Mr. President, I thank my colleague and congratulate him on his leadership on this issue. His amendment is well designed and meritorious. I urge all colleagues to support the amendment. I wish to speak about why I think this is so…
Mr. President, I thank my colleague and congratulate him on his leadership on this issue. His amendment is well designed and meritorious. I urge all colleagues to support the amendment.
I wish to speak about why I think this is so important to our rural counties. I do think the legislation is important because it lays out a period of years during which counties will know they have a set amount of money coming in to assist with the various responsibilities they have put upon them.
This amendment also, of course, involves a full funding of the payment in lieu of taxes, which is extremely important to many of the counties in my State, particularly. This payment in lieu of taxes is designed to provide some funding to those counties that have lost their tax base by virtue of the Federal Government owning so much of the land in those counties.
Both programs were authorized through the Committee on Energy and Natural Resources, and the committee has remained active on both issues in recent years. With regard to the Secure Rural Schools, or ``county payments'', program, we have held a number of oversight and legislative hearings during the last couple of years. Accordingly, I would like to briefly explain some of the key changes that this amendment makes to the original program.
The most significant change is in the formula. The new formula has three components: the original formula, the number of qualifying acres of Federal land, and per capita personal income. The mathematics of the formula are rooted at the county level, and the ultimate payments are determined by calculating what would be each participating county's portion of the total annual funding for the program. As a result, unlike the original formula, the new formula responds to the annual funding amount, permitting an orderly phase-down of the total annual funding levels.
The legislative text memorializes the component of the original formula at the county level in the definition of ``base share'' in paragraphs (2)(B)(i) and (9)(B)(i) of section 3. In developing the formula, we looked to existing data from the Federal agencies, recognizing that the specific data may change as a result of updating or correction. For the Forest Service, paragraph (2)(B)(i) of section 3 describes what the Forest Service referred to as the ``potential county share'' when it calculated payment amounts under the original formula on March 1, 2002. For the Bureau of Land Management, paragraph (9)(B)(i) of section 3 describes what the BLM referred to as ``payment amounts to each eligible county'' on its November 14, 2002, certification to the Treasury Department of payments made under the Secure Rural Schools and Community Self-Determination Act of 2000. The per capita personal income data was gathered from the Bureau of Economic Analysis' Regional Economic Accounts, Table CA1-3, 030.
Total funding for the program would be gradually reduced to approximately 72 percent of the fiscal year 2006 level by the end of the 5-year reauthorization. During the first 4 years of the reauthorization, additional funds would be provided to the uniquely affected States of Washington, California, and Oregon to ensure that they can make a reasonable transition to the new funding levels under the new formula. For fiscal year, 2007, the transition funding would provide the three States an amount equal to last year's levels, and then their total county payments funding would be reduced by 10 percent annually through 2010. Total funding levels in each of those States would be determined under the new formula in 2011. If counties that received county payments in fiscal year 2006 decided to optout of the county payments program, then those counties would instead receive the payment amounts required by the 1908 or 1937 acts and the county payments funding to their States during that fiscal year would be reduced by their corresponding share of the fiscal year 2006 county payments funding.
The amendment also focuses the county payments funding on resource advisory committee, ``RAC'', collaboration, which was one of the most successful aspects of the original law. Most counties are required to spend at least 13 percent of their total county payments program funding on special projects on federal land--unless they choose to forego that portion of the funding. Exceptions have been made where experience has shown that the 15-20 percent of total program funding available for special projects on Federal land, under title II, may be inadequate.
As recommended by an in-depth study of RACs under the county payments program, we have made a few changes to the RAC representation. The editions allow some key interest groups that currently are not adequately represented to participate on RACs. They also provide communities with some flexibility where existing requirements were unnecessarily difficult or awkward to fulfill.
As discussed in the study, in a number of cases, the Federal land management issues in any particular region simply were not relevant to a couple of the interest groups required to be represented under the original law. For example, while wild horse and burro interest groups are key stakeholders on many RACs, there also are many RACs in areas of the country with no wild
horses or burros. In such cases, the study found that some counties simply could not find individuals willing to serve on RACs that met the letter and spirit of the existing criteria.
None of the editions exclude any of the interest groups currently represented on RACs, and the Secretaries retain appointment authority. As a result, the modest expansion should neither disadvantage any group currently participating on RACs nor disrupt in any way the collaboration on RACs. To the contrary, it should improve the collaboration by ensuring that RACs are adequately staffed with the appropriate interest groups.
County funding under title III has been restricted and focused on programs that indirectly benefit public land management. In addition, provisions have been added to title III to encourage compliance with its terms and greater awareness of the counties' efforts by Federal land managers.
Finally, a degree of stability for revenue sharing payments to counties is provided under the amendment. Stabilizing payments is one of the primary purposes of the Secure Rural Schools and Community Self- Determination Act, but as the recent experience with its expiration in 2006 exemplifies, a degree of stability remains necessary over the longterm. Section 3 of the amendment provides for 25 percent payments to be distributed based on a 7-year rolling average. This will ensure that counties receive the same level of overall payments while at the same time reducing to a significant degree the sometimes dramatic annual fluctuations of Federal payments that make county budgeting difficult.
By ensuring full funding for PILT, annual fluctuations in those payments also will be reduced through 2012. PILT also is a crucial part of ensuring an orderly transition for the States of California, Oregon, and Washington. And finally, full funding for PILT will provide a more equitable level of support to those counties with Federal land that does not qualify for the county payments program.
In all, the amendment provides for more secure rural schools in more States and counties around the country, healthier National Forests for all Americans to enjoy, and the foundation for a legacy of public lands collaboration that we hope will provide for community, economic, and environmental benefits for decades to come.
Let me also speak briefly about the amendment my friend from North Carolina has offered to insist and to require, I believe, 80 percent of the funds to be used for schools. It will be a substantial mistake to adopt that amendment, because it is a one-size-fits-all solution, when we have very different circumstances in each State.
For example, in my State, we have what we call an education equalization formula. That means the State takes credit for whatever the counties were to put into education. So the effect of giving this money to the counties would be that the State would reduce its contribution to the schools in that county by a proportionate amount or by 95 percent of that amount. This would not work in my State. It would not have the intended effect of getting more money to the schools, which I know is the purpose the Senator from North Carolina has.
It is better to stick with the amendment Senator Wyden has crafted here, and give the discretion to each State and each local community to decide how to best spend those funds to meet the obligation they have to their constituents. That is the purpose of the legislation. That was the original purpose of the county payments legislation, certainly the original purpose of the PILT legislation, as well. That is the best result.
I hope my colleagues will support the Wyden amendment and will not support the Burr amendment. That is the best result for us. I hope that is the end result once the voting is concluded.
I yield the floor.
Mr. President, as chairman of the Committee on Energy and Natural Resources which has jurisdiction regarding the insular areas of the United States, I am concerned about provisions in the House passed supplemental appropriations bill, H.R. 1591, that would alter the way minimum wage levels are set in the U.S. territories of American Samoa and the Commonwealth of the Northern Mariana Islands, CNMI. Senators Akaka and Inouye share my concern and we would like to enter into a colloquy with the distinguished manager of the bill regarding our concerns.
As the Senator may know, in recognition of the special challenges that the territories face in promoting economic development, the Fair Labor Standards Act. FLSA, provides that the transition from the territories' historic subminmum wage levels up to the national minimum wage is managed by special industry committees. These committees convene ever 2 years, carefully analyze the islands economies, and recommend incremental increases toward the national minimum wage based upon those analyses.
This process has worked well and has successfully raised the minimum wage in Puerto Rico and the U.S. Virgin Islands up to the national minimum wage. The process currently applies in American Samoa which continues to have regular increases in its minimum wage toward the national level. However, this Special Industry Committee process does not apply in the Commonwealth of the Northern Mariana Islands, CNMI, because the minimum wage provisions of the FLSA have never applied there. Section 503(c) of the Covenant to Establish the CNMI in Political Union with the United States--approved by P.L. 94- 241--specifically authorized Congress to extend the national minimum wage to the CNMI and, in 1998 the Committee Energy and Natural Resources favorably reported legislation Senate Report 105-201 that would have extended the national minimum wage as authorized. That legislation would also have extended the FLSA's Special Industry Committee transition provisions to the CNMI just as they apply to American Samoa.
On March 1, 2006, the Committee on Energy and Natural Resources held an oversight hearing to examine economic conditions in the islands and we found the situation in both the CNMI and American Samoa very worrisome. More recently, I met with the Governor of American Samoa, Togiola Tulafono, and with a delegation from the CNMI headed by the resident representative, Pete Tenorio, and the Lieutenant Governor, Tim Villagomez, who expressed their concern about the House-passed minimum wage legislation that would increase their islands' minimum wages based on a fixed schedule, and without the periodic economic analyses conducted by the Special Industry Committees under the FLSA. These island leaders asked for my support in assuring that the FLSA's transition process will be used to assure a smooth transition from the local territorial minimum wage to the national minimum wage.
We share the concerns that these island leaders have brought to our attention and recognize that they have no representation here in the Senate. Accordingly, we ask the distinguished manager and chairman of the Appropriations Committee, as this legislation is reconciled with the House bill in conference committee, that he
seeks an agreement that the FLSA's Special Industry Committees will be used in these two territories, as they were used in Puerto Rico and the U.S. Virgin Islands. We believe that this is important to assuring a smooth transition to the national minimum wage in these islands, and to avoiding unnecessary economic disruption.
I thank the distinguished manager and look forward to working with him to develop appropriate language as H.R. 1591 is considered in the conference committee.