Coal Counties Could See Layoffs and Tax Increases

A sharp drop in Eastern Kentucky coal production has created million-dollar budget shortfalls that could bring layoffs and tax increases to some coal counties. In Knott County, the fiscal court appointed a committee last week to recommend ways to deal with a projected shortfall of $1.2 million in budgeted coal severance tax receipts. "You can't pay your bills at this point," Andrew Hartley, staff attorney for the state Department for Local Government, told officials at the fiscal court meeting.

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A bulldozer moved coal at a processing tower at an Arch Minerals facility in Knott County on Wednesday. The company closed the underground mine at the site, but still uses a coal-processing facility and a tipple to load rail cars.