Almost $400 Million Goes to Rural Areas

December 14, 2001

Agriculture Secretary Ann M. Veneman has announced the release of more than $384 million to 41 states and Puerto Rico to help rural communities improve public schools, invest in road improvement projects, and strengthen forest stewardship programs. Veneman, who was joined by Sen. Larry Craig (ID), Sen. Ron Wyden (OR), and Sen. Gordon Smith (OR), at a news conference announcing the funds. Oregon will receive $154 million; California, $65 million; Idaho, nearly $23 million; and Washington, approximately $44 million.

Veneman announced that over the next six years, USDA, through the Forest Service, will provide another $1.1 billion for schools and rural communities in addition to the $384 million released Thursday. These payments are the first issued under the new legislation, which returns dollars to states with national forests.

"This legislation helps provide important solutions to some of the challenges facing rural communities," she said. "States and local counties will make the decision on how the dollars will be spent. For example, they can buy new books, repair or expand schools or hire more teachers to help improve the education opportunities for our nation's children."

Based on legislation passed in 1908, 25% of Forest Service revenues from timber sales, grazing, recreation, some mineral use fees and other land use receipts go to states that host national forests. However, the Secure Rural Schools and Community Self-Determination Act of 2000 gave counties the option of staying with the traditional payment plan or choosing a predictable payment based on the average of the state's three highest payments between fiscal years 1986 and 1999.

In addition, the new legislation authorizes local resource advisory committees to give communities choice in funding forestry stewardship projects. To date 49 resource advisory committees have been established. Counties that receive $100,000 or more under the new legislation are required to allocate 15-20% of their funding for investments in county projects or for forest projects that implement stewardship objectives to enhance forest ecosystems or both.