A Shortfall?

 

Sam’s questions led to a general discussion:

• Sam asked where the budget shortfall is from. Sherry replied:

• SRF money (forest fund(?)) is ending (few hundred thousand dollars)

• ESRA (aka Covid relief) money ending ($1.2 Million)

• Sam stated it made no sense to cut the teaching positions;  asked that they include RIFS for all COVID hires, to buy time.

• Lynne and Sue said that was not possible, as this was not on the board agenda.

• [NOTE:  I asked to be on the agenda, specifically to deal with this problem, on March 16 at 10am and was refused.]

• Sherry (Radcliff) then stated that she had been saying for two years that these cuts were coming (around 11:50 on the audio)

• Becky then tried to ask if the number of RIFs was equal to the budget shortfall.  Things got a little unpleasant, but the answer appears to be yes.

• Becky then tried to state that in that case, the board's hands are going to be tied.  

• Sam about eliminating the LPN hires from covid there is now an LPN in every school but Hillsboro);  he was told that was not an option (I didn’t understand why)-- Notes of Karen O'Neil

The concept of payments in lieu of taxes (PILOT) arose from the challenge of lost property tax revenue for local governments. Here's a breakdown of its history:

• The Issue: Land owned by governments or non-profit organizations is generally exempt from property taxes. This reduces the tax base for local governments, limiting their ability to fund essential services.

• The Solution: The United States implemented a formal PILOT program in 1976 with the passage of Public Law 94-565. This law recognized the financial burden on local governments due to non-taxable federal lands within their borders.

• The Provider: The federal government, through the Department of the Interior, makes PILT payments annually to local governments, typically counties.

• The Purpose: PILT aims to compensate local governments for the property tax revenue they would have collected on federally owned land. This helps fund crucial services like fire protection, law enforcement, road maintenance, and schools.

• The Coverage: PILT applies to federal lands managed by various agencies like the National Park Service, the Bureau of Land Management, and the U.S. Forest Service.

PILT has been an ongoing program, with discussions about funding levels and ensuring fair compensation for local governments.

Calculating PILOT Payments

The calculation of PILOT payments involves several factors:

• Land acreage: The amount of federal land within a county's jurisdiction significantly impacts the payment. More federal land generally translates to a higher PILOT payment.
• Population: PILOT payments consider a county's population density. Counties with higher populations tend to receive larger payments to support essential services.
• Payment factors: The Department of the Interior sets a base payment rate and adjusts it with various factors, including economic conditions and local tax rates.

Program Evolution

Since 1976, the PILOT program has undergone some changes:

• Funding fluctuations: The program's funding levels haven't always kept pace with inflation or the increasing demands on local governments. This has led to concerns about the program's effectiveness in compensating local governments.
• Calls for reform: There have been ongoing discussions about reforming the PILOT program to ensure fairer and more stable funding for local governments. Proposals include considering factors like the value of the land and the specific social and environmental costs borne by local communities.
• Expansion of PILOT programs: Some states have implemented their own PILOT programs to address funding shortfalls due to non-taxable state lands. These programs vary in their eligibility criteria and calculation methods.

As of today, March 29, 2024, the Payments in Lieu of Taxes (PILT) program is funded but with some temporary extensions:

• Funding Level: The program is currently funded at the same rate as 2023. This means the total amount distributed to counties remains the same.
• Temporary Extensions: Funding for PILT was recently extended through March 8, 2024, under the Further Additional Continuing Appropriations and Other Extensions Act, 2024 (P.L. 118-35). This indicates a need for further legislation to determine long-term funding.
• Payments: The latest round of PILT payments totaling $578.8 million was made in June 2023 to over 1,900 local governments.

Here are some resources for staying updated on the PILT program's status:

• Department of the Interior - PILT: https://pilt.doi.gov/
• National Council of Nonprofits - Taxes, Fees, and PILOTs: https://www.councilofnonprofits.org/trends-and-policy-issues/taxes-fees-and-pilots-payments-lieu-taxes

 

NICHOLAS COUNTY	$117,681			37,051
OHIO COUNTY	$268			85
PENDLETON COUNTY	$310,762			132,984
PLEASANTS COUNTY	$142			45
POCAHONTAS COUNTY	$980,052			311,339
PRESTON COUNTY	$12,365			3,928
PUTNAM COUNTY	$1,284			408
RALEIGH COUNTY	$42,260			13,425
RANDOLPH COUNTY