balancing the scales - February 2011

Volume 30 Number 1 February 3, 2011

Building New PowerKFTC members and allies help build a

clean energy economy across Kentucky

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Solar Energy Projects

Wind Energy Projects

Hydroelectric Projects

Clean Energy Job Training Programs

Counties with Clean Energy Projects funded by federal stimulus money

Map created by Bob DixonJanuary 20, 2011

Inside...Kentuckians gather to move Clean Energy economy forward … page 3

Clean Energy Opportunity Act now before General Assembly … page 9

And much more

Community Energy ProjectGeothermal Heating/CoolingSolar Heating and Hot Water

Weatherization

Small-scale Hydro

Solar Installation Businesses

The larger the circle the more projects in that community

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balancing the scales

balancing the scales, February 3, 2011Page �

Kentuckians For The Commonwealth

is a statewide grassroots social justice organization working for a new balance of power and a just society. KFTC uses directaction organizing to accomplish the following goals:

• foster democratic values• change unjust institutions• empower individuals• overcome racism and other discrimination• communicate a message of what is possible• build the organization• help people participate• win issues that affect the common welfare• have fun

KFTC membership dues are $15 to $50 per year, based on ability to pay. No one is denied membership because of inability to pay. Membership is open to anyone who is committed to equality, democracy and nonviolent change.

KFTC Steering Committee

Steve Boyce, ChairpersonSue Tallichet, Vice-Chairperson

Dana Beasley Brown, Secretary-TreasurerK.A. Owens, Immediate Past ChairRick Handshoe, At-Large Member

Chapter RepresentativesRosanne Fitts Klarer, Scott County

Erika Skaggs, Central KentuckyTed Withrow, Rowan County

Scott Goebel, Northern KentuckyMary Love, Jefferson County

Meredith Wadlington, Bowling Green & FriendsCarl Shoupe, Harlan CountyTruman Hurt, Perry County

Megan Naseman, Madison CountyPatty Amburgey, Letcher County

Beverly May, Floyd CountyCari Moore, Knott CountyVanessa Hall, Pike County

Alternates: Matt Doolin, Matt Heil, Lisa Bryant, Antonio Mazzaro, Martha Flack, Sandi Joiner, Stanley Sturgill, McKinley Sumner, Steve Wilkins, Jeff Chapman-Crane, Bobby Hicks, and Erica Urias.

Kentuckians For The CommonwealthP.O. Box 1450 London, Kentucky 407431450

6068782161 Fax: 606878[email protected] www.kftc.org

balancing the scales is published by Kentuckians For The Commonwealth and mailed third class from Lexington, Kentucky. Reader contributions and letters to the editor should be sent to 250 Southland Drive Suite #4, Lexington, KY. 40503 or [email protected]. Subscriptions are $20 per year.

Last Gift Date Printed On Front Cover! We’ve heard from a lot of members that they would love to stay current in their membership dues, but just don’t know when their renewal date is. So now we are printing your last gift date with your mailing label*.

Renew by mail: Send a contribution and the form on page 16 to our main office.

Renew by phone: Call Morgan in our London office and she can take a credit card, 606-878-2161.

Renew online: It’s easy to make a donation online by check or credit card. Just go to www.kftc.org/donate.

Become a pledger? When you renew your dues, consider becoming a pledger. Your regular contribu-tion to KFTC supports the work all year long, and when it’s automatic you can always know that your dues are current.

*Letusknowifthelastgiftdatelookswrong.Databasescanbeimperfect.Keepinmindthatittakesabouttwoweeksforthepapertobeprintedandonyourdoorstep.Ifyou’vemadeadonationinthattime,itwon’tmakeitonthelabel.

On January 8, KFTC members shared the nation’s outrage at the shootings in Arizona, and the sympathy for those killed and wounded and their families. In times like these KFTC members are reminded of our responsibility to work together to find solutions to our problems, no matter how divisive the issue. Kathy Mattea reminded us of this in her I Love Mountains Day speech last year:

Whatweneed,inKentucky,inWestVirginia,inVirginiaandOhioandTen-nesseeand,yes,inWashington,DC…isLEADERSHIP.Weneedleaderswhocaremoreaboutthelong-termprosperityoftheirconstituentsthantheirownpoliticalcareers.Wedesperatelyneedawayofhavingthisconversationthatgoesbeyondtheshortterm.Weneedcourageousleaderswhoarewillingtostepintothecenterofthisvortexandholdthevisionofthelong-termsolution,throughallthedes-peration,thenoise,andrage,andfear.

…………

Ibelieveitstartswithlistening.Ibelievewehavetolearntositstill,toopenourheartsandHEARtheSHAREDANGUISHweallhaveincommon.Anditstartswithlettinggoofblame.Accountability,yes.Butifweblameeachotherinadesperateattempttobeheard,ortomaintainoursenseofpower,thenhowcanweevercometogether?

……..

EVERYONEwantstofeelsafewheretheylive.EVERYONEneedsawaytoprovidefortheirfamily.EVERYONEneedsahome,aplacetoliveinpeace.

I pray that we can find a way to refrain from taking our pain out on each other, and continue toworktowardsavisionofaneconomyandanenvironmentwhereALLpeoplehereinthecoalfields can thrive, so that this moment, and this process, can stand as a monument to what ispossiblewhenpeopleworktogether,andasaninspirationforfuturegenerations.

Editorial PageRemembering Kathy Mathea’s challenge

balancing the scales, February 3, 2011 Page �

Sustainable Energy UpdateLarge crowd at clean energy summit shows breath of interest in bringing benefits to Ky.

The Sustainable Energy Campaign is...

Working with allies, we formed the Kentucky Sustainable Energy Alliance (KySEA) to promote good energy policy in Kentucky. Members come from the housing, farming, nursing, environmental, energy, faith and housing sectors, and all have an interest in clean, affordable energy. Energy efficiency, renewable energy, green jobs and protecting low-income residents are top priorities. We are also involved in regional and national energy coalitions.

Many Kentuckians demonstrated that they are ready for the benefits that clean energy will bring to Kentucky by attending the first-ever Kentucky Clean Energy Summit on January 31. Hosted by the Kentucky Sustain-able Energy Alliance (KySEA) and cosponsored by KFTC, the gathering brought small business owners, hous-ing groups, low-income advocacy organizations, legislators, energy ex-perts, and concerned citizens together with a shared interest in the jobs and health benefits clean energy will bring. More than 150 people attended the summit, which had been sold out weeks in advance. Mary Miller of Midway, a board member of Kentucky Watershed Watch and a member of the Sierra Club and KFTC, came to the conference to learn more about how to communicate effec-tively with legislators. “I asked questions that I’ve been curious about forever,” she said. “It just makes you aware of what all’s go-ing on and how these groups can work together.” During the day, summit speakers and attendees explored:

• Policies that would increase use of energy efficiency and renewable energy in Kentucky;

• The benefits of these policies and why Kentucky should pass these now;

• Success stories from nearby states, including Ohio;

• The experiences of KySEA mem-ber organizations including small businesses and affordable housing providers that are utilizing energy efficiency and renewable energy today.

The Clean Energy Opportunity Act, recently filed by Representative Mary Lou Marzian in the 2011 General Assembly and supported by KySEA, is a comprehensive clean energy bill that would set clean energy goals for Kentucky and provide incentives for clean energy businesses. Summit par-ticipants got a first look at what’s in the bill. The Clean Energy Opportunity Act (House Bill 239) would establish a renewable and efficiency portfolio standard (REPS) and feed-in tariffs (FITs) for Kentucky. An REPS would require electric utilities to meet speci-fied energy efficiency and renewable energy goals by a specified date. FITs are set rates that utilities would pay when purchasing renewable energy produced in Kentucky. If enacted, the bill would:

• Create local jobs and grow Ken-tucky’s economy by attracting new clean energy businesses;

• Save money for Kentucky families, farms and businesses through in-creased energy efficiency;

• Improve Kentuckians’ health and environment by increasing our share of clean energy and decreas-ing our use of polluting fuels such as coal;

• Build on Kentucky’s clean energy momentum;

• Not cost the state any tax revenue.

Carmen Stine and Shari Bivelacque of Alternative Energies Kentucky, a new business in Danville that manu-factures solar panels, said starting a clean energy business in a state where there are no incentives or guidelines has been a challenge. Many of their clients are outside Kentucky. “How do you sell to people who have no incentives to improve their situation and their carbon footprint?”

asked Stine. “If there’s a financial incentive, then they start to listen,” said Bivelacque. Getting state leaders on board will be key, Bivelacque said. “For us to get anywhere with this, it’s going to be all about education,” she said. And jobs, according to Rep. Mar-zian. “I think the job piece is what’s so important to effect policy change in Frankfort.” Andy McDonald of Kentucky Solar Partnership said Kentucky needs to take a long-term view. “We really need long-term stable policies,” McDonald said. “There’s no point in getting trained if there’s not going to be jobs.” David Brown Kinloch, who with his partners purchased and restored the Mother Ann Lee Hydroelectric Sta-tion on the Kentucky River, echoed the view that Kentucky needs to make a long-term investment in clean energy. In addition to his work in hydro-pow-er, Kinloch has researched wind power in Kentucky. “It’s a political problem, not a tech-nical problem, why there isn’t wind [energy generation] in Kentucky,” he said. Representatives of the Federation of Appalachian Housing Enterprises (FAHE), Frontier Housing, Home En-ergy Partners and the Metropolitan

Housing Coalition expressed their desire to see new policies that protect homeowners, renters and low-income families from rising energy costs. “I’ve heard a lot today about en-ergy efficiency as a resource, and I re-ally like that term,” said Vonda Poynter of FAHE, a regional nonprofit based in Berea that provides access to capital that creates housing and promotes community development. KFTC is a founding member of KySEA, and KFTC members played a role in the agenda throughout the day. Mary Love of Jefferson County deliv-ered the welcome address, and Doug Doerrfeld of Elliott County discussed environmental impacts as part of a panel on The Case for Clean Energy Policies in Kentucky.

Visit www.kysea.org to download Power-point presentations from the day and toreadblogpostsaboutwhatvarioussummitspeakerssaid.

The number one state energy priority identified by the largest number of Kentucky residents in a 2008 public survey was “transitioning to renewable energy sources.”

Opinion Resource Corporation pollKFTC leader Mary Love gave the wel-coming address at the Clean Energy Summit.


Local UpdatesHarlan County effort to protect water called “frivolous” Residents of the Benham and Lynch communities in Harlan County, located at the foot of Black Mountain not far from the Virginia border, are taking a number of steps to preserve the beauty, history and culture of their communities. They’ve restored historic buildings and created some attractive tourist des-tinations. They’re challenging several coal mining permits that threaten their local water supply and natural beauty. They created a community energy proj-ect to promote energy conservation and efficiency. They applied for grant money for a renewable energy and energy ef-ficiency project. These efforts got support and coop-eration from state tourism officials. But when they asked the Beshear administra-tion to support efforts to protect the land and water that are essential to the com-munities’ well-being, they were told their

Madison County chapter members are working with members of an allied organization, Kentucky Heartwood, to map out a possible organizing strategy to oppose the commercial logging of 600 acres of the Daniel Boone National For-est in neighboring Rockcastle County. The proposed area is above several water springs and would use toxic her-bicides to kill vegetation. “The reason we started working on this project is because it is so close to home,” explained Rockcastle County member Tress Spencer. “A lot of our friends and family raise their families close to these springs and drink the water,” Spencer contin-ued. “It is really important to keep our water clean and families healthy. They shouldn’t think they can go put what-ever they want into it.” Members are worried that the “Crooked Creek Vegetation Manage-ment Project” would:

• Ruin the diversity of the forest by logging in an area where significant portions of the forest were logged as recently as 20 years ago.

• Open the forest to invasive species.• Require the use of toxic herbicides in

the watershed of numerous springs.• Cut nearly all the trees on 93 acres.

concerns were “frivolous.” “To me, as a resident of Benham, the fact that the state deemed our petition frivolous is enough to tell me and my fel-low mountain people that Black Moun-tain doesn’t mean anything to the state of Kentucky,” said disabled coal miner and KFTC member Carl Shoupe. “They care more about the elk that they brought in than the people who live here.” Shoupe and his neighbors recently filed a petition with the Kentucky Energy Cabinet asking that vulnerable areas of the communities be declared “unsuitable for mining.” That’s a provision in federal mining law to protect unique areas. State officials denied the petition and said it was frivolous. “How can a government and all its legislators turn against so many in the name of a block of coal?” asked member Stanley Sturgill. “It appears southeast-

ern Kentucky has been sold out in the name of Big Coal.” Residents wish Gov. Steve Beshear would come see for himself and listen to the hopes of residents for their com-munity before blocking their efforts. “We’d be honored for the governor to come to eastern Kentucky and give us a shot to show the true reality of what’s really going on,” said Shoupe. Residents were encouraged when a supportive editorial was printed by the Lexington Herald-Leader. The newspaper listed many of the positives the communities have going for them, and concluded:

“If the Beshear administration iswilling to sacrifice all that, we’llhave proof positive that the rights ofKentuckians now mean less to theirgovernment than the prerogatives ofcoalcompanies.”

“I think it’s great,” Sturgill reacted. “By our efforts of telling the truth about what’s going on in eastern Ken-tucky as far as the destruction of our mountains by radical strip mining and blasting, maybe other people in other parts of the state are starting to see that we are getting screwed and jobs are be-ing destroyed,” added Shoupe.

Here’s a remarkably large tulip tree in an area proposed for logging. There are several large trees like this that may be cut. The Forest Service inventory says these trees aren’t there.

More than 300 public comments were received when the commercial log-ging proposal was announced last year. To learn more about the project, visit www.kyheartwood.org.

Controversial logging plan in nearby forest sparks concern in Madison County chapter

KFTC members in central Kentucky (above) and northern Kentucky participated in lobbying trainings recently, in preparation for visiting with legislators.

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Local UpdatesPerry members celebrate Martin Luther King’s legacy To honor the life, legacy and leadership of Dr. Martin Luther King Jr., the local NAACP continued the Perry County tradition by co-hosting a community breakfast with the Hazard Community and Technical College (HCTC) and a march downtown. The celebration brought friends and allies from several surrounding counties together to celebrate their diversity and commitment to “move the dream forward,” the theme of this year’s event. KFTC members from the Perry County chapter were there to celebrate this day of community engagement and dedication to social justice. “It is good that local communities can share fellowship,” said KFTC member Russell Oliver. “As time went on … King began to see the larger issue that he was to fight for: the issue of the poor and injustice that crossed race, creed, gender and other divisions that man used to separate people into factions.” The breakfast included tabling by community organizations, a children’s craft space, native flutist performance, a keynote speaker, a reading by Affrilachian poet Ricardo Nazario y Colon, and the lighting of candles in honor of Perry County educators of color. Local media outlets were even there to cover the day

of celebration and highlight the work of the NAACP and allies. While singing We Shall Overcome, KFTC members joined the march through downtown Hazard to the Consolidated Baptist Church. There, the church family and visitors celebrated King’s dream through song, fellowship, and food. Rev. John Pray of the First Baptist Church of Town Mountain spoke about his family’s dedication to military service to this country and the history of people of color who have served and died in our country’s wars. He expressed sadness at the institutionalized under- and misrepresentation of Black history in this country. Ludrenia Hagans-Shepard, NAACP president and HCTC professor, built on his words to finish the event. She stressed the importance of moving King’s dream forward through our children and dedication to the education of the next generations. “King can be a great inspiration to each of us. King’s life showed that one person’s life can make a difference, and that each of our one lives can make a difference,” Oliver said. “We should strive to help each person to realize that they are someone special, and no matter how small their contribution

seems to themselves or to others, their life is very unique and important.” Perry County chapter members enjoyed honoring the legacy of an important civil rights and social justice leader and local heroes in the fight for more equality. They also connected with KFTC members in Scott County

and Lexington also came out on January 17 to participate in community marches and other events celebrating the life, accomplishments, and as-of-yet unfulfilled dreams of Martin Luther King Jr. The Lexington MLK Freedom March was likely the largest event in the state, bringing out many thousands of people to walk in solidarity with one another. In Scott County, the NAACP organized a march and ceremony with about 150 participants. At each of these events, KFTC members talked about our campaign to restore voting rights to former felons who have served their debt to society. Kentucky is one of just two states that still disenfranchise all former felons (unless they get a pardon from the governor). This practice takes voting rights away from one in four African Americans. Members passed out around 500 leaflets about the issue and had good conversations with allies and some legislators along the march route.

Scott County KFTC members are staying active with an impressive array of work including fundraising, lobby-ing, community events like the recent Martin Luther King Jr. march, phone banks, and more. Late last year, the chapter adopted

new and old friends and will be following up with folks who expressed interest in KFTC’s voting rights campaign.

a local issue campaign for the first time – creating a program for curbside re-cycling in the city of Georgetown and working alongside of the Georgetown College Green Team group to do it. Members are still researching the best ways to create a strong recycling

program, but have already had some of the first meetings with city council members and plan to meet with many more in the coming months. At their January meeting, members had a conversation about KFTC’s New Power Leader program, and everyone in the room pledged to become a new power leader and to be in contact with 5-20 others as part of that organizing strategy. Members also want to take a more intentional look at trainings and lead-ership development. To that end, they scheduled a lobby training for February, an Organizing 101 training for March, and intend to schedule a membership recruitment/ fundraising training later in the year. The Scott County chapter meets on the first Thursday of every month at 7 p.m. at the Georgetown Public Library.

Local activities keep Scott County members busy

Scott County members at their recent chapter meeting

Scott County KFTC members joined the local celebration of the life and dreams of Dr. Martin Luther King Jr. KFTC members throughout the state joined local activities to help keep the dream of racial and economic equality alive.

Throughout the state …

balancing the scales, February 3, 2011

Local UpdatesCharles Taylor describes Closplint’s coal truck problems

Sandlick Coal has started mining and using the county road in Wallins Creek in Harlan County. “Heavy equipment was being brought in late at night like they were trying to sneak it in without us being aware,” said resident Jack Ball. In the days that followed, trucks started running daily. “The upper road has caved in and had to be graveled. What once was paved and decent isn’t fi t to run a car on,” Ball described. “The mud is un-bearable and nothing is being done to control it. The main road leading from the hollow is mud covered, and it is im-possible to keep a vehicle clean. “What concerns me most is what is going to happen to the value of our property and why are they using a nar-row one-lane road and a bridge only rated at 15 tons for their muck trucks?” The quality of life for local residents is being impacted dramatically.

My name is Charles Taylor. My friends call me Chuck, and I have lived in this community since 1977. We always took pride in our homes and community. However, coal mining moved in and began to change our lives against our will. The last several years our living conditions have changed for the worse thanks to the coal operators who moved in and control everything. There are several deep mines running coal with one pretty big strip job just getting started. Our problem is coal trucks with the mud, dust, unsafe driving conditions, noise, and diesel smoke that goes with them. After having a few community meetings with the help of other Harlan County chapter members, we met with coal company offi cials over a year ago and asked them to clean it up. We requested a vacuum truck. Although they bought one, they very seldom run it through here. They also concreted about 200 feet on the exit from the mine. There is also pavement above the concrete. We also requested a truck wash and they never did that; however they have a water truck and use it some at the exits for 100 feet or so at several locations. That is not enough. They start about 5:30 a.m. and quit about 5 to 6 p.m. We have made many complaints to the Department for Natural Resources in Kentucky and even met in Hazard with Carl Campbell, the DNR’s commissioner. We have fi led many complaints with the state and requested help from OSM, the federal agency in London. We have also contacted David Lloyd from the federal EPA Region 4 in Atlanta. We have sent pictures of the toxic dust and

told them how bad it is here. My neighbors and I are growing weary and frustrated with the agencies’ lack of effort to protect us and their bias towards the coal companies. They force us to have to appeal their decisions and leave us to prove this stuff is happening. I have experienced tricky camera work, and being delayed so the coal company could clean up, when on down the road it is clear to see mud and mine silt was trucked through our communities without the state giving any violations. Many complaints made resulted in no citations. All of us have many pictures and stories and frustration and worries of our health and homes being destroyed. We are just common people. We don’t have the money to move out of such a place they have destroyed. We are faced with breathing toxic dust and who knows what else. All the dust and moisture creates the atmosphere for mold and mildew to grow on and in our homes. All the toxic air causes several kinds of cancer. I have made a few videos of these problems over the last year that show it is no better. Please view at http://youtube.com/TheMountainlife and share this with everyone you know. Ask them to call

the EPA and explain why they don’t or can’t

protect us like other places in the USA. I don’t understand why the coal com-

panies can’t put forth more effort tobe a good neighbor.

It should not be like this. I worked a job and the com-pany had some of us use shovels to

clean the road every time some mud dropped

onto it, and then we would spread chemicals onto the road to just dampen it.

is not enough. They start about 5:30 a.m. and quit about 5 to 6 p.m.

contacted David Lloyd

everyone you know. Ask them to call the EPA and explain why

protect us like other

It should not be

clean the road every time some mud dropped

“There is no peace or quiet around the house until it’s dark. Since the upper road has been demolished from truck-ing, the lower road has had more traffi c because people don’t want to tear up their vehicles,” Ball added. The damage to homes also started just a few days after the mining began. “The blasting shakes our homes. The wall in the back bedroom is now cracked and the partition from the bath-room to the living room is cracking as well,” Ball described. “The fl ooring on the back half of my house pops like a home that has been around for many years.” Residents have started organizing to get more local residents involved in cor-recting these problems. They are doing outreach to publicize the situation and have contacted local elected offi cials, state mining inspectors and the local newspaper, which has come out and interviewed residents.

Mining begins, problems start for Wallins Creek residents

This deeply rutted and muddy road makes for miserable driving for Bannerfork residents in the Wallins Creek area of Harlan County.

[Then] it never got like this. It seems like road construction like what I did plays by different rules than coal companies in small communities. Is enforcement for some and not others? Are some communities better than others? I think people living in nicer communities would

not be done this way. We deserve better! We’re going to fi gure out how to use litigation, publicity through videos and other means to get the companies and the state to do the right thing and protect our homes and communities.

The communities of Benhan and Lynch were named to the 11 Most Endangered Historic Places list in 2010. Learn more about this recognition and see a slide show of the communities at: http://bit.ly/cvw2Bz


The Canary Project is...

The Canary Project is a way to build a better future – beyond coal – for Kentucky and the nation. The campaign has four goals: force the coal industry to obey the law and enforcement agencies to enforce it, pressure elected leaders to pass laws to protect our mountains, develop a sustainable economy for the coalfields, and support clean energy alternatives to coal. A focus of the campaign is ending mountaintop removal mining.

Canary Project UpdateKFTC, allies ask court to allow citizens to intervene in Clean Water enforcement case

For five years, KFTC members have been building new power and growing a healthy democracy through an annual “Week in Washington.” During this Alliance for Appalachia-organized event, citizens from across the country meet with hundreds of fed-eral legislators to discuss legislation that would protect streams from coal mining valley fills. KFTC is now accepting applica-tions for members who want to attend the 2011 Week in Washington, April 2-7. KFTC and the Alliance have a lim-ited number of scholarships available that include transportation and all trip costs. If interested in going and to apply for a scholarship, contact Kevin Pentz at [email protected] or 606-335-0764. Applications must be received by February 18, and you will receive a response by February 24. The KFTC Leadership Development Committee will review the applications. Others wanting to go who do not need a scholarship should register at ilovemountains.org/wiw.

KFTC and allies were back in Frank-lin Circuit Court on January 27 asking that citizens and public interest groups be allowed to intervene in an important Clean Water Act enforcement case. The Beshear administration took the opposite position, arguing that citizens have no legal interest in the state’s clean water enforcement actions. They sup-ported the arguments of the two coal companies guilty of those violations. Judge Phillip Shepherd said he would issue a ruling promptly. “Prevention, abatement and con-trol of water pollution are in the public interest,” stated Mary Vance Cromer of the Appalachian Citizens Law Center in support of the citizens’ Motion to Inter-vene. She cited specific provisions in the

federal Clean Water Act that “allowed and encouraged [citizens] to fully par-ticipate,” and that specifically required states to not oppose citizen interven-tion. Arguing for the Kentucky Energy Cabinet, Mary Stevens said that what holds true for federal law is not neces-sarily applicable in the state. “While they [citizens] have a clear interest in clean water, that is not a legally protect-able interest in the state of Kentucky.” She and the other company attor-neys argued that state court has no juris-diction in a case brought under federal citizen intervention provisions, and that the proper venue is where the viola-tions occurred, not in Franklin County. In their written brief, they stated that having to deal with citizens would be an

“unwarranted burden.” Attorneys spent two hours before Shepherd presenting arguments about these issues. Last October, Appalachian Voices, Kentucky Riverkeeper, Waterkeeper Al-liance and KFTC threatened to sue – in federal court – International Coal Group and Frasure Creek Mining for an alleged 20,000 violations of the Clean Water Act. But the Kentucky Energy Cabinet stepped in and sued the companies in state court, preempting federal court ac-tion. The Cabinet sued after investigat-ing and documenting more than 2,700 of those alleged violations. But instead of asking the court to help prosecute the companies, they asked the court to ac-cept Consent Judgments, or agreements, they had already negotiated with the companies to settle the matter. The com-panies are not denying the violations. Those Consent Judgments are ane-mic and proof that state officials are not acting in the public interest, Lauren Wa-terworth argued for the citizens groups. “We do not think the consent judgment is adequate. There’s no transparency here. They have bypassed any oppor-tunity for public scrutiny. They are ask-ing us to give them the benefit of the doubt.” She said that additional discovery is needed to understand the full nature of the violations and answer questions about possible fraud by the companies, a claim state officials have ignored. It was clear that the cabinet and companies were most worried that al-lowing third-party interveners might result in just such a deeper investigation into the companies’ violations and the Cabinet’s lack of enforcement. “The coal industry attorneys are desperate that we don’t get to discov-ery,” observed Doug Doerrfeld. Shepherd understood that if he ap-proved the Consent Judgments that a federal court likely would interpret that to mean that the case had been diligent-ly prosecuted and dismiss any citizen lawsuit. So he questioned the attorneys about how the citizens’ interest could be represented.

The Sierra Club and KFTC took ac-tion in January to hold yet another Ken-tucky coal company accountable for its pollution of local waterways. In a 60-day Notice of Intent to Sue sent to Leeco (part of James River Coal Corp.), the groups assert that the min-ing company is illegally releasing toxic selenium into several waterways in Letcher County – including Bull Creek, Montgomery Creek, Defeated Creek, Upper Lick Branch, and associated trib-utaries – without a permit, a violation of the Clean Water Act and the Surface Mining Control and Reclamation Act. The company’s own water monitoring reports, filed with the Kentucky Divi-sion of Water, show that its mines are discharging harmful quantities of the pollutant. Selenium, a toxic element that causes reproductive failure and defor-mities in fish and other forms of aquatic life, is discharged from many surface coal-mining operations across Appala-chia. At very high levels, selenium poses a risk to human health, causing hair and fingernail loss, kidney and liver dam-

age, and damage to the nervous and circulatory systems. “Selenium threatens our fish and other aquatic organisms because it read-ily bio-accumulates,” said Tim Guilfoile, deputy director of Sierra Club’s Water Sentinels Program. “It’s a growing prob-lem for this region.” This notice-of-intent-to-sue letter follows a similar notice sent to ICG Haz-ard in early December for selenium pol-lution from its mine in Leslie County. Selenium pollution is quickly emerging as a major issue of concern for streams and communities below coal surface mines. Citizen groups have filed several recent enforcement actions against mine operators in West Virginia regarding selenium pollution. In Sep-tember, a federal judge in West Virginia ordered Patriot Coal Corporation to post $45 million in secured credit to cover the anticipated cost of treating selenium at two of its surface coal mines. The Appalachian Center for the Economy and the Environment and the Appalachian Citizens Law Center are representing the groups in this case.

Shepherd acknowledged the letters the court has received through a public comment process from a lot of people who believe the Consent Judgments need to be strengthened to ensure future companies comply with the law. But he observed that “the only two parties I have before the court are those who are in agreement. How is the court going to be able to determine if the Cabinet acted appropriately?”

Leeco put on notice for illegal discharges of toxic selenium

Registration open for Week in Washington, scholarships available


General Assembly UpdateKFTC’s work and issues in the 2011 General Assembly

Monday 2.14.11

Make history and stop the assault on the land, water and people of Kentucky!

Support a Clean Energy Future for Kentucky

Join us, bring friends, and wear red!

Parents, please bring your children and grandchildren. Young people, be sure to bring your parents and grandparents!

11 a.m. – Gather at the Kentucky River below the bridge at Capital Ave.11:30 a.m. – March to the Capitol (flat route is .6 miles)12:15 p.m. – Rally on the Capitol steps1 p.m. – Join us in the rotunda to deliver Valentines to Gov. Beshear

Learn more, get directions, and register at

www.KFTC.org/love or call 606-878-2161

I Love Mountains Day 2011

The following pages have updates about KFTC’s legis-lative priorities. This information was current as of press time (February 3), but is likely different by the time this is received in the mail. You can track the status of any bill in the online version of the Legislative Record – www.lrc.ky.gov/record/11rs/record.htm – published every legislative day.

In addition to the bills included in this issue, KFTC will take positions for or against other bills, as determined by the Executive Committee during their weekly calls. You can track KFTC’s position and the status of these bills at www.kftc.org. You can also find report-backs from KFTC’s big lob-bying days on the blog – www.kftc.org/blog. KFTC has members and staff at the capitol most Tuesdays, Wednesdays and Thursdays while the legislature is in ses-sion. If you would like to lobby with other KFTC members, please contact a chapter organizer or Lisa Abbott at [email protected] or 859-200-5159. KFTC encourages all members to spend at least one day lobbying or attending a rally. Finally, if you think this work is important, please con-sider a donation to help it continue. Donate to KFTC online at www.kftc.org/donate, or use the form on page 16 to send in your donation.

KFTC Legislative Priority for 2011

Mountaintop RemovalAs of press time, the Stream Saver Bill had not

yet been introduced. Sen. Kathy Stein will spon-sor the bill in the Senate, as she did last year.



Clean Energy Clean energy legislation that was crafted with the Kentucky Sustainable Energy Alliance (KySEA) was intro-duced February 2 by Rep. Mary Lou Marzian. House Bill 239 – or the Clean En-ergy Opportunity Act – was assigned to the House Tourism Development and Energy Committee. This was taken as a positive sign – in the past, clean energy bills have gone to the Natural Resources

Key Components of the Clean Energy Opportunity Act

A renewable and effi ciency portfolio standard (REPS) requires electric utilities to meet specifi ed energy effi ciency and renewable energy goals. Investor-owned utilities, electric cooperatives and some municipal utilities would be required to participate.

Energy Effi ciencyUtilities will achieve annual cumulative effi ciency savings ramping up to 10.25% of retail sales by 2021 by reducing demand from industrial, commercial and residential customers.*

Residential Requirement – Effi ciency savings ramping up to 10% of the residential sales portion of the total effi ciency standard will be achieved through programs that assist low-income households at or below 200% of federal poverty level ($44,100 for a family of four) by 2021.

Renewable EnergyUtilities will ramp up to providing a minimum of 12.5% of retail sales by 2021 from renewable sources – solar energy, geothermal energy, wind energy, low-impact biomass, hydro-power, landfi ll gas, anaerobic digestion and the renewable portion of co-generation.* A utility that falls short of its annual goal may meet the requirement through energy effi ciency savings of 1.25 times the amount of the shortfall.

Solar Requirement – 1% of retail sales will be met through solar energy purchases as a portion of the total renewable standard.

*Baseline used is a rolling average of retail sales from two previous years

Feed-in tariffs (FITs) are set rates that utilities pay when purchasing renewable energy produced in Kentucky. FITs will accelerate the development of large and small-scale renewable energy projects.

Under the bill, FITs will be established by the Kentucky Public Service Commission (PSC) to equal the cost of renewable electricity production plus a reasonable rate of return. This means renewable energy project developers would be assured in advance that Kentucky utility companies would purchase their power at these set rates. As production costs decrease over time, FITs rates will similarly decline. Utilities may adjust charges to account for the energy cost increase and may count all eligible purchases towards their REPS goal.

Download a copy of this bill at www.lrc.ky.gov/record/11rs/HB239.htm

Legislators to Contact

House Tourism Development and Energy Committee

Leslie Combs, chairRoyce Adams Larry Clark Bob DeWeeseMyron Dossett Ted Edmonds Kelly FloodJim Gooch Jeff Greer Keith HallMelvin Henley Wade Hurt Thomas KerrKim King Martha Jane King Tom McKeeDavid Osborne John Short Fitz SteeleAddia Wuchner Jill York

ThisHousecommitteeusuallymeetsonThursdayat10a.m.inRoom131oftheCapitolAnnex.ThisisthecommitteethatwillconsiderRep.MaryLouMarzian’scleanenergybill(HB239).

Use the toll-free Legislative Message Line (800-372-7181) to leave a message for any legislator. Use 502-564-8100

to talk to a legislator directly.

and Environment Committee, where they received a hostile reception. The Tourism Development and Energy Committee is chaired by Rep. Leslie Combs, who represents Letcher and part of Pike County. As of press time, no hearing had been set on the bill. The KySEA Clean Energy Lobby Day will take place on Thursday, Febru-ary 10.

General Assembly Update

ACTION: Call the Legislative Message Line (1-800-372-7181) as soon as you can, and ask to leave a message for all members of the House Tourism Development and Energy Committee. If your own representative is on this committee, please leave a special message for him or her.

The message line is open from 7 a.m. until 11 p.m. Monday through Thursday, and until 6 p.m. on Friday.

Message: “Please vote YES on House Bill 239.”

Need extra copies of KFTC’s Citizens Legislative Guide?

Contact the KFTC London offi ce at: 606-878-2161 or [email protected]

“Energy is a farming family’s largest input cost. Energy effi ciency and renewable energy turn a farm liability into aprofi table asset!”

Adam BarrBarr Farms, Meade County



KFTC members see need for comprehensive reform, SB 6 takes a different approach Faith-based, labor, immigrant, so-cial service, social justice, legal, human rights and many other organizations have been gathering around the state to strategize for the defeat of Senate Bill 6. SB 6 is Senate President David Wil-liams’ anti-immigrant bill. It is modeled after parts of Arizona’s anti-immigrant law that has sparked a national contro-versy, widespread condemnation and a boycott of Arizona by many groups. Parts of that law were found unconsti-tutional. More than 100 people attended one such meeting on January 8 at the Amer-icana Center in Louisville. A larger crowd gathered there two weeks later. The large turnout “speaks to the breadth of opposition to this legisla-tion,” said immigration lawyer Ron Russell. “This room is a powerful room,” added Carla Wallace. Similar meetings have taken place in Frankfort, Lexington, Bowling Green, Scott County and other cities. KFTC members have been well-repre-sented at all these meetings. The economic impact such a law

would have for tourism and other busi-ness, increased prison and law enforce-ment costs, and defending the law in court were among the reasons many said the law would be bad for Kentucky. The Legislative Research Commis-sion found that the fiscal impact of SB 6 is “indeterminable,” but for illustrative purposes found a cost impact of $40 million. This does not include costs to local law enforcement agencies, which could be considerable. But it was mostly for anti-racist and human rights reasons that folks wanted to see the legislation defeated. The KFTC Steering Committee vot-ed on January 29 to oppose the bill and to support efforts toward its defeat. “What needs to be fixed is the whole immigration system,” pointed out Mary Love. “This is not the way to fix the immigration problem.” Scott County KFTC member Hom-er White expressed a similar view at the first Louisville meeting. He said he hoped people would “use this mo-ment to help create a different climate in the state … to make Kentuckians

more welcoming and support com-prehensive immi-gration reform.” But the short-term goal is the de-feat of SB 6. The bill was rushed through the Kentucky Senate in early January, dur-ing the General As-sembly’s organiza-tion session. It is as-signed to the House Local Government Committee, with committee hearings scheduled for Feb-ruary 2 and 9.

Senate Bill 6 would … * Require police to attempt to determine a person’s immigration status if a

“reasonable suspicion” exists that they may be an undocumented immi-grant.

* Allow someone to be arrested without a warrant if an officer has probable cause to believe he or she has committed an offense that would lead to de-portation.

* Ban local communities from enacting laws that would limit enforcement of federal immigration laws.

* Permit government agencies – such as those that provide public benefits or issue licenses – to exchange information related to an individual’s immigra-tion status.

* Make smuggling undocumented immigrants into the state for money a felony.

* Apply trespassing law to undocumented immigrants on public or private land.

* Create a misdemeanor offense of “assisting an illegal alien” for anyone who helps transport such individuals into the state, disregards their presence, conceals or harbors them or encourages them to come to the state.

* Require an arresting officer to seize any vehicle used to transport undocu-mented immigrants.

SB 6: Immigration

At the first hearing, bill sponsor Senator John Schickel argued for SB 6. Committee chair Steve Riggs and other committee members sparred with Schickel, but the line of argument was overwhelmingly focused on the claim that SB 6 would be expensive to imple-ment and constitutes an unfunded mandate to local governments. No one questioned the premise that “illegals” were bad and needed to be dealt with. Democrats suggested instead that House Bill 3 would be a better way to address the immigration issue. HB 3 pe-nalizes employers who hire “unauthor-

ized aliens.” HB 3 is on its way to the full House after passing the Labor and Industry Committee on February 4. People who testified against SB 6 included the head of the jailers’ as-sociation, the magistrates and county officials association, and Head Start.

ACTION: Call the Legislative Mes-sage Line at 1-800-372-7181 and leave a message for “House Leadership” and the “House Local Government Com-mittee.” If your state representative is on the Local Government Committee, please contact them more directly, too.


House Local Government CommitteeSteve Riggs, chair

Julie Adams Ron Crimm Mike DenhamTed Edmonds Richard Henderson Brent HousmanAdam Koenig Stan Lee Tom McKeeMichael Meredith David Osborne Arnold Simpson Kevin Sinnette Rita Smart Ben WaideJim Wayne

ThisHousecommitteeusuallymeetsonWednesdayat12nooninRoom131oftheCapitolAnnex.TherewasahearingonSB6beforethiscommitteeonFebruary2,withasecondhearingscheduledforFebruary9.


to talk to a legislator directly.Many KFTC members and Allies attended the February � hearing on Senate Bill 6.



With the 2011 legislative session underway, the campaign to pass House Bill 70 – a bill that would restore vot-ing rights to most former felons after they’ve served their debt to society – has been stepped up. That legislation passed through the House each of the last four years, with strong bi-partisan support. But HB 70 was stopped in the Senate each year when that chamber’s leaders, Senator Damon Thayer and Senator David Wil-liams, refused to allow the bill to come up for discussion or a vote.


Voting Rights The short-term goal is to talk to all of the new legislators about this is-sue and to build on the already broad support in both the Senate and the House. Supporters are hoping for a quick hearing on HB 70 in the House Elections and Constitutional Amendments Com-mittee, where the bill won support in past years, and then quick passage by the full House. House passage early in the short session will allow more time to put pressure on Senate leaders to allow the bill to be heard.

ACTION: Call the Legislative Message Line (1-800-372-7181) as soon as you can, and ask to leave a message for “House and Senate Leadership, Senate State and Local Government,” and your own representative and senator.

The line is open until 11 p.m. Monday through Thursday, and until 6 p.m. on Fri-day.

Message: “Please vote YES on House Bill 70.”

House Elections, Constitutional Amendments and Intergovernmental Affairs Committee

Darryl Owens, chairKevin Bratcher Larry Clark James Comer Joseph Fischer Derrick Graham Mike HarmonMelvin Henley Mary Lou Marzian John Will Stacy

ThisHousecommitteeusuallymeetsonTuesdayat8a.m.inRoom171oftheCapitolAnnex.ItiswhereHB70starts.

Senate State & Local Government Committee Damon Thayer, chair

Walter Blevins Jimmy Higdon Tom JensenAlice Forgy Kerr Gerald Neal John SchickelR.J. Palmer Dan Seum Robert StiversJohnny Ray Turner

ThisSenatecommitteeusuallymeetsonWednesdayat12nooninRoom154oftheCapitolAnnex.ItiswhereHB70hasgone(andhasdied)inpastsessionsafteritpassestheHouse.




Stay in touch with the General Assembly

MESSAGE LINE .............................. 1-800-372-7181

BILL STATUS LINE ........................ 1-866-840-2835

CALENDAR LINE ......................... 1-800-633-9650

TTY MESSAGE LINE .................... 1-800-896-0305

EN ESPANOL ................................. 1-866-840-6574

LEGISLATOR FAX LINE .............. 1-502-564-6543

Voting Rights Lobby DayThursday, February 24State Capitol, Frankfort(or from wherever you are)

In FrankfortLearn – meet in Capitol Annex Room 125 for lobby training from 8 to 10 a.m. (come to the cafeteria downstairs if you need a lob-bying orientation after that)

Lobby – visit with legislators after your orientation until …

Rally – in the Capitol Rotunda from 1 to 2 p.m. – with former felon speakers, singing, and more

At HomeBut if you can’t make it out to Frankfort, you can contact your legislators through email or the legislative message line, or write letters to the editor. Watch for a local event in your area, or con-tact Dave Newton ([email protected] or 859-420-8919) if you want to host one.

balancing the scales, February 3, 2011Page 1�

General Assembly UpdateMembers don’t see good solutions from tax commission

KFTC members have long lobbied legislators to pass good solutions to strengthen communities through tax reform. Now, they’ll also be talking with legislators about the process of deter-mining those reforms. KFTC members are learning about a bill from Senate President David Wil-liams, Senate Bill 1. The bill creates a panel of experts to study and make rec-ommendations for state tax reform. The panel would present its findings to the legislature for an up-or-down vote — no amendments, no changes. The panel would consist of five economists who work at Kentucky col-leges or universities, two accountants, a Property Valuation Administrator and a tax lawyer. They would present recom-mendations to the 2012 legislature for an up-or-down vote, meaning that legisla-tors would not have the opportunity to make any changes or amendments.

Williams’ bill would allow a very limited amount of public comment, from a specific cross-section of the pub-lic. SB 1 lists seven entities: the Kentucky Association of Counties, the Kentucky Association of Manufacturers, the Kentucky Chamber of Commerce, the Kentucky Farm Bureau, the Kentucky League of Cities, the Kentucky Retail Federation, and the National Federation of Independent Business. No mention is made about hearing the views of teachers, farmers, retired people, workers, unemployed or most of the people who pay state taxes. KFTC members have noticed the absence of transparency, accountability and community in SB 1. “If they are going to put together a panel it should be balanced with a range of perspectives on the kinds of economic actions that are needed to create a fair and sustainable tax system, and any such


Tax Reform


House Appropriations & Revenue CommitteeRick Rand, chair

Royce Adams John Arnold Dwight ButlerJohn Carney James Comer Jesse Crenshaw Ron Crimm Mike Denham Bob DeWeese Kelly Flood Danny Ford Derrick GrahamKeith Hall Richard Henderson Jimmie Lee Reginald Meeks Lonnie Napier Fred Nesler Sannie Overly Marie Rader Jody Richards Sal Santoro Arnold Simpson Jim Stewart Tommy Turner Jim Wayne Brent YontsSusan Westrom Alecia Webb-Edgington

ThisHousecommitteeusuallymeetsonTuesdayat10a.m.inRoom154oftheCapitolAnnex.ThisisthecommitteethatwillconsiderRep.JimWayne’staxreformbill(HB318),andlikelythecommitteethatwillconsiderSen.DavidWilliams’taxcommissionproposal(SB1).



panel should include regular Kentuck-ians as well as economists,” said Mimi Pickering, a Letcher County member. SB 1 was one of the bills that Wil-liams pushed through the Senate during the legislature’s organizational meeting in January. Sen. Ray Jones (Pike County) was the only Democrat to join all Repub-licans in voting for the bill. SB 1 will be considered by the House Appropriations and Revenue Committee. During the tax justice lobby day on February 3 with KFTC and the Kentucky Forward Coalition, concerns were ex-pressed to many committee members. They were asked to amend the bill to allow broad public participation and fo-

cus on a tax system that allows Kentuck-ians to build the kind of state they want. Williams’ focus is to make Kentucky a “low-taxed state,” without regard for the implications for moving Kentucky forward. They also asked for transparency and accountability, and a healthy public debate. “It is important that the elected members of the House and Senate have an opportunity to debate and amend any bills, including tax reform, before voting on them,” Pickering added. “They are the peoples’ representatives who we have elected in a democratic process to make these decisions. We have not elected legislative panels.”

Reform provisions expanded in Rep. Wayne’s tax legislation

Proposed changes to income tax brackets and rates in HB 318.

Individual income tax rates would be lowered for most Kentuckians and income tax deductions eliminated in tax reform legislation filed by Rep. Jim Wayne. HB 318 changes and expands proposals put forth in previous sessions by Rep. Wayne, the General Assembly’s top promoter of progressive tax reform. It keeps important provisions endorsed by KFTC and the Kentucky Forward Coalition, including a 15 percent Earned Income Tax Credit (EITC), restoration of the Kentucky estate tax to 2003 levels and expansion of the sales tax to selected services. It also would eliminate the exclusion of private pension income for higher in-come individuals, raise tobacco taxes (up to $1.09 per pack of cigarettes), and make the film tax credit non-refundable. Though the bill would eliminate many popular deductions, such as ones for home mortgage interest, charitable deductions, property taxes and others, people at most income levels would pay the same or less in state income tax because their rate would be lower (see table below). Regarding private pension income, currently the first $41,110 of income from private pensions and IRAs is excluded from the income tax. In Wayne’s bill, this ex-clusion would be reduced by $1 for each $1 that income from other sources exceeds $41,110, such that an individual with income from other sources of $82,220 would have no exclusion. The sales tax would be expanded to armored car services, private golf club fees, landscaping services, limousine services, exterminating and pest control services, security services, janitorial services, commercial linen services, and others. KFTC members hope the bill will be the focus of serious discussions about tax reform in the current legislative session. No significant tax legislation is expected to pass this year.

balancing the scales, February 3, 2011 Page 1�

Economic Justice UpdateTax reform should start with questions about community

Kentucky loses billions of dollars in revenue each year through special tax breaks and preferences. Yet lawmakers and state officials do little to understand the effectiveness of these provisions. “Special tax breaks and preferences result in billions of dollars in lost rev-enue at a time when Kentucky struggles to protect investments in key public necessities,” said Jason Bailey, director of the Kentucky Center for Economic Policy. “Yet these holes in the tax code receive far less scrutiny than spending in the state budget. “Kentucky has made painful bud-get cuts the last couple of years, but has done little to more closely scrutinize its tax expenditures.” These findings were documented in a new report titled ReformsNeededto

BringGreaterScrutinytoTaxExpenditures. It can be accessed at www.kypolicy.org. Kentucky’s budget office identifies tax expenditures and estimates the lost revenue every two years. Its most recent report contains 287 tax expenditures. Significant ones include those related to businesses and economic development, the exclusion of services from the sales tax and other sales tax exemptions, vari-ous income tax deductions and the state’s limitation on the property tax. The state lacks the systems to under-stand the purpose of many tax expen-ditures, assess their effectiveness and make regular and informed decisions about whether individual tax expendi-tures are worth the lost revenue. “We need to put tax expenditures on a more even playing field with the

The Kentucky Forward Coalition developedthe following to raise important questionsthatshoulddriveeffortstoreformKentucky’stax structure. This appeared as an op-ed intheLexingtonHerald-Leader,TheWinchesterSun,TheCourier-Journalandelsewhere.

Many Kentuckians share a frustra-tion with the lack of legislative will to pass real tax reform, resulting in a de-cade of annual revenue shortfalls, cuts in essential programs, one-time stop gap measures and a failure to make invest-ments that will move Kentucky forward. As members of the Kentucky For-ward Coalition, we share impatience with yet another study, especially if we’re not at all clear that the study will be transparent or guided by Kentuck-ians’ values. Our Coalition represents Kentuckians from all over the state — from all kinds of backgrounds, occu-pations, and incomes — who know that Kentucky deserves better. We propose that any revision of our tax structure — whether coming from the commission that Sen. Williams has called for or another — begins by estab-lishing a set of principles that we can all get behind that benefit all Kentuckians and move us forward. The Kentucky Forward Coalition serves or represents a sizeable portion of the people in our Commonwealth, and these are the prin-ciples that we lift up as necessary to cre-ate a better Kentucky:

• Revenue solutions should sustain a good quality of life in Kentucky through essential investments in good schools, health care, public safety, and other necessary public structures and services.

• Taxes should be balanced, reasonable and fair, with fiscal responsibilities shared equitably among all citizens and businesses by minimizing taxes on low-income people and bringing more balance to our tax code.

• Our tax structure should be sustain-able, with reliably constant sources of revenue that grow along with the economy.

We believe that if we use these prin-ciples to guide reforms to our tax struc-ture, we will all be in a better position to live up to our potential. Kentuckians are smart, resourceful, helpful, and creative.

We’d all realize our own potential more often by adequately funding the neces-sary elements of strong communities — good schools with smaller classes, access to quality health care, police and fire departments that have the resources to protect and serve, and water that we know is safe to drink. A lot of ideas get put under the ban-ner of tax reform. Not all those ideas adhere to principles that reflect our values. Some would allow us to share in our responsibilities equitably and fairly, while others would knock our tax system further out of balance by shift-ing responsibility away from wealthy individuals and major corporations and onto working families. Some make it easier to pay for the public investments we need to grow and improve the qual-ity of our lives, while others intend to shrink those necessities and turn Ken-tucky into a place of greater inequality. Shifting to a tax system based on sales instead of income would turn our already out-of-balance tax system com-pletely upside down, shifting more re-sponsibility to people who are less able to pay, and whose wages and income have stagnated over the years. This shift would not benefit our economy, and would be harmful to our families. That’s not what Kentuckians deserve. A sustainable tax structure means a broad base of taxes. That’s because

different taxes respond differently to economic changes, and a broad-based tax system helps maintain and grow the revenues needed. Eliminating indi-vidual and corporate income taxes radi-cally narrows our tax base, impacting revenue sustainability over time. That, unfortunately, is the goal of some. Reform is not just making something different, but something better. Better for Kentucky means generating revenue to help create the kind of society Kentuck-ians deserve and want, modernizing our

taxes, and bringing balance and fairness to our flawed system. Every Kentuckian has a stake in our taxes and budget, so we deserve to be represented when recommendations are agreed upon. Any study of reform should invite everyone into the con-versation by starting with the question: What kind of communities do we want, and how should we pay for them? The answers to those questions are defined not by experts, but by our values. Ken-tucky is worth our doing this right.

public necessities and investments that tax dollars pay for,” said Bailey. “The commonsense reforms included in this report will move us in the right direction and help us make better choices about our fiscal and economic future.” Recommendations include identi-fying who benefits from particular tax expenditures; creating a tax expenditure review committee to regularly assess the effectiveness of tax expenditures; requir-ing many tax expenditures to expire at least once a decade; and creating cost caps on some tax expenditures. The Kentucky Center for Economic Policy(KCEP) conducts research, analysis andeducation on important state fiscal and eco-nomicpolicyissues.VisitKCEP’swebsiteatwww.kypolicy.org.

Kentucky loses billions from special tax breaks

balancing the scales, February 3, 2011Page 1�

Economic Justice UpdateState of the Dream report shows how treatment of workers, tax policies affect racial economic divide Policies that erode opportunities for public sector workers and oppose pro-gressive taxes widen the racial economic divide because they disproportionately harm Blacks and Latinos, according to a new report by KFTC ally United for a Fair Economy. “Austerity measures will ratchet down the standard of living for all Americans, while simultaneously wid-ening our nation’s racial and economic divide,” said Brian Miller, executive director of United for a Fair Economy and co-author of StateoftheDream2011:AusterityforWhom? State of the Dream 2011 documents how conservative economic policies in-crease economic inequality and deepen the racial divide. Forty-two years after Martin Luther King’s death, Blacks are paid only 57 cents and Latinos 59 cents to each dollar Whites are paid. The tax cuts advocated by conserva-tives will worsen this divide by flowing disproportionately to wealthy White households, while the proposed cuts to social safety nets and the public sector work force will disproportionately harm African-Americans and Latinos. Notable findings of the report are:

• Tax Cuts: Whites are three times as likely as Blacks, and 4.6 times as likely as Latinos, to benefit from income tax cuts for those earning over $250,000.

• Public Sector Jobs: Blacks are 1.3 times as likely to work in a state govern-ment job than the general workforce, and 1.7 times as likely to work for the federal government in particular. Blacks and La-tinos are more likely to achieve profes-sional parity there due to civil rights protections unique to the public sector.

• Job Creation: With an official un-employment rate of 15.8% for Blacks, 13% for Latinos, and 8.5% for Whites, cutting public spending and direct job creation programs disproportionately hurts Blacks and Latinos, and the entire economy.

• Social Safety Net: Financial cush-ions allow families to survive un- and under- employment; Blacks hold only 10

cents of net wealth, and Latinos hold 12 cents of net wealth, for every dollar that Whites hold, making unemployment insurance, Social Security and public assistance vital to the economic well be-ing of these groups. Among retirement age adults, for example, 60% of Blacks and 65% of Latinos depend on Social Security for more than 80% percent of their income, compared to only 46% of Whites. The report calls for more protection of government employees, who perform valuable functions for society, and ad-ditional federal aid to the states. Kentucky received $1.6 billion in stimulus funds through the American Recovery and Reinvestment Act in 2009, which saved or created 12,825 jobs. Similar job-saving stimulus from the federal government, combined with state-level progressive tax reform, will help Kentucky address its racial wealth disparities. KFTC members are working in a variety of ways for a reversal of laws and policies that reinforce racial divides and in support of those that work for all people. K. A. Owens, a Jefferson County member and former KFTC chairperson, works to protect and strengthen the public sector, and make its elected lead-ers more accountable to people. His per-spective is informed many years of this work, and by his own family’s history. “Union jobs, civil service jobs, jobs that provide stable incomes and job security enable African Americans and others to achieve some level of comfort, and even a feeling of prosperity,” said Owens. “These jobs benefit everyone in our society because these job holders have a secure stream of income that they are able to spend on homes, cars and appliances over a 30-year career and provide a secure retirement. I saw my parents and their friends live the Ameri-can dream in exactly that way.” “We all care deeply about the next generation and we all know there are no valid reasons for any of the elements that have led to stable incomes and job security for African Americans and oth-ers in the past to disappear. The only

question is how we will fight effectively to preserve these elements and hand them down to the next generation,” Ow-ens said. Linda Stettenbenz, a member of KFTC’s Economic Justice Committee who helps organize in Louisville for tax reform and job creation, hopes that the report invites more peo-ple to become involved in creating economic policy. “In Kentucky we can further the work of Dr. King by lifting up the necessary programs and policies that help peo-ple, and by criticizing those that hinder us,” Stettenbenz said. “Right now, Kentucky has one of the fastest growing wealth gaps between rich and poor in the nation. We also have among the highest unemployment and poverty rates, and minorities are affected disproportionately.” Data shows that Ken-tucky’s unemployment rate for African-Ameri-cans was 16.5 percent, while the rate for whites was 10.1 percent, and for Latinos 9.6 percent. “This is all the result of decades of legislative neglect of the needs of ordinary people in the state,” Stettenbenz ex-plained. “But most impor-tantly, we can further his work here by creating a place for the voices of ordinary citizens to be heard and respected. This is why I value KFTC’s work toward a vision that will move us all forward into a more just and sustainable economy that values the prosper-ity of ordinary people,” Stettenbenz said.

e-mail any staff member at [email protected] except for Jessica Hays Lucas use [email protected] and

Brittany Hunsaker use [email protected]

KFTC Offices and StaffMAIN OFFICE

Morgan Brown, Robin Daugherty & Burt Lauderdale

P.O. Box 1450London, Kentucky 40743

6068782161 Fax: 6068785714

[email protected]

FIELD OFFICESLouisville

Jessica George, Jerry Hardt,

Colette Hendersonand Nancy Reinhart901 Franklin StreetLouisville, Ky 40206

5025893188

WhitesburgWilla Johnson,

Tanya Turner, and Colleen Unroe P.O. Box 463

Whitesburg, Ky 418586066320051

BereaLisa Abbott, Amy Hogg,

Carissa Lenfert,Sara Pennington and Kevin Pentz

140 Mini Mall DriveBerea, KY 40403

8599861277

BereaTeri Blanton

118 Baugh StreetBerea, Ky. 40403

8599861648

Central KentuckyTim Buckingham,

Jessica Hays Lucas, Erik Hungerbuhler, Brittany Hunsaker,

Heather Roe Mahoney, Dave Newton, John

Malloy and Ondine Quinn

250 Plaza Drive Suite 4Lexington, Ky 40503

8592760563

Northern KentuckyJoe Gallenstein8593806103

Floyd CountyBrittany Combs6064220100

“Kentucky is rich in so many amaz-ing resources, and the people of Ken-tucky are intimately intertwined with them and with each other. We work to hold legislators of all stripes account-able, and demand they push forward programs and policies that will benefit all of us.”

balancing the scales, February 3, 2011 Page 1�

Steering Committee sets 2011 program of work, staffing

Alex Searles, representing the Northern Kentucky chapter on the KFTC Steer-ing Committee, shared her thoughts on KFTC”s Program of Work. Listening are Mary Love (Jefferson County) and Stanley Sturgill (Harlan County).

KFTC Steering Committee members met January 29 in Berea. They approved the 2011 Program of Work, discussed priorities for the 2011 General Assembly and reviewed a bridge staff structure.

2011 Program of Work

Building on one of KFTC’s most productive and eventful years ever, the 2011 Program of Work sustains the momentum and pivots to new elements that move the work forward. The Program of Work includes plans for all of KFTC’s major strategies: lead-ership development, communications, grassroots fundraising and membership recruitment, voter empowerment, and building strong chapters. In the area of leadership develop-ment, a major focus in 2011 will be the New Power Leader program. Grassroots leaders across the state will lead “clus-ters” of members in their communities, talking with them regularly about KFTC issues and encouraging them to vote and to support KFTC. The Steering Committee also af-firmed the importance of our grassroots fundraising and membership recruit-ment and renewal work. “We have to work on grassroots fundraising because funders have spe-cific formulas for who they’ll fund and KFTC may not always fit in with those formulas,” noted Dana Beasley Brown of Bowling Green. “KFTC is who we are and this is why grassroots fundraising is so important.” The Program of Work also sets goals and next steps for KFTC’s six campaigns. One campaign discussed was Re-new East Kentucky. It is the next step in the successful Stop Smith campaign, in which KFTC helped stop a new coal-burning power plant in Central Ken-tucky. Renew East Kentucky focuses on shifting rural electric cooperatives to a culture of energy efficiency and renew-able energy, and is part of a New Energy and Transition initiative that also in-cludes KFTC’s work around sustainable energy policy and economic transition in Appalachia. The Program of Work also includes goals for the Canary Project work to end mountaintop removal, tax reform plan and the campaign to restore voting rights to former felons, as well as work in local chapters. In discussing the Canary Project, the Steering Committee noted the tremendous work in 2010 around the

enforcement of mining laws, for which KFTC members met with federal agency officials nearly 20 times. They expressed hope that in 2011, the U.S. Environmen-tal Protection Agency (EPA) would take a strong stance on controlling moun-taintop removal in Kentucky, as it has in West Virginia, where the EPA stopped a major mountaintop removal operation. “I want to see something in Ken-tucky,” said Floyd County member Rick Handshoe, who met with federal offi-cials several times last year. “We are approaching a crest,” noted Erika Skaggs of Central Kentucky. “We have to keep pushing forward while we have momentum.” They also reviewed KFTC’s exten-sive voter empowerment work in 2010, which included contacting thousands of voters around the elections, launching the New Power PAC, and conducting a media campaign. The New Power PAC was meant to take a more assertive and visible role in elections, and the Steering Committee is interested in exploring how the New Power PAC might be involved in the 2011 elections as well. Members also were excited about the clean energy conference scheduled for January 31 and the Growing Ap-palachia conference, which focuses on economic transition in Appalachia, set for April 9 in Prestonsburg. Mary Love of Jefferson County noted that public sentiment is growing for clean energy solutions. “I think the time is now,” she said. “We’ve got to get the state behind us,” said Rosanne Fitts Klarer of Scott County, noting that Ohio and Tennessee have better incentives than Kentucky for renewable energy ventures.

2011 General Assembly

Steering Committee members ex-pressed both optimism and low expec-tations for the 2011 Kentucky General Assembly. I Love Mountains Day and the clean energy bill backed by the Kentucky Sustainable Energy Alliance (of which KFTC is a founding member) were lifted up as high points for this year’s session. Also big will be pushing for passage of House Bill 70, which would allow for a constitutional amendment on giving former felons their voting rights back af-ter they’ve served their debt to society. And, though it’s not a budget year, KFTC will help to inform the conversa-tion around tax and budget issues and the

kind of communities we want and that our tax dollars can support. “Maybe this is the start of a better year,” said Handshoe. “My hope for the legislature this year is I hope we make a scene,” said Bev May, also of Floyd County. Both Handshoe and May have been deeply involved in KFTC’s work around coal issues in Eastern Kentucky. The Steering Committee approved four recommendations from KFTC’s Economic Justice Committee related to pending legislation:

o For KFTC to join the Coalition for Responsible Lending (KFTC has not taken a position on a pending pay-day lending bill, but various KFTC members and chapters are working on responsible lending issues).

o To support the Kentucky Forward tax bill.

o To oppose House Bill 208, which would require recipients of public assistance to undergo drug testing. The Steering Committee asked that the Economic Justice Committee craft messaging that reflects KFTC’s position that this bill is not the way to address the drug problem.

o To oppose Senate Bill 6, an immigra-tion bill similar to the controversial Arizona immigration law.

Some members expressed a desire to solidify KFTC’s position on immigra-tion, in light of recent anti-immigrant

bills in the General Assembly. Alex Searles of KFTC’s Northern Kentucky chapter said members of her chapter are excited to have at-home meetings with their legislators about the range of issues KFTC is working on. “It’s just really exciting to watch people get involved and to be a part of that,” Searles said. K.A. Owens of Jefferson County reminded folks of the importance of the General Assembly. He noted, “The General Assembly is an opportunity for KFTC leaders to share our point of view with the world and try to change things. We try to explain, in hopefully effective ways, how things could be better.”

Staff Team Bridge

Staff and leaders have been discuss-ing how to strengthen the KFTC staff team. The Steering Committee approved a new “bridge” staff structure for 2011 that will help KFTC focus on key strate-gies such as leadership development, chapter development, voter empower-ment and the new energy work. KFTC’s membership and staff have grown rapidly in the past few years, and the staff structure hasn’t kept pace. The bridge structure attempts to address that and align the staff team more with the Program of Work. Most staff roles will not change dramatically, but the bridge structure builds in support systems that will help develop staff capacity and skills.


Calendar of EventsFeb. 9 AweekofLexingtonLovesMountainsactivitiesbegins;seeposterto

theleft

Feb. 10 Publichearingonnewrulestoprotectminersfromblacklungdisease,9a.m.atJennyWileyStateParknearPrestonsburg;sponsoredbytheU.S.MineSafety&HealthAdministration

Feb. 10 KySEAlobbydayforcleanenergy

Feb. 12 MusicfortheMountains2011–CDReleaseParty,21musicalacts-13 over2days;SouthgateHouse(24East3rdStreet)inNewport

Feb. 14 ILoveMountainsDay–seepage8

Feb. 15 PerryCountychaptermeeting,inHazard;contactColleenUnroeformoreinformation,[email protected]

Feb. 17 RowanCountychaptermeeting,6p.m.atSt.Alban’sEpiscopalChurchon5thStreetinMorehead

Feb. 17 CentralKentuckychaptermeeting,7p.m.attheEpiscopalDioceseMissionHouse(onthecornerofMartinLutherKingBlvd.and4thStreet)inLexington

Feb. 22 MoveKentuckyForwardDayattheGeneralAssembly–lobbyforinvestinginKentucky’schildrenandfuture

Feb. 22 BowlingGreenandFriendschaptermeeting,6:30p.m.attheUnitar-ianUniversalistChurch(2033NashvilleRoad)inBowlingGreen

Feb. 23 FairnessRallyandLobbyDayattheGeneralAssembly,9a.m.–2p.m.;[email protected]

Feb. 24 VotingRightsLobbyDayattheGeneralAssembly–seepage11

Feb. 28 MadisonCountychaptermeetingwithspecialpresentationfromKen-tuckyHeartwood,7p.m.atChildDevelopmentLabonJeffersonSt.,inBerea

March 3 HarlanCountychaptermeeting,6p.m.inRoom219ofSoutheastCommunityCollege’sAppalachianCenterinCumberland

March 3 ScottCountychaptermeeting,7p.m.,attheGeorgetownPublicLi-brary

March 5 Wild&ScenicFilmFestival,7p.m.attheCliftonCenterinLouisville;moreinformationfromtheKentuckyWaterwaysAlliance(www.kyal-liance.org)

March 14 FloydCountychaptermeeting,7p.m.atSt.MarthaCatholicChurchnearPrestonsburg

March 15 PerryCountychaptermeeting,inHazard;contactColleenUnroeformoreinformation,[email protected]

April 1-4 PowerShiftinWashington,D.C.;infoat:energyactioncoalition.org

April 2-7 WeekinWashingtonwiththeAllianceforAppalachia

April 9 GrowingAppalachiaconferenceinPrestonsburg

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balancing the scales - February 2011

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