Tax refunds of more than $2 million will be received by more than 1,600 eastern Kentucky taxpayers this year thanks to the fourth consecutive successful effort of the Eastern Kentucky Asset Building Collaboration (EKABC), a multi-agency cooperative effort bolstered by the involvement of the Eastern Kentucky Concentrated Employment Program, Inc. (EKCEP) and its JobSight network of workforce centers.

The results were announced at the outset of the fourth annual Eastern Kentucky Economic Summit, a daylong series of free financial seminars held May 8 in Hazard. The summit is the annual concluding event in the EKABC project that provides free tax preparation and helps taxpayers claim larger refunds under the Earned Income Tax Credit (EITC) law.

Jennifer Weeber of Hazard/Perry County Community Ministries—a key partner in the EKABC—said this year’s effort brought more than $1.9 million in federal income tax refunds to taxpayers in Bell, Clay, Magoffin, Owsley, Perry, Pike, and Whitley counties. Of that amount, $850,000 was claimed under the EITC. An additional $140,000 in state refunds came back to those taxpayers.

“Those are some pretty significant numbers,” Weeber said to the approximately 75 people who gathered for the summit at the First Federal Center at Hazard Community and Technical College.

“I think the collaboration and its efforts have had a tremendous economic impact on our area,” she continued, “and we hope the money that is going into these people’s pockets is helping them build their assets, pay down their debts, and get on the financial track they want to be on.”

Helping taxpayers from Perry and surrounding counties develop the practical financial and life skills necessary to thrive in today’s economy was the overall theme of the summit’s seminars.

The event's financial seminars—taught by both public and private sector experts—helped citizens learn important economic skills, including: how to avoid financial traps set by “loan sharks”; how to plan for unexpected events like divorce or death of a spouse; avoiding credit card problems; managing the financial strains of caring for children or elderly relatives; and developing healthy self-esteem in the workplace and beyond.

Jeff Smith, executive vice president and CFO of People’s Bank and Trust in Hazard, advised attendees that they should be “money smart” by using savings accounts and budgeting their income, while avoiding costly scams and e-mail “phishing” schemes that can bring about financial ruin.

Smith warned of one recent scam reported by area residents that involves getting a telephone call from a person identifying himself as a representative of a bank.

“If you give them the financial information or checking account number that they request, they’ve got you,” he said. “You might have $10,000 in that checking account, and three months later, it will be a big ‘goose egg.’”

Tom Vicini, coordinator of Operation UNITE’s Kentucky River Coalition, and Dan Smoot, UNITE’s law enforcement director, led a seminar on the economic impact of illegal drugs in eastern Kentucky and updated attendees on UNITE’s effect on the region’s illicit drug trade.

Operation UNITE was launched by U.S. Congressman Hal Rogers in April 2003. The initiative brings together regional leaders, law enforcement officials, health care professionals, and citizens in 29 eastern Kentucky counties to fight the region’s drug problem and bolster drug prevention efforts.

Vicini said efforts coordinated through UNITE had resulted in roughly $6.2 million worth of drugs taken off the streets, as of September 2006. More than 1,500 drug-related arrests have resulted from UNITE’s investigations, he added, noting the program has a 98.9 percent conviction rate for drug offenders arrested and charged through its investigations.

State Rep. Brandon Smith was the keynote speaker at the event. Smith, who is campaigning for the office of Kentucky treasurer, cited Kentucky’s 365-percent increase in bankruptcy filings from 1985 to 2005 as proof that greater attention needs to be placed on building financial literacy skills among all age groups.

Smith outlined initiatives he hopes to see brought to Kentucky that can help accomplish that goal, including a program that would allow bankers to visit schools and work one-on-one with students to set up and manage checking accounts.

Still, personal responsibility is the key to making any positive financial change, he said.

“It doesn’t matter the tools or skills you have, because it all comes down to you,” Smith said. “In the end, you have to change (your situation).”

The day’s other seminars were delivered by representatives of several public agencies and private businesses, including the Perry County JobSight; Big Sandy Area Community Action Program; Perry County JobSight; L.K.L.P. Community Action Council; Hazard/Perry County Housing Development Alliance; Hazard Community and Technical College; and attorney Denise Davidson.

The summit marked the end of the fourth successful year for the EKABC. The 2007 EKABC results exceed those from 2006, when $1.7 million in refunds were brought in to more than 1,400 taxpayers in seven counties. The EKABC's work in 2005 and 2006 was recognized by the Internal Revenue Service, which presented awards to the collaboration in appreciation of the "outstanding effort, dedication and contribution toward building a stronger community" demonstrated by supporting efforts in the areas of free tax preparation, asset building and outreach.

Since the 2003-04 tax season, the EKABC’s free tax preparation and financial education efforts have brought in a total of $5.4 million in refunds to 4,600 eastern Kentucky taxpayers. EKABC estimates that amount translates to an overall impact of $37.8 million to the regional economy.

The project’s educational component encourages people to invest their refund dollars wisely. EKCEP helped develop and deliver a series of free financial workshops that taught taxpayers how to establish bank accounts, manage their money, handle credit cards and loans, and own a home.