FOR IMMEDIATE RELEASE: Sept. 25, 1997
Contact: Melissa Forsythe 502-564-2611
Joe Lilly, Economic Development 502-564-7670

FRANKFORT, KY - Governor Paul E. Patton today announced the creation of the Office of Coal County Development to assist coal producing counties to diversify their economies beyond coal.

The new office will be attached to the Secretary's Office in the Kentucky Cabinet for Economic Development, and will oversee the Local Government Economic Development Program (LGEDP). The LGEDP provides grants of coal severance tax revenues to coal producing counties to assist those counties to diversify their local economies.

"It is vital that we provide the opportunity for the coal producing counties to help themselves," said Governor Patton. "If we are to raise the standard of living for all Kentuckians up to the national average, we must start with the coal producing counties."

Kim A. Logsdon, currently the Director of the West Kentucky Regional Office of the Kentucky Cabinet for Economic Development, will serve as the executive director of the Office of Coal County Development.

"The coal counties have a lot to offer industry," said Logsdon, "and we want to make sure that these counties get their fair share of new jobs. Our goal will be to help these counties attract the jobs of the 21st century and to prepare for the growth that accompanies new opportunity."

"The creation of this new office to handle the coal severance tax program is a natural 'next step' in the economic development process," added Gene Strong, Secretary of the Kentucky Cabinet for Economic Development. "The coal severance tax program is an excellent way for the coal counties to get a brighter future from the coal that they produce. We believe that this office will help provide a strong focus on development in the coal counties."

Coal producing counties first started receiving a share of coal severance tax receipts in 1992 to help them diversify their local economies beyond coal. At that time, the Local Government Economic Development Fund (LGEDF) was created to provide grants of coal severance tax revenues to make counties attractive to new manufacturing and service industries, as well as to help existing businesses expand. Each coal producing county is allotted a portion of the LGEDF money for use exclusively in that county, and a portion is set aside for multi county or regional projects."