MENLO — With declining timber funds to draw upon, rural school districts across the state are feeling a financial pinch that is only expected to worsen. A more recent decision by the state’s Forest Practice Board extending buffer zones on non-fish bearing streams is expected to only add to the issue.
Willapa Valley School District in north Pacific County is a prime example of problems surrounding declining and wildly fluctuating timber taxes.
This turmoil includes ongoing legal battles to preserve more forestland from logging, including four lawsuits in Pacific County and two in Wahkiakum County filed by the Legacy Forest Defense Commission, a nonprofit founded in 2023 aimed at preserving Western Washington’s “legacy forests.”
The buffer change alone is expected to result in $4.7 to $7.9 billion in financial losses over the next 45 years and immediately resulted in the devaluation of $259 million of harvestable timberlands in Pacific County.
Willapa Valley
The mounting strains have shifted attention to the impact they will have on education. Many rural school districts rely heavily on timber funds because of residents’ inability or unwillingness to support increased taxes.
“Even in my first year as superintendent of the Willapa Valley School District (WVSD), I have seen firsthand how revenue from state forestlands has played an important role in our budget,” Willapa Valley School District Superintendent Tammy McMullen said. “In January, our General Fund balance was approximately $170,000. While our enrollment has remained steady, our costs continue to rise.”
State legislators responded this year with Senate Bill 5994 — signed into law on March 16 — that aims to address the volatility of timber-dependent funding and fluctuations in voter-approved levies.
The new legislation will allow school districts — and rural districts, in particular — that do not have a qualifying ‘excess levy’ to use its highest levy rate from the previous two years in calculating its eligibility for timber tax distributions.
The result is supposed to be more financial predictability.
“We are grateful to have received just over $200,000 this school year, but with the current limitations on logging, we cannot count on timber revenue as a stable funding source moving forward,” McMullen said.
“At the same time, our community is already feeling the strain of rising costs — fuel, sales tax, increasing property values and everyday living expenses. Over the years, forest revenue has helped us balance our budget and lessen the impact on local taxpayers,” McMullen added.
The district had strong revenues in 2016-17 and 2018-19 that “exceeded $500,000.” The district has also had years where revenue was dismal, including 2015-16 when it received just over $20,000, and 2020-21 when it received less than $20,000.
“That level of fluctuation makes it extremely difficult to plan and sustain operations from year to year,” McMullen said.
Despite the new legislation, funding for education in Washington state is still an uphill battle, especially for rural districts. The current funding models rely heavily on student enrollment and voter-approved levies with a major discrepancy between urban and rural districts.
“Compounding these challenges, Washington state has not kept pace with the true cost of running a school district,” McMullen said. “Expenses continue to increase in areas like staffing, transportation and basic operations, which unfortunately places a greater burden on our local taxpayers.”
“Despite these realities, we remain committed to being thoughtful and responsible stewards of our resources. We will continue to be creative, conservative and strategic in our approach, while ensuring our students receive the highest quality education possible. Our goal is to prepare every student to be a successful, thriving member of our community and beyond,” McMullen added.
Overall conditions
The Naselle-Grays River School District (NGRSD) has also experienced the ups-and-downs of timber funds.
“From our experience, the issue is less about a steady decline and more about significant year-to-year variability,” NGRSD Superintendent Josh Brooks said. “This inconsistency makes it difficult to rely on timber revenue for budgeting purposes.
“For example, we have had three years where we received less than $1,100 and three years where we received $191,000 or more. Because of this volatility, timber funds are not a stable or predictable revenue source for the district, which limits our ability to plan long-term expenditures around them,” Brooks added.
Raymond School District (RSD) does receive timber funds, which have remained steady over the past several years. RSD received $44,866 for 2020-21, $38,500 in 2021-22, $34,014 for 2022-23, $41,647 for 2023-24, $56,995 for 2024-25 and thus far $19,037 for 2025-26, with this year expected to end up at $38,075.
Ocean Beach School District, with more than $4 billion in property valuation and by far the county’s wealthiest district, doesn’t much depend on logging taxes.
It has about $22 million in timber assessed value. This compares to Willapa Valley’s total valuation of $433 million and timber assessed value of $153 million, Naselle’s $280 million total and $105 million timber, South Bend’s $403 million total and $43 million timber, and Raymond’s $524 million total and $42 million timber value.
According to South Bend School District Superintendent Jon Tienharra, his school district receives little timber tax.
Despite the challenges, timber-dependent districts appreciate the funding they do get, and say they will continue to make the best of the fluctuating situation and policies.
“I also want to take a moment to thank Willapa Valley taxpayers — we paid off our bond in December, which is a significant accomplishment for our community,” McMullen said.
