PRESTONSBURG, Ky. — Most of us celebrate at midnight on New Year’s Eve, but officials in Kentucky coal-producing counties probably felt a similar sense of jubilation when the clock struck 12 early this morning.
That was the deadline for Governor Matt Bevin to veto a bill that restored coal and mineral severance tax money to those counties.
The downturn in the coal economy has resulted in far fewer tax dollars for the coalfields. Seven years ago, over $300 million in severance tax was split between the state and 34 coal-producing counties. This year, that figure is projected to plunge to $79 million, leaving just shy of $40 million for those 34 counties.
However, a change in the budget would have reduced that amount even further, to just $6 million. And even if there were to be an unexpected boom in coal or natural gas, none of the additional tax revenue would be shared with the counties that produced it.
Floyd County Judge-Executive Ben Hale says he and 16 of his fellow judges went to Frankfort to ask for some relief.
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Legislators listened. House Bill 265 was passed on the last night of the session to address the measure, but had to wait for 10 days while Governor Matt Bevin decided whether to sign or veto it. Last night at midnight, it became law without his signature.