Unorganized borough communities in line for $5 million federal payment

Posted: Thursday, October 04, 2001

ANCHORAGE (AP) -- Communities outside Alaska's organized boroughs are in line for $5 million this year under the federal Payment in Lieu of Taxes program, the governor's office announced Thursday.

The program compensates local governments for federal lands within their areas that restrict a community's ability to generate local revenue and often hinder community development opportunities.

Before 1997, only organized boroughs in Alaska received federal PILT payments. A change in federal law allowed communities outside boroughs to receive payments. About 60 percent of the federal land in Alaska is outside an organized borough.

Communities use payments for police and fire protection, road maintenance, health services, public schools and other purposes.

Payments are to be made Oct. 15. The annual payments are distributed by the Alaska Department of Community and Economic Development to the 97 incorporated cities outside boroughs.

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