Category Archives: Crime and corrections

Will the “Ferguson Effect” Kill Urban Renewal?

by James A. Bacon

Baltimore is the East Coast’s answer to Detroit, a once-prosperous city hollowing out from decades of mismanagement under the Blue State governance model. By the time the Washington Village Development Association (WVDA) filmed its documentary, “Fleeing Baltimore,” in 2013, 31,500 residents had abandoned Maryland’s largest city over the previous decade. Sixteen thousand buildings stood vacant. The documentary described how heroic efforts of middle-class Baltimoreans, both black and white, to clean up trash, combat crime and provide positive experiences for inner city youth were overwhelmed by the ineffectiveness of the city’s criminal justice system.

If conditions were hostile to the middle class two years ago, imagine what it is like now. Last month, a 25-year-old black man, Freddie Gray, died under mysterious circumstances in police custody, raising concerns about police abuse and laying bare a history of strained relations between police and the city’s poor black population. Riots ensued, and now gun violence is up 60% compared to the same time last year. Thirty-two shootings took place over Memorial Day weekend.

Similar explosions in violence are occurring in cities across the United States as as police and inner-city populations react to a series of incidents in which unarmed black men died at the hands of white police. In what what urbanist Heather Mac Donald calls the “Ferguson effect,” police are disengaging from discretionary enforcement activity, the criminal element is feeling empowered and a wave of violence has reversed much of twenty years’ decline in crime rates.

If the surge in murder and violence is foreshadowing of things to come, it will have a tremendous impact on the livability of major urban areas. Two outcomes can be predicted. First, middle-class households with the means to do so will flee the urban core. Second, law-abiding African-Americans living in high-crime neighborhoods but lacking the means to flee will suffer the most.

I’m not disputing the ugly reality that police abuses occur in poor African-American communities. I’m not disputing the fact that police sometimes commit violent crimes themselves, or that African-Americans have a basis for mistrusting the police in some cities. These are real problems that our society must grapple with. But I’m also arguing that the over-reaction to these problems threatens to un-do much of the progress we’ve made in the past twenty years in fighting the scourge of crime and revitalizing our central cities.

Police officers increasingly second-guess themselves in the use of force, writes Mac Donald, writing in the Wall Street Journal. “Any cop who uses his gun now has to worry about being indicted and losing his job and family,” one policeman told her. If police are more timid in applying force, the bad guys will be emboldened in their criminality. She continues:

Even if officer morale were to miraculously rebound, policies are being put into place that will make it harder to keep crime down in the future. Those initiatives reflect the belief that any criminal-justice action that has a disparate impact on blacks is racially motivated.

In New York, pedestrian stops — when the police question and sometimes frisk individuals engaged in suspicious behavior — have dropped nearly 95% from their 2011 high. … Politicians and activists in New York and other cities have now taken aim at “broken windows” policing.

Meanwhile, the move to end “mass incarceration” is gaining momentum across the country. Across the board, Americans are second-guessing the strategies that largely won the “war on crime.” The results will look a lot like Baltimore as productive, law-abiding citizens flee jurisdictions where anarchy and disorder prevail for the safety of suburban jurisdictions.

Watch the WVDA documentary, and you’ll wonder how the city of Baltimore can ever reverse its decline. One of the most basic human needs is a desire to feel safe from physical harm. If the rebound in crime is more than a passing blip — if peoples’ perceptions of crime in American cities undergoes a major change — the human cost will prove devastating and urban jurisdictions once again will slip into the corrosive spiral of rising crime, middle-class flight, shrinking tax base and busted budgets from which we hoped they had escaped.

New Film Documents Horrors of Coal Mining

blood on the moutain posterBy Peter Galuszka

Several years in the making, “Blood on the Mountain” has finally premiered in New York City. The documentary examines the cycle of exploitation of people and environment by West Virginia’s coal industry highlighting Massey Energy, a coal firm that was based in Richmond.

The final cut of the film was released publicly May 26 at Anthology Film Archives as part of the “Workers Unite! Film Festival” funded in part by the Fund for Creative Communities, the Manhattan Community Arts Fund and the New York State Council of the Arts.

Directed by Mari-Lynn Evans and Jordan Freeman, the film shows that how for more than a century, coal companies and politicians kept coal workers laboring in unsafe conditions that killed thousands while ravaging the state’s mountain environment.

As Bruce Stanley, a lawyer from Mingo County, W.Va. who is interviewed in the film and has fought Donald L. Blankenship, the notorious former head of Massey Energy, says, there isn’t a “War on Coal,” it is a “war waged by coal on West Virginia.”

When hundreds of striking workers protested onerous and deadly working conditions in the early 1920s, they were met with machine guns and combat aircraft in a war that West Virginia officials kept out of history books. They didn’t teach it when I was in grade school there in the 1960s. I learned about the war in the 1990s.

The cycle of coal mine deaths,environmental disaster and regional poverty continues to this day. In 2010, safety cutbacks at a Massey Energy mine led to the deaths of 29 miners in the worst such disaster in 40 years. Mountains in Central Appalachia, including southwest Virginia, continue to be ravaged by extreme strip mining.

As Jeff Biggers said in a review of the movie in the Huffington Post:

“Thanks to its historical perspective, Blood on the Mountains keeps hope alive in the coalfields — and in the more defining mountains, the mountain state vs. the “extraction state” — and reminds viewers of the inspiring continuum of the extraordinary Blair Mountain miners’ uprising in 1921, the victory of Miners for Democracy leader Arnold Miller as the UMWA president in the 1970s, and today’s fearless campaigns against mountaintop-removal mining.”

The movie (here is the trailer) is a personal mission for me. In 2013, after my book “Thunder on the Mountain, Death at Massey and the Dirty Secrets Behind Big Coal,” was published by St. Martin’s Press, Mari-Lynn Evans called me and said she liked the book and wanted me to work with her on the movie project. She is from a small town in West Virginia a little south of where I spent several years as a child and thought some of my observations in the book rang true.

I drove out to Beckley, W.Va. for several hours of on-camera interviews. Over the next two years, I watched early versions, gave my criticisms and ideas and acted as a kind of consultant. Mari-Lynn’s production company is in Akron and I visited other production facilities in New York near the Brooklyn Navy Yard.

Interesting work if you can get it. My only forays into film making before had been with my high school film club where he videographed a coffin being lowered into a grave (in West Virginia no less). I was greatly impressed when I saw the movie at its New York premiere.

Mari-Lynn and Jordan have been filming in the region for years. They collaborated on “The Appalachians,” an award-winning three-part documentary that was aired on PBS a few years ago and on “Coal Country” which dealt with mountaintop removal strip mining.

They and writer Phyllis Geller spent months detailing how coal companies bought up land on the cheap from unwitting residents, hired miners and other workers while intimidating them and abusing them, divided communities and plundered some very beautiful mountains.

Upper Big Branch is just a continuation of the mine disasters that have killed thousands. The worst was Monongah in 1907 with a death toll of at least 362; Eccles in 1914 with 183 dead; and Farmington in 1968 with 78 dead (just a county over from where I used to live).

By 2008 while Blankenship was CEO of Massey, some 52 miners were killed. Then came Upper Big Branch with 29 dead in 2010.

At least 700 were killed by silicosis in the 1930s after Union Carbine dug a tunnel at Hawks Nest. Many were buried in unmarked graves.

While state regulation has been lame, scores West Virginia politicians have been found guilty of taking bribes, including ex-Gov. Arch Moore.

The movie is strong stuff. I’ll let you know where it will be available. A new and expanded paperback version of my book is available from West Virginia University Press.

Blankenship is scheduled to go on trial on federal charges related to Upper Big Branch on July 13.

Finally, Tobacco Commission Gets Reforms

Feinman

Feinman

By Peter Galuszka

Virginia’s infamous tobacco commission appears to be finally getting needed reforms 15 years after it went into existence.

Gov. Terry McAuliffe announced today that he was appointing a new executive director, Lynchburg native Evan Feinman, ordering a slimmed down board of directors and requiring a dollar-for-dollar match on grants the commission doles out to support community development in Virginia’s old tobacco belt.

In another break with the past, McAuliffe is renaming the old Virginia Tobacco Indemnification and Community Revitalization Commission as the Virginia Tobacco Region Revitalization Commission.

That might sound cosmetic, but any change is welcome given the commission’s history.

Since its formation after the 1998 Master Settlement Agreement between 46 states and four large cigarette makers, the commission has been spending millions of dollars won from the tobacco firms supposedly to help tobacco growers in a region roughly following the North Carolina border wean themselves off of the golden leaf toward economic projects that are far healthier.

Instead, the commission has been racked by scandal after scandal, including the conviction of a former director, John W. Forbes II, for embezzling $4 million in public money. He is now serving a 10-year jail sentence.

The commission also figured in the corruption trial of former Gov. Robert F. McDonnell since it was suggested my McDonnell as a possible source of funding for businessman Jonnie R. Williams Sr. during McDonnell’s trial for corruption. Williams, who was the star prosecution witness against McDonnell, got help from McDonnell in promoting one of his vitamin supplement products. McDonnell was convicted of 11 felonies and is now appealing.

The old commission also has been criticized by a major state audit for funding dubious projects and not keeping track of whether the money it has doled out has done much good. It had been criticized for acting as a slush fund for projects favored by Southside and southwestern Virginia politicians.

McAuliffe’s reforms include reducing the commission’s board from 31 to 28 members and requiring that 13 of them have experience in business, finance or education.

Feinman has been deputy secretary of natural resources and worked with McAuliffe’s post-election team.

It’s too soon, of course, to know if these changes will bring results, but anything that moves the commission away from its past and the grasp of mossback Tobacco Road politicians is welcome.

Blankenship’s Incriminating Tapes

don-blankenship By Peter Galuszka

It may sound like something out of the Nixon White House, but embattled coal baron Donald L. Blankenship regularly taped conversations in his office, giving federal prosecutors powerful new ammunition as he approaches criminal trial in July.

According to Bloomberg News, the former head of Massey Energy taped up to 1,900 conversations that often go to the heart of the case against him. Blankenship was indicted last Nov. 13 on several felony charges that he violated safety standards and securities laws in the run up to the April 5, 2010 blast at the Upper Big Branch mine in West Virginia that killed 29 miners.

The revelation of the tapes came about in a circuitous way. The tapes were given to federal prosecutors in 2011 by officials of Alpha Natural Resources, which bought Richmond-based Massey Energy in 2011 for $7.1 billion.

After reaching a non-prosecution deal with federal prosecutors, Alpha hired a powerful New York law firm to investigate Massey for any possible violations.

Alpha, based in Bristol, was required as part of a non-prosecution order it signed to surrender all evidence, including the tapes.

Earlier this year, Alpha declined to continue paying Blankenship’s legal bills since he was under criminal indictment. Blankenship, claiming Alpha was required to indemnify, him, sued Alpha in a Delaware court. The existence of the tapes was revealed in that venue.

According to court documents filed in Delaware, Blankenship seemed to know that his disregard and hardball management practices could hurt him.

The tapes show Blankenship’s disdain for the U.S. Mine Safety and Health Administration (MSHA), which regulates mines but also reveal Blankenship knew Massey’s practices were risky.

According to testimony, a tape has Blankenship stating, “Sometimes, I’m torn up with what I see about the craziness we do. Maybe if it weren’t for MSHA, we’d blow ourselves up. I don’t know.”

“I know MSHA is bad, but I tell you what, we do some dumb things. I don’t know what we’d do if we didn’t have them,” Blankenship said on tape in the Delaware case.

So far, little has been revealed about what evidence the U.S. Attorney’s Office in Charleston, W.Va. has against Blankenship. Irene Berger, a U.S. District Judge in Beckley, W.Va., issued a massive gag order forbidding lawyers and even family members of the 29 mine victims from discussing the case, now scheduled for July 13 in Beckely.

The gag rules were order modified after the Charleston Gazette and the Wall Street Journal among other news outlets challenged them before the U.S. Fourth Circuit Court of Appeals in Richmond.

In some cases, apparently, the tapes cut both ways. In Delaware, Blankenship’s lawyers played a tape from 2009 which has Blankenship urging executives to tighten up on safety. “I don’t want to go to 100 funerals,” he is quoted as saying. He allegedly told Baxter Phillips Jr., then Massey’s president, that if there were a fatal disaster, “You may be the one who goes to jail.”

According to Bloomberg, Alpha initiated the internal probe after reaching a non-prosecution deal with federal prosecutors. It hired Cleary Gottleib Steen & Hamilton of New York to handle it.

Since Alpha refused to continue paying Blankenship’s legal bills, Blankenship reportedly has paid his lawyers $1 million himself.

The writer is the author of “Thunder on the Mountain, Death at Massey and the Dirty Secrets Behind Big Coal,” 2012, St. Martin’s Press. Paperback , West Virginia University Press, 2014.

McDonnells May Have Shot at Appeal

mcd convictedBy Peter Galuszka

Robert F. McDonnell, the only Virginia governor ever to be found guilty of corruption, may actually have a good shot at having his convictions reversed on appeal, according to some legal experts.

I have the story in this week’s Style Weekly.

The issue, which has been tossed around many times, involves how broadly or narrowly “honest services fraud” can be interpreted. The key points are whether or not McDonnell and his co-convict and wife Maureen did deny the public the “intangible right” of honest services by taking something of value in exchange for an action.

A further complication is that if they did, in fact, take an action in exchange for something, was it an “official” action? It tends to worry lawyers from such law schools as Harvard, the University of Virginia and the College of William & Mary.

Among some of their worries are that if McDonnell took money from star prosecution witness Jonnie R. Williams but took no specific action for the vitamin salesman, how is that different from a president granting a donor an ambassadorship.

Another concern that “honest services” statutes can be so “vaguely worded” that they could allow prosecutors to carve out a new crime that the defendants might not know they are committing.

I covered most of the six-week-long trial for Bloomberg News last summer and there is no question in my mind that the McDonnells’ behavior was shameful. U.S. District Judge James Spencer tended to go with a broad interpretation of the law.

We’ll see when arguments for McDonnell’s appeal start May 12 at the U.S. Fourth Circuit Court of Appeals in Richmond. I’ll keep my own legal opinions to myself for the moment.

Private Immigrant Jail May Face Woes

Farmville jail protest

Farmville jail protest

By Peter Galuszka

Privatization in Virginia has been a buzzword for years among both parties. In this tax-averse state, contracting off public functions is seen as a wise and worthy approach.

But then you get debacles such as the U.S. 460 highway project. And now, you might have one brewing down in Farmville.

The small college town is in Prince Edward County, which gained international notoriety from 1959 to 1964 when it decided to shut down its entire school system rather than integrate. Many white kids ended up in all-white private schools and many African-American children were cheated out of an education entirely.

About six years ago, another creepy project started there – a private, for-profit prison designed exclusively to imprison undocumented aliens. It’s a cozy little deal, as I outline in a piece in Sunday’s Washington Post.

Farmville gets a $1 per head, per day (sounds like slavery) from the U.S. Immigration and Customs Enforcement agency. Immigration Centers of America, the private firm run by Richmond executives Ken Newsome and Russell Harper, gets profits. Then, in turn, also pay taxes to Farmville and the county.

The ICA facility, whose logo includes an American flag, pays taxes as well and provides about 250 jobs locally. The project even got a $400,000 grant from the scandal-ridden Virginia Tobacco Indemnification and Community Revitalization Commission for water and sewer works.

What might sound like a no-lose operation, except for the mostly Hispanic inmates who might have entered the country illegally, overstayed their visas, or had other bureaucratic problems, may face problems.

The census now at the jail is about 75 percent of what it could be. President Obama has issued an executive order that could free some five million undocumented aliens. It is being challenged by 26 states but Virginia Atty. Gen Mark Herring has filed an amicus brief in favor of Obama.

So what happens to Farmville if Obama wins? It could affect 96,000 aliens in Virginia. Could there someday be no prisoners? Wouldn’t that be too bad for Farmville?

Recent history is instructive. Back in the 1990s, Gov. George Allen, a conservative darling, was pushing private prisons in Virginia as he successfully got rid of parole in part of his crime crackdown. Slave labor was part of the deal.

Executive Intelligence Weekly wrote in 1994:

“Slave labor in American prisons is increasingly being carried out in what are called “private prisons.” In his campaign to “reform” Virginia’s penal laws, Gov. George Allen pointed to prison privatization as the wave of the future, a moneymaking enterprise for the investor, and a source of good, cheap labor for Virginia’s municipalities. Indeed, after taxes, pay-back to the prison, and victim restitution are removed, the inmate earns an average of $1 per hour in these facilities.”

Well guess what happened. Allen pushed for more public and private prisons. They were overbuilt. Demographics changed. Crime rates dropped. Prisons had to be shut down.

So, if immigration reform ever comes about what happens in Farmville? Don’t forget, the private jail came at a time when a construction boom, especially in Northern Virginia had drawn in many immigrants especially from Latin America. Their papers may not have been in order.

Neo-racists like Corey Stewart, chairman of the board of supervisors of Prince William County, ordered a crackdown on brown-skinned people who spoke Spanish. But when the real estate market crashed, fewer Latinos arrived. And, if they did, they avoided Stewart’s home county.

Wither Farmville?

Police, Race and the Media

by James A. Bacon

Before people go into conniptions over the politically incorrect thrust of this column, let me make something Hubble telescope clear: I do not condone police brutality toward African-Americans. When incidents occur like the death of Freddie Gray in police custody in Baltimore, the death of Eric Garner on the streets of New York, and most horrifyingly the execution-style slaying of Michael Slager in Charleston, S.C., the facts need to be gathered and police need to be held to account. Police are human. Some make tragic mistakes. Some are no better than criminals themselves. Bad cops need to be demoted, fired or go to prison. And, yes, black lives do matter. All lives matter.

Nothing controversial about that. But someone has to tell another side of the story — an aspect of the story that has been, and I don’t use this word lightly, suppressed in the mainstream media. The fact is, the police in many inner-city African-American neighborhoods are not working with a docile, law-abiding population. While a majority of citizens are like those who, after the recent riot in Baltimore, showed up the next day to clean up the mess that the lawbreakers had made, or the feisty woman in yellow who bitch-slapped her 16-year-old son for throwing rocks at police, there is a significant hard-core criminal element that regards the police, especially white policemen, as the enemy. These criminals are armed and dangerous, and any encounter between them and the police has the potential to turn violent. It is not without reason that policemen regard every encounter as a possible life-and-death situation and approach it in a state of hyper-vigilance.

Unfortunately, the mainstream media is making matters worse — far worse. This is a country of 320 million people. There are hundreds of thousands, perhaps millions, of encounters every day between police and the African-American population. Most are routine. But now that the Black Lives Matter narrative has taken hold, the media play up a tiny handful of encounters that confirm the narrative of omnipresent racism and ignore anything that might confound it. Thus, in recent months the media have magnified three or four incidents, playing them out in the headlines and news reels over weeks, as if they were somehow typical of the interaction between police and African-Americans.

In doing so, the media feeds the sense of grievance among African-Americans and encourages disruptive behavior like the Ferguson riots, the Baltimore riots and the New York shootings of two police officers. Yes, I blame the media for ignoring context, stoking resentments, and worsening the state of race relations in the United States.

Imagine, if you will, that the media were dominated by conservatives. And imagine that conservatives viewed race relations through the prism of black underclass criminality and violence. And imagine that such a media ran front-page headlines and led off national news broadcasts with stories of white policemen dying at the hands of black criminals, day after day… after day. Then, imagine that such coverage was shorn of any context, that evidence of police brutality and injustice were systematically ignored. That would be a right-wing analogue of what we see now.

Let’s throw out a few facts. Last year, 117 police officers died in the line of duty. Forty-eight were shot and 18 killed in “physical-related incidents,” according to the National Law Enforcement Officers Fund. Another 51,625 were victims of assaults, and 14,857 were injured in assaults. States the NLEOF:

Of the 50 firearms related fatalities in 2014, fifteen officers were shot and killed in ambush attacks, more than any other circumstance of fatal shootings in 2014. Nine officers were killed during disturbance calls. Eight officers were shot and killed during a traffic stop or pursuit and seven officers were killed while investigating suspicious persons or circumstances in 2014.

The NLEOF does not break down the number of police killed by African-American perpetrators, but if the percentage of killings is consistent with the number of crimes committed by African-Americans nationally, there would be enough shootings and ambushes for the media to cherry pick and keep one in the news every day of the year. If the media ran reality through a conservative filter instead of a liberal one, instead of discussing police brutality, we would be discussing the crisis of policemen under siege. But the media isn’t conservative. For the most part, reporters and broadcasters define the problem as poverty and racism, so the context of violence against policemen goes missing.

No one tracks the race of the police assailants, but I would hypothesize — that means I will not state it as fact but offer it as a proposition to be tested with real-world evidence — that a disproportionate number of police assailants are African-American. Why would I advance such a conjecture? Because African-Americans, as a result of their long and tortured history in this country, bear an outsized animus toward the police and other authority figures. Perhaps that animus is justified, perhaps it’s not — that’s a side point that does not change the reality that the animus exists and people act upon it.

An anti-police animus is integral to the sub-culture of gangsta rap, which embraces the term of “Nigga” as an assertive form of self-identification, revels in a hyper-masculine ideal of machismo, debases women as “hoes,” glorifies violence and the gun culture, voices continual defiance against white authority and specifically labels the police as the enemy. (View the YouTube compilation above of gangsta rap songs circulating this February; note the prevalence of guns in the videos and the aggressive, in-your-face style of the rappers.) Latinos have their own narco rap, but there is nothing comparable in the white underclass.

The reality of what’s happening in America’s inner cities is much more complex than the racism-and-poverty model. Insofar as people think of police as an occupying force, they will treat police as an occupying force. They will tend to respond more belligerently to police actions. In turn, police will respond in kind. While they may know that not all young black males are armed and hostile, they cannot know ahead of time who is and who isn’t. Not wanting to become one of those Officers Fund statistics, they will tend to treat every encounter as potentially dangerous, frequently responding more aggressively than they should. I do not say that to condone excessive force but to explain it in the context of a mutually reinforcing pattern of behavior between police and the criminal element.

Perhaps this interpretation puts the onus on police to emphasize community police, building bonds of trust in the inner city. Perhaps it means the police should halt tactics, such as stop-and-frisk, that feed the gangsta-rap narrative of police as occupiers. But this interpretation also undercuts the narrative of African-American hoodlums as victims in which every fatal encounter is presumed to be a reflection of racism. Only if we recognize the complexity of the forces of work can we ever hope to have an honest dialogue about race in America. A media fails to convey this complexity fails at the most elemental level to do its job.

Update: The original version of this post contained lyrics from a rap song. I have been informed that the lyrics were a parody. Accordingly, I have deleted the quote.

Dave Brat’s Bizarre Statements

 By Peter Galuszka

Almost a year ago, Dave Brat, an obscure economics professor at Randolph- Macon College, made national headlines when he defeated Eric Cantor, the powerful House Majority Leader, in the 7th District Brat Republican primary.

Brat’s victory was regarded as a sensation since it showed how the GOP was splintered between Main Street traditionalists such as Cantor and radically conservative, Tea Party favorites such as Brat. His ascendance has fueled the polarization that has seized national politics and prevented much from being accomplished in Congress.

So, nearly a year later, what has Brat actually done? From reading headlines, not much, except for making a number of bizarre and often false statements.
A few examples:

  • When the House Education and Workforce Committee was working on reauthorizing a law that spends about $14 billion to teach low-income students, Brat said such funding may not be necessary because: “Socrates trained Plato in on a rock and the Plato trained Aristotle roughly speaking on a rock. So, huge funding is not necessary to achieve the greatest minds and the greatest intellects in history.”
  • Brat says that the Affordable Care Act (Obamacare) is a step towards making the country be more like North Korea. He compares North and South Korea this way:  “. . . it’s the same culture, it’s the same people, look at a map at night, half the, one of the countries is not lit, there’s no lights, and the bottom free-market country, all Koreans is lit up. See you make your bet on which country you want to be, right? You want to go to the free market.” One problem with his argument:  Free market South Korea has had a single payer, government-subsidized health care system for 40 years. The conservative blog, BearingDrift, called him out on that one.
  • Politifact, the journalism group that tests the veracity of politicians’ statements, has been very busy with Brat. They have rated as “false” or “mostly false” such statements that repealing Obamacare would save the nation more than $3 trillion and that President Obama has issued 468,500 pages of regulations in the Federal Register. In the former case, Brat’s team used an old government report that estimated mandatory federal spending provisions for the ACA. In the latter case, Politifact found that there were actually more pages issued than Brat said, but they were not all regulations. They included notices about agency meetings and public comment periods. What’s more, during a comparable period under former President George W. Bush, the Federal Register had 465,948 pages, Politifact found. There were some cases, however, where Politifact verified what Brat said.
  • Last fall, after Obama issued an executive order that would protect up to five million undocumented aliens from arrest and deportation, Brat vowed that “not one thin dime” of public money should go to support Obama’s plan. He vowed to defund U.S. Citizen and Immigration Services but then was told he couldn’t do so because the agency was self-funded by fees from immigration applications. He then said he would examine how it spent its money.

The odd thing about Brat is that he has a doctorate in economics and has been a professor. Why is he making such bizarre, misleading and downright false statements?

Pulitzer-Winning Series Exposed Richmond Firm

HDL LogoBy Peter Galuszka

There’s been plenty of discussion about the evils of rising health care costs, but unfortunately, one only hears of government wrong-doing.

Private industry actually spearheads a lot of the price gouging — sometimes with government complicity.

And it just so turned out that a high-flying Richmond firm — Health Diagnostic Laboratory  — was at the heart of a scandal that involved ripping off the Medicare program.

The Wall Street Journal on Monday was awarded a Pulitzer Prize for investigative reporting for exposing Medicare fraud. As a result of a front-page story published last Sept. 8, Tonya Mallory, the chief executive and co-founder of HDL, resigned. A few weeks ago, HDL was fined $47 million (while admitting no wrongdoing) after  their Sept. 8 story last year, for paying doctors kickbacks to use their blood tests.

The Journal broke the story after a court battle. It fought to lift a 33-year-old injunction that kept private data regarding Medicare patients. Once the data floodgates were opened, reporters pieced together all kinds of juicy information about health care firms, including HDL.

I have the story here on my “The Deal” blog in Style Weekly.

The upshot? Unlike what you often read on this blog, the problems of rising health care costs may not exactly be government sloth and inefficiency. It can be the private sector gaming the system to their benefit.

Beware Stalling Growth in Northern Virginia

northern virginia mapBy Peter Galuszka

For at least a half a century, Fairfax County, Alexandria and Arlington County have been a growth engine that that has reshaped how things are in the Greater Washington area as well as the Old Dominion.

But now, apparently for the first time ever, these Northern Virginia localities have stopped growing, according to an intriguing article in The Washington Post.

In 2013, the county saw 4,673 arrivals but in 2014 saw 7,518 departures. For the same time period, Alexandria saw 493 arrivals and then 887 departures. Arlington County showed 2,004 arrivals in 2013 followed by 1,520 departures last year.

The chief reason appears to be sequestration and the reduction of federal spending. According to a George Mason University study, federal spending in the area was $11 billion less  last year than in 2010. From 2013 to 2014, the area lost 10,800 federal jobs and more private sectors ones that worked on government contracts. Many of the cuts are in defense which is being squeezed after the wars in Afghanistan and Iraq.

The most dramatic cuts appear to be in Fairfax which saw a huge burst of growth in 1970 when it had 450,000 people but has been slowing for the most part ever since. It still grew to 1.14 million people, but the negative growth last year is a vitally important trend.

Another reason for the drop offs is that residents are tired of the high cost and transit frustrations that living in Northern Virginia brings.

To be sure, Loudoun County still grew from 2013 to 2014, but the growth slowed last year from 8,904 newcomers in 2013 to 8,021 last year.

My takeaways are these:

  • The slowing growth in NOVA will likely put the brakes on Virginia’s move from being a “red” to a “blue” state. In 2010, Fairfax had become more diverse and older, with the county’s racial and ethnic minority population growing by 43 percent. This has been part of the reason why Virginia went for Barack Obama in the last two elections and has Democrats in the U.S. Senate and as governor. Will this trend change?
  • Economically, this is bad news for the rest of Virginia since NOVA is the economic engine for the state and pumps in plenty of tax revenues that end up being used in other regions. Usually, when people talk about Virginia out-migration, they mean people moving from the declining furniture and tobacco areas of Southside or the southwestern coalfields.
  • A shift in land use patterns and development is inevitable. The continued strong growth of an outer county like Loudoun suggests that suburban and exurban land use patterns, many of them wasteful, will continue there. The danger is that inner localities such as Fairfax, Arlington and Alexandria, will be stuck with more lower-income residents and deteriorating neighborhoods. The result will be that localities won’t have as much tax money to pay for better roads, schools and other services.
  • Virginia Republicans pay lip service to the evils of government spending and have championed sequestration. Well, look what a fine mess they have gotten us into.

The rest of the Washington area is seeing slowing growth, but appears to be better off. The District’s in-migration was cut in half from 2013 to 2014 but it is still on the plus side. Ditto Montgomery and Prince George’s Counties.

NOVA has benefited enormously from both federal spending and the rise of telecommunications and Web-based businesses. It is uncertain where federal spending might go and maybe increased private sector investment could mitigate the decline. Another bad sign came in 2012 when ExxonMobil announced it was moving its headquarters from Fairfax to Houston.

In any event, this is very bad news for NOVA.