WASHINGTON, D.C. — Today the U.S. House of Representative missed an opportunity to provide funds for essential services in rural counties across our nation.  Despite vigorous support from Congressman David Wu and most of Oregon's House delegation, the Public Land Communities Transition Act failed to pass the U.S. House of Representatives by a vote of 218-193, with two voting present.

H.R. 3058 would have extended payments through 2011 to eligible counties that previously received funds through the Secure Rural Schools Act.  Counties use the funds to hire teachers, healthcare workers, and emergency service providers who provide vital services to rural communities.  

The bill would have been paid for with funds obtained by closing a loophole in certain oil and gas leases that exempts companies from paying royalties that would otherwise be standard during times of skyrocketing oil prices.  

“In the biblical story, God asked Abraham to sacrifice his son Isaac.  On the House floor today, Big Oil asked Republicans to sacrifice children in rural communities,” said Congressman Wu.  “Republicans need to learn that Big Oil isn’t God.”

Exactly 100 years ago, Congress passed a law creating a partnership with rural counties that have a high percentage of federal land.  Once those national lands became off-limits to the counties for development, Congress took action to compensate the counties for the permanent loss of tax revenue from those lands.  The law allowed a percentage of the revenue produced from federal land resources to be returned to the applicable county.

Over the years, due to changes in federal forest policies, the revenue from public lands decreased dramatically. Yet public lands are still off-limits for development, which leaves many counties facing dramatic decreases in their tax base should payments expire this summer as scheduled.

"This is a very serious issue in Oregon, where counties have already issued pink slips to police, firefighters, teachers, healthcare workers, and other essential personnel in order to balance next year's budgets," Wu said.  "It is not an exaggeration to say that some Oregonian's lives may be in danger if these cuts take place."

The Congressional Budget Office’s preliminary estimate found that no new tax dollars would be needed to for this legislation, due to the oil company offsets, satisfying the Democratic Congress’s fiscal responsibility rules.  Under the bill, payments to counties would be reduced by 10 percent each year.  

"This bill struck the right balance. It would have immediately helped rural counties that, through no fault of their own, are suffering tremendous budget shortfalls," continued Wu.  "But it also provided a sunset for these payments to give counties a clear framework to use when assessing budgetary needs for the future."

As the budget season continues, Congressman Wu will continue to fight for rural communities and seek out new legislative vehicles for county timber payments.