Subsidies' impact won't be felt until '16

SANDPOINT — Bonner County residents won’t see any changes in level of service on local roads or the road-and-bridge levy this year due to reduced federal subsidies paid to counties that contain national forest lands.

“They won’t see a change on this year’s tax rolls. Those are set and done,” said Bonner County Road & Bridge Director Gordon Bates.

Taxpayers and motorists, however, could start seeing changes in the 2016 fiscal year if subsidies dry up.

“It may impact the level of service or it may impact the amount that the local taxpayer pays in 2016,” said Bates.

Bates said the federal government has been annually reducing subsidy payments by about 10 percent, resulting in a $600,000 reduction in federal revenue since 2010.

The county has been tweaking its road-and-bridge levy to cover shortfalls and maintain level of service on local roads.

“That portion going to the local taxpayers — not every year because we’ve had some ups and downs in the levy rate — that’s been slowly but surely creeping up to help make up for the reduced federal revenue,” said Bates.

Bates said he would rather see the bulk of road funding come from the federal government, but added that Bonner County is fortunate to have a permanent local levy.

“We’re well below the limit that Idaho law says we can go to. Other counties around here — Boundary County — don’t have a levy. Those guys are going to be hit hard for sure,” said Bates.

The Idaho Association of Counties recommended Bonner County budget $112,000 in federal Payment In Lieu of Taxes in the event Congress declined to re-authorize the Secure Rural Schools Act. If the act was re-authorized, the association estimated it would receive an additional $278,000, resulting in $390,000 in federal payments.

Bonner County commissioners advised Bates to hold off on equipment purchases and small projects until the disposition of that $278,000 was clear.

President Barack Obama’s budget included a five-year renewal of Secure Rural Schools Act, but it did not win congressional approval.

The could be an effort to extend Secure Rural Schools Act funding for at least a year. Bates said a similar crisis and resolution occurred last year.

“The last time this happened, which was literally a year ago, Congress pulled it together in March,” said Bates.

“We ended up getting funded after all.”