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County Payment Decline Varies: Implications for future Payments

June 8th, 2010

Secure Rural School Payments to Idaho Counties declined at different rates when comparing the Post FY2008 payment to the Post FY2009 payment.

Under the SRS law the total amount of funds available for the county payments are programmed to decline ten percent per year.  But the payment formula includes other factors that led to larger than ten percent declines for most counties in Idaho.

Here is the table:

County Post FY2008 SRS payment Post FY2009 SRS Payment Change from Post FY2008
Ada $           3,948 $           3,456 -12%
Adams $    1,040,846 $       948,861 -9%
Bannock $       208,242 $       186,230 -11%
Bear Lake $       533,334 $       456,897 -14%
Benewah $       118,312 $         98,713 -17%
Blaine $       156,502 $       135,126 -14%
Boise $    1,972,075 $   1,657,610 -16%
Bonner $    1,366,171 $   1,174,639 -14%
Bonneville $       548,374 $       507,553 -7%
Boundary $    2,618,028 $   2,340,554 -11%
Butte $       505,065 $   411,259 -19%
Camas $       458,675 $   437,737 -5%
Caribou $       587,411 $       511,335 -13%
Cassia $       661,146 $       537,358 -19%
Clark $       718,948 $       496,463 -31%
Clearwater $    1,778,862 $   1,645,006 -8%
Custer $    3,354,796 $   2,956,194 -12%
Elmore $    1,788,878 $   1,626,882 -9%
Franklin $       288,676 $       223,036 -23%
Fremont $    1,327,421 $   1,218,327 -8%
Gem $       176,422 $       158,215 -10%
Idaho $   11,830,375 $ 10,762,414 -9%
Kootenai $       778,346 $       693,704 -11%
Latah $       349,256 $       295,118 -16%
Lemhi $    4,022,557 $   3,542,410 -12%
Madison $       219,374 $       190,206 -13%
Nez Perce $           4,263 $           3,725 -13%
Oneida $       260,354 $       213,058 -18%
Power $         88,988 $         64,739 -27%
Shoshone $    3,989,785 $   3,432,533 -14%
Teton $       162,666 $       125,571 -23%
Twin Falls $       142,767 $       128,117 -10%
Valley $    2,426,453 $   2,305,428 -5%
Washington $       362,665 $       306,051 -16%
Total

$   44,849,983

$    39,794,528

-11%

Overall, the statewide total payment dropped eleven percent, slightly more than the ten percent as programmed in the funds nationwide.  But within Idaho, some counties were big losers like Clark -31%, Power -27%, Franklin -23% and Teton -23%.  Meanwhile some counties such as Camas and Valley were both only a -5% loss.

Why the difference?  The new formula in PL 110-343 uses per capital personal income for each of the 700 forest counties as a key ingredient in the formula.  And counties where per capita income fell greater relative to the median see their payments drop less.  One example is Valley County where unemployment grew due to layoffs at Tamarack Resort, so per capita income in that county dropped and the formula compensated Valley County with a payment that decreased less than the average.

The formula is complicated.  A full explanation of it is available at http://www.fs.fed.us/srs/docs/calculations.pdf and here’s what it looks like:

Whereas-

FSaC = Forest Service Acres in County

FSaN = Forest Service Acres in Nation

FSpC = Forest Service payment average three highest years 1986-99 for County

FSaN = Forest Service average three highest years 1986-99 for Nation

PCiC = Per Capita Personal Income in County

mPCiN = Median Per Capita Personal Income among Counties receiving a State Payment[1]

ASQ = Sum of all Adjusted Share Quotients of counties participating in State and/or County payments

FYFunds = the full funding amount for the fiscal year.  The post-FY2008 payment will be made with $500,000,000 and payments in future years will be 90 percent of the preceding year’s payment.

Most of the payments to counties goes to Title I for roads and schools, but these declines in payments also affects Title II funds for RACs to recommend projects.  Some of the decline from $6.2 million to $5 million was due in part to declines in the funding for some of the counties where the decrease was much greater than ten percent.

What will happen with the Post FY2010 payment?  If we learned anything it is that the counties where we are seeing higher unemployment rates that have increased in the past couple of years are the ones where per capita personal income has declined greater relative to the national median, and those counties will see their payments decrease less than the ten percent.

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