Democratic state representatives Leslie Combs and Fitz Steele noted the regions around Pikeville and Hazard would need all of the revenue they could get during a “new age” for the coal industry.
“Just this week, we saw where these taxes dropped more than a fifth during last fiscal year, and with the president’s announcement a few weeks ago that even more coal-killing regulations are on the way, this figure is all but guaranteed to drop even more,” Steele, the bill’s principal sponsor, told SurfKY.
“Our coal counties are hurting, and if they are going to survive, they need this money … [t]hey’ve certainly earned it.”
Combs told the paper the area was hurting from the loss.
“While no one is questioning the value of the many programs funded by coal-severance dollars, the truth is that by the time the coal counties get their share, the flow of money has dwindled to a trickle,” the prime co-sponsor said.
“While we hope otherwise, it appears that we’re entering a new age when it comes to coal, and we need all of this revenue to help us make that transition.”
According to the Associated Press, the proposal is unlikely to pass because of the hole it would leave in the state’s budget. A similar presentation was made earlier this year but failed.
State budget director Jane Driskell said last week that Kentucky coal severance tax revenue declined by about $68 million in 2012 to $230 million, the result of reduced production and still-sagging coal prices.
Under state law, several programs are funded from the money, and the remainder is split equally between the state and the coal counties. A formula dictates how the local portions are divvied from there.
“The coal counties have more than paid their fair share over the 40 years of the coal-severance program, so the time has come to tip that balance the other way,” Steele told the paper.
“No one can question the need, and we have the vision on what should be done.
“All we need is a way to pay for it, and Leslie’s and my bill provides the way. It’s time has come.”
