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FOREST CONSERVATION NEWS TODAY

U.S. Timber Program Posts Record Losses

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Forest Networking a Project of Forests.org, Inc.

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06/12/01

OVERVIEW & COMMENTARY by Forests.org

A new report by Taxpayers for Common Sense shows that America's

National Forests continue to be logged at a substantial financial

loss.  The U.S. Forest Service's federal timber program cost

taxpayers nearly one half of a billion dollars in 1998 - a 23% jump

from previous years.  This represents a substantial subsidy to

industrial logging, which severely ecologically reduces America's

national forests.  Logging roads fragment forest habitats, cause soil

erosion, and open up natural forests to excessive and damaging

commercial log harvests. 

 

Other startling findings include:

* 105 of 111 forests lost money;

* each acre logged costs $779 and each job costs $7,730 in taxpayer

money;

* the national forest that does the most restoration and cuts the

least made the most money, and the one that cuts the most old-growth

lost the most.

 

The report goes on to make a number of reasonable recommendations to

end these wasteful subsidies.  I would add to their list that no more

roads must be constructed in America's roadless forest wildernesses. 

It is up to the Bush administration's justice department to do the

right thing and protect against litigation the ruling that has been

passed for this purpose.

 

Where is the outrage from so-called "fiscal conservatives" that now

have the reigns of power in the U.S.?  Apparently corporate welfare

that flows to political supporters is justifiable.  The U.S.

government must immediately take action to halt subsidies that

destroy the country's ecological heritage and damage critical

ecosystem functions.  The author of the study wraps it up nicely,

"The Forest Service wastes hundreds of millions of dollars each year,

and Congress doesn't seem to care... they drink martinis on K Street

with timber industry lobbyists, instead of trying to eliminate this

outrageous waste of taxpayer money."

g.b.

 

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RELAYED TEXT STARTS HERE:

 

Title:  U.S. Timber Program Posts Record Losses 

Source:  Copyright 2001 Environment News Service

Date:  June 12, 2001 

Byline:  Cat Lazaroff

 

WASHINGTON, DC, June 12, 2001 (ENS) - Waste in the federal timber

sale program is at an all time high, even as logging levels have hit

a record low, according to a new report by Taxpayers for Common

Sense, a national budget watchdog group. The report found that the

federal timber program cost taxpayers $407 million dollars more than

it received for its timber sales in 1998.

 

Using the most recent government data and agency figures obtained

though Freedom of Information requests, the report found that the

U.S. Forest Service is significantly underestimating the timber

program's financial losses.

 

"This agency has become the perennial financial black hole here in

Washington," said Jonathan Oppenheimer, director of the Forest

Campaign at Taxpayers for Common Sense. "The less they do, the more

they waste. This financial abuse is starting to spiral out of

control."

 

Key findings of the report include:

 

* 105 of the 111 national forests failed to return as much money as

they spent managing the timber program

 

* Earlier this year, the Forest Service underreported its financial

losses by more than two thirds

 

* $779 taxpayer dollars were wasted on every acre logged and $7,730

was lost on every job created

 

* The national forest that does the most restoration and cuts the

fewest old growth trees made the most money in 1998: the Siuslaw

National Forest in Oregon, which made $11.5 million

 

* The forest that proposed the most old growth logging lost the most

money: Oregon's Willamette National Forest, which lost almost $30

million

 

"Accountants at the Forest Service ignore large expenses included in

typical accounting procedures," continued Oppenheimer. He cited road

construction and maintenance costs as expenses that the Forest

Service attempts to downplay in their accounting practices.

 

The timber program lost $407 million in 1998, making it the worst

financial year ever for the program. The new figures represent a 23

percent jump from the program's $330 million average loss from 1992-

1997, which the General Accounting Office had previously reported.

 

The Forest Service's timber sale program loses money because revenue

from timber sales does not cover the costs of timber sale

preparation, administration, road building and other overhead costs.

The Forest Service also siphons millions of dollars each year into

timber trust funds, which do not receive adequate oversight by

Congress or American taxpayers, charges Taxpayers for Common Sense.

 

The biggest money losing forests were in the western states,

including Alaska, Idaho, California, Montana and Washington. Oregon

topped the list, losing more than $100 million in 1998.

 

The states with the worst performing national forests are also the

states with congressional delegations that are the most supportive of

the timber industry, Oppenheimer charged.

 

"The Forest Service wastes hundreds of millions of dollars each year,

and Congress doesn't seem to care," said Oppenheimer. "They drink

martinis on K Street with timber industry lobbyists, instead of

trying to eliminate this outrageous waste of taxpayer money."

 

While this is not the first report to highlight the costs - both

financial and environmental - of federal timber subsidies, it is the

first under the new White House administration. The Bush

administration and new Forest Service Chief Dale Bosworth are

expected to be far more favorable to timber interests than were

former President George W. Bush and Forest Service Chief Mike

Dombeck.

 

Just last week, in a blow to supporters of roadless forest

protection, Chief Bosworth gave himself sole authority over all

decisions about timber harvest and road construction in roadless

areas of national forests. And President George W. Bush's first

federal budget would increase the timber sale program by more than

$11 million.

 

In contrast, according to the Congressional Budget Office, if money

losing timber sales were eliminated from the Northern, Rocky

Mountain, Southwestern, Intermountain and Alaska regions of the

Forest Service, taxpayers would save about $1.6 billion over the next

10 years.

 

Taxpayers for Common Sense also proposes that Congress do the

following:

 

1. Expedite the release of financial records for the National

Forests: The latest numbers were released almost three years after

the close of fiscal year.

2. Eliminate timber slush funds: The absence of congressional or

public oversight for these funds to abuse. These funds are often used

to pay for overhead costs.

3. Eliminate commercial timber subsidies and reform the budget

structure: A disproportionate share of the Forest Service's budget

flows through the timber sale program, even though the program has

declined in size.

 

"Congressional inaction sets a terrible precedent that the more you

rip off the taxpayer, the bigger your budget will be," concluded

Oppenheimer.

 

More information is available at:

http://www.taxpayer.net/forest

 

Taxpayers for Common Sense

651 Pennsylvania Ave., SE

Washington, DC 20003

Phone: 1-800-TAXPAYER ext. 132

(202) 546-8500 ext. 132

Fax: (202) 546-8511

Email: jonathan@taxpayer.net

Website: www.taxpayer.net

 

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