Tagged: coal severance tax dollars

A drop in coal severance tax revenues has several Kentucky leaders worried. Money from the tax on mined coal is used largely for state, county and city infrastructure projects, specifically in coal mining areas like Eastern Kentucky. House Speaker Greg Stumbo and Governor Steve Beshear say the significant drop in the tax revenue has caught their attention. Beshear says the decline is due to the tough domestic market for Kentucky coal. But he believes exports could cause a rebound. He points out that Kentucky interests recently struck a deal to send coal to India.

Hopkins County officials are bracing for a drop in coal severance tax funds following a slowdown in coal production over the next 18 months.

State officials are reporting a 26 percent drop in coal severance for the 2012-13 fiscal year, which began July 1. That could leave Hopkins County with $1 million less than the $4.05 million officials projected from 2012-2014.

The City of Earlington is temporarily laying off three of its Street Department workers effective Dec. 21 with another three possible in the coming weeks.  The Madisonville Messenger reports the causes are a projected decrease in tax revenue and a delay in receiving coal severance funds. Earlington Mayor Mike Seiber says he made the decision to save the city $30,000 in order to offset the $40,000 decrease in projected property tax income. The city anticipates calling all of the laid-off workers back in six to eight weeks.

One of Governor Beshear’s top economic advisors said Kentucky’s coal industry should probably brace itself for a bad year. He said the outlook for this year leaves a lot to be desired.

"We sort of got used to an upward trend in the last decade, but the foreseeable future for coal and the next three quarters, I'm afraid are going to be decidingly negative," said Deputy Director Greg Harkenrider.

Today on NPR: While "Five Wives Vodka" is made and sold in Utah, officials in Idaho have decided its name and label might offend both Mormons and women.

Four Rivers Region:

Construction begins next summer on a massive marina and riverfront project in downtown Paducah.