Request By:
Mr. Fred B. Creasey
Executive Director
Kentucky Association of Counties
P.O. Box 345
205 Capital Avenue
Frankfort, Kentucky 40602
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
You have written that several counties have a problem relating to the proper expenditure of coal haul road money allocated to the counties.
Specifically, Clark County has received from the state the allocated sum of $139,000 for coal haul roads. Clark County is a nonproducing county as to coal. However, Clark County, as is true in many other counties, has no county roads used in coal hauling. In Clark County coal hauling is conducted over I-64, the Mountain Parkway, and State Road 627 running north and south.
Under KRS 42.490 all unencumbered fund balances in each county's account established under KRS 42.300 (coal producing county development fund, repealed county development fund, repealed by 1980 Acts, Ch. 394, § 13, effective July 1, 1980), and all unencumbered fund balances in each county's account established under KRS 42.330 (capital projects in coal producing counties, repealed by Acts 1980, Ch. 394, § 13, effective July 1, 1980), and all unencumbered fund balances in each county's account established under KRS 177.970 (coal impact road fund, repealed Acts 1980, Ch. 394, § 13, effective July 1, 1980), shall be transferred to that county's account established to implement the provisions of KRS 42.450 to 42.495 (Local Government Economic Assistance).
Thus regardless of the original purposes involved in the above three financing programs (KRS 42.300 and 42.330 involved coal producing counties and KRS 177.970 involved "coal impact counties", i.e., counties through which coal is regularly hauled over public roads), KRS 42.490 provides in part that:
"Funds transferred may be used for those purposes authorized by KRS 42.450 to 42.495" (relating to Local Government Assistance).
In addition, effective July 1, 1981, an amount equal to one-half (1/2) of the tax collected annually on the sale or minerals, exclusive of coal, shall be transferred quarterly from the general fund to the "Local Government Assistance Fund". KRS 42.450(2). Effective July 1, 1981, an amount equal to one-half (1/2) of the severance and processing taxes on coal collected annually, in excess of $177.6 million, shall be transferred to this fund. KRS 42.450(3). But here, as relates to Clark County, we are not concerned with those monies, since the legislation becomes effective July 1, 1981. Clark is also a noncoal producing county.
The question is: For what can Clark County expend the money allocated to it pursuant to the implications of KRS 42.490 (involving the old coal severance tax and coal impact county programs)? Keeping in mind that such funds may be used for those purposes authorized by KRS 42.450 to 42.495, the answer is found in KRS 42.455. Subsection (1) reads as follows:
"There is established within the department of local government a local government economic assistance program to consist of a system of grants to local governments to improve the environment for new industry and to improve the quality of life for the residents."
Under KRS 42.455(2), grants obtained through the Department of Local Government and the Finance Department under this program shall be used for priority expenditures. Thirty percent (30%) of all monies in the fund shall be spent on the coal haul road system as described in subsection (7) of this statute. The remaining seventy percent (70%) of the fund shall be spent on priority categories limited to the following:
"(a) Public safety, including law enforcement, fire protection, ambulance service and other related services;
"(b) Environmental protection, including sewer disposal, sanitation, solid waste and sewer disposal, sanitatin, solid waste and other related programs;
"(c) Public transportation, including mass transit systems, streets and roads;
"(d) Health;
"(e) Recreation;
"(f) Libraries and educational facilities;
"(g) Social services for the poor, aged, and handicapped;
(h) Financial administration and govermental management programs;
"(i) Industrial and economic development; and
"(j) Vocational education."
In the case of Clark County, since it has no county road over which coal is being hauled as described in subsection (7) of KRS 42.455, it cannot spend any of the $139,000 on so called "coal haul roads". However, the fiscal court of Clark County, in its sound judgment, may spend the money on one or more of the priority categories listed above under KRS 42.455(2)(a) through (j). See also subsections (3) and (4) of the statute relating to the priority categories. Since one of the priority categories is roads (KRS 42.455(2)(c)), the Clark Fiscal Court could spend the money on any road in Clark County which is a part of the county road system. See
Sarver v. County of Allen, Ky., 582 S.W.2d 40 (1979); and KRS 178.010(1)(b).
Our construction of KRS 42.455 is framed around the literal language used.