Tuesday, December 09, 2014

Federal lands transfer could cost Idaho millions

Taking control of federal public lands in Idaho could cost the state $111 million a year, a new report shows. The study by the University of Idaho’s Policy Analysis Group found the state could lose millions of dollars in eight of nine different scenarios involving such a transfer. Researchers compared various financial benefits for the state’s timber industry to increased costs connected with management of the land. The report was requested by a legislative committee tasked under a resolution known as HR22 with studying a state takeover of federal lands in Idaho. The panel will finalize its recommendation Tuesday. Supporters of a land transfer claim timber harvests would boom under state management. Meanwhile, opponents say the boost in revenue would do little to offset the millions of dollars needed for land management expenses. Researchers only saw a profit of $24 million a year in one scenario. In that case, Idaho would have to boost its harvest by 1 billion board-feet of timber a year and sell it at $250 per 1,000 board-feet. Under the worst-case scenario, Idaho would increase its harvest sales by half a billion board-feet and would sell it at $150 per 1,000 board-feet. This would result in $35 million of revenue a year and $146 million of costs, resulting a loss of $111 million a year. “The question becomes, after you consider the timber markets, is how are these lands going to be managed?” said Jay O’Laughlin, who wrote the report shortly after retiring as director of the research group. “That’s going to determine the cost structure and the revenues.” O’Laughlin said the state would face steep wildfire prevention and suppression costs if it takes control of federal lands. O’Laughlin said the state would face steep wildfire prevention and suppression costs if it takes control of federal lands. Currently, Idaho relies on federal firefighters to put out wildfires on state lands. By taking control of the federal lands, Idaho would be in charge of providing enough staffing and equipment to suppress the state’s largest wildfires. Idaho would also be responsible for payments the federal government now doles out to help offset losses in property taxes from nontaxable federal land within their boundaries. “The question whether payments to counties should continue is likely to spark lively debate,” O’Laughlin wrote in the report...more

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