While homeowners and businesses will have to cope with higher energy costs, state leaders must recognize the days of big government must end.

Few of us want to think about it, but West Virginia government very likely will run out of money if the federal government succeeds with its assault on coal. The consequences could be dramatic.

The coal industry provides the financial underpinning of the West Virginia economy. It employs thousands and generates at least $500 million a year in tax revenues that support state and local government. But its future is uncertain.

Congress, the president and his regulators are engaged in a two-pronged assault that could marginalize Appalachian coal as an energy source. Using water quality rules, the U.S. Environmental Protection Agency is slowing down surface mine permitting. It has shown signs of pulling an existing permit, thus jeopardizing a multi-million-dollar investment and the employment that goes with it.

On the air quality front, our leaders in Washington are working overtime to create cap-and-trade policies that are intended to curb carbon dioxide emissions. Even if that doesn't work, the U.S. Supreme Court has given the EPA the authority to regulate CO2.

These are trying times for the energy sector.

This newspaper has reported on these issues for several years, noting that the federal government has created unnecessary confusion for coal producers and power generators. To make matters worse, policy leaders are creating these difficult conditions with no absolute certainty that their policies are warranted or will work. The enemies of coal are driving these discussions, and they have their hands on the government wheel.

The federal government's actions will have consequences, and coal-dependent West Virginia stands to suffer more than any state. These tactics from on high leave us with an obvious question: What are we doing here at home to brace for the consequences?

While homeowners and businesses will have to cope with higher energy costs, state leaders must recognize the days of big government must end. Funding is at risk for state agencies, programs and institutions of all sorts. Those who deny the huge economic benefit that coal brings to this state soon may learn just how much that industry and supporting businesses have subsidized government in this state.

The coal industry likely will survive in some fashion, but West Virginians cannot assume they will see business as usual. The state's extraordinary reliance on coal may to come to an end, causing stress for families, communities and the entire state.

In the name of fiscal responsibility, state leaders must take action immediately to reduce state spending. They also may want to adopt policies to make West Virginia the most job-friendly state in the eastern U.S. while capitalizing on our proximity to major eastern population centers.