

Nevada’s cash-strapped rural counties could lose out on money they use for everything from fixing potholes to funding senior nutrition under a budget proposal from President Donald Trump.

The proposal calls for a “reduced level” of funding for the Payments in Lieu of Taxes program, also known as PILT.

It’s paid to local counties based on a formula that combines population and the amount of federal land within the county. The federal government doesn’t pay local property tax. PILT is supposed to help counties make up for the loss. It’s particularly important in Nevada which is about 85 percent federal land.

“It is not a welfare program, it is not a gift, it is a property tax payment,” said Jim French, a Humboldt County supervisor.

Counties with large urban centers, such as Clark and Washoe, also get PILT money. But it’s a smaller percentage of their overall revenue because cities such as Las Vegas and Reno generate more property and sales taxes to support programs.

Counties in Nevada got $25.6 million in PILT money in 2016, which was the highest level of program funding in a decade, according to a Department of the Interior database.

Under Trump’s budget proposal funding would decrease but it’s not clear by how much. It calls for a level, “in line with average funding” but doesn’t give a number.

Jeff Fontaine, executive director of the Nevada Association of Counties, said people lobbying on behalf of the program warn to brace for cuts of about 10 percent.

But in Nevada’s struggling rural areas, which supported Trump in the 2016 election, even small cuts can make a big difference.

“Any reduction they do to PILT reduces the services we can provide to our citizens,” said Lorinda Wichman, a Nye County supervisor.

In 2016 Nye County received $3.1 million through PILT. A 10 percent cut would amount to $300,000. It’s not much for a state or large local government but for Nye County it’s significant.

It’s been used to do everything from fix potholes to support a senior nutrition program that serves residents in places such as Amargosa, Tonopah and Beatty.

Wichman said a PILT reduction threatens to undermine plans to restore the senior nutrition program which has been out of commission since 2014.

“We were hoping to be able to bring it back until we heard the PILT funding was going to be lost,” she said.

The irony of the proposed cuts is that they would fall disproportionately on counties that supported Trump in the 2016 election.

Although Trump lost to Democrat Hillary Clinton by more than 27,000 votes in Nevada, the Republican won every county except Clark and Washoe.

“It is the rural counties that stood by him in the campaign,” Wichman said.

She’s hopeful lobbying by the National Association of Counties and efforts by Nevada’s federal congressional delegation will convince Trump to support more, not less, PILT funding.

“We need to carry that message harder and faster so he understands how important it is to the rural counties,” she said.

Wichman, Fontaine and French said the retirement of Sen. Harry Reid, D-Nev., is another challenge when it comes to PILT.

Reid, who was generally unpopular in rural counties, was recognized by supporters and opponents as a skilled lawmaker. Fontaine, Wichman and French credited Reid as a champion for PILT funding.

“Love him or hate him Harry Reid was very effective in maintaining the PILT payments for Nevada,” French said.

With Reid retired rural Nevadans are turning to Sen. Dean Heller, R-Nev., and Rep. Mark Amodei, R-Carson City, to support PILT.

In March Heller signed a letter to leaders of the Senate Appropriations Committee calling for full PILT funding. Sen. Catherine Cortez Masto, D-Nev., also signed the letter along with 32 other senators.

A Heller spokesperson responded to a question about PILT with a written statement.

“The Payment in Lieu of Taxes (PILT) funding for Nevada’s rural counties is not a discretionary fund; it’s an obligation the federal government has to any county with public lands,” the statement read. “Since coming to Washington, I’ve stood up for the PILT program because I know how important it is to Nevada’s delivery of essential services, including law enforcement, education, and road maintenance. I’ll continue to fight (to) fully fund the PILT program and the benefits it provides to Nevadans.”

Amodei, also through a spokesperson, answered a question about PILT by referencing a statement from House Appropriations Chairman Rep. Rodney Frelinghuysen, R-N.J., who has criticized some of Trump’s proposed cuts and reminded people the President needs the approval of Congress to pass a budget.

“We will determine if the budget proposal provides an appropriate level of funding for the critical programs and agencies Americans rely on,” said Amodei, a member of the Appropriations committee. “It’s quite common for the suggested proposals included in the President’s budget to change throughout the appropriations process, and I fully expect that to be the case for the current budget submission. I look forward to the Appropriations Committee holding hearings that allow a multitude of stakeholders to provide input on the appropriations process.”