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KamaAina

(78,249 posts)
Thu Sep 10, 2015, 07:10 PM Sep 2015

Coal’s Decline Is Choking Appalachia Towns (xpost from GD)

(Bloomberg) In Kentucky’s Letcher County, emergency response time for sheriff’s deputies averages an hour, up from 30 minutes a year ago. Martin County, also in eastern Kentucky, couldn’t afford to open its public swimming pool this summer. West Virginia’s Boone County, once the richest in the state, is considering ending free garbage pickup. The cutbacks stem from a steep drop in coal production as tougher environmental regulations and low natural gas prices make coal less competitive. “It’s just been devastating to us,” says Kelly Callaham, judge-executive of Martin County, which has a $7 million budget, down $1.5 million from three years ago. “You take a million and a half out of a budget that size, it’s a disaster.”

The Appalachian Regional Commission, a federal-state economic development organization, classifies 93 of 420 counties as distressed. Many of them are in central Appalachia, which straddles Kentucky, Tennessee, Virginia, and West Virginia. The region has been mined for two centuries, and the cheapest and best coal has been dug up. The remaining seams are lower quality and more expensive to mine. Many utilities have replaced Appalachian coal with cheaper fuel from Illinois and the Powder River basin in Wyoming and Montana, or switched to burning natural gas. Coal’s share of electricity generation in the U.S. will fall to 35 percent this year, from 50 percent a decade ago, according to the U.S. Energy Information Administration. Coal production is expected to fall to less than 914 million tons, the lowest in 29 years. The number of active pits in the U.S. has plunged 39 percent from the end of 2005 through June 2015.



Most of Appalachian counties’ lost revenue comes from a drop in payments known as severance taxes, which mining companies pay into state coffers based on the value of coal tonnage taken from the earth. West Virginia’s Boone County got about $2 million this year, down from almost $6 million in 2011, says Commissioner Mickey Brown. In Kentucky, severance money paid to counties totaled $23.4 million in 2015, compared with $62 million five years ago. Letcher County’s quarterly severance checks dropped to $200,000, from about $700,000 two years ago. The sheriff’s office had to lay off employees so it could make its pension payments. “You take all of that money out of our budgets, and what do you expect us to do?” asks Jim Ward, the county’s top official.

Neighboring Knott County gets less than $600,000 a year from severance taxes, compared with as much as $1.6 million a decade ago. County Treasurer Kevin Jacobs says he’s told elected officials to plan for no severance dollars at all. “You see downturns, but not like this,” he says. “I keep telling people, ‘It’s not coming back.’ ” ...............(more)

http://www.bloomberg.com/news/articles/2015-09-10/coal-s-decline-is-choking-appalachia-towns

h/t marmar

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Coal’s Decline Is Choking Appalachia Towns (xpost from GD) (Original Post) KamaAina Sep 2015 OP
What are the states of KY and WV and the affected counties doing to address No Vested Interest Sep 2015 #1
Mushroom farms? KamaAina Sep 2015 #3
Maybe something above ground would provide more jobs. No Vested Interest Sep 2015 #4
I was thinking about repurposing the mines themselves. KamaAina Sep 2015 #5
How many mushrooms can the economy realistically expect to absorb? No Vested Interest Sep 2015 #6
The point was to create demand by growing different varieties than we're used to. KamaAina Sep 2015 #7
OKay. nt No Vested Interest Sep 2015 #8
From what I can tell A Little Weird Sep 2015 #9
That's what I thought. nt No Vested Interest Sep 2015 #10
I have yet to hear of a mine operator or power company executive losing their Ford_Prefect Sep 2015 #2

No Vested Interest

(5,166 posts)
1. What are the states of KY and WV and the affected counties doing to address
Fri Sep 11, 2015, 02:15 AM
Sep 2015

this not-really-new problem?

This is not the first time an industry went into decline.
KY, NC and other states faced the decline/end of the tobacco economy. Admittedly, turning tobacco farms into other uses is easier than reclaiming and using coal mines, but we have smart, creative people all around who should/could come up with alternative industries or at least a plan, maybe even a long-term plan to reclaim these counties.

 

KamaAina

(78,249 posts)
3. Mushroom farms?
Fri Sep 11, 2015, 12:19 PM
Sep 2015

There are lots of different varieties of (legal ) mushrooms out there that we're not taking advantage of.

No Vested Interest

(5,166 posts)
4. Maybe something above ground would provide more jobs.
Fri Sep 11, 2015, 02:30 PM
Sep 2015

(I do realize the tongue-in-cheek humor behind your answer. )

 

KamaAina

(78,249 posts)
5. I was thinking about repurposing the mines themselves.
Fri Sep 11, 2015, 02:37 PM
Sep 2015


Above ground, turn the isolation thing on its head by building superfast internet, as Chattanooga has done.

No Vested Interest

(5,166 posts)
6. How many mushrooms can the economy realistically expect to absorb?
Fri Sep 11, 2015, 02:45 PM
Sep 2015

I've not noticed an especially high demand for mushrooms, and doubt they can be exported. If they were in higher demand, would that not already have been accomplished by existing underground mushroom farms?

Internet could be useful in retraining a certain portion of the local citizenry, if they're willing.

Education level is not especially high in that area.
I think I recall that Eleanor Roosevelt had a project to improve housing in Appalachia - back in the 30's or 40's, and that failed.

 

KamaAina

(78,249 posts)
7. The point was to create demand by growing different varieties than we're used to.
Fri Sep 11, 2015, 02:48 PM
Sep 2015

Maybe I should go back to the drawing board.

A Little Weird

(1,754 posts)
9. From what I can tell
Fri Sep 11, 2015, 07:12 PM
Sep 2015

So far their strategy has been equal parts denial and blame (Obama, EPA). And maybe the occasional appointing of a task force that goes nowhere.

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