The economic health of many of Idaho's counties is closely tied to the health of the forest-products industry. By law, 25% of the revenue generated from the sale of timber on national forest land is returned to the stae, which allocated these 25% Funds to county governments on the basis of national forest acerage within each county. County governments use these funds to support schools and roads. In 1995, Idaho counties received slightly more than $15 million in 25% Funds. However, 1995 revenues were just 60% of 1994 revenues -- a result of declining harvest on national forest lands. Restrictions on timber sales will continue to have a negative effect on county budgets.
In addition to forest fees, county goverments benefit from the property taxes paid by forest products companies on their mill sites, and from property taxes levied on privately held tracts of forestland.