Rounding up?

As some folks are aware, there was a rally in Knott County last Saturday sponsored by several pro-coal industry groups. According to several first hand accounts, the main focus of many speakers was blasting members of Congress for working to address the dire issue of climate change.

Among the speakers was Roger Ford from Pike County, who spoke on behalf of Secretary of State Trey Grayson. Roger Ford has his own blog which he uses to promote ideas and positions about energy issues from the coal industry's perspective. And a reader recently sent us an interesting email pointing out a serious factual problem with Roger Ford's account of the rally.

First, our reader noted that Ford writes on his blog:

"On another note, I was proud to share the stage with Pike County Representative W. Keith Hall. As a coal operator and member of the House Appropriations Committee, Hall's understanding of the importance of coal to the Kentucky economy for Kentucky families and to State Government in tax revenue more than most. Coal mining generates nearly $5 billion dollars in coal severance tax revenue to Kentucky annually. Much of this money comes back to individual coal counties to help fire departments, drug programs, and economic development, waterlines and sewer service. Without this coal-generated revenue, many programs and services that local government provides would not exist."

However, contrary to Ford's statement above, coal mining in the current year generated $292 million in severance tax dollars. (That amount set an all-time record.) Thus, the severance tax figure used by Ford is 17 times larger than the actual record-breaking amount. As our reader noted, "perhaps he rounded up."

Furthermore, a recent report issued by the Mountain Association for Community Economic Development concluded that the coal industry actually costs the taxpayers of Kentucky about $115 million annually. (The MACED study did not calculate other costs Kentuckians pay to host the coal industry, including health impacts and environmental degradation.)

There are a lot of serious issues to work through as Kentuckians grapple with the need to develop clean energy sources and jobs for the future. Reasonable people can disagree about the best policies and practices that are needed to make the transition to a clean energy economy. But let's stick to the facts. Our challenges are tough enough already.