Jeff Bingaman United States Senator from New Mexico

WASHINGTON – U.S. Senator Jeff Bingaman today reported that the Senate has approved a proposal to increase payments to New Mexico counties by tens of millions of dollars over the next five years.   Bingaman is a member of the Finance Committee and helped write the measure.

The proposal, which is contained in a bill that extends a variety of tax incentives for renewable energy, takes two steps for New Mexico:  it expands and extends the Secure Rural Schools and Community Self-Determination Act, increasing payments to New Mexico counties under the program next year from about $2.4 million to about $21 million. That program supports counties that rely economically on national forest lands.  The bill also fully funds the Payments in Lieu of Taxes (PILT) program, which compensates counties that have extensive federal land that cannot be a source of property taxes.

            Bingaman worked with Senate Finance Committee Chairman Max Baucus and other key members of the Senate to negotiate the proposal.  The plan passed the Senate once as part of an emergency spending bill to fund the war, but it was not contained in the final version of that bill. 

            "In these difficult economic times, communities across our state are struggling to meet the needs of their residents. This bill would send millions of additional dollars to New Mexico counties for public schools, roads, forest restoration, and other priority needs," Bingaman said. 

           The proposal would provide about $2.1 billion through 2012 to fund counties with National Forest lands under the Secure Rural Schools and Community Self-Determination Act (commonly referred to as the "county payments" program).  It is estimated that New Mexico would receive a total of nearly $75 million during 2009-2012 under the program.  New Mexico had received about $2.3 million annually under the program, which expired in October of last year. 

            The proposal also ensures full-funding for PILT through 2012.  Bingaman has sponsored legislation for several years that would make full funding for PILT mandatory.  Because the federal formula leads to different funding levels each year, it is difficult to predict the exact amount New Mexico would receive.  But full-funding for PILT would provide about a 35 percent increase in total funding for the program.  New Mexico is one of the largest beneficiaries of the program, with thirty-two New Mexico counties receiving a total of nearly $22.5 million in PILT payments this year.