TALKING POINTS FOR HOUSE BILL 86

• ESTABLISHES THE PAYMENT IN LIEU OF TAXES OR PILT PROGRAM WITHIN THE DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS FOR HOME RULE AND GENERAL LAW MUNICIPALITIES LOCATED IN THE UNORGANIZED BOROUGH WITHIN FEDERAL CENSUS AREAS OF THE STATE.
  
• FINANCED BY FUNDS RECEIVED ANNUALLY FROM THE FEDERAL GOVERNMENT. THE FEDERAL PROGRAM, WHICH IS CURRENTLY IN EXISTENCE FOR COUNTIES AND BOROUGHS THROUGHOUT THE UNITED STATES, WAS AMENDED LAST YEAR BY SENATOR STEVENS TO ALLOW CITIES IN ALASKA'S UNORGANIZED BOROUGH TO RECEIVE THESE PASS THROUGH FUNDS.
  
• ONLY 40 PERCENT OF THE FEDERAL LANDS IN ALASKA ARE LOCATED IN ORGANIZED BOROUGHS. OF OVER HALF OF THE FEDERAL LANDS IN ALASKA, 60 PERCENT WERE NOT CURRENTLY CONSIDERED IN DETERMINING PILT PAYMENTS TO ALASKA. NEARLY A HUNDRED RURAL ALASKAN CITIES WHICH ARE SURROUNDED BY FEDERAL LANDS, BUT WHICH ARE OUTSIDE OF ORGANIZED BOROUGHS, RECEIVE NO PILT PAYMENTS.
  
• THIS BILL PROVIDES THE MECHANISM FOR THE DEPARTMENT TO DISTRIBUTE FUNDING AND TO ESTABLISH CRITERIA TO DETERMINE WHETHER A CITY IS ELIGIBLE TO RECEIVE PAYMENT AS PROVIDED BY FEDERAL LAW. THESE FUNDS ARE TO BE USED BY THE MUNICIPALITIES FOR GOVERNMENTAL PURPOSES.
  
• THIS LEGISLATION AND THE FEDERAL LEGISLATION IS AN INCENTIVE FOR RURAL COMMUNITIES TO REMAIN AS INCORPORATED STATE ENTITIES AND DISCOURAGE THE PROCESS OF DISSOLVING MUNICIPAL GOVERNMENTS. THE ADDITIONAL FUNDING FOR THIS PROGRAM WILL BRING AN ESTIMATED 1 TO 5 MILLION DOLLARS INTO THE STATE.
  
• PAYMENTS ARE BASED ON FEDERAL LANDS WITHIN THE ELEVEN FEDERAL CENSUS DISTRICTS IN THE UNORGANIZED BOROUGH AND THE TOTAL POPULATION WITHIN THE CENSUS DISTRICT. PAYMENTS ARE THEN DISTRIBUTED ONLY TO THE MUNICIPALITIES WITHIN THE CENSUS DISTRICT. THE FEDERAL FORMULA FOR DETERMINING THE PAYMENT IS SOMEWHAT COMPLICATED BUT THE BASIC CALCULATION USED IS THAT FEDERAL CENSUS AREAS WILL RECEIVE $1.29 IN 1997 PER ACRE AFTER SUBTRACTING THE PRIOR YEAR'S OTHER FEDERAL PAYMENTS OR 17 CENTS AN ACRE WITHOUT SUBTRACTION OF THESE OTHER PAYMENTS. THE METHOD THAT PROVIDES THE GREATER AMOUNT IS USED.
  
• THESE FUNDS ARE DISTRIBUTED ONLY TO MUNICIPALITIES AND PROVIDES NEW REVENUE COMING INTO THE STATE.