Pike County judge warns population decline, tax changes are squeezing county services

Judge Ray Jones, Pike County judge, told the Pike County Report on June 26 that a steady population decline and changes in state and federal policy have markedly reduced the county's revenue base and strained local services.

"We went from some of the lowest power rates in the country to, I think, the second highest power rate here in Eastern Kentucky," Jones said, explaining that fewer residential and commercial customers spread fixed system costs among a smaller population. He said Pike County's population fell from roughly 81,000 in 1980 to about 54,000 in recent estimates and is projected to continue declining.

Jones cited concrete revenue losses: he said the county lost about 1,762 solid-waste customers over a six-year period—around 300 customers per year—which he estimated equates to about $500,000 in lost annual revenue for the solid-waste system. "When you have fewer people to pay rates, that has to be spread over a smaller number of people," he said.

He also described a long-term decline in coal and mineral severance tax receipts, saying Pike County Fiscal Court received about $12.484 million in severance taxes in 2009 and about $1.4 million this year. Jones warned a legislative change that exempts up to 10 million tons of coal exported overseas from severance tax liability will further reduce county receipts.

County budget pressures have coincided with rising costs. Jones said Pike County spends "north of $2.5 million a year" on employee health insurance and noted repeated disaster recovery costs: "We've had eight major disaster declarations in the seven and half years I've been judge," he said, adding that much road repair has been done in-house to control costs.

Jones framed the fiscal challenge as structural: counties have limited revenue tools (property tax increases are capped and many residents are on fixed incomes), while service costs and the county's public-safety responsibilities remain. "There's only so much money you can ring out of county government," he said.

The program did not include formal votes or policy proposals to offset the declines; Jones urged future officials to recognize the fiscal constraints and pursue job creation to stabilize the population and tax base. The segment closed with a preview that the next episode will focus on federal grant opportunities.