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Underscores importance of President’s call to extend mandatory, full funding for PILT program that supports firefighters, police, school and road construction

June 26, 2015 - WASHINGTON, DC - As Part of the Obama Administration’s commitment to rural communities, Secretary of the Interior Sally Jewell today announced that about 1,900 local governments around the country are receiving a total of nearly $405 million under the 2015 Payments in Lieu of Taxes (PILT) program.

A full list of funding by State and county is available at http://www.doi.gov/pilt.

“Rural communities across the country contribute significantly to our nation's economy, food and energy supply, and help define the character of our diverse and beautiful country,” Secretary Jewell said. “President Obama has made job creation and opportunity in rural areas a top priority for his Administration and has fought for continuing the PILT program, which is a lifeline for many local communities.”

PILT program eligibility is reserved for local governments (mostly rural counties) that contain non-taxable federal lands and provide vital services, such as public safety, housing, social services and transportation. These jurisdictions provide significant support for national parks, wildlife refuges and recreation areas throughout the year. PILT seeks to compensate them for their support and foregoing tax revenue from these federal lands.

Congress appropriated $404.6 million for payments to counties for the 2015 program. The President’s fiscal year 2016 budget proposes to extend mandatory full funding at $452 million for the program for another year while a sustainable long-term funding solution is developed for the PILT program.

“PILT payments are critical for maintaining essential public services, such as firefighting and police protection, construction of public schools and roads, and search and rescue operations,” said Jewell. “President Obama has proposed to fully fund the PILT program, and we encourage Congress to take the required action to make sure this important program continues.”

The Interior Department collects about $14 billion in revenue annually from commercial activities on federal lands, such as oil and gas leasing, livestock grazing and timber harvesting. A portion of these revenues is shared with states and counties in the form of revenue-sharing payments. The balance is deposited in the U.S. Treasury, which in turn pays for a broad array of federal activities, including PILT funding to counties.

Using a formula provided by statute, the annual PILT payments to local governments are computed based on the number of acres of federal entitlement land within each county or jurisdiction and the population of that county or jurisdiction. The lands include the National Forest and National Park Systems; lands in the U.S. Fish and Wildlife Refuge System reserved from the public domain; areas managed by Bureau of Land Management; those affected by U.S. Army Corps of Engineers and Bureau of Reclamation water resource development projects; and others.

Individual county payments may vary from the prior year as a result of changes in acreage data, which is updated yearly by the federal agency administering the land, prior year Federal Revenue Sharing payments reported yearly by the Governor of each State, and population data, which is updated using data from the U.S. Census Bureau. Federal Revenue Sharing payments are made to local governments under programs other than PILT during the previous fiscal year, including the Refuge Revenue Sharing Fund, the National Forest Fund and the Secure Rural Schools and Community Self-Determination Act of 2000, among others.

By statute, the per acre and population variables used in the formula to compute payment amounts are subject to annual inflationary adjustments using the Consumer Price Index. The requirement for annual inflationary adjustments to the per acre and population variables was included in the 1994 amendments to the PILT Act. For purposes of calculating the 2015 payment, the 2014 per acre amounts are adjusted from $2.58 per acre and $0.36 per acre to $2.62 and $0.37 per acre, and the population variables are adjusted from $69.59 - $173.97 to $70.67 - $176.67 per capita.
Source:DOI

california pilt payments 2015