FAQs forTitle I-Secure Payments for States and Counties

Updated: December 8, 2008

Elections and Allocations

What are the county election and allocation timelines for FY 2008?

The Forest Service previously requested states and counties to elect to receive a share of the 25% payment or a share of the Secure Rural Schools State (formula) payment by November 14, 2008. 

Does each county actually need to make an active election of which payment to receive?

It is in the best interest of counties to actively make an election of which payment to receive.  The legislation directs that in the case of a county that does not make an active election, that county will be considered to have elected the state payment for the term of the legislation (FY08-11).

By law, failure to submit these elections by the deadline will result in the county being considered to have elected to receive a share of the State payment (the formula payment) and, if the county will receive more than $100K in FY08, to return 15-percent of its share for FY08 to the Treasury in lieu of allocating 15 to 20-percent for Title II or Title III projects.

What are the election choices?

Each county in an eligible state must elect to receive one of the following payments:

(1) a share of the State’s 25-percent rolling average payment, OR
(2) a share of the State payment (formula payment).

A county in California, Louisiana, Oregon, Texas, Pennsylvania, South Carolina, South Dakota, or Washington that elects the “State payment” is electing to receive a share of the State’s transition payment in lieu of the State payment (formula payment).

A county election to receive a share of the 25-percent payment is effective for 2 years, and, a county must again make the election to receive a share of the State payment or the State’s 25-percent payment by August 1, 2010.

A county that initially elects to receive a share of the State payment (formula or transition payment as applicable) may not change its election in subsequent years—it will receive its share of that payment for FY2008-FY2011.

For a county that elects to receive the 25% percent rolling average payment, no additional information is needed.  For a county that elects to receive a share of the “State payment”, the following additional allocation information is needed each year.

By law, failure to submit these elections by the deadline will result in the county being considered to have elected to receive a share of the State payment (the formula payment) and, if the county will receive more than $100K, to return 15-percent of its share to the Treasury in lieu of allocating 15 to 20-percent for Title II or Title III projects.

What are the yearly allocation requirements?

If the county share of the State payment (or State transition payment) is greater than $100,000 but less than $350,000, the county must allocate a total of 15% to 20% of its share to Title II, Title III, or a combination or return 15% of it’s share to the Treasury.  The total of percentage amounts in allocated to Title II and III must be no less than 15% and no greater than 20%.

If the county share of the State payment (or State transition payment) is $350,000 or greater, the county must allocate a total of 15% to 20% of its share to Title II to Title III, except that the allocation for Title III projects may not exceed 7%, or return 15% of it’s share to the Treasury.  The total of percentage amounts allocated to Title II and Title III combined must be no less than 15% and no greater than 20%.

If the county share of the State payment (or State transition payment) is less than $100,000, the county may, but is not required to, allocate a portion of its share to Title II or Title III.

Must a county that will receive more than $100,000 participate in Title II or Title III?

No, but the alternative is to return 15% of the county share to the Treasury.

Payment

Why are 2008 payments subject to the new formulas rather than the prior distribution formulas, since the legislation was authorized after the end of FY2008?

Although the legislation was passed early in FY2009, the legislation specifically applies to payments made with respect to FY2008.  The legislation directs that payments for FY2008 be made as soon as practicable after the legislation’s passage.  The Forest Service will make the FY2008 payment no later than January 15, 2009.

Is the new 25% rolling average payment permanent or will the old formula be reinstated after 2011?

It is a permanent change and will not expire with the legislation.

If a county doesn't make an election in FY2008 and 15% of the county share is returned to the Treasury, can they make a allocation the following year?

Counties that have elected to receive the State payment (formula payment) must make an allocation each year by September 30. Funds allocated to Title II and Title III are carried forward each year. Authority to initiate projects under these Titles ends on September 30, 2011.  Any funds not obligated by September 30, 2012 are to be returned to the Treasury.

May a county located in a covered State (California, Louisiana, Oregon, Texas, Pennsylvania, South Carolina, South Dakota, or Washington) elect to receive a share of the State payment (formula payment) in lieu of a share of the State transition payment?

No. Section 103 provides for transition payments in lieu of State payments for covered States. A county in a covered State may elect to receive either: (1) a share of the State’s 25-percent payment, or (2) a share of the State payment (formula payment). However, under section 103(b), the Secretary of Treasury is required to pay a covered State a transition payment “in lieu of the payment amounts that otherwise would have been made” under section 102(a)(1)(B) for a share of the State payment. In effect, in a covered State, a county’s election to receive a share of the State payment is an election to receive a share of the covered State’s transition payment. Because the SRS Act substitutes the transition payment for the State payment in covered States, the county may not elect to receive a share of the State payment.

Payments in lieu of taxes (PILT)

What is the interaction between PILT payments and Secure Rural Schools  Act payments?

Payments under the SRS Act do not replace PILT payments; however, a county's PILT payments may be reduced if the county receives increased payments under the Act. Any county that has been receiving PILT payments in addition to its 25 percent payments should continue to receive PILT. However, because the PILT payment formula considers other prior year Federal land payments in its calculation, counties that receive increased funding under the SRS Act may find that their PILT payments are reduced. This will not affect counties already receiving mandatory minimum PILT payments (i.e., counties that already receive large Federal land payments). PILT payments for these counties should remain unchanged.

In general, only the roads portion of the Title I allocation and Title III allocations are considered in the PILT payment formula.  Title I funds for schools and Title II funds are not considered in the PILT payment formula.