Mat-Su gets $3 million from feds

PALMER — The Mat-Su Borough’s share of the federal Payment in Lieu of Taxes program is more than $3 million.

The $3,216,649 is actually down slightly from last year’s $3,289,009 total.

“Even as we tighten our belts and find places to reduce federal spending, it’s important that we keep smart investments in our rural communities,” Sen. Mark Begich says in a press release announcing the payments. “The federal government owns more than 60 percent of the land in Alaska. With more federal land than any other state, PILT resources are critical to keeping many of our rural areas running smoothly. I’m pleased that after urging from the Alaska delegation, DOI has acted to keep this program going strong through the year.”

The money comes to rural communities across the country as compensation since local governments aren’t allowed to tax federal land.

Alaska’s share of the program this year was more than $26 million. Overall, the federal government handed out $421.7 million in the program, which is paid for out of the $14 billion the government earns each year for activities on federal lands such as oil and gas leasing, livestock grazing and timber harvesting, according to a U.S. Department of the Interior press release.

That $421.7 million should have been $21.5 million higher, but took a hit in the federal sequestration budget cuts, according to the Interior Department release.

“It’s unfortunate that the automatic budget cuts in the sequester affect these crucial payments for Alaska communities,” Begich says in his press release. “They’re a lifeline in many cases and that needs to be fixed.”

As the money goes to rural areas, The Mat-Su Borough’s cut was the highest payment in the state, far outpacing Anchorage’s $670,290. The Kenai Peninsula Borough was second in the state with $2,662,396.