[Congressional Record Volume 148, Number 12 (Tuesday, February 12, 2002)]
[Extensions of Remarks]
[Page E138]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E138]]
                        BUSH BUDGET BASHES PILT

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                         HON. NICK J. RAHALL II

                            of west virginia

                    in the house of representatives

                       Tuesday, February 12, 2002

  Mr. RAHALL. Mr. Speaker, as February 14th approaches it seems 
appropriate to examine the budget proposed by President Bush to see who 
gets Valentines and who does not. The lucky ones include the very 
wealthy who stand to receive huge windfalls as part of the President's 
massive tax cut. Those who stand to lose include average taxpayers. 
Take, for example, the President's unwise cuts to the PILT Program.
  The federal government owns or manages about 30 percent of the land 
in this country. Unlike private land owners, however, Uncle Sam is not 
required to pay property taxes to counties or local governments. Given 
that such property taxes are the lifeblood of many county budgets, 
Congress created the Payments in Lieu of Taxes, or PILT, Program. PILT 
is a formula grant program which reimburses local governments for these 
lost property tax revenues. Created in 1976, the program accounts for a 
substantial share of many county budgets, particularly in Western 
states where the percentage of federal ownership is highest.
  Now, there are obviously advantages to having the federal government 
as a neighbor. Many local communities thrive thanks to tourism dollars 
attracted by National Parks or federally managed recreation areas. And 
we all benefit when federal land managers work to protect and preserve 
our natural resources for future generations to enjoy. But the revenue 
loss experienced by some local communities is very real and by 
proposing to slash the amount available to reimburse these communities, 
the Bush Administration is not being a good neighbor at all.
  Such a cut is really just a tax increase on local taxpayers. PILT 
funds replace lost county revenue and if the Federal Government no 
longer pays its share, those governments have no choice but to raise 
local property taxes. Apparently, the President feels that while 
wealthy Americans' income taxes are too high, local property taxes are 
not high enough.
  This is particularly surprising given that the President claims to be 
a champion of local government. PILT funding flows directly to local 
communities and is available for any government purpose, no strings 
attached. In my home state, the President's plan means that the 
counties in West Virginia which receive PILT would have $287,000 less 
to spend on schools, public safety and other local needs.
  Perhaps the President is counting on Congress to come to the rescue. 
The Bush Administration proposed cutting PILT last year and Members of 
Congress, who care about their counties, stepped in and restored the 
funding. If that is the plan, next time you hear that the President 
wants to save money and Congress wants to spend it, remember that PILT 
is part of the President's ``savings.''
  In my view, the Federal Government should continue striving to be a 
good neighbor and maintain PILT payments at their current levels. 
Unfortunately, the Bush Budget plan hits the wealthy with Cupid's arrow 
but gives local taxpayers the shaft.

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