With Sights on a Livelihood beyond Coal
[imgbelt img=coalmeeting530.jpg]Many rural areas face fundamental shifts in their economies. In Kentucky, community advocates and scholars come together to project a
future less reliant on Old King Coal.
It sounds easy, but Lewis quickly describes the breadth of the problem and the potential economic impact of fixing it.
“You would have to clean up coal,” she said. “You would have to stop mountaintop removal [coal mining]. A lot of money could go into an absolutely good project that would hire a lot of people – if you could get into restoring the watersheds of this whole region.
“You have to do all of that to promise a child a clean glass of water.”
Lewis’s idea was one of several brought forward during a roundtable discussion April 25 on economic transformation for east Kentucky, organized by the Center for Rural Strategies (publisher of the Daily Yonder) and the Mountain Association for Community Economic Development.
The dozen participants at the gathering in Whitesburg, Ky., represented economic development nonprofits, educational institutions, community organizers, media makers, private philanthropy, and a citizens law center. A second day of discussions took this small group’s ideas to a regional conference, the East Kentucky Leadership Conference, in Prestonsburg, Ky., where approximately 75 other coalfields leaders discussed the proposals.
The goal of the discussions was to create an “idea bank” of economic renewal projects to contribute to building a healthier economy for the region.
For the past 100 years, the public discussion of the economy of east Kentucky has been synonymous with coal. But that’s changing – slowly.
The Friends of Coal specialty license plate benefits the Kentucky Coal Association.
The challenge is how to discuss economic alternatives to coal within a region that still views itself as coal country. (The state sells a “Friends of Coal” specialized license plate, with proceeds going to the Kentucky Coal Association, an industry group. The organization says the state has sold 50,000 of the plates – that’s more than three plates for every mining job in Kentucky.)
MACED is proposing that Kentucky do a better job of using coal severance-tax revenue to support economic transition. The state started taxing mined minerals in the 1970s. But too much of the revenue goes to address short-term needs, not accomplish long-term economic change, says Jason Bailey, research and policy director of MACED. What is more, coal production is expected to fall in the future, which will reduce revenue from the tax.
To create a more stable source of economic-development funding, MACED has proposed that the state set aside 1 percentage point of the tax (currently at 4.5 percent) for a permanent fund or endowment. That would mean a little less money for local-government projects for about 10 years. After that, east Kentucky would start to see a net gain in economic development funding from the fund, according to MACED’s analysis. By 2035 the fund’s value would reach $735 million and generate $31 million a year for economic development,
That kind of money could buy a lot of BBs.
• Improving infrastructure and the environment to make the region more attractive to businesses. Dee Davis, president of the Center for Rural Strategies, cited improving broadband infrastructure as a necessary ingredient in any long-range development plan. Others mentioned retrofitting public and private structures to make them more energy efficient, remediating lands damaged by mining, restoring watersheds, and improving housing stock.
• Building on the health-care economy, which could be affected by federal health-insurance reform.
• Generating new revenue for economic and community development. Besides MACED’s coal severance tax idea, participants also discussed the need for expanding the number and size of local community foundations and getting national foundations to invest more heavily in the region.