ISSUE BRIEF: Investing in the West’s Rural Communities
Support rural America!
The Issue:
Rural economies continue to falter, under pressure from such factors as regulatory burdens, shrinking populations, loss of economic bases, volatile agricultural commodity prices and drought.
Impacts on the West:
Since the nation relies heavily on rural areas to provide food, energy and recreation, it is important that rural communities have strong economies and are in a position to meet regulatory burden imposed by the federal government. Without intervention, many parts of the rural West are likely to fall victim to this economic death spiral.
Status of the Issue:
There are a number of issues pending before Congress that have a fundamental impact on rural communities in our region. A few examples:
Investment Capital -- Congress passed the Financial Services Act several years ago to promote reallocation of investment capital to rural areas. Unfortunately the entity tagged with administering the program, the Federal Home Loan Bank System, has yet to use their new, more expansive lending authority.
PILT Funding -- The Federal Payments-In-Lieu-of-Taxes (PILT) program was created in 1976 to help offset a portion of this lost income for local counties. However, PILT the program is subject to the whims of the Congressional appropriations process and has never been fully funded. Full PILT funding for FY 2008 is roughly $350 million. President Bush’s 2008 Budget request for PILT was $190 million - representing a $42 million cut over last year’s enacted amount. Rep. Mark Udall (CO) and Rep. John Salazar (CO) have introduced legislation, H.R. 790, which would fully fund the PILT program.
Rural School Funding -- The Secure Rural Schools and Community Self-Determination Act expired on December 31, 2006 and needs to be reauthorized to continue assisting rural communities in America. Senator Ron Wyden and Representative Peter DeFazio, recently introduced a bill calling for reauthorization of the Community Self-Determination Act through 2013 (S. 380 and H.R. 17).
The Death Tax -- The death tax does great harm to family businesses and farms. In 2002, Congress passed, and President Bush signed into law, a major tax cut bill that eliminated the federal estate tax (the so-called "death tax") until 2010. In the 110th Congress, two bills have been introduced in the House of Representatives that would permanently repeal the death tax. H.R. 411, introduced by Rep. Mario Diaz-Balart (FL) and H.R. 25, introduced by Rep. John Linder (GA).
Solutions:
- Congress should pass legislation to encourage investment in rural areas.
- Congress needs to pass legislation to assure a permanent PILT funding stream. Urge your Member of Congress to cosponsor and support H.R. 790 and similar legislation that would guarantee a fully funded PILT program.
- Congress should support legislation to reauthorize the Community Self-Determination Act to help rural communities and schools. In addition, they should continue to work on a permanent solution to this problem for rural communities to help save their schools.
- Congress should permanently repeal the death tax. Urge your Representative and ask them to support legislation (H.R. 411 and H.R. 25) that will repeal the death tax
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