FRANKFORT – On Thursday, Gov. Andy Beshear announced that in Fiscal Year 2023, Kentucky’s coal-producing communities will receive more than $74 million in coal severance tax funds, which marks the most money allocated to these communities in 10 years.
This year’s funds nearly double the $37,558,202 amount from 2022. As the fiscal year ends Friday, the money will be distributed among 29 coal-producing counties and municipalities, within those counties, to support their economies and communities.
“I am proud to keep Kentucky’s coal severance money in our coal-producing counties and towns,” said Gov. Beshear. “These communities fueled this country through two world wars, and they deserve our continued support. Just think about the counties hit by flooding and tornadoes and the needs they have right now. These are important dollars that will help these communities thrive.”
The funding comes from Kentucky’s two coal severance programs, which are funded by state taxes paid by Kentucky coal mining companies. After reserving funding for bond payments for past coal county projects and processing administrative fees, the remaining tax revenues are shared exclusively with coal-producing counties.
From Fiscal Year 2022 to Fiscal Year 2023, Union County received an increased allocation from $8 million to over $13.8 million. Union County has used coal severance money in the past to develop a campsite, to construct a new volunteer fire department and to rehabilitate critical infrastructure.
