When the $700 billion economic stabilization package passed the U.S. Senate and U.S. House and signed by President George W. Bush last week, it included $3.3 billion for a four-year extension to the the Secure Rural Schools and Community Self-Determination Act, known as county payments.

The economic stabilization package, also called the Wall Street bailout, was initially turned down by the House on Sept. 29. Before it passed the Senate, 74-25, on Oct. 1, an number of "sweeteners," such as the county payments and Payment in Lieu of Taxes Program (PILT) programs, were added. The House approved it, as amended, by a 263-171 vote on Oct. 3.

Both the Secure Rural Schools and Community Self-Determination Act and PILT compensate rural counties for taxes lost due to federal lands, especially timberlands in the counties.

Oregon will get about $740 million over four years and Linn County more than $30 million.

"It's good day," said Linn County Commissioner Roger Nyquist about the inclusion of county payments in the bailout bill. "It removes the uncertainty in budgeting we've had in the past two years."

He said at least $20 million will go into the county road fund and another $10 million to the general fund.

The first payments from the county payments program will come this year. Nyquist said it will be about $6.8 million and will decline each year.

The commissioners are talking this week about how to respond to the new revenue. Nyquist said he favors calling the budget committee back together to discuss what to do with the additional revenue. The county eliminated one job because county payments had not been renewed by August, and took one-time revenues to balance the budget.

"One of the cupboards we robbed was the economic development fund to help operate parks," he said. "In my view we need to restock that fund so we have the resources when opportunities become available to assist folks who want to invest capital and create jobs in the county."

Nyquist anticipates that the county will not add a lot of new positions or start new projects, but will revisit some activities it had put off.

On the wider economic picture, he said he's heard a lot of fear about what going to happen to businesses and hopes the bailout bill will take the edge off the volatility of financial markets.

Sen. Ron Wyden (D-Ore.) was instrumental in getting the county payments program added to the economic bill, which he voted no on.

Other no votes came from Reps. Peter DeFazio (D-Ore.) and Earl Blumenauer (D-Ore.). Sen. Gordon Smith (R-Ore.) and Reps. Darlene Hooley (D-Ore.), David Wu (D-Ore.) and Greg Walden (R-Ore.)

Wyden said he worked to get county payments added to the economic package because he had promised he would attach it to every bill moving in Congress until it passed. He voted no on the package because, "in my judgment, the bill … leaves far too many questions unanswered, and misses the mark in addressing both the causes and potential cures for the current crisis."

Smith praised inclusion of county payments in the bailout bill.

"In a time of economic turmoil, this critical funding will ensure that thousands of Oregonians jobs will be safe and schools and libraries will remain open," he said. "Today's vote represents an enormous victory for rural communities across the country."

DeFazio issued a statement after the house vote applauded passage of the four-year extension to county payments, but called the bailout a "boondoggle."

The Bush/Paulson plan does not address regulatory issues and will jeopardize the nation's financial future, he said.

DeFazio had offered his own alternative, the No Bailouts Act, that would correct the capital shortfalls experienced by many financial institutions and help protect the integrity and quality of the securities market, without putting taxpayers on the hook.

Congress originally passed the Secure Rural Schools and Community Self-Determination Act in 2000 to compensate counties for the loss of receipts from timber harvested on federal land. After the program ran out in 2006, Congress authorized a one-year extension. When it expired, counties in Oregon and elsewhere began laying off personnel and cutting back or canceling services. This summer Linn County dropped 10 percent out of its $32 million 2008-09 general fund budget.

The most recent attempts to renew the program were in September, when the Senate overwhelmingly voted to pass legislation that included a $3.8 billion four-year phase-out of county payments. Later the House leadership removed county payments when they split the bill into three parts. An attempt to add the program to another bill in the House failed on Sept. 26.