Want to know why Frankfort won’t touch the coal severance tax like other coal producing states have done?
From John Cheves:
“If you try to raise the severance tax, we’ll squeal,” said Bill Caylor, Kentucky Coal Association president.
Coal’s squeals are hard to ignore in Frankfort. The coal industry spent more than $1 million on state political donations in recent years and $255,145 to lobby the last two legislative sessions.
Several top lawmakers work for coal companies, including House Speaker Greg Stumbo, D-Prestonsburg, and House Majority Leader Rocky Adkins, D-Sandy Hook, both employed by Ashland-based Energy Coal Resources.
And check out these other gems:
Of the top coal-producing states, Kentucky gets the least from severance taxes — only 2.9 percent of its total tax income, compared to 7.1 percent for neighboring West Virginia.
-SNIP-
Apart from the severance tax, the state Division of Mine Permits last year collected $1.6 million in fees from mining companies, using the rates set in 1982.
But the agency, which reviews surface and underground mining applications, needed an annual budget of $8.6 million, most of which came from the state’s General Fund and the federal government.
In essence, taxpayers subsidize a regulatory agency for the coal industry…
One has to wonder, like Kathy Stein questions in the article, why Governor Steve Beshear and other elected officials in Frankfort are afraid to put everything on the table during this economic crisis. Guess that coal company cash during election year is too sweet to risk.
4 responses so far ↓
1 WouldaShouldaCoulda // May 6, 2009 at 4:51 pm
Another special interest that costs taxpayers money is the absurd prevailing wage jewel for the unions. Requiring governments to pay prevailing wage rates on major construction projects–including schools–costs government more than $100 million each year than necessary. You don’t hear Dems talking about changing that to save money either.
2 jake // May 6, 2009 at 4:57 pm
Uh, maybe that’s because the prevailing wage is required in order to barely get by in life?
Democrats tend to want to pay people a living wage. As do most people with common sense.
But keep on with the right-wing spin.
3 Bruce Maples // May 6, 2009 at 9:07 pm
Dear WSC — you got a citation for that figure?
Returning to the topic at hand — glad to know that coal still gets its way. Always. Every time. Without exception. Till every mountain is gone, every stream destroyed, and every ounce of profit drained out of eastern Kentucky.
Sorry — don’t mean to sound so bitter. It just galls me to watch our “leaders” turn into slobbering sycophants whenever Coal enters the room.
4 johnny // May 7, 2009 at 3:29 am
I used to point out that even though Kentucky ranks near the bottom on many indicators compared on a national level, thank God for West Virginia, since they rank lower, and make me feel better about by beloved Bluegrass. Well. West Virginia has a hold of their Coal Companies much better than the slimy politicians in Frankfort.
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