We would hope legislators would now focus on working with the Administration to help southwest Virginia communities shift away from their unhealthy dependence on coal mining and instead develop new, cleaner industries. The tens of millions of dollars that have been spent annually on coal subsidies could be much better directed to job diversification efforts. Unfortunately, legislators representing coal companies-that is to say, coal counties-have already vowed to reintroduce bills next year to keep the taxpayer largesse flowing. They have time; the subsidies won't actually expire until January 1, 2017.
It's been 20 years since Virginia began subsidizing coal mining via these two tax credits, bleeding the state treasury of more than $500 million in all. And it's been three years since the Joint Legislative Audit and Review Committee (JLARC) issued a critique of the various Virginia tax credits that included an especially harsh assessment of the handouts to coal companies. Yet instead of canceling the credits in light of the report, the General Assembly promptly extended them. Even Governor McAuliffe didn't actually try to end them completely this year. Legislators rejected his efforts simply to scale them back, leading to this veto.
So if we didn't get jobs for our $500 million, what did we gat? Most of the money has gone to enrich coal companies, but a portion went to fund the Virginia Coalfields Economic Development Authority (VACEDA). VACEDA's board includes coal executives, a fact which has served to intensify rather than lessen coal's hold on the area.