More support for a severance tax permanent fund

Earlier this week, the Lexington Herald-Leader printed an editorial in support of a permanent fund for the coal severance tax titled “Raise coal tax, spend it better.” You’ll definitely want to click that link to read the whole article, but here are some of the highlights: The legislature put into law some reasonable expectations for local severance tax spending. But the legislature routinely exempts itself from its own laws. In the current state budget, lawmakers approved 792 exemptions allowing them to make individual severance tax appropriations, many of dubious value. This spending nibbles up the money while bearing no resemblance to a coherent economic strategy…. When the legislature began sending half of the severance tax back to coal communities, the goal was to spur economic development and work-force training that would relieve the dependency on a single industry. Sadly, it hasn’t worked out that way. Coal production declines and layoffs — which had been predicted — are having devastating effects…. Still, the whole state has an interest in Eastern Kentucky doing better. The only way to make a case for sending more money to the mountains is by tying it to a credible regional strategy, one with measurable goals and rigorous accountability, that would be administered transparently and nonpolitically. Lawmakers from Eastern Kentucky hold the top posts in both chambers, so lack of political clout is not the region’s problem. What’s missing is a plan. We couldn’t agree...

Entrepreneurial Training Series Offered in Eastern Kentucky

The Southeast Kentucky Economic Development Corporation is offering a series of 4-week business trainings called "Entrepreneurial SMARTS" (Simple Methods And Reality-based Training for Success) throughout 2013 in Corbin, Prestonsburg, Somerset, Hindman, Liberty and Pikeville. Here's the info from their website: Southeast Kentucky Economic Development Corporation (SKED) is hosting a nationally recognized entrepreneurial and small business training program at 10 locations across Southeast Kentucky. Based on the nationally acclaimed Core Four™ Business Planning Course, developed by the Northeast Entrepreneur Fund in Virginia, MN over a decade ago, this curriculum has been used by community colleges, continuing education classes, community development financial institutions, micro lenders and small business development centers. This training has helped to build businesses ranging from small $500 home-based startups to $1,000,000 business expansions. Training consists of four 3-hour sessions, one session per week for four weeks, at each of the 10 selected locations. Upon completion of all four training sessions, participants will receive a certificate recognizing their achievements, and will be eligible to apply for business startup or expansion funding from SKED’s loan funds. Space is limited at each site so register early.   Who should attend? Entrepreneurs People with a business idea Prospective business borrowers Unemployed wanting to become an employer Anyone interested in successful business management Struggling business owners Owners of growing or changing businesses SMARTS Sessions: I. Success Planning – Week One Are You an Entrepreneur? Your Business, Your Dream Characteristics of a Successful Business Owner What Do You Expect From Your Business? What...

EKY community examines local food opportunities

If you follow us on Facebook (and you should!), you know that yesterday I was at the quarterly meeting of the Eastern Kentucky Local Foods Collaborative. It was a great meeting with lots of energy, but you’ll have to check back for a full report. In the meantime, check out this great report from the Floyd County Times about a group of dedicated residents undertaking a local foods assessment. Group conducting assessment of county’s food supply by Ralph B. Davis A group of Floyd County volunteers representing agriculture, government and social service interests is working to map out the county’s strengths and weaknesses in feeding itself. The group, initiated by Appalachian Roots with assistance from Community Farm Alliance, has a goal of examining all steps along the food chain, in an effort to identify unmet needs and unrealized potential. Todd Howard, a local farmer who manages the Floyd County Farmer’s Market, says he believes there is a lot of potential for Floyd Countians to provide healthier foods for themselves, as well as to make additional income by selling their harvests. “Really and truthfully, I think that our local markets, our local food markets, are an untapped resource,” Howard said. “It’s got huge potential for growth.” Howard said some small changes could potentially have a big effect on the community. “We know all of this food is coming into Floyd County, but where is it coming from?” Howard said. “What happens if we’re able to replace 5 percent, 10 percent...

Two editorials on coal severance funds

Two Eastern Kentucky newspapers weighed in on our declining coal severance funds last week, in response to a bill filed in Frankfort that would return all severance funds back to the coalfields. (Currently, half the funds go into the state General Fund.) While both papers support the bill, they  are pessmistic about its chances of passage – and call for different thinking about severance funds and economic development in the region.   The Floyd County Times calls out the Kentucky legislature for allowing severance funds to be spent not on long-term economic development, as they were intended, but for day-to-day expenses: State law explicitly prohibits using coal-severance revenue to fund administrative functions of local government, with the money instead intended to be used to alleviate the toll the coal industry exacts on local roads and to diversify the region’s economy. However, given that much of the money is currently being spent to provide operational funding for such things as fire departments, senior citizens centers, drug courts and sheriff’s departments, it has become increasingly clear that proscription was written with a wink and a nod. …The reality is that state legislators are allowing local governments to squander Eastern Kentucky’s future to pay for current basic needs. Instead of forcing city councils, fiscal courts and school boards to make some hard decisions about their spending choices, the legislature is instead enabling local officials to go on their merry way, pretending as if they are not beset by serious budget issues. The Hazard...