March 21, 2007

TO:            NFCSC Members

FROM:      Bob Douglas

RE:            Update and Action Alert!

Senate Majority Party and Leadership Reach Agreement on Five-Year Reauthorization of the Secure Rural Schools & Communities Act!

Tuesday afternoon the following Majority Senators announced that they had reached agreement on a Five-year (2007-2012) reauthorization of PL 106-393 to be contained in an amendment to the Emergency Supplemental Appropriations Package next week on the floor of the Senate.  The Senators making the announcement included: Senate Majority Leader Harry Reid (D-NV), Senator Jeff Bingaman (D-NM), Senator Max Baucus (D-MT), Senator Ron Wyden (D-OR), Senator Dianne Feinstein (D-CA), Senator Barbara Boxer (D-CA), Senator Patty Murray (D-WA), and Senator Maria Cantwell (D-WA).

Beginning today, the Senators will launch a campaign to develop bipartisan support for the amendment in the Senate.  A vote on this issue is expected by the middle of next week, prior to the Easter Congressional recess.

The precise details of the proposal have not been released as legislative language is being finalized.  However, in a briefing for organizational leaders on Tuesday afternoon, we were provided with the following information.

Five-Year Reauthorization (2007-2012)

• The bill proposes a Five-year reauthorization of PL 106-393 from 2007-2012.

New National Funding Formula

• A new distribution formula based on 50% PL 106-393 receipts levels in 2006 and 50% of the funding distributed on the percentage of the national forest (183 million acres) that are contained in each state and county.  This calculation for each county will then be adjusted (upward or downward) based upon the counties per capita income level in relation to the median per capita income level for all forest counties.  If the counties per capita income level falls above the median for all counties, then the calculated county payment will be decreased.  If the per capita income level is below the median for counties, then the calculated county payment will be increased.  The designers indicate that this mechanism was designed to ensure that future county payments will be directed to those counties most in need of the funding.  This formula will immediately go in effect – 2007.
• This new formula will result in substantial increases in payments to counties and schools in over 30 states.
• California, Oregon, and Washington under this formula would have taken substantial cuts in 2007.  However, California, Oregon, and Washington will be funded for 2007 at the same level they received in 2006 (held harmless for 2007).
• Several states are expected to experience varying declines in payments in 2007 under this proposal.  Until we see final figures we cannot comment further on the states and the magnitude of those decreases.

Four-Year Ramp Down Included

• Starting in 2008 the payments received by all states in 2007 will be ramped down by 10% per year for three years (2008, 2009, and 2010).  In 2011 all states will be transitioned to the new funding formula amounts for their states.
• For California, Oregon, and Washington all counties will decline in funding on an equal basis – 10% in 2008, 10% in 2009, and 10% in 2010.  The decline in 2011 will be calculated for these three states, in order to transition to the new funding formula, and all counties in each of those states will be decreased by the same amount in order to complete the transition onto the new funding formula.
• The authorization for the new law is expected to expire on September 30, 2012.

Full Funding of PILT – Beginning in 2008

A provision to fully fund PILT beginning in 2008 is also included.  This will add an incentive for non-forest county states and states that marginally benefit from PL 106-393 to support the amendment.  Long a goal of rural counties, the full funding of PILT for four years is a huge victory and should prove to be an attraction for many Senators.  Of equal importance, is the fact that in many counties, increasing PILT from 2008 to 2012 payments will partially offset the losses in PL 106-393 payments due to the 10% ramp-down.

Offsets Identified to Fully Fund the Package

Most importantly, Senate leaders have indicated that sufficient budget offsets have been identified to pay for this proposal.  The exact nature of the proposed offsets have not been announced to date.  We would request that Coalition members refrain from debating the appropriateness of the offsets if and when they are announced.

Coalition Response

While we await the exact language of the bill and the state and county distribution figures for Secure Rural Schools and Communities and PILT, we are very optimistic about the overall effect of this proposal.  This represents an excellent solution and staff and members are to be commended.

There are some lingering questions beyond the distribution of funding including:

1. The status of Titles II and III, and will these be modified in any way in the new bill.
2. Whether or not there are provisions to form RACs in those states with newly increased funding levels (We see expansion of RACs as highly desirable to all concerned.)
3. Does the bill contain windows of opportunity to opt in or out of PL 106-393 at the beginning and mid-point of the reauthorization? (Very important for some member states and counties.)

We will be pursuing these questions with members of the Senate and key staff members in the next several days.

Action Alert!

Western States – Please call your Senators and thank them for assisting in putting this package together.  Then, we need to launch an all out nationwide grassroots effort to support this amendment in the Senate.  Please contact your Senators (other than the ones previously listed) and urge them to support the Wyden-Bingaman-Baucus amendment to reauthorize the Secure Rural Schools and Communities Act (PL 106-393).  Please contact friends and relatives in non-western states and ask them to contact their Senators and advocate on our behalf.  (A list of phone and fax numbers is attached.)

We will have an action strike force team of Coalition leaders and professional association lobbyists on the ground in DC all of next week assisting our sponsors to get this done.  You can help – call or send faxes immediately to any of the following Senators urging their support.

Conference Committee

If the Senate votes for this amendment and the Emergency Supplemental Appropriations bill is approved by next Friday, then the Senate and House versions of the bill will need to be reconciled in a conference committee.  It is our view, that House members will most likely support the five year Senate proposal in conference.  The larger questions that hangs over all of this is whether or not the Iraq war provisions in the Supplemental bill can be fine tuned sufficiently that the President will sign the bill.  A veto of the overall bill would put us back to square one.  So, let us not forget that while we are exuberant about the possibilities of this proposal, we have a long and dangerous journey over the next month in order to succeed.

Cross your fingers, say your prayers, and think positive thoughts!  With luck and a tailwind we may get this done!

SENATOR                                            STATE                                       FAX

Jeff Sessions                                        Alabama                                     202-224-3149

Richard Shelby                                     Alabama                                     202-224-3416

Lisa Murkowski                                     Alaska                                        202-224-5301

Ted Stevens                                          Alaska                                        202-224-2354

Jon L. Kyl                                             Arizona                                       202-224-2207

John McCain                                         Arizona                                       202-228-2862

Blanche L. Lincoln                                 Arkansas                                    202-228-1371

Mark Pryor                                           Arkansas                                    202-228-0908

Barbara Boxer                                    California                                  415-956-6701 – Thank You Message ONLY

Dianne Feinstein                                 California                                  202-228-3954 – Thank You Message ONLY

Wayne Allard                                        Colorado                                     202-224-6471

Ken Salazar                                          Colorado                                     202-228-5036

Christopher J. Dodd                               Connecticut                                 202-224-1083

Joseph I. Lieberman                              Connecticut                                 202-224-9750

Joseph R. Biden, Jr.                              Delaware                                     202-224-0139

Thomas R. Carper                                 Delaware                                     202-228-2190

Mel Martinez                                         Florida                                        202-228-5171

Bill Nelson                                            Florida                                        202-228-2183

Saxby Chambliss                                  Georgia                                       202-224-0103

Johnny Isakson                                     Georgia                                       202-228-0724

Daniel K. Akaka                                    Hawaii                                        202-224-2126

Daniel K. Inouye                                    Hawaii                                        202-224-6747

Larry E. Craig                                       Idaho                                          202-228-1067

Mike Crapo                                           Idaho                                          202-228-1375

Richard J. Durbin                                   Illinois                                         202-228-0400

Barack Obama                                      Illinois                                         202-228-5417

Evan Bayh                                            Indiana                                        202-228-1377

Richard G. Lugar                                   Indiana                                        202-228-0360

Charles E. Grassley                              Iowa                                           202-224-6020

Tom Harkin                                           Iowa                                           202-224-9369

Sam Brownback                                    Kansas                                       202-228-1265

Pat Roberts                                          Kansas                                       202-224-3514

Jim Bunning                                          Kentucky                                    202-228-1373

Mitch McConnell                                   Kentucky                                    202-224-2499

Mary Landrieu                                       Louisiana                                    202-224-9735

David Vitter                                           Louisiana                                    202-228-5061

Susan M. Collins                                   Maine                                         202-224-2693

Olympia J. Snowe                                 Maine                                         202-224-1946

Benjamin Cardin                                    Maryland                                     202-224-1651

Barbara A. Mikulski                               Maryland                                     202-224-8858

Edward M. Kennedy                              Massachusetts                            202-224-2417

John F. Kerry                                        Massachusetts                            202-224-8525

Carl Levin                                             Michigan                                     202-224-1388

Debbie A. Stabenow                              Michigan                                     202-228-0325

Norm Coleman                                      Minnesota                                   202-224-1152

Amy Klobuchar                                     Minnesota                                   202-228-3244

Thad Cochran                                       Mississippi                                  202-224-9450

Trent Lott                                              Mississippi                                  202-224-2262

Christopher S. "Kit" Bond                       Missouri                                      202-224-8149

Claire McCaskill                                    Missouri                                      202-224-0858

Max Baucus                                        Montana                                    202-224-0515 – Thank You Message ONLY

Jon Tester                                            Montana                                     202-224-8594

Chuck Hagel                                         Nebraska                                    202-224-5213

Ben Nelson                                           Nebraska                                    202-228-0012

John Ensign                                          Nevada                                       202-228-2193

Harry Reid                                           Nevada                                      202-224-7327 – Thank You Message ONLY

Judd Gregg                                           New Hampshire                           202-224-4952

John E. Sununu                                    New Hampshire                           202-228-4131

Frank R. Lautenberg                              New Jersey                                 202-228-4054

Robert Menendez                                  New Jersey                                 202-226-0792

Jeff Bingaman                                    New Mexico                              202-224-2852 – Thank You Message ONLY

Pete V. Domenici                                  New Mexico                                202-228-0900

Hillary Rodham Clinton                          New York                                    202-228-0282

Charles E. Schumer                              New York                                    202-228-3027

Richard Burr                                         North Carolina                             202-228-2981

Elizabeth Dole                                      North Carolina                             202-224-1100

Kent Conrad                                         North Dakota                               202-224-7776

Byron L. Dorgan                                    North Dakota                               202-224-1193

Sherrod Brown                                      Ohio                                           202-228-6321

George V. Voinovich                              Ohio                                           202-228-1382

Tom Coburn                                          Oklahoma                                   202-224-6008

James M. Inhofe                                    Oklahoma                                   202-228-0380

Gordon Smith                                       Oregon                                       202-228-3997

Ron Wyden                                         Oregon                                      202-228-2717 – Thank You Message ONLY

Robert Casey, Jr.                                  Pennsylvania                               202-228-0604

Arlen Specter                                        Pennsylvania                               202-228-1229

Jack Reed                                            Rhode Island                               202-224-4680

Sheldon Whitehouse                             Rhode Island                               202-228-6362

Jim DeMint                                           South Carolina                             202-228-5143

Lindsey O. Graham                               South Carolina                             202-224-3808

Tim Johnson                                         South Dakota                              202-228-5765

John Thune                                           South Dakota                              202-228-5429

Lamar Alexander                                   Tennessee                                  202-228-3398

Bob Corker                                           Tennessee                                  202-228-0566

John Cornyn                                         Texas                                         202-228-2856

Kay Bailey Hutchison                            Texas                                         202-224-0776

Robert Bennett                                      Utah                                           202-228-1168

Orrin G. Hatch                                      Utah                                           202-224-6331

Patrick J. Leahy                                    Vermont                                      202-224-3479

Bernard Sanders                                   Vermont                                      202-228-0776

John W. Warner                                    Virginia                                       202-224-6295

Jim Webb                                             Virginia                                       202-228-6363

Maria Cantwell                                   Washington                               202-228-0514 – Thank You Message ONLY

Patty Murray                                       Washington                               202-224-0238 – Thank You Message ONLY

Robert C. Byrd                                      West Virginia                              202-228-0002

John D. Rockefeller                               West Virginia                              202-224-7665

Russ Feingold                                       Wisconsin                                   202-224-2725

Herbert H. Kohl                                     Wisconsin                                   202-224-9787

Michael B. Enzi                                    Wyoming                                    202-228-0359

Craig Thomas                                       Wyoming                                    202-224-1724