Black Hills area school districts and counties stand to lose hundreds of thousands of federal dollars if a funding mechanism stripped from the energy bill last month is not restored, according to Custer School Superintendent Tim Creal.

The Custer School District stands to lose about $75,000, Creal said. The loss would likely mean cuts in staffing and programs, he said.

The Secure Rural Schools and Community Self Determination Act provides money to counties and school districts from forest receipts, mainly timber sales, on national forests within county and school district boundaries.

It is weighted to compensate counties and school districts for the loss of revenue because of the decline in timber harvests on federal lands in recent years.

But reauthorization of the act was part of a controversial tax package that was dropped from the federal energy bill before it was passed last month and signed by President Bush.

Staffers with South Dakota's congressional delegation say an attempt will be made to restore the school funding after Congress reconvenes later this month.

The five Black Hills-area counties with national forest land received a total of $3.8 million in Secure Rural Schools money for this year, according to state Auditor Rich Sattgast. The county breakdown is $1,443,146 for Pennington; $1,138,899 for Custer; $993,859 for Lawrence; $157,477 for Meade; and $171,321 for Fall River. Harding County in the Custer National Forest, received $12,870.

The money is split between the counties and the school districts within the counties.

If the money isn't restored, it could further pinch Black Hills area school districts that already are strapped for money, Creal said.

The Custer School District last year received about $310,000 in timber receipts. Without the Secure Rural Schools reauthorization, that amount would drop by 25 to 40 percent, Creal said.

That would force the district to cut at least $75,000 from its budget, Creal said. The district has already cut roughly $750,000 from its budget since 2001, he said.

"It means cutting staffing and programs," Creal said. "That's all we have left is staffing and programs."

The Hill City School District would lose about $175,000 out of the $475,000 it gets each year from the program, according to Superintendent Mark Naugle. "Certainly that's an impact," he said.

Naugle said 88 percent of the school district is owned by the U.S. Forest Service.

The Rapid City School District gets little money from the program, because there is little national forest land within the district boundaries, said Dave Janak, director of finance and budget.

The Spearfish School District in past years received $81,000 per year, according to superintendent Dave Peters. Peters said the district could lose 25 to 40 percent of that if the act isn't reauthorized.

The Elk Mountain School District in western Custer County received $195,645 this past year, according to Custer County Auditor Linda Nelson.

Nelson said the Custer County Highway Department could be forced to cut employees and reduce the amount of road work it does if the funds are not restored.

Last year, the county highway department received $484,032 from the Secure Rural Schools program.

Pennington County Auditor Julie Pearson said the Secure Rural Schools money is not a major part of the county's budget.

The tax package jettisoned from the energy bill also included a provision that would have fully funded the Payment in Lieu of Taxes program for Fiscal Year 2009.

That program reimburses counties for property tax revenue lost because of the presence of federal property.

Sen. John Thune, R-S.D., said late last month he is optimistic the Secure Rural Schools Act will be reauthorized after Congress reconvenes because it has strong bipartisan support from northwest states such as Oregon.

"Because other states are more dependent, we will see an opportunity to attach it to another bill, and I think that will be successful," Thune said.

Sen. Tim Johnson and Rep. Stephanie Herseth Sandlin, both Democrats from South Dakota, will continue working to reauthorize the program or extend it for the 2008-2009 school year, according to statements from their offices.

"Reauthorizing this important program would provide rural school districts, including many in South Dakota, with a degree of certainty that will aid their budget planning," Herseth Sandlin said in a news release.

Reauthorizing the program has become more challenging because the administration has been reluctant to work with Congress to find an acceptable way to pay for it, according to the statement from Johnson's office.

Contact Steve Miller at 394-8417 or steve.miller@rapidcityjournal.com