The Mountain Association for Community Economic Development (MACED) recently released an important report calling for the creation of an Appalachian Planning and Development Fund to oversee a strategic planning process that emphasizes “community participation, accountability and democracy.”
MACED proposes that 25 percent of annual eastern Kentucky coal severance tax dollars should be allocated to this fund, starting immediately. Under this plan, some portion of those dollars would be available on an annual basis to invest in economic development projects and strategies in coal-producing counties. The remainder would be set aside in a “permanent fund” for future use. The proposal also calls for the creation of a board of directors and a broader citizens advisory panel to evaluate development strategies and direct the use of funds.
"The loss of so many coal jobs and our diminishing severance taxes are on everyone's minds," said Justin Maxson, president of MACED. "As our resources become scarcer, it's even more important that we spend them as wisely as possible. The longer we wait to act, the deeper the challenge becomes."
One important aspect of MACED’s report is the emphasis on the process used to make decisions about investments from the permanent fund. The report references a recent study by the Federal Reserve Bank of Boston, which concluded that the key to a struggling city’s revitalization isn’t geography or industry mix, but rather “broad, innovative leadership and collaboration.”
MACED’s report can be found here.
