Forest Service

During fiscal years 1995 through 1997, the Forest Service collected about $1.85 billion in timber sales receipts and distributed about 92 percent of this revenue to Forest Service funds or accounts set up for such purposes as reforestation, salvage sale preparation, and credits for roads that timber purchasers build. During this same period, the funds not otherwise distributed--about $125 million--plus about $29 million from the Roads and Trails Fund were deposited into the General Fund of the U.S. Treasury. To operate the timber program and to prepare and administer timber sales, the Forest Service spent about $1.2 billion during fiscal years 1995 through 1997. Congress established an additional fund in April 1996 to be used to prepare future timber sales. Beginning in fiscal year 1996, Congress omitted appropriation language requiring that the moneys in the Roads and Trails Fund be deposited in the General Fund of the U.S. Treasury. Also, since fiscal year 1996, the Forest Service has been using a special appropriation provided by Congress for part of the required payments to the states affected by a substantial drop in the size of timber harvests as a result of listing the northern spotted owl as a threatened species. Also, beginning in fiscal year 1999, Congress eliminated the credit given purchasers for building roads.

GAO noted that: (1) during FY 1995 through FY 1997, the Forest Service collected about $1.85 billion in timber sales receipts and distributed about $1.7 billion, or about 92 percent, to Forest Service funds or accounts established for specific purposes such as reforestation, salvage sale preparation, and credits for roads that timber purchasers build; (2) during this same period, the funds not otherwise distributed--about $125 million--plus about $29 million from the Roads and Trails Fund were deposited into the General Fund of the U.S. Treasury; (3) to operate the timber program and to prepare and administer timber sales, the Forest Service expended about $1.2 billion in appropriations and other moneys during the period FY 1995 through FY 1997; (4) since GAO's September 1995 report, Congress, in April 1996, established an additional fund to be used to prepare future timber sales; (5) beginning in FY 1996, Congress omitted appropriation language requiring that the moneys in the Roads and Trail Fund be deposited in the General Fund of the U.S. Treasury; (6) also, since FY 1996, the Forest Service has been using a special appropriation provided by Congress for a portion of the required payments to the states affected by a substantial drop in the size of timber harvests--and, therefore, a substantial drop in payments to these states--as a result of listing the northern spotted owl as a threatened species; and (7) in addition, beginning in FY 1999, Congress eliminated the credit given purchasers for building roads.