SRS and USFS Timber Harvest Payments Election Form Due in July 

Counties have until July 12th, 2023 to submit allocation elections between SRS and USFS 1908 payments – and elections between SRS Title I, II, and III – to AOC. 

Federal Fiscal Year (FY) 2023 (County FY 2024) Secure Rural Schools (SRS) Program payments are projected to be greater than United States Forest Services (USFS) 1908 Act 25 percent timber harvest (USFS 1908) payments for all Oregon counties with USFS land. 

Please send the “Oregon Election Form FY24” for your county to Branden Pursinger at AOC to ensure all forms are submitted to DAS by the deadline.

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AOC Analysis of SRS and USFS Timber Harvest Payment Options

Recent Policy Changes

USFS has reopened the SRS election between Title I, II, and III payments for Federal FY 2023. All Oregon counties must complete this election or their allocation will revert to the default of Title I 80 percent and Title III 20 percent. All Oregon counties elected to place more funding in Title I than the default in September 2022. 

DAS is requesting that Oregon counties complete and email their election form by July 17th, 2023 to give staff time to complete the federal application process. 

Election Deadlines Between SRS and USFS

Counties can elect to receive USFS 1908 timber payments instead of SRS payments every two years (2023 and every odd year thereafter). SRS payments have been reauthorized by Congress through the Infrastructure Investment and Jobs Act (IIJA) and set at 2017 funding levels for the next fiscal year. USFS timber harvest receipt payments are calculated as 25 percent of the gross grazing fees and timber sales receipts over the past 7 years’ rolling average. SRS Payments are consistently projected to be higher than USFS timber harvest receipt payments.

Election Deadlines Between SRS Titles I, II, and III

SRS funding is divided into three titles which are earmarked for specific purposes.

  • Title I: Roads and schools
  • Title II: Special projects on federal lands
  • Title III: County wildfire protection projects, broadband access and emergency services

Counties can elect SRS allocations every year by submitting paperwork to the State Treasurer. The next deadline for SRS Allocation Elections has been moved to August 1, 2023 and every year when authorized by congress. 

SRS has a default allocation between Titles I (80 percent) and II (20 percent) if elections are not made. Please note the majority of Oregon counties elect to allocate 85 percent of their SRS distribution to Title I, a decrease in this percentage would reduce annual road funding. For FY 20 21 allocations see ASR-18-01 (page 50). For FY 2022 allocations see Table 2.

Table 2 Oregon SRS Allocations

County Title I Title II Title III
Baker 85% 8% 7%
Benton 85% 15% 0%
Clackamas 85% 8% 7%
Columbia 85% 8% 7%
Coos 85% 8% 7%
Crook 85% 8% 7%
Curry 85% 8% 7%
Deschutes 83% 10% 7%
Douglas 85% 8% 7%
Grant 85% 8% 7%
Harney 85% 15% 0%
Hood River 85% 8% 7%
Jackson 85% 8% 7%
Jefferson 85% 8% 7%
Josephine 85% 8% 7%
Klamath 85% 8% 7%
Lake 85% 12% 3%
Lane 85% 8% 7%
Lincoln 85% 8% 7%
Linn 85% 8% 7%
Marion 85% 8% 7%
Morrow 85% 12% 3%
Multnomah 85% 8% 7%
Polk 85% 8% 7%
Tillamook 85% 8% 7%
Union 85% 8% 7%
Wallowa 85% 8% 7%
Wasco 85% 13% 2%
Washington 85% 15% 0%
Wheeler 85% 8% 7%
Yamhill 85% 15% 0%

 

USFS Timber Receipts Estimates

For the first time since Federal Fiscal Year 2016 (County Fiscal Year 2017), USFS 1908 Act 25 percent payment estimates were provided by the USFS for all Oregon counties. Allocations are based on the actual receipts in each national forest and in each county, not a statewide average. The USFS has stressed that their estimates may not perfectly reflect actual payments. Timber harvest receipts have been consistent since 2016 as demonstrated in Figure 1. A slight decrease in timber harvest sales was observed in FY 2021. USFS 1908 estimates are displayed in Table 3.

Please note that Oregon and California Railroad Revested Lands – also known as O&C lands will have a different payment process for counties, with different funding sources, requirements, and estimates.

Figure 1: Oregon Timber Sales 1970 – 2018

Please note that counties only receive USFS receipts if a county selects not to receive SRS payments. In most cases, this would represent the minimum budget option.

Secure Rural Schools Estimates

Congress has taken action to reauthorize the SRS program through the Infrastructure Investment and Jobs Act (IIJA). SRS Payments are authorized for the next fiscal year and will not be subject to the typical 5 percent annual decrease. Instead, SRS payments will be increased to the amount from Federal FY 2017 for Federal FY 2023. 

SRS Payments are divided between Title I, II, and III, with Title I providing funding for roads. Counties can elect allocations of SRS funding between Title I, II, and III. 

Comparing SRS and USFS Timber Harvest Receipts

Table 3 displays the gross SRS payments including Title I, II, and III, the gross USFS 1908 payments, and the difference between USFS timber harvest receipts and SRS Payments. These figures differ from the County Road Revenue Forecasts estimates in two ways, (1) they represent the full payment to the county and ancillary bodies from SRS Title II, and (2) they represent the full payment to the county, not only the 75 percent allocated to the county road department.

This forecast represents a conservative baseline county funding model estimate and may contain a moderate margin of error. All figures are calculated before applying sequestration which should apply a 5 percent – 6 percent reduction.

Table 3: USFS Timber Harvest Receipts and SRS Payments Comparison

County FY 24
County SRS Full Payment Amount 25% 7 Year Rolling Average Difference SRS – USFS
Baker $931,900 $136,300 $795,600
Benton $131,600 $21,200 $110,400
Clackamas $1,182,100 $477,200 $704,900
Clatsop $0 $0 $0
Columbia $0 $0 $0
Coos $227,400 $61,300 $166,100
Crook $1,326,700 $59,700 $1,267,000
Curry $1,802,500 $623,400 $1,179,100
Deschutes $1,148,700 $569,000 $579,700
Douglas $6,914,300 $1,050,800 $5,863,500
Gilliam $0 $0 $0
Grant $3,979,300 $242,800 $3,736,500
Harney $1,637,800 $67,000 $1,570,800
Hood River $584,800 $205,200 $379,600
Jackson $1,626,100 $503,100 $1,123,000
Jefferson $497,600 $97,700 $399,900
Josephine $943,300 $274,900 $668,400
Klamath $6,669,700 $407,500 $6,262,200
Lake $2,689,500 $279,700 $2,409,800
Lane $8,751,100 $1,894,000 $6,857,100
Lincoln $1,465,500 $228,100 $1,237,400
Linn $3,189,900 $692,700 $2,497,200
Malheur $9,300 $800 $8,500
Marion $1,170,500 $271,000 $899,500
Morrow $204,000 $36,400 $167,600
Multnomah $181,800 $77,300 $104,500
Polk $3,900 $400 $3,500
Sherman $0 $0 $0
Tillamook $805,900 $116,300 $689,600
Umatilla $641,300 $100,900 $540,400
Union $772,000 $136,400 $635,600
Wallowa $1,145,900 $83,500 $1,062,400
Wasco $879,200 $176,900 $702,300
Washington $0 $0 $0
Wheeler $640,600 $27,700 $612,900
Yamhill $192,100 $32,700 $159,400
Total $52,346,300 $8,951,900 $43,394,400

 

Please reach out to Jordan Cole for more information, or with any questions or concerns.

Information and References

USFS Secure Rural Schools Program website

Act of May 23 (1908) (16 U.S.C. 500). 

Secure Rural Schools and Community Self Determination Act (SRS) (2000) (16 U.S.C. 500).

Infrastructure Investment and Jobs Act (IIJA) (2021) (23 U.S.C  101).

R. 6435 (2022) – SRS Legislative Fix

Contributed by: Jordan Cole, AOC policy analyst