New MACED president says timing right for new ideas in E. Ky.

March 14, 2015

Peter Hille first came to Eastern Kentucky the day after he graduated from high school. He and other members of his Missouri church youth group piled into vans and drove to Breathitt County to run a summer camp for kids.

“I had this image in my head, probably from watching CBS documentaries on the War on Poverty, that Appalachia was black and white,” he said. “I got down here, and, of course, it was green.

“It was the first week in June,” he said. “You know how the mountains are the first week in June: fireflies all over the hillsides and locusts singing. I thought, I love this place!”

Hille, 59, has nurtured that love for more than four decades, and he is now in a unique position to express it: as the new president of the Mountain Association for Community Economic Development, a non-profit organization based in Berea that works throughout southern Appalachia.

Hille, a graduate of Swarthmore College in Pennsylvania, moved to Eastern Kentucky in 1977 and spent more than a dozen years as a woodworker, cabinetmaker and home builder. It gave him an appreciation for the challenges so many Appalachians face.

“They know this is where they want to be,” he said. “But it’s real challenging to figure out how to earn a living.”

150315PeterHilleHille got into community work and spent 22 years at Berea College’s Brushy Fork Institute, which develops community leaders.

He served nine years on MACED’s board and was chairman until he joined the staff three years ago as executive vice president. He was named president last month, succeeding Justin Maxson, who left after 13 years to become executive director of the Mary Reynolds Babcock Foundation in Winston-Salem, N.C.

Hille is currently chair of the Eastern Kentucky Leadership Foundation, a board member of the Central Appalachian Institute for Research and Development and an advisory board member for the Institute for Rural Journalism. In the 1990s, he was facilitator for the Kentucky Appalachian Task Force.

“I do feel like everything I’ve done up to this point has been leading up to this,” said Hille, who lives with his wife, artist Debra Hille, in a passive solar house on a wooded farm near Berea.

Founded in 1976, MACED has become a respected voice in discussions about Appalachia’s economic transition. It promotes enterprise development, renewable energy and sustainable forestry. MACED also has become an influential source of public policy research through its Kentucky Center for Economic Policy.

“We are at such an exciting time in Eastern Kentucky,” Hille said. “The challenges are as great as they’ve always been, but I think we’ve got some opportunities now that we haven’t always had.”

Perhaps the biggest opportunity, Hille said, is the bipartisan Shaping Our Appalachian Region initiative launched by Gov. Steve Beshear and U.S. Rep. Hal Rogers in 2013.

“It is the kind of clarion call for unity that we so badly need in the region,” he said.

Another opportunity is the Obama administration’s proposal to release $1 billion in Abandoned Mine Lands funds for environmental reclamation and economic development in mining regions.

“We would have to scramble to figure out how to make good use of that money,” he said. “But I think there are a lot of ways to do it.”

While coal will continue to be important to Eastern Kentucky for decades, it will never be what it was, Beshear and Rogers have said. That acknowledgment creates an opening for new and creative thinking, Hille said.

More emphasis should be put on developing renewable energy sources and focusing on energy efficiency. MACED has worked on home energy-saving retrofits for years.

“However much we can scale that up, that is money that is invested in the region, that stays in the region, that is paid back from the savings in the region,” he said.

But the biggest goals should be creating more entrepreneurs and businesses in Eastern Kentucky, and attracting more investment capital. Hille thinks the place to start is by looking at the region’s needs, such as better housing and health care.

“All of those needs represent economic development opportunities,” he said. “What are the opportunities to meet those needs in the region? Or is the first step in health care getting in the car and driving to Lexington?”

Another focus should be on regional assets, such as forested mountains that could be sustainably managed for long-term jobs in timber, forest products, agriculture and tourism. “We haven’t invested in enough possibilities,” he said.

Part of the challenge is changing century-old attitudes about work.

“Instead of trying to find somebody to give you a job, it’s about creating a job for yourself,” he said. “It’s about feeding that entrepreneurial spirit in young people, and then creating the entrepreneurial ecosystem that is going to support those budding entrepreneurs and encourage them to stay here.”

When a region is economically distressed, it means markets are broken in fundamental ways. Government and non-profit assistance may be needed to fix them. But long-term success will only come with the development of strong markets and capital within Eastern Kentucky.

“With economic development, you’ve always got to ask, ‘Where does the investment come from? What kind of jobs are being created?'” Hille said. “In the long run, if we’re only creating jobs and we’re not building assets, if we’re not creating durable capital in the region, if we’re not building sustainable businesses and industries, then outside investments may or may not serve the needs of our communities.”


If SOAR wants to get off the ground, it needs diverse leadership

March 25, 2014

When Gov. Steve Beshear and Rep. Hal Rogers launched their Shaping Our Appalachian Region (SOAR) project last year, they promised it would be different.

They said SOAR would succeed in bringing economic vitality and diversity to long-troubled Eastern Kentucky, where so many past efforts have failed, because it would seek new ideas and leadership from a broader representation of the region’s people.

So far, it isn’t looking much different. Beshear and Rogers announced a leadership team Monday to guide the SOAR process. The list raised eyebrows not so much because of who was included as who was excluded, which was pretty much everybody outside Eastern Kentucky’s establishment power structure.

“It was a missed opportunity, for sure,” said Justin Maxson, president of the Berea-based Mountain Association for Community Development, which has been working on innovative economic development strategies in Central Appalachia since 1976.

SOAR_logoMaxson would seem a logical choice for SOAR’s 15-member executive committee or to chair one of its 10 working groups. But the only person with ties to MACED on the SOAR leadership team is Haley McCoy of Jackson Energy, an electric cooperative in Jackson County, who also happens to serve on MACED’s board.

Maxson praised McCoy’s selection, and that of SOAR’s interim executive director, Chuck Fluharty, president of the Rural Policy Research Institute. “He understands that a region needs a diverse set of economic development strategies,” Maxson said of Fluharty. “But it’s unclear what his role will be.”

If Beshear and Rogers really want new ideas, MACED would be a good place to look. “We’re not afraid to say hard things,” Maxson said. “Most of the solutions the region needs are not going to be easy.”

Excluded from SOAR’s leadership is anyone from Kentuckians for the Commonwealth, a citizens group with more than 8,000 members statewide. KFTC has been working effectively in coal-dominated Eastern Kentucky since 1981.

“I’m trying to be nice about this, but everything they do, it seems like it’s the same old, same old bunch,” said Carl Shoupe of Harlan, a KFTC executive committee member. “We’re a little bit too progressive for them, maybe.”

In addition to McCoy, SOAR’s executive committee, co-chaired by Beshear and Rogers, includes coal executive Jim Booth of Inez; Pikeville banker Jean Hale; Rodney Hitch of Winchester, economic development manager for East Kentucky Power; entrepreneur Jim Host of Lexington; Tom Hunter of Washington, D.C., retired executive director of the federal Appalachian Regional Commission; Ashland lawyer Kim McCann; and Bob Mitchell of Corbin, Rogers’ former chief of staff and a board member of the Center for Rural Development that Rogers created in Somerset.

Four elected officials are ex-officio members: House Speaker Greg Stumbo of Floyd County; Senate President Robert Stivers of Clay County; and county judge-executives Albey Brock of Bell County and Doc Hardin of Magoffin County.

Former Gov. Paul Patton, 76, of Pikeville, leads the Futures Forum committee “responsible for framing and advancing the long-term vision of the region.”

Among the 10 people appointed to chair working groups is Phil Osborne, a Lexington public relations executive. He chairs the Tourism, Including Natural Resources, Arts & Heritage group. Osborne is a talented marketing executive, but his appointment to head that group sends a strong message of its own.

Osborne was a key leader in Faces of Coal, the coal industry’s multimillion-dollar propaganda campaign to block federal enforcement of environmental laws related to mining. The “war on coal” divisiveness that campaign fueled in the region is one of many obstacles SOAR must overcome.

In an interview, Shoupe of KFTC read key passages from the report by SOAR’s consultant on takeaways from a public forum Dec. 9 in Pikeville, where more than 1,500 people gathered to launch the initiative:

“People appreciate the governor and congressman, but fear entrenched interests will wait them out. … Folks want the dialogue deepened and broadened. … Next generation leadership is essential. The young men and women of this region must feel a stronger sense of SOAR engagement than is currently evident, moving forward. Specific leadership attention to this dimension of governance and program design and delivery is so critical to SOAR’s mission achievement.”

“And what did they do?” Shoupe said of the leadership appointments. “They did everything backwards.”

Maxson and Shoupe said they have been assured that SOAR working groups will listen to everyone’s ideas and perspectives. That’s not good enough, and Beshear and Rogers should know it.

If they want new ideas and the broad public support and credibility SOAR needs to succeed, they must be willing to give some seats at the decision-making table to people besides Eastern Kentucky’s Old Guard. Otherwise, SOAR won’t be any different than the failed efforts of the past.

 


Will SOAR be a new beginning, or just more talk about Appalachia?

December 8, 2013

You have to wonder: Will the Shaping Our Appalachian Region summit Monday in Pikeville be the start of something big, or just another feel-good effort that doesn’t amount to much?

More than 1,500 people have registered to attend the conference called by Gov. Steve Beshear and U.S. Rep. Hal Rogers, who said they wanted ideas from throughout Eastern Kentucky for strategies to diversify the region’s economy.

There have been dozens of conferences on this topic over the years, but this one offers some hopeful signs. For one thing, it is the first high-level, bipartisan effort. Politicians who usually dance to the tune of the all-powerful coal industry are actually asking other people what they think.

But once the talking is over and the reports are written, will leadership, public investment and private capital get behind the good ideas? Will anything really change?

soarlogoCreating a sustainable, broadly prosperous economy in a region that has never really had one will be a monumental challenge.

Eastern Kentucky has never lacked for intelligent, hard-working people. But it has been handicapped by isolation, lack of education and opportunity, corrupt politics and powerful economic forces beyond its borders and control.

Since the late 1800s, the region has gone from subsistence farming to large-scale timber extraction to increasingly destructive methods of coal mining. The result has been a classic colonial economy, where most of the wealth flowed out of the region, or to a small local elite, while a large underclass survived on welfare and charity.

This cycle of poverty and dependence has led to hopelessness, drug abuse and other social problems, as was outlined in the most recent chapters of the excellent series Fifty Years of Night, by Herald-Leader reporters John Cheves and Bill Estep.

Can a new and different chapter be written for Eastern Kentucky?

In calling this summit, Beshear and Rogers cited the loss of more than 6,000 coal jobs over the past two years. But they wisely avoided their usual “war on coal” rhetoric, which blames the industry’s problems on long-overdue environmental regulation and enforcement.

The main reasons for declining coal production are cheaper Western coal and even cheaper natural gas. Besides, coal employment in Eastern Kentucky has been falling for three decades, from a high of 37,505 in 1981, primarily because of industry mechanization and a shift from deep to surface mining.

Eastern Kentucky’s current coal employment is 7,951, the lowest in generations, and that is unlikely to improve much. Coal will continue to be a presence. But because the large, easy-to-mine reserves are gone, most of the coal jobs will never return.

There are no “magic bullet” solutions to replacing Eastern Kentucky’s coal-based economy. (Not that coal itself was ever a magic bullet. Even when coal employment and production were at their peaks, the coal counties were still among the nation’s poorest.)

The citizens group Kentuckians for the Commonwealth has some good ideas about what a new Eastern Kentucky economy should aspire to. Those principles would be a good starting point for Monday’s conversations.

KFTC’s vision calls for a “just” transition that promotes “innovation, self-reliance and broadly held local wealth.” It urges more citizen participation in decision-making, and calls for restoration and protection of the environment and public health. It also urges leaders to “consider the effects of decisions on future generations.”

Tourism and outdoor recreation are often mentioned as potential economic opportunities, but that will require cleaning up some of strip mining’s environmental damage. Kentucky should lobby for money to do that work from the federal Abandoned Mine Lands fund, which could keep thousands of former coal miners employed for years.

Home-grown entrepreneurship and technology jobs are other often-mentioned possibilities to building Eastern Kentucky’s middle class, but they will require serious state investments in education and infrastructure to attract private capital. Kentucky’s tax-phobic politicians and the citizens who elect them have never been willing to make such serious investment, and that must change if anything else is to.

Shaping a new Eastern Kentucky economy will require a lot of creativity, commitment and hard work, not to mention leadership, inclusion and accountability.

There will be many obstacles to overcome, not the least of which is cynicism. It will be a long process. But Monday in Pikeville is as good a time and place to start as any.


Global warming means change for coal, Kentucky

April 25, 2008

MOREHEAD – If you want to start a fight about global warming, go to coal country.

That was clear Friday at the East Kentucky Leadership Conference. It wasn’t a fight, really, but a spirited debate about what global warming could mean for the coal-rich region and how Kentucky should respond to inevitable change.

It was the kind of discussion that made this 21st annual conference worth attending.

At its best, the East Kentucky Leadership Conference is like a big family reunion where people get together to talk about the future instead of the past. Everyone knows the touchy subjects and all of the back stories. Most also know which cousins are smart and which uncles are crazy.

It helps that the conference always takes place in late April. When the hills are ablaze with redbud and dogwoods, no problem seems too big to solve.

On this year’s agenda were all of the usual subjects: health, education and economic development, plus a session with the curious title, “Adventure Tourism: An Idea Whose Time Has Come.”

While it wasn’t on the official agenda, there also was plenty of discussion about the plague of drug abuse.

When talk turned to coal, nobody, thankfully, tried to argue that global warming is a myth, or that we’re not making it worse by burning coal.

Cheap power threatened

The world’s changing energy picture doesn’t bode well for Kentucky, said Jim Lamb, the senior vice president of power supply for East Kentucky Power Cooperative in Winchester.

About 96 percent of Kentucky’s electricity is generated by burning coal. That has given Kentucky some of the nation’s lowest power rates. But as concerns about climate change prompt more restrictions on coal-burning, power rates are sure to rise

Many at the conference – including Lt. Gov. Daniel Mongiardo, a Hazard physician, and House Majority Leader Rocky Adkins of Sandy Hook, who works for a coal company, touted the possibilities of new technology to convert coal to liquid fuel that burns cleaner than oil.

Coal companies are pressing for federal and state tax breaks to develop that technology.

John Hennen, a history professor at Morehead State University, said it’s fine if coal companies want to invest their own money in such research, but public money should be used to explore alternatives to fossil fuels.

“I think a (public) commitment to coal conversion technology would be a disaster,” he said, raising eyebrows around the room.

Hennen noted that converting coal to liquid fuel requires massive amounts of water and produces more carbon dioxide than burning it. While there’s a lot of talk about capturing that carbon and storing it, nobody has shown it can be done on a large scale.

Investing beyond coal

Hennen said he would rather see public investment in conservation, energy efficiency and sustainable energy sources. Solar power, for example, could become a lot more cost-effective as technology improves and other energy prices rise.

One example: The state could provide tax credits or other funding for solar-powered home water heaters. They could cut demand on the power grid and pay for themselves in a few years.

“We cannot afford to look to the coal industry to be our salvation,” Hennen said.

He and Jason Bentley, a lawyer in Frankfort with the firm McBrayer, McGinnis, Leslie and Kirkland who works with big energy companies, argued about what they both said was “fear-mongering” for and against coal.

“The reality is that these other fuels cannot compete with coal in price and flexibility,” Bentley said. And they won’t anytime soon.

Everyone agreed that coal will be Kentucky’s dominant energy source for decades to come. But they also agreed that big changes are coming – and the clock is ticking.