Only 8 Percent of Federal Logging Receipts Returned
11/24/98
*******************************
RELAYED TEXT STARTS HERE:
Title: Only 8 Percent of Federal Logging Receipts Returned
Source: The Associated Press
Status: Copyrighted, contact source to reprint
Date: 11/24/98
RENO, Nev. (AP) -- The federal treasury collected less than 10 percent of
the $1.85 billion worth of timber sold by the Forest Service to private
loggers in the past three years, according to the General Accounting
Office.
About one-fourth of the money went to rural counties to pay for roads and
schools, mostly in the West, said the report, which was to be made public
today. The remainder was spent primarily to prepare more trees for harvest
in the national forests.
"GAO's audit confirms once again that taxpayers pay a huge price to
subsidize commercial logging of our national forests," said Rep. George
Miller, D-Calif., a longtime critic of federal logging who requested the
study.
The audit highlights the financial pressures facing the Forest Service as
logging of national forests -- traditionally the source of 90 percent of
its revenue - has fallen to about one-fourth the level of a decade ago.
Congress appropriated $1.2 billion to support agency timber sales over the
three-year period ending Sept. 30, 1997, the GAO said. The timber sale
revenues totaled $1.85 billion, but only $124.5 million was returned to
the treasury.
About $1.7 billion, or 92 percent, went to "off-budget" accounts the
Forest Service manages independent of Congress' appropriation process, the
audit said.
The accounts are financed through a percentage of logging receipts. They
pay for such things as reforestation, logging and credits for timber
purchasers who build logging roads on national forests, the GAO said.
"Revenues from timber sales ought to go into the treasury," said Miller,
who wants tighter congressional control over the money. "Today's system
amounts to nothing more than an off-budget agency slush fund."
Forest Service Chief Mike Dombeck shares concerns raised in the report
about the agency's reliance on timber receipts to pay for other programs,
said his top aide, Chris Wood.
Counties with national forests receive at least 25 percent of the timber
sales in those forests, about $190 million nationwide in each of the past
two years.
A Republican congressional aide said little money can be expected to flow
to the treasury as long as timber harvests remain low and Congress
continues to help communities hit logging cutbacks.
"Receipts have been falling generally as a consequence of the efforts made
by many people who want to reduce timber harvests," said Mark Rey, GOP
staff director for the Senate Energy and Natural Resources Committee.
"We have tried to keep rural schools healthy in the process even as
receipts have fallen, so it should not be a great surprise less money is
going back to the treasury," he said.
Copyright 1998& The Associated Press.