School districts in Clatsop County are examining how the state’s proposed habitat conservation plan could affect revenue.

The 70-year plan, prepared by the Oregon Department of Forestry, would designate protected habitat areas across nearly 640,000 acres of state forests, mostly in Clatsop and Tillamook counties.

The plan would outline no-logging areas to protect species and keep the state in compliance with the federal Endangered Species Act.

However, the plan has drawn backlash from some county and timber industry leaders who say it goes further than it needs to protect habitat at the expense of local communities that depend on revenue generated by logging state forests.

The revenue from timber sales on state forestland is distributed to counties, schools and other local districts based on timber sales in each jurisdiction’s geographical boundary, which means some would be more affected than others.

While the habitat conservation plan is still being finalized by the state, county leaders have estimated that timber revenue could decrease by about a third as a result of the plan.

Uncertainty in Jewell

Among school districts in the county, Jewell School District, which is almost entirely reliant on timber revenue, stands to be the most impacted. Estimates show the small, rural school district could lose nearly $2 million annually — around half of its operating budget — from reductions in timber revenue.

While the numbers are alarming, the school district, which serves nearly 150 students in kindergarten-through-12th grade, has been operating with more funds than it would otherwise receive from the state based on enrollment and other factors thanks to timber revenue. The money has afforded the school district facilities that are often out of reach of small rural towns. The state said it would compensate for the loss in timber revenue to a certain extent.

Jewell Superintendent Cory Pederson is unsure exactly how a loss in funding would impact the school district, but said the district is working to cut costs and pull back funds in preparation of the plan getting implemented.

“Will the education look different? I’d like to be very proactive and say ‘no,’” Pederson told The Astorian. “We’re going to provide the best darn education for our kids out here, no matter any circumstance. If you’re giving us $2 million, we’re going to give them the best education they can get. No matter what the funds are, we’ll figure out a way.”

Operating revenue for K-12 public schools in Oregon is primarily funded through a combination of state and local revenue.

Sources of local revenue could include property taxes and state timber revenue.

To ensure equity statewide, the state uses a formula that takes into account each school district’s share of state and local revenue and makes local revenue part of the available statewide funds for all schools.

If a school district’s local revenues are high, state aid is low, and vice versa.

If a school district’s local revenue is more than the equalization formula amount, it keeps the excess amount. Few school districts have seen excess local revenue.

Mike Wiltfong, the director of school finance for the state Department of Education, said timber revenue in the State School Fund has generated between $28 million and $35 million annually from 2018 to 2021.

He said Jewell School District, along with Tillamook and Neah-Kah-Nie school districts in Tillamook County, receive the largest share of those revenues. For many years, he said, the timber revenue has provided the majority, and in some cases all, of the funding for their K-12 schools.

Wiltfong said the revenue will be backfilled to a certain extent with state revenue for districts such as Jewell.

“I say to a certain extent, as there will be approximately $30 million less in the overall funding, which is equalized for the state,” he said in an email. “It’s hard to predict the actual impact, as there are several sources of funding and other hydraulics considered in the State School Fund for each district.”

Chorus of opposition

While school districts wait for more information, Jewell and Knappa have joined the chorus of local leaders opposing the habitat conservation plan.

The districts’ school boards approved similar letters in late February to the state Board of Forestry, expressing concern about the potential impact within their communities.

The letters noted that many people in Jewell and Knappa have jobs in the forestry industry, including lumber processing, paper goods processing and logging at companies such as Hampton Lumber, Teevin Bros. and Nygaard Logging. They believe a reduction in logging in state forests will lead to job losses.

“While the draft (habitat conservation plan) does not appear to reduce state timber revenue for the Knappa School District, it would have an adverse impact on families in our community, our county, regional schools, and state schools,” Knappa Superintendent Bill Fritz and Ed Johnson, the chairman of the school board, said in the letter.

Pederson and Lisa Payne, the Jewell school board’s chairwoman, said in their letter, “The economic impact to the Jewell community will be significant and would happen immediately.

“We would project that the overall poverty rate for our school district would quickly increase.”

The letters also pointed to potential negative impacts to law enforcement, the Northwest Regional Education Service District and other services due to decreased funding. Both school districts were also critical of how the public process played out in crafting the plan.

The proposal has been the subject of debate in Oregon for several years through public meetings, discussions at state boards and county governments and news stories and opinion columns in The Astorian and other publications that cover timber-related issues.

“It’s not that we’re necessarily opposed to (a plan), but it’s a matter of having discussions around it with the stakeholders that are involved, and that’s the frustrating part, is it feels like that hasn’t happened,” Pederson said.

Pederson said the school district plans to send letters out to the community to inform people of what is happening with the plan.

Craig Hoppes, the superintendent in Astoria, said he plans to discuss the topic with the Astoria School District Board in the coming months.

The topic was discussed at the Seaside School District Board last week. “It will be a hardship to all school districts, including Seaside School District, if these funds are reduced,” Susan Penrod, the superintendent in Seaside, said in an email. “Rural counties face challenges providing much-needed services to our community members and losing additional funding could increase those challenges.”

The county has projected a 30% to 38% reduction in revenue to the county and local taxing districts as a result of the plan.

Recent timber harvest projections released by the state for the next two years match the reduction the county has anticipated, and county leaders fear what that could mean for harvest volumes over the 70-year life of the plan.

In February, the Board of Forestry acknowledged the estimates were alarming, but asked for patience and trust while the board goes through the process.

The Department of Forestry expects to provide the board with better estimates for the 70-year life of the plan by this summer.