National Forest Receipts are federal revenues that are shared with cities, boroughs, and Regional Educational Attendance Areas (REAAs) located in a national forest. Two national forests are located in Alaska. These are the Tongass National Forest in Southeast, and the Chugach National Forest, located in Southcentral. Federal fees collected from commercial timber harvesting ("stumpage fees"), mineral lease permits, recreation and campground fees are shared with local governments and school districts located in these national forests.

Historically, the distribution of funds under the National Forest Receipts Program was authorized under a 1908 federal law where 25% of the annual income earned from activities within a national forest was shared with the state for distribution to boroughs located within the national forest. With the passage of the "Secure Rural Schools and Community Self-Determination Act of 2000" (P.L. 106-393), National Forest Receipts payments to the state for state fiscal years 2002 through 2007 will be based upon the average of the three highest payments made to the State during the "eligibility period" of state fiscal years 1987 through 2000. Lists of the eligible organizations and payments for Fiscal Year 2002 are available for the Tongass and Chugach.

How much money is distributed annually?

Under the provisions of the "Secure Rural Schools and Community Self-Determination Act of 2000", the State of Alaska's annual payment for fiscal years 2002 - 2007 will be approximately $9.2 million dollars (See 16 U.S.C. 500 at FedLaw.)

How does a community qualify for payment?

In order to receive a National Forest Receipts payment, a borough, city, or regional educational attendance area (REAA) must submit an approved application to the Department of Community and Economic Development (Commerce) each year. Applications are mailed by the department on July 1^st to eligible applicants (See AS 41.15.180 and 3 AAC 132.050 at Alaska State Legislature Folio Infobase.)

When are National Forest Receipts payments made?

National Forest Receipts payments are made in late fall of each fiscal year.

Why is the National Forest Receipts payment for the Tongass National Forest so much greater than the Chugach National Forest payment?

National forest receipts historically have been much higher in the Tongass National Forest than the Chugach National Forest because the income from the Tongass was mostly from "stumpage" fees charged for commercial logging. Income in the Chugach was earned mostly from campground fees, recreation fees, and mineral lease permits. See NFR funding history for more information.

What can National Forest Receipts payments be used for?

The law requires that National Forest Receipts payments must be spent on schools, roads, and certain categories of "special projects" (16 U.S.C. 500; AS 41.15.180; 3 AAC 132.100; 3 AAC 132.110).

What are "special projects"?

There are two types of projects within the special projects category. Title II projects are on federal land and require the use of a "resource advisory committee" for project review and recommendation and are administered directly by the Forest Service. Eligible Title II projects include road maintenance and decommissioning; stream and watershed restoration; maintaining infrastructure, including trails; forest ecosystem stewardship; land health and water quality; control of noxious or exotic weeds; and other projects consistent with the Forest Plan including fish and wildlife habitat and restoring native species.

Title III projects include a limited list of activities that the borough, city, or REAA can undertake and approve itself and are administered by the Department along with the schools and roads payments. Eligible Title III projects are reimbursement for costs of emergency services on public lands; costs for supervising mandatory community service on public lands; easements for access or conservation; forest-related education; fire prevention and planning; and community forestry.

Those boroughs, cities, and REAAs that receive a total forest receipt payment less than $100,000 are exempt from spending any money on special projects and can continue to spend 100% of their payment on schools and roads (16 U.S.C. 500).

The state's annual National Forest Receipts payment is first allocated between the Chugach and Tongass National Forests based upon the average of each forest's payments between 1987 and 2000 (Chugach 1.57%; Tongass 98.43%). Payments to boroughs are then made on the basis of national forest acreage within the borough boundaries, proportional to the entire acreage of the national forest in which the borough is located. Within the unorganized borough, payments to cities and REAAs for schools are made on the basis of school enrollment; and for roads, according to state and locally maintained miles.

Also, the revised federal law requires that at least 15%, but no more than 20%, of each borough's payment be spent on "special projects," with the balance to be spent on the traditional schools and roads categories.

Internet Links:

• Alaska Legislature "Folio Infobase" - The Current Alaska Statutes
• Alaska Legislature "Folio Infobase" - The Alaska Administrative Code
• Alaska Department of Law
• Commerce, National Forest Receipt FY2006 - 2008 Payments
• Payments in Lieu of Taxes (PILT) by Borough

Federal Law

16 U.S.C. 500 - See FedLaw

Alaska Statutes

AS 41.15.180 - National forest income, eligibility, allocation method, unexpended funds (See "Folio Infobase" - The Current Alaska Statutes)

Alaska Administrative Code

See The Alaska Administrative Code:

• 3 AAC 132.010 - Purpose
• 3 AAC 132.020 - Objective
• 3 AAC 132.030 - Delegation of authority
• 3 AAC 132.040 - Eligibility requirements
• 3 AAC 132.050 - Application procedures
• 3 AAC 132.060 - Calculation of national forest receipts within organized boroughs
• 3 AAC 132.070 - Calculation of average daily membership
• 3 AAC 132.080 - Calculation of locally maintained roads
• 3 AAC 132.090 - Waiver of sovereign immunity
• 3 AAC 132.100 - Expenditure of national forest receipts for public schools
• 3 AAC 132.110 - Expenditure of national forest receipts for public roads
• 3 AAC 132.120 - Accounting and reporting requirements
• 3 AAC 132.130 - Reduction of payments
• 3 AAC 132.140 - Appeal procedures
• 3 AAC 132.150 - Underpayment and adjustments
• 3 AAC 132.160 - Overpayment and adjustment
• 3 AAC 132.900 - Definitions

Revised 10/2/02