Staff warns O&C receipts and PILT are promising but uncertain funding sources

County budget staff briefed the Klamath County Budget Committee on potential revenue from O&C (transcribed as 'ONC') lands and PILT and warned that gains are promising but contingent on federal actions.

Vicky (S9), the county budget staffer, explained that electing traditional receipts on O&C lands would increase the county's share under the current formulas — "If we go to receipts... you go from a 50% receipt sharing formula to a 75% receipt sharing formula," she said — which could raise the county's O&C receipts from roughly $600,000 to about $900,000 in the near term. Staff also described longer‑term possibilities: changes to federal resource management plans and policy could substantially expand timber production and county receipts, with staff citing a scenario that could move receipts toward $3–4 million annually if timber output increases and federal policy supports that scale.

Staff cautioned that the larger gains are not guaranteed: receipt levels depend on timber harvest volumes, a new resource management plan still under development, and annual federal appropriations for PILT. The committee was reminded that some funds discussed would be carryovers if appropriated and that final congressional appropriations — not the committee's vote — ultimately determine whether the receipts materialize.

Committee members asked whether switching from SRS (Secure Rural Schools) to receipts would change allowable spending; staff said it would not change spending rules for those dollars but could change the size of the payment. The committee did not take a final administrative vote on the receipts election during this session but directed staff to continue monitoring and to present updated revenue projections when available.