Sequestration results in PILT program reduction

A presidential sequestration order will reduce payments to Quay and Roosevelt counties under the U.S. Department of Interior's Payment in Lieu of Taxes (PILT) program.

Failure to reach a deal on the national budget and avoid sequestration has resulted in a 5.1 percent reduction in the PILT program, which compensates counties for property taxes not collected on federal land.

Quay, Roosevelt and De Baca counties use PILT money for general operations, including fire departments and other local services.

Curry County has no federal land.

In 2012, Roosevelt County received $25,000 to $26,000 from the PILT funding, according to County Manager Charlene Webb.

Webb said the reduction would not have a significant impact, though, like with any reduction on funding, they will have to be more mindful in spending.

The reduction will have a larger impact for De Baca County residents. In 2012, the county received $103,336, which was used toward county agencies, including the sheriff's office.

"Being a small county we depend on every cent from funding, be it state or federal," county Treasurer Betty Berry said. "Any reduction hurts the services we use that money towards."

There is little federal land in Quay County.

County Manager Richard Primrose, said the 2012 allocation from PILT was $4,000, and past allocations have been similar to that amount. He said normally the money is placed as an income line item in the general fund and is used to offset expenses.

The reduced 2013 payments for these counties has not yet been determined. The funding formula, which is set by law, considers acreage, population, prior year revenue payments, and incorporates an inflationary adjustment.

In 2012, the total payments to more than 1,850 U.S. counties were $393 million; the 5.1 percent will reduce the entire program by $21 million.