A slowdown in Kentucky's mining industry is causing financial problems. Diminished severance tax revenue could force some planned construction projects in the coalfields to be postponed.
Revenue from the state's coal severance tax is plummeting, with mines shutting down and miners being laid off.
Deputy State Budget Director John Hicks told lawmakers today that coal tax revenue is projected at $245 million this year. That's $88 million less than was expected when lawmakers passed the budget less than five months ago.