This week, Montana’s new U.S. senator, former Congressman Steve Daines, and new U.S. congressman, former state senator and Whitefish native Ryan Zinke, were sworn into office. They enter the 114th Congress, where their Republican Party has secured a majority in both chambers for the first time in eight years. Their first priority: Keystone XL pipeline.
In a joint press release, Daines and Zinke said, “moving forward legislation to approve construction of the Keystone XL pipeline will be their top priority in the new year.” A decision on the pipeline has been delayed for years, which has been blamed on a number of factors, including litigation in Nebraska. But anymore the delay can mostly be attributed to foot-dragging by the State Department.
Once completed, the pipeline would transport oil from Alberta across the northeastern edge of Montana all the way to Texas. Incoming Senate Majority Leader Mitch McConnell thinks he has the votes, from both Republicans and Democrats, to advance legislation backing its construction. But it may not matter.
President Barack Obama has become increasingly cold to the pipeline and suggested to reporters at a press conference last month that it would create few American jobs. “It’s very good for Canadian oil companies, and it’s good for the Canadian oil industry,” he said. “But it’s not going to be a huge benefit to U.S. consumers. It’s not even going to be a nominal benefit to U.S. consumers.”
So what happens if the president kills the project? What’s next? Well, legislation that matters far more locally, superseding the pipeline in importance, is extending the Secure Rural Schools Act. Daines has already urged “quick renewal” of SRS funds. Democratic Sen. Jon Tester has attempted to fully fund the initiative. I’m assuming Zinke will also be on board.
Last year, Flathead County received $1.6 million in SRS funding, the majority of which was used by the county’s road department, which relies on it for about one-eighth of its budget. While Flathead appears to have other funds it could tap to cover the costs, Lincoln County could be in real trouble.
Lincoln County commissioners predict that, unless SRS funds are restored, the government could essentially go broke. Or, in words of Commissioner Tony Berget: “Either they have to start logging again so we can get the 25 percent, or we’re just going belly up, we’re going under.”
SRS funds are used to supplement coffers in counties across the country that contain federal land within their borders. Before the program, counties and schools received 25 percent of revenues generated from timber sales on national forests, but those revenues dwindled along with the logging industry. Lincoln’s last SRS payment was $3 million and, even after making deep spending cuts, Berget said the county is “hemorrhaging money.”
Lest the program be viewed as a handout, Lincoln County is more than 76 percent federal land, from which it receives no property taxes. The SRS funds offset what was once made from logging and allows the county to provide basic services.
This isn’t the first time SRS funds have been left in limbo. As Flathead County administrator said Mike Pence said in a recent interview, the legislation is often delayed before being attached to various bills.
Maybe, this year Congress can try something new. Maybe, this year as its first order of business it can pass SRS funding so rural municipalities surrounded by federal land can sleep a little better. Maybe, after that, the incoming Congress can move on to the rest of its to-do list, such as the Keystone XL pipeline, immigration reform and Obamacare.
It’s a nice thought, but timber counties are likely to sweat a bit more before that happens.