News from March 3, 2005 issue

BY CHRIS EVANS
PRESS EDITOR
That chorus and title to the song written by Billy Joe Shaver and later made popular by John Anderson certainly remains a guiding force for Kentucky's approach to the future of coal production in the state.

In 1997, then-Gov. Paul Patton recognized a need to help areas in Kentucky dependent upon coal mining to diversify their economies. According to an article in the economic development magazine, The Lane Report, it "was precisely to serve those people" that the state created the Office of Coal County Development which uses grants from coal severance tax revenues to assist with economic incentives.

Since that time, hundreds of thousands of dollars have been funnelled into coal producing counties. The idea is to help traditional mining economies to diversify so that they are less dependent on the cyclical demand for coal.

With the opening of Crittenden Coal Co., the first mining operation here in over 20 years, Crittenden County now stands to benefit financially from various state programs exclusive to mining communities.

The result could be upwards of $150,000 directly into the county's general fund and much more through other funding mechanisms.

Indeed, about 35 percent of all the tax revenue generated from coal production in Kentucky goes toward economic development. Now that Crittenden County is officially one of 37 coal producing counties, citizens can expect to see major benefits. And really soon, too.

"It's going to have a huge impact on your county's financial position and its ability to recruit new forms of economic development," said Richard Tanner, executive director of the Kentucky Coal County Coalition, Inc. "I assure you, we're not talking about chicken feed here. It's going to be a substantial amount."

While it's unclear exactly how much money Crittenden stands to receive from the new coal mining operation that opened in the northern section of the county two weeks ago, the first check should be in the mail by July.

Companies like Crittenden Coal, Inc., which expects to mine about 30,000 tons a month from the Bells Mine area, pay a severance tax to the state each quarter. Half of the tax money is sent back to counties where the coal is mined. The tax revenue Crittenden will receive is based upon a formula that takes into account tons of coal mined, the county unemployment rate and the per capita income of its citizens.

Based on comparative estimates, Tanner said Crittenden stands to gain about $150,000 per year in tax revenue for general expenditures. That is based on counties that produced a similar tonnage as the new coal company here plans to send to market once the operation is in full swing.

Crittenden County's 2004-05 budget provides for $655,701 in the general fund of its overall $2.6 million budget. General fund monies can be spent to help support local fire departments, create parks and recreational projects, help museums or develop programs for senior citizens.

It's going to be a windfall for Crittenden County, said Judge-Executive Fred Brown.

"That's what everybody keeps telling me," Brown continued. "I don't think we truly understood the economic benefits of this thing until recently."

County officials started cooperating with the coal company about two years ago. Former Judge-Executive Pippi Hardin began working on incentives for the company such as closing a portion of the Bells Mine Road for exclusive coal haul use even before he left office in March of 2004. The fiscal court recently approved the first reading of an ordinance to close the road once the coal company is in position to begin using it.

Brown said the county has continued to work closely with the coal company and made a special effort to get Ky. 365 approved as a "coal haul" road despite strong opposition from some in Union County.

When the tax revenues start rolling in, Brown said the county will look first at increasing assistance to volunteer fire departments and the rescue squad.
"The fire and rescue departments have been cut back and cut back until they're down to just about nothing," Brown said. "I think that is something we need to look at right away."

The judge also pointed out that health insurance for county employees is high on the priority list.

Because it's now a coal producing county, Crittenden may qualify for a portion of a $50 million bond issue by the state for water and sewer projects. Rep. Mike Cherry said he is trying to secure some of the funding for Crittenden, but it's unclear whether it's too late or not.

"We're working with the folks in Frankfort right now to determine whether we qualify for those funds," Brown said.

Still there's going to be a great deal more money. Of the coal severance taxes collected, 35 percent goes into an economic development fund. That could be about $200,000 or more for Crittenden County. Some of that money is available exclusively to individual counties and more is set aside for multi-county projects. One of the aims of the 1997 economic diversification plan was to have an industrial development site within a few miles of any citizen in a coal producing county.

For a financially strapped, small county like Crittenden, coal's cash cow looks more like gold and diamonds.

"It's really unbelievable the things we're going to qualify for now just because we have a coal mine in the county," said Judge Brown.

The city stands to benefit, too. One percent of the severance tax ear-marked for general fund spending goes to incorporated cities within coal producing counties. That means the City of Marion can expect a little dab of the pie.

Federal funding cuts will hurt schools
President Bush's proposed reductions in federal education funding would have a big impact on Crittenden County children and result in the loss of seven jobs, according to school administrators.

Cutting one percent, or $56 billion, from the 2006 federal budget as prescribed in Bush's federal spending plan would result in the elimination of four programs offered in Crittenden County and the reduction of funding to five additional ones.

Eliminated under the Bush proposal would be Even Start Family Literacy, Gear Up and Soar, Perkins Vocational and the Safe Schools (which funds Crittenden County's Alternative School) programs. Funding to 16 federal programs would be reduced, including Gifted and Talented, Educational Technology, Teacher Quality, TRIO and the Migrant programs.

According to information on the White House web page, $4.7 billion of the money saved would be redirected to other programs, including Title I and improving teacher quality.

The elimination of the four programs in Crittenden County ­ Even Start, Gear Up, Safe Schools and Perkins ­ would have a $290,000 annual negative impact. Making up the lost revenue could only be achieved by generating $72 million worth of new property assessments or increasing the local property tax rate from 40.2 cents to 54.8, Acting Superintendent Janie Tomek said during a meeting last week.

Tomek stresses she is not proposing a tax increase, only trying to show the impact a loss of the federal funding could have here. (for more on this story, see this week's printed edition).

Superintendent search on track
Less than a week remains for applications for Crittenden County's superintendent vacancy to be submitted to the Board of Education's consultant in Frankfort.

Members of the local screening committee will receive applicant files March 15 and will conduct background and reference checks in the days following.

When contacted Tuesday, consultant Ken Scott would not disclose the number of applications received thus far, noting that knowing the number ­ whether few or great ­ can affect the decision of potential applicants.

Shortly after March 15, Scott will recommend that the board release demographics of all candidates, including the number of males, females, superintendents, assistant superintendents and a broad description of where they live.

After meeting in closed session last week, the board of education released a list of criteria (see below) it will use in selecting a replacement for Fredericka Hargis whose contract was terminated last December.

Scott's proposed timeline calls for applicant files to be turned over to the board March 31.

"The committee will recommend approximately five people, but all applications will go to the board so every one of the applications will be seen by the board," Scott said.

Members of the board of education have indicated their support for making public the resumes of finalists. Scott said that information is typically released by boards after interviews have been scheduled with each finalist.

If all goes as Scott anticipates, the board will name a new superintendent on or before April 25.

Criteria
The following criteria, listed in no particular order, has been compiled by the board of education to assist in its superintendent search process.
·Communicates well with all population segments.
·Possesses Kentucky certification as superintendent.
·Demonstrates ability to set harmonious, coordinated work relationship between board, central office, schools, students and community; inspires teamwork and has good PR skills.
·Has previous administrative experience.
·Must have experience with finance, business management and budgeting.
·Understands school law.
·Understands curriculum development.
·Good work ethics, organizational skills and "people skills."
·Good listener that is willing to listen unconditionally.
·Integrity.
·Ability to formulate and justify educationally sound recommendations.
·Able to articulate vision for student achievement that inspires all stakeholders to move toward transforming the vision into reality.