FRANKFORT, Ky. (March 21, 2018)- The momentum continues for 39 counties in southern,
western, and parts of eastern Kentucky that purchase power from the Tennessee Valley
Authority–or have TVA property. Earlier this month, the Kentucky House passed
HB366HB366.htm>, a large revenue measure
containing language which would return money to the counties for economic
development purposes. On the evening of March 27, the Senate passed their version of
HB366 and also included the funding language.
As a publicly-owned utility created by the federal government, the Tennessee Valley
Authority is exempt from taxation, but instead makes payments to the State of
Kentucky. The bill adjusts the TVA in-lieu-of tax payment formula to ensure more
dollars from the payments stay in the 39-county region for economic development
needs. HB366 allocates funds of $2 million to be evenly divided between the 39
counties in Fiscal Year ’18-’19, then $4 million to be evenly divided between the
counties in Fiscal Year ’19-’20. These investments would come at a critical time as
communities must continually ready sites and upgrade critical infrastructure to
attract business and create jobs.
On March 15, HB114<http://www.lrc.ky.gov/record/18RS/HB114.htm>, sponsored by Rep.
Bart Rowland of Tompkinsville easily cleared the chamber with bipartisan support.
It creates a framework for distribution and oversight to ensure funds are used for
job-attracting activities like land prep for industrial sites, infrastructure
upgrades, or for matching federal, state, or grants. A large coalition of
19<http://www.lrc.ky.gov/record/18RS/HB114.htm> lawmakers from both parties
co-sponsored the bill.
The legislation is now awaiting action in the Senate, where the concept also has
strong bipartisan support. Senator Stan Humphries of Cadiz, along with 10 cosponsors
had introduced a companion bill, SB9<http://www.lrc.ky.gov/record/18RS/SB9.htm>.
The concept has the support of the Kentucky Association of Counties, the Kentucky
Association for Economic Development, the Kentucky League of Cities, many regional
and local chambers of commerce, industrial authorities and fiscal courts.