The Federal program commonly known as National Forest Payments has undergone many changes over the years. Its origins lie in the 1908 act to create federal revenue sharing from leases and timber receipts from National Forests located within counties. Over time, and with the decline in timber production, there have been changes that have altered how each county can have its payments calculated.
Payment Methods
1908 Act Amended (“Traditional 25% Payment”)
In 1906, a law passed to transfer 10 percent of the forest receipts to states to support public roads and schools. Two years later, Congress ratified an Act (1908 Act) to expand payments to the states from 10 percent to 25 percent. In 2008, the original 1908 Act was amended and payment became 25 percent of average gross receipts over the previous 7 years rolling average. Currently, there are 5 counties in Colorado (73 nationwide) that are receiving payments under this methodology. The Act is fixed and does not need to be reauthorized.
Secure Rural Schools and Community Self Determination Act of 2000 (“Full Payment”)
By the year 2000, after decades of declining agency revenues, Congress passed the Secure Rural Schools and Community Self Determination Act (SRS) to help stabilize the funds available to rural counties. The Act created an alternative methodology of calculating amounts to be paid to counties, but required additional restrictions on portions of funds for counties which selected the new payment methodology. The Act must be reauthorized by Congress. In the event it is not, the 1908 Act (as amended) will go into effect.
- Title I: Roads and Schools - Counties generally receive the majority of Secure Rural Schools funds under Title I, which is designated for the benefit of public schools and public roads. State law sets forth how the payments are to be allocated between road and school projects.
- Title II: Special Projects on Federal Lands - Title II funds are retained by the Forest Service and are allocated to specific projects that have been reviewed and recommended by a local Resource Advisory Committee.
- Title III: County Projects - Funds can be used for specific county projects such as Firewise Communities programs and reimbursement for emergency services. Counties are required to hold a 45-day public comment period prior to spending funds, submit project proposals to local Resource Advisory Committees, and certify use of Title III funds.
Please visit the U.S. Forest Service SRS Title Categories website for more in-depth information and additional requirements for Title categories.
Secure Rural Schools Act - Distribution Category
Counties that elect to receive the “full payment” method must also elect how funds are allocated among Titles. Allocations are limited by distribution categories.
| Title | Minor Distribution (less than $100,000) | Moderate Distribution ($100,000 - $349,999) | Major Distribution ($350,000 and above) |
| Title I | 100% OR | 80-85% AND | 80%-85% AND |
| Title II | 15%-20% between Titles II and III | 15%-20% between Titles II and III | 13%-20% |
| Title III | 15%-20% between Titles II and III | 15%-20% between Titles II and III | Less than 7% |
Division of Local Government’s Role and Elections
The Division of Local Government’s role is primarily to provide information regarding the federal payment program, its interaction with “Payment in Lieu of Taxes” (PILT) payments, and the collection of election information when prompted by the U.S. Forest Service for certain years of an SRS cycle. Elections can include selection of payment methodology and/or allocations among Titles.
National Forest Payment Distribution – Federal and State Level
The following summarizes the dates relevant to National Forest Payment distribution:
August 1: Election between payment methods (1908 or SRS), if applicable.
September 30: Election for allocation between SRS Titles*
May: In May, county treasurers of affected counties typically receive payments from the State Treasurer, who will disburse payments in accordance with information provided by the U.S. Forest Service. C.R.S. 30-29-101 outlines the use and distribution of funds at the county level. The distribution proceeds as follows:
- SRS Payment Method: Title I and Title III, only. Title II funds are held by the Forest Service until a county Resource Advisory Committee determines projects.
- 1908 Payment Method: for affected counties, the traditional 25% disbursement is also distributed in May.
February 1 (following year): For SRS Payment Method, Title III certification reports due for previous year expenditures.
If no election is submitted within the election timeframe, funds will be set to the default allocation, 80% for Title I, 20% for Title II.
Resources
U.S. Forest Service, Secure Rural Schools Program: The Forest Service site explains in more detail the National Forest Payments, historic information, and other requirements of distribution.
U.S. Department of the Interior, Payments in Lieu of Taxes: This site provides information about PILT, including frequently asked questions regarding eligibility, deductions, and calculation information.
Office of the State Auditor Report – Statement of Federal Land Payments: This site includes information on the prior year payments that contribute to the PILT calculation (released in March of each year).
Contact Information
Mia Gonzales
Budget Program Administrator
(303) 864-7744
mia.gonzales@state.co.us