TIME SERIES SYNOPSIS OF FEDERAL LAND-BASED PAYMENTS IN NEVADA
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1 1 TECHNICAL REPORT UCED TIME SERIES SYNOPSIS OF FEDERAL LAND-BASED PAYMENTS IN NEVADA UNIVERSITY OF NEVADA, RENO
2 2 TIME SERIES SYNOPSIS OF FEDERAL LAND-BASED PAYMENTS IN NEVADA Report Prepared by Randall D. Mead and Thomas R. Harris Randall D. Mead is a Graduate Research Assistant in the Department of Applied Economics and Statistics at the University of Nevada, Reno Thomas R. Harris is a Professor in the Department of Applied Economics and Statistics and Director of the University Center for Economic Development at the University of Nevada, Reno. November 1996 UNIVERSITY OF NEVADA RENO The University of Nevada, Reno is an Equal Opportunity/Affirmative Action employer and does not discriminate on the basis of race color religion sex age creed national origin veteran status physical or mental disability and in accordance with university policy sexual orientation in any program or activity it operates. The University of Nevada employs only United States citizens and aliens lawfully authorized to work in the United States.
3 3 This publication, Time Series Synopsis of Federal Land Based Payments in Nevada, was published by the University of Nevada Economic Development Center. Funds for this publication were provided by the Nevada Association of Counties and United States Department of Commerce Economic Development Administration under University Centers Program contract # This publication's statements, findings, conclusions, recommendations, and/or data represent solely the findings and views of the authors and does not necessarily represent the views of the Nevada Association of Counties, United States Department of Commerce, the Economic Development Administration, University of Nevada, or any reference sources used or quoted by this study. Reference to research projects, programs, books, magazines, or newspaper articles does not imply an endorsement or recommendation by the authors unless otherwise stated. Correspondence regarding this document should be sent to: Thomas R. Harris, Director University Center for Economic Development University of Nevada, Reno Department of Applied Economics and Statistics Mail Stop 204 Reno, Nevada UCED University of Nevada, Reno Nevada Cooperative Extension Department of Applied Economics November 1996
4 4 TIME SERIES ANALYSIS OF FEDERAL LAND-BASED PAYMENTS IN NEVADA EXECUTIVE SUMMARY This report, commissioned by the Nevada Association of Counties (NACO), addresses revenues generated through time at the state and county levels from federal lands in Nevada. This study expands upon the previous two studies commissioned by NACO: Federal and State Land-Based Payments in Nevada, UCED 95-02, December 1995; and A Composition of Federal Revenues and Expenditures in Nevada and the Rest of the United States, UCED 95-05, March The objective of this study is to provide information on federal land-based payments through time. PAYMENTS IN LIEU OF TAXES The 1994 amendment to the PILT Act appears to have had little effect on redistribution of PILT funds for Nevada counties. Comparing 1977 to 1995 county payments, Carson City realized the largest increase while Mineral and White Pine Counties realized declines. Nye County has the largest amount of entitlement acres within the state of Nevada. As to PILT per entitlement acreage in 1995, Douglas County was highest at $0.80 per entitlement acre while Esmeralda, Eureka, and Lincoln counties were lowest at $0.03 per entitlement acre. Nevada ranks 2nd of 12 western states in entitlement acres following Alaska. However Nevada ranks 9th among twelve western states in total PILT payments from 1977 through 1995.
5 5 U. S. FISH AND WILDLIFE SERVICE REFUGE REVENUE Nye County has realized the largest increase of all Nevada Counties in U.S. Fish and Wildlife Refuge Revenue. In fiscal year 1982, Nye County received no revenues but in fiscal year 1995 received $33,264 (the largest of all Nevada counties). TAYLOR GRAZING REVENUE Statewide nominal Taylor Grazing Revenue for Nevada has declined from $578,701 in 1981 to $306,337 in Elko County consistently ranks highest in Taylor Grazing revenue among Nevada counties, however like the state, Elko County has realized a decline over time from $146,952 in 1981 to $85,969 in NATIONAL FOREST REVENUE Statewide nominal National Forest revenue has increased from $259,322 to $273,837 in Nye County, through the years , received the largest annual National Forest revenues of all Nevada counties. PAYMENTS EQUAL TO TAXES Due to the Yucca Mountain Project, Nye County has a separate agreement with the U.S. Department of Energy. The agreement guarantees Nye County an annual lump sum far in excess of payments to Clark, Lincoln, and Esmeralda Counties.
6 6 SANTINI-BURTON ACT Revenues are determined by the sale of federal land in Clark County. Though the Santini-Burton Act provides an avenue for purchase of land in the Lake Tahoe Basin, the majority of this revenue is not directly linked to land purchases in the Lake Tahoe Basin. As of June 7, 1994, 3,837 acres had been acquired in Nevada at a cost of $55,822,000.
7 7 TABLE OF CONTENTS Page List of Tables....5 List of Charts... 7 Introduction... 8 Payment in Lieu of Taxes... 8 Mineral Lease Revenue U.S. Fish and Wildlife Revenue Taylor Grazing Revenue National Forest Revenue Payments Equal to Taxes Santini-Burton Act Appendix List of Tables and Charts
8 8 LIST OF TABLES Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Page Nominal PILT Payments to Nevada and Nevada Counties, Fiscal Years PILT to the State of Nevada and Nevada Counties, Fiscal Years , Percent of 1977 Payments...14 Entitlement Acres to the State of Nevada and Nevada Counties, Fiscal Years PILT Per Entitlement Acre for Nevada and Nevada Counties, Fiscal Years (Nominal Value)...18 A Comparison of 1995 with 1977 Nominal PILT for Nevada Counties, (Nominal Value) A Comparison of 1995 with 1997 Nominal PILT Per entitlement Acre for Nevada Counties Total Real PILT Payments for 12 Western States and Entitlement Acre Average, Fiscal Years Table 8: Mineral Lease Revenues Paid to Nevada, FY , (Nominal Value, Real Value and % of 1973 Payment)...25 Table 9: U.S. Fish and Wildlife Service Refuge Revenue Sharing Payments, to Nevada and Nevada Counties, FY (Nominal Value) Table 10: Nominal Taylor Grazing Revenue to Nevada Counties, Table 11: Taylor Grazing Revenue to Nevada Counties, , Percent of 1981 Payments Table 12: Payments to Nevada Counties from National Forest Receipts, , Nominal Value Table 13: Percent of 1982 National Forest Receipts to Nevada Counties , Percent of 1982 Payments... 38
9 9 Table 14: Payments Equal to Taxes to Nevada Counties, FY , Nominal Value Table 15: Payments Equal to Taxes to Nevada Counties, FY , Percent of 1989 Payments Table 16: Santini-Burton Act, Nominal Sale Price and Acres Sold, FY
10 10 LIST OF CHARTS Page Chart 1: Net PILT Payments to Nevada Counties, 1994 vs. 1995, Nominal Value Chart 2: Total PILT Payments vs. Entitlement Acres for 12 Western States, Nominal Value, Fiscal Years Chart 3: Mineral Lease Revenues Paid to Nevada, Real Value, 1987 Base Chart 4: Distribution of Revenues from the Santini-Burton Act... 44
11 11 INTRODUCTION This report is third in a series of reports commissioned by the Nevada Association of Counties to examine federal land-based payments in Nevada and it s seventeen counties. The first report (Mead et al. 1996) examined both federal and state land-based payments and showed their calculation. The second report (Pogue and Harris 1996) compared federal revenues generated in Nevada to federal expenditures in Nevada. Even though Nevada has vast quantities of federal lands, the state generated more federal revenues than it received as federal expenditures. This publication shows the trend in selected federal payments to the state of Nevada and its counties. PAYMENTS IN LIEU OF TAXES (PILT) The 1994 amendment to the original PILT Act appears to have had little effect on the redistribution of revenue among Nevada counties during FY From Table 1 and Chart 1, all counties appear to have received less in 1995 than in The amendment was designed to progressively effect change to the original PILT formula in that poorer counties may receive an increase relative to (i); previous years and (ii); richer counties. The amendment allows for progressive changes of the previous years formula through Fiscal Year Shown in Table 1, Carson City realized the greatest increase in nominal PILTs from 1977 through 1995 while Mineral and White Pine counties realized decreases. Statewide nominal PILT payments have increased from approximately $4.5 million in 1977 to $6.5 million in 1995, a nominal increase of 44 % over the past nineteen years. State of Nevada PILT payments grew at an annual average of 2.3 percent over the nineteen year period but there were some fluctuations. The largest percentage increase occurred between 1978 and 1979 when PILT payments increased by 29.1 percent. The largest percentage decrease occurred between 1994 and 1995 when PILT payments decreased by 5.7 percent. The coefficient of variation which is the standard deviation
12 12 divided by the mean is 3.33 which indicates substantial variability in nominal state of Nevada PILT payments. From appendix table 1A, real statewide PILT payments; that is, PILT payments net of inflation, decreased from $8.0 million in 1977 to $5.0 million in 1995 or a 38 percent decrease in real PILT payments to the state over the nineteen year study period. State of Nevada real PILT payments decreased at an average annual rate of 2.4 percent over the nineteen year study period. The coefficient of variation, which is the absolute value of the standard deviation divided by the mean, was calculated to be The coefficient of variation signifies a very unstable source of revenues to the state through PILT payments. From Table 2, Carson City s 1995 PILT was 612 percent of the 1977 payment value while Mineral and White Pine counties had 1995 PILTs which were 89 percent and 96 percent, respectively, of 1977 PILT values. From Table 3, Nye County had the largest entitlement acreage in 1995 of all Nevada counties with 8,528,805 acres. However, it s of interest that Nye County entitlement acreage has declined from the 1977 total of 8,720,549. Statewide, entitlement acreage has increased from 53,692,958 in 1977 to 56,854,307 in 1995 (Table 3). As for nominal PILT per entitlement acre in 1995, Douglas County was highest at $.80 per entitlement acre while Esmeralda, Eureka, and Lincoln Counties were the lowest as $0.03 per entitlement acre (Table 4). As shown in Table 5, a comparison of nominal PILT payments by Nevada counties indicates Washoe, Clark, and Elko counties received the top three highest PILT payments in 1977 and Nye County realized the largest increase in rank rising from ninth in the state during 1977 to fifth in Churchill, White Pine, Mineral and Douglas counties all realized a decrease in ranking by two places between 1977 and Table 6 shows that Douglas County had the highest nominal PILT values per acre of all Nevada counties in 1977 and Carson City realized the largest increase in rank by six places from 1977 to 1995 for nominal value PILT per entitlement acre followed by Lander County with a rank increase of three (Table 6).
13 13 White Pine County realized the greatest decrease in rank for nominal value PILT per entitlement acreage, decreasing by four places from ninth in 1977 to thirteenth in 1995 (Table 6). Table 7 and Chart 2 shows that the state of California had the largest total real PILT of the twelve western states but ranks third in entitlement acreage. The state of Nevada ranks ninth in total real PILT received by the twelve western states from 1977 through However, Nevada is second only to Alaska in average entitlement acreage from 1977 through 1995 (Table 7 and Chart 2).
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27 27 MINERAL LEASE REVENUES From Table 8 and Chart 3, Real Mineral Lease Revenues to the State of Nevada have been somewhat volatile. Real Mineral Lease Revenues for the State of Nevada increased from $0.4 million in 1973 to their highest value of $14.0 million in Real Mineral Lease Revenues have steadily declined since 1983 and were approximately $6.5 million in As shown in Table 8 and Chart 3, mineral lease revenues to the State of Nevada have shown fluctuation. This is due to the Boom-Bust nature of the mineral industry.
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30 30 U.S. FISH AND WILDLIFE SERVICE REFUGE REVENUE As shown in Table 9, Nye County has realized the greatest increase in Refuge Revenue increasing from zero in 1982 to $33,264 in From Table 9, Nye County received the highest total of annual Refuge Revenue in the State of Nevada from 1982 through 1994.
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33 33 TAYLOR GRAZING REVENUE Statewide nominal Taylor Grazing revenue has decreased from $578,071 in 1981 to $306,337 in 1995 (Table 10). Elko County has consistently from 1981 through 1995 realized the largest Taylor Grazing revenue of all seventeen Nevada counties (Table 10). However, like the state, nominal Taylor Grazing revenue for Elko County has declined from $146,952 in 1981 to $85,969 in From Table 11, Elko County nominal Taylor Grazing revenue has declined by 41 percent from 1981 through 1995.
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38 38 NATIONAL FOREST REVENUE As shown in Table 12, State of Nevada payments from National Forest receipts have increased from $259,322 in 1982 to $273,837 in Of the seventeen Nevada Counties, Nye County has received the highest National Forest receipt total (Table 12, nominal value, Fiscal Years ). From Table 13, Nye County has realized an 11 percent increase in National Forest receipts from
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43 43 PAYMENTS EQUAL TO TAXES Due to the Yucca Mountain Project, Nye County has a separate agreement with the Department of Energy which guarantees annual lump sum payments far in excess of payments to Clark, Lincoln and Esmeralda Counties (Tables 14 and 15).
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46 46 SANTINI-BURTON ACT Revenues are derived from the sale of federal land in Clark County. Distribution of those revenues are listed on Chart 4. Sale price and acres sold are listed in Table 16. Though the Santini-Burton Act provides an avenue for purchase of lands in the Lake Tahoe Basin, the majority of revenue derived from the sale of land in Clark County is not directly linked to the purchase of land in the Lake Tahoe Basin. The 85% of revenue which is deposited in the U.S. Treasury stays with the U.S. Treasury. However, once money is deposited into the U.S. Treasury Congress may then appropriate funds to purchase lands in the Lake Tahoe Basin via the Land and Water Conservation Fund. The exchange is not dollar for dollar. Though $63,982,082 was generated by sale of land in Clark County by 1994, $93,600,000 was appropriated by Congress to the Land and Water Conservation Fund for land purchases in the Lake Tahoe Basin. 1 As of 1994, 3,837 acres had been acquired in Nevada at a cost of $55,822, Source: Willian K. Stowers, Realty Specialist, BLM Nevada State Office.
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49 49 APPENDIX A: ADDITIONAL TABLES AND CHARTS
50 50 APPENDIX LIST OF TABLES AND CHARTS Table 1 A: Table 9 A: Page Real PILT Payments to Nevada Counties, Fiscal Years , Base Year U.S. Fish and Wildlife Service Refuge Revenue Sharing Payments to Nevada Counties, Real Dollar Value, 1987 as Base Year Table 10 A: Real Taylor Grazing Revenue to Nevada and Nevada Counties, Table 12 A: Payments to Nevada Counties from National Forest Receipts, , Real Value, 1987 as Base Year Table 14 A: Payments Equal to Taxes to Nevada Counties, FY , Real Value, 1987 as Base Year Chart 5: Chart 6: Chart 7: Chart 8: Chart 9: Chart 10: Chart 11: Chart 12: Percent of 1977 PILT Payments to Carson City County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Churchill County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Clark County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Douglas County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Elko County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Esmeralda County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Eureka County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Humboldt County and the State of Nevada Fiscal Years
51 51 Chart 13: Chart 14: Chart 15: Chart 16: Chart 17: Chart 18: Chart 19: Chart 20: Chart 21: Percent of 1977 PILT Payments to Lander County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Lincoln County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Lyon County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Mineral County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Nye County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Pershing County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Storey County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to Washoe County and the State of Nevada Fiscal Years Percent of 1977 PILT Payments to White Pine County and the State of Nevada Fiscal Years
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