Pike Magistrates Question Coal Severance Expenditures

Appalachian News-Express

Some Pike County magistrates dissatisfied with this year’s coal severance bill took the opportunity at Tuesday’s work session to voice their frustrations to local state Reps. Leslie Combs and W. Keith Hall.

“There were several things we asked to try to clear up issues that we didn’t know the answer to,” said District 6 Magistrate Chris Harris.

One of those questions, according to Harris, was what happened to a large sum money that had been given to the fiscal court before House Bill 410 was passed. Harris said the court sent the money back to Frankfort with the understanding that the county would get the money back to fund several projects the court had previously approved, and for which the court had earmarked the money. But, when the coal severance bill passed, none of the projects were listed.

“I don’t know the answer to that,” Combs told the News-Express. She said when the legislature discussed the coal severance bill, they were given a dollar amount of money to allot, but they were not necessarily told where the figure came from. She said the Governor’s Office for Local Development would be the only entity to know where that money went.
Another question raised by magistrates Tuesday was why Pikeville received approximately the same amount of money as the entire county received, once the money given to the county’s water district, Mountain Water, was subtracted. According to Pike County Director of Energy and Technology Roger Ford, Pikeville received approximately 3.4 million, fiscal court received approximately $3.9 million, and Mountain Water received approximately $5 million.

“It’s not fair to pick 10 percent of the people and give them 50 percent of the county’s coal severance money,” Harris said. Harris said there are funds allocated in the coal severance budget that are going to pay debt services for Pikeville’s city parks and the Hambley Athletic Center. Also, money is going to pay for street improvements in Pikeville.

“I don’t know how much coal is actually mined in (Pikeville) city limits, but if we’re going to pay for street improvements with coal severance tax dollars, I can take you out to several places in the county where they’re needed. We deal with the coal dust and potholes and herniated disks and black lung and it’s not fair for county residents to not share in the economic stimulus that comes with these funds,” Harris said.

Combs said the money was allocated in the coal severance bill by dividing it between districts. She said she looked at the percentage of the county she represents, and it was about 25 to 30 percent of the county. She said she then took about 25 to 30 percent of the coal severance money and spent it on projects throughout her district. She said the projects she decided to fund were based on the requests she received from magistrates, cities, and other entities within her district.

Combs said there was a difference of opinion about the amount of money given to Pikeville. She said Pikeville was the county seat and major base of operation, plus it has a master plan for supplying infrastructure and making improvements to benefit the entire county.

District 1 Magistrate Jeff Anderson said what displeases him most about coal severance funds is that Pike County is not get the percentage of coal severance money collected that it should. He said instead of receiving the $26 million in coal severance tax dollars that comes out of Pike County, the county only receives about $12 million.

“Then we have to start dividing up the 12 million,” he said, and added that the amount was not enough.

Anderson also said that there were people living in the county who lack water and sewer services, and, though he was pleased that the bill provides for infrastructure to fund future developments, it should have also provided for infrastructure to fund homes in the county that already exists.

Combs said she agrees with Anderson, but that the state relies just as much on coal severance as the county does. She said the state would not replace coal severance money with another source of revenue if coal severance were ever lost.

“Sure, I want 100 percent of it (coal severance tax) back, too, but the state relies heavily on that money,” she said, adding that in years prior to the collection of coal severance taxes, other counties subsidized the state, and she hoped those counties never asked Pike county to give them their money back.

Burley Wright named National Mine Rescue Association - KY Post No. 2 Man of the Year

Kentucky Post No. 2 of the National Mine Rescue Association honored Burley Wright as their 2008 Man of the Year on Friday night in an awards ceremony at the annual meeting in Lexington, KY. Association president John Small made the presentation following a pictorial presentation of Wright's illustrous career by Ronnie Biggerstaff.  Wright's decades long career in mine rescue earned him the Post's top honor. Biggerstaff recalled Wright's lifetime dedication and achievements in furthering mine rescue efforts in Kentucky and nationwide. Additionally, the Post awarded 5 heroism awards to individuals who responded to the Darby Mine disaster in Harlan County, KY in 2006.