of what happens when every lever of power in Washington, D.C., is controlled by big-city politicians with big-city priorities." "PILT is vital to Montana counties, and I have always fought for this program, including passing a bill in 2008 to fully fund the program for the first time in a more in than a decade," Baucus said. "Any plan to delay that funding puts Montana's rural counties in a tough spot, and it's too much to ask as folks and entire communities work hard try to make ends meet." "A lot of folks across Montana and rural America rely on this important source of funding — which is only common sense in counties that have more public land," Tester said. "Montana's counties need this funding on time so they can balance their books. Any delay will leave communities with the short end of the stick, and that's not going to fly in Montana." But the local county commissioners don't seem overly concerned.

Vic Miller, a commissioner in Blaine County, which receives the largest PILT payments in the area — more than $600,000 — said a delay in receiving the money is better than not receiving it at all.

"As long as we have a rough idea, we can budget it in," he said.

Miller added that PILT moneys are much like expected revenue in oil and gas production.

"We budget for them, but if you don't get it, you don't spend it," he said.

Hill County Commission Chair Mike Wendland said Hill County has so little federal land a delay is no major problem.

Last year Hill County received $45,866 in PILT money.

"We don't get enough that we Depend on it for revenue," he said.

Harold Blattie, executive di rector of the Montana Association of Counties, said it only is in the last few years that the money has been distributed in June. Before that, it was put out in line with the federal budget year, with the allocations made in September.

He said a few county officials have contacted MACo about the delay, but most don't seem too worried about it. The only real problem would be if they anticipated how much they would receive and have obligations they will need the funds for, he said.

"They shouldn't have been spending it before they get it anyway," Blattie said.

C h o u t e a u C o u n t y Commissioner Daren Schuster said a larger concern for him is whether the full payments of PILT will continue past 2012.

Until Baucus proposed and Congress approved full payment, counties typically only received a percentage of the amount computed owed for federally owned land.

"The 100-percent payout certainly made a difference for everyone," Schuster said.

Chouteau County received $324,075 in PILT money in 2009.

Miller said Baucus and Tester were essential in getting the 100-percent payment of PILT money, along with the payments for Secure Schools. He said the National Association of Counties is working to get that amended into law by 2012, so the issue will not have to be repeatedly addressed.

The full payment was good for county governments, he added.

"That was kind of a major victory around the country," Miller said.