Thursday, September 6, 2012

Coal Severance Revenue Plummeting

{Frankfort, Kentucky}...State lawmakers were told Thursday that some local governments in Kentucky's coalfields could be forced to postpone their planned construction projects because a slowdown in the mining industry. Revenue from the state's coal severance tax is plummeting with mines shutting down and miners being laid off. Deputy State Budget Director John Hicks told lawmakers Thursday that coal tax revenue is projected at $245 million this year. That's $88 million less than was expected when lawmakers passed the budget less than five months ago. It will hit county governments hard. Democratic state Senator Dorsey Ridley of Henderson says the shortfall will mean local governments will have to prioritize infrastructure projects that are on the drawing boards and will likely have no choice other than to delay some.