Category Archives: Economic development

One Very Sad Day In Court

maureen_and_bob(1)By Peter Galuszka

One literally could have heard a pin drop in U.S. District Court in Richmond today.

William Burck, lawyer for  Maureen McDonnell, said in his opening argument in a trial that Virginia’s Former First Lady who has been indicted no 14 corruption charges along with her former governor husband was “collateral damage” in a deeply troubled marriage. She had developed a “crush” on the businessman who had given her and her husband more than $150,000 in loans, gifts and cash.

“Their marriage had broken down,” Burck said. “They were barely on speaking terms,” Burck said. Ms. McDonnell was angry and frustrated that her husband had been working 16-hour days in public service for 20 plus years and had little to show for it. They had five children. Big debt. Bob wasn’t paying attention to her.

As John L. Brownlee, McDonnell’s lawyer, said, McDonnell’s hard public service work “took a toll on his family and a terrible toll on his wife. He was not nearly as successful as a husband. He tried to keep from the public the most painful aspects of his marriage. He never humiliated her. He never scorned her.”

In pops Jonnie R. Williams Sr., a smooth-talking entrepreneur pushing a new anti-aging cream made in part from tobacco plants (although his firm, Star Scientific, had lost a couple hundred million over the previous decade.) Brownlee described the star witness for the prosecution as a “master manipulator.”

“This marriage broke apart and an outsider, another man, would invade and poison their marriage,” Brownlee said.

At one point, Maureen was said to have “hated” Bob who wrote a lengthy email to her trying to reconcile. In fact, Brownlee said, the Governor will read the email when he goes on the jury stand during the trial that is expected to last at least five weeks. When McDonnell sent the email, however, “that evening, Maureen was distracted by other interests.”

One could get snarky about this seemingly over-the-top soap opera. But no one in the courtroom seemed to be smirking. It is strange enough to be at a trial like this in a place like Virginia that considers itself above the petty corruption that plagues other states. It is even stranger to hear such excruciatingly personal and painful things about the state’s top former executive and his wife.

It could be that a “throw Maureen under the bus” strategy may work to get both of them off. After all, she wasn’t a public official and could do what she wanted as far as gifts. The prosecution’s opening statement drew a rather detailed and concise outline of just what and when the McDonnells solicited Williams’ largesse, right down to the “thank you” emails when money arrived in the bank to Maureen’s cell phone snap shot of Bob wearing slick, wraparound sunglasses while driving Williams’ Ferrari.

Giving the McDonnell’s the benefit of the doubt, I have to say I’ve heard this kind of story before among long-married couples suffering through middle age as their children are ready to fly away. Their stories may not be dramatic but I’ve got to admit that Bob McDonnell never seemed to exhibit such grabby behavior before.

This raises another tough question. What should “public service” be and how much should it take from one’s private life. More importantly, why can’t it support men and women who pursue it? Should it be only for the rich?

McDonnell slogged through relatively low-paying jobs like the General Assembly, Attorney General and Governor. He had five kids and a wife who seemed very freaked out by being First Lady – a role she apparently never wanted. She came from a Northern Virginia civil service family that didn’t exactly have a grand disposable income.

Consider two other Virginia governors –former and current. Mark Warner, now U.S. Senator, is rich from his telecommunications investments made years ago. At one point he was said to be worth a couple hundred million dollars. Gov. Terry McAuliffe, another former businessman, is likewise wealthy but probably not as rich as Warner.

Should these people be in office because they are rich? Should public service be available only to those with great portfolios? What would Thomas Jefferson say?

How Not to Shift From Coal

coal-plantBy Peter Galuszka

Coal is rightly the scourge of environmentalists. Economic pressure is on to shift to cleaner natural gas made plentiful by controversial hydraulic fracking. Political pressure is on to replace fossil fuels with renewables such as wind, solar and other methods.

In Virginia, Dominion, the state’s largest utility, relies for 46 percent of its generating capacity on coal and is moving in fits and starts to natural gas. It doesn’t get much from renewables. How much and how fast should it shift?

Yet out of Colorado comes a cautionary tale. According to The Washington Post, a family in the impoverished city of Pueblo is at odds running power. They only use a window air conditioner part of the time. They avoid using their oven in the summer. It uses electricity they not longer can afford because it overheats the house in summer.

For the family of Sharon Garcia, the problem is Black Hills Energy, which recently bought the local power company – Aquila, which got some of its power from a coal plant that was first built in 1897 with peaking extra power from Xcel, another utility.

Then, in 2008, Black Hills bought out Aquila and everything changed. Xcel decided it could make more money selling power at retail rates in Denver and not at wholesale rates to the utility serving Pueblo. In the midst of these events, a state law prompted Black Hills to shut down older coal plants for cleaner natural gas.

The state approved rate increases so Black Hills could build new infrastructure to handle natural gas and and rates when up significantly.

The problem is likely to be further complicated if the utilities move on the renewables, which, in the short term, are more expensive than either coal or gas.

This is not to say that companies should stick with coal forever, or natural gas. Renewables should still be the goal. But during the transition, green activists, many of them affluent, need to realize who pays the price. What’s a few dozen extra dollars for some is a tragedy for others.

How to Convince Your Mom that Congestion Pricing Is Good

by Michael Brown

Odds are if you show up at a family reunion and try to convince your parents and siblings that congestion pricing is good, you’ll be lonely pretty quickly. People want the freeways to work but they hate paying tolls! If you are reading this, then you’re probably part of the choir. My goal isn’t to convert the converted as much as to provide new arguments and sound bites when talking to others.

So, how do we reach others? Millions must be convinced to put down their pitchforks long enough to test the theory and decide for themselves if congestion pricing is worthwhile. Elected officials are afraid to take a position contrary to polls, and polls are overwhelmingly dominated by uninformed opinions.

Too many citizens “learn” the issues of the day in 30-second television spots. Even those who make an effort to stay well informed are not the best ones to ask.  There are many fine teachers, dentists, and doctors with intelligent opinions but if you ask them about Congestion Pricing, most would focus on a single point – “double taxation.” Because no one listens long enough for a good explanation, politicians conform to polls of the uninformed rather than risk trying to change public opinion.

congestion_pricing1

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This is the fourth part of a four-part series.

Part 1        ◊       Part 2
Part 3   
     ◊       Part 4
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Geeks and used car salesmen

Congestion Pricing’s true believers are insiders who spend years exploring how market mechanisms can solve our transportation headaches. Typically, they are “nerdy engineer” types and Ph.D.’s at universities. They come up with great ideas but their main focus is convincing other geeks. Peer-reviewed articles loaded with incomprehensible equations and data may be good stuff and true, but the world will never move out of the congestion morass until the world “gets it” at the lowest-common- denominator level of things that matter to them.

Many geeks know Congestion Pricing is worth billions but they’re poor at delivering the message personally. So they set aside “public awareness budgets” that are embarrassingly tiny relative to the potential payoff. That’s like hiring a used car salesman to deliver the message. That approach may persuade a few but it won’t convince your mom – it won’t even reach your mom. Great ideas need great enlightenment efforts.

congestion_pricing2Evangelists and professional marketers

When the Wright Brothers invented the airplane, they actually had a hard time selling it. Everyone was intrigued, of course, but few understood how it could help them in a way that was worth the price. The airplane seemed like an exciting new toy that could kill you! So the Wrights became evangelists. They met with government officials and anyone else with the means and potential motive to buy, and sold them hard on dozens of potential uses. Now we could scarcely imagine the world without planes.

Think of the Bible. Many find it very difficult to read and hard to get excited about. But some people are very passionate about the bible, and very gifted at translating its meaning to large crowds. Congestion Pricing and Freeway Optimization have been peddled mainly by geeks and insufficient public awareness efforts. Are we really surprised that people are skeptical?

Gifted evangelists are essential but so is “Hollywood.” By that, I mean it takes people who have figured out how to sell stuff to people. We need marketing artists who can place an object in the hands of a big star, then watch that object fly off the shelf in the following month. For ideas worth billions, we should spend millions to attract the top-notch marketers, and give them a budget to craft emotionally persuasive visuals and sound bites. Continue reading

How Planners Can Rescue Virginia from the Fiscal Abyss

This is a copy of a speech that I presented to the Virginia Chapter of the American Planners Association Monday, with extemporaneous amendments and digressions deleted. — JAB

Thank you very much, it’s a pleasure to be here. Urban planning is a fascinating discipline. As my old friend Ed Risse likes to say, urban planning isn’t rocket science – it’s much more complex. Planners synthesize a wide variety of variables that interact in unpredictable, even chaotic, ways. In my estimation, you don’t get nearly enough respect and appreciation for what you do

OK, enough with the flattery. Let’s get down to business.

toastThis is you. You’re toast. Unless you change the way you do things, you and the local governments across Virginia you represent are totally cooked. … Here’s what I’m going to do today. I’m going to tell you why you’re toast. And then I’m going to tell you how to dig your government out of the fiscal abyss, earning you the love and admiration of your fellow citizens.

Why You’re Toast

old_people2Here’s the first reason you’re in trouble — old people. Or, more precisely, retired government old people. Virginia can’t seem to catch up to its pension obligations. The state says the Virginia Retirement System is on schedule to be fully funded by 2018-2020. But the state’s defines 80% funded as “fully funded,” which leaves a lot of wiggle room. The VRS also assumes that it can generate 7%-per-year annual returns on its $66 billion portfolio. For each 1% it falls short of that assumption, state and local government must make up the difference with $660 million. As long as the Federal Reserve Board pursues a near-zero interest rate policy, depressing investment returns everywhere, that will be exceedingly difficult. A lot of very smart people think 5% or 6% returns are more realistic. In all probability, pension obligations will continue to be a long-term burden on localities.

potholesSecond, the infrastructure Ponzi scheme — that’s Chuck Marohn’s coinage, not mine — is catching up with us. For decades, state and local government built roads and infrastructure, typically with federal assistance, proffers or impact fees with no thought to full life-cycle costs. State and local governments have assumed responsibility for maintaining and replacing this infrastructure. Well, the life cycle done cycled, and the bill is coming due. We’re finding that we built more infrastructure than we can afford to maintain at current tax rates, leaving very little for new construction.

accotinkThird, after years of delay, serious storm water regulations are kicking in. Local governments bear responsibility for fixing broken rivers and streams like Accotink Creek, showed here. (Yeah, that’s a creek. It’s having a bad day.) Best guess: These regs will cost Virginia another $15 billion. But no one really knows. And it may just be the tip of the iceberg. I recently talked to Ellen Dunham-Jones, author of “Retrofitting Suburbia,” and she noted that a lot of the storm water infrastructure that developers built in the ‘50s and ‘60s is crumbling. The developers are long gone. Someone’s going to have to fix that, too. Guess who?

property_taxMeanwhile, the largest source of discretionary local tax dollars – real estate property tax revenues – is stagnating. According to the Demand Institute, residential real estate prices in Virginia will increase only 7% through 2018 – the third worst performance of any state in the nation. Don’t count on magically rising property tax revenues to bail you out.

In fact, the tax situation is worse than it looks. Demand for commercial real estate is dismal, too. Consider what’s happening to the retail sector. We’re going from this…

shopping_centerTo this..

amazon_warehouse

Every Amazon.com distribution center represents dozens if not hundreds of chain stores closing. It means more vacant store fronts, more deserted malls, less new retail development. Continue reading

Boomer….Wha?

a-bomb peace signBy Peter Galuszka

Remember the federal deficit that lurked behind the corner? Where did it go?

Al Kamen of The Washington Post asks that question in a column today. He writes:

“Not long ago, the federal deficit was projected to destroy the country, our country’s future and just about everything else. The politicians and the news media regularly fretted about what to do. Budget battles shut down the entire government for a couple of weeks.”

He continues: “So, what happened? The simple answer, of course, is that the deficit is way down and, for now, is no longer a big problem.”

The Congressional Budget Office estimated last week that the deficit for f/y 2014 is $492 billion or 2.8 percent of GDP. That puts us back in the early years of the George W. Bush administration.

Hmm. Kinda of makes you wonder where all this out-of-control spending is coming from that the Tea Party types talk about so much.

It is off the media radar screen. The Post has a graphic showing that the words or mention of the “national debt,” federal debt” or “federal deficit,” reached a high around the first half of 2010. The conservative Washington Times the most at 18; The Post with 13; and the New York Times with 10. Now it’s around three.

This isn’t to say that federal spending doesn’t merit watching. But where is Jim Bacon when you need him?

RAM, Coal and Massive Hypocrisy

The Pikesville RAM clinic in 2011. Photo by Scott Elmquist

The Pikesville RAM clinic in 2011. Photo by Scott Elmquist

By Peter Galuszka

Sure it’s a photo op but more power to him.

Gov. Terry McAuliffe is freshly arrived from the cocktail and canape circuit in Europe on a trade mission and is quickly heading out to the rugged and impoverished coal country of Wise County.

There, he, Attorney General Mark Herring and Health and Human Resources Secretary William A. Hazel will participate in a free clinic to help the mountain poor get free health care. The political opportunity is simple: Many of the 1,000 or more who will be attending the Remote Area Medical clinic are exactly the kind of people getting screwed over by the General Assembly’s failure to expand Medicaid to 400,000 low income Virginians.

RAM makes its Wise run every summer and people line up often in the wee morning hours to get a free medical and dental checkup. For many, it’s the only health care they get all year unless it’s an emergency. Another problem: Distances are great in the remote mountains and hospitals can be an hour away.

Mind you, this is Coal Country, the supposedly rich area upon which Barack Obama is waging war and harming local people by not going along with coal executives’ demands on environmental disasters such as mountaintop removal, keeping deep mine safety standards light and avoiding carbon dioxide rules.

The big question, of course,  is why if the land is so rich in fossil fuel, are the people so poor and in need of free medical care? It’s been this way for 150 years. And now, coal’s demise got underway in Southwest Virginia in 1991 when employment peaked at about 11,000. It is now at 4,000 or less. It’s getting worse, not better.

In June 2011, by coincidence, I happened along a RAM free clinic in Pikesville, Ky., not that far from Wise when I was researching my book, “Thunder on the Mountain: Death at Massey and the Dirty Secrets Behind Big Coal.” My photographer Scott Elmquist and I spotted the clinic at a high school. There must have been hundreds of people there –  some of whom told me they had been waiting since 1:30 a.m. It was about 8:30 a.m.

Attending them were 120 medical and dental personnel from the U.S. Public Health Service. They were dressed in U.S. Navy black, grey and blue colored fatigues. The University of Louisville had sent in about 80 dental chairs.

Poverty in Pike County had been running about 27 percent, despite the much-touted riches of coal. Pike is Kentucky’s biggest coal producer.

One man I spoke with said he had a job as a security guard, but he doesn’t qualify for regular Medicaid and can’t afford a commercial plan. In other words, had I interviewed him more recently and had he been a Virginian, he would have been lost through the cracks of Medicaid expansion. Alas, he’s in luck. In 2013, Kentucky opted for a “marketplace” expansion system where federal funds would be used to help lower income buy health plans through private carriers.

Lucky the man isn’t from here. The marketplace plan is exactly the kind that McAuliffe has proposed and exactly the one that stubborn Republicans such as Bill Howell in the General Assembly are throttling. The feds would pick up the bill for expanding Medicaid to 400,000 needy Virginians, at least initially.

Yet another irony. Expanded medical benefits are available just across an invisible border in two states whose coalfield residents somehow never got the great benefits of King Coal.

Does Virginia Want to Be a Wireless Friendly State?

cell_towerStates and regions that want to stay in the vanguard of economic growth need to expand their broadband infrastructure. Mobile data traffic will increase 13-fold between 2012 and 2017 by some estimates. To accommodate that growth, the wireless industry will have to build new cell towers, distributed antenna systems (DAS) and other infrastructure. However, permitting and regulation is a big problem in many states, according to George state Sen. Judson Hill.

Writes Hill in The Hill:

New tower construction and collocations of antennas on existing sites helps local economies. New towers typically cost between $250,000 and $300,000, and collocations run upward from $25,000. Moreover, new 4G wireless broadband networks support local job growth and improve economic vitality. Economists Robert Shapiro and Kevin Hassett found in their recent study that “every 10 percent increase in the adoption of 3G and 4G wireless technologies could add more than 231,000 new jobs to the U.S. economy in less than a year.”

Unfortunately, differing, cumbersome and unnecessarily complex local government permit processes have impeded investment and construction of new wireless facilities infrastructure in many states. Denials or long delays in approving permits for new cell towers or antenna collocations have been the experience for countless wireless infrastructure providers. Public safety communications challenges and lost economic opportunities, including foregone job creation, are regrettable byproducts of these denials and delays.

Georgia law requires local governments to issue timely permits — within 150 days — and ends the practice of imposing excessive processing fees. He concludes: “States should proactively pursue regulatory and tax reforms to remove roadblocks to wireless infrastructure facility construction. Greater economic and public safety benefits will come to states that best position themselves to enhance their 4G wireless broadband network build-out.

Bacon’s bottom line: How does Virginia stand when it comes to cell tower permitting? Hill suggests that Georgia, Missouri and Washington are the only states that have addressed these issues legislatively so far — but maybe Virginia doesn’t have a problem that needs fixing. Or maybe it does. Does anyone know?

– JAB

More Defense Cuts Plague Virginia

Special deliveryBy Peter Galuszka

Virginia continues to see painful military spending cuts in the aftermath of the years’- long U.S. intervention in Iraq and Afghanistan.

Among the latest news is that the Army may cut 3,600 jobs at Ft. Lee, ironically the site of a recent and large expansion, by 2020. That could result in a decline of 9,000 residents near Petersburg which is close to  the base.

Plus, the Air Force plans on cutting 742 positions at its Air Combat Command headquarters at Langley Air Force Base in Hampton although some of the positions are already vacant and won’t be filled.

These are just some of the changes that are affecting Virginia, which is the No. 2 defense industry state after California. Many of the cuts involve active duty personnel whose vacancies are not being filled or are being asked to take early retirement.

Defense industry jobs are likewise taking cuts. A report by the National Association of Manufacturers states that in 2014, California will lose the most military-related jobs (148,400) followed by Virginia (114,900) and then Texas (109,000). Maryland will lose 40,200 jobs, the report says.

Many of the jobs are in heavy manufacturing, such as aerospace and ship building, and search and navigational services, but general business and other services will also be affected.

The news is especially hard on Petersburg and nearby Ft. Lee which just a few years ago enjoyed a major boost after a Base and Realignment and Closure round consolidated many multi-service logistics and supply functions. The influx of thousands of soldiers, contractors and their families boosted the city and surrounding areas.

Hampton, the location of Langley Air Force Base, doesn’t seem to be in store for such heavy impacts since the cuts involve some jobs already being lost to attrition. Other bases and areas hurt by the Air Force cuts include Washington, D.C.; San Antonio; Texas; Dayton, Ohio; and Belleville, Illinois.

Newport News Shipbuilding, now owned by Huntington Ingalls Industries, could lose a deal to build one submarine and might delay another to build as Ford class nuclear attack carrier, if automatic defense budget cuts return in 2016. Another potential hit: refueling the nuclear-powered carrier George Washington but may mothball the ship if the budget cuts kick in. About 24,000 people work at Newport News Shipbuilding, making it the largest private employer in the state.

Besides the Washington area, Hampton Roads is greatly dependent upon defense spending. Some 47 percent of the regional economy depends on it. Anticipating more defense cuts, former Gov. Robert F. McDonnell formed a commission to come up with ideas before he left office this year. One of them is to be pro-active and recommend cuts of its liking before the federal government acts.

One of its recommendations cuts both ways on environmental issues. It recommends against offshore oil and gas drilling in watery areas where the military trains, thus making them available over the long term. It likewise recommends against wind turbines in the same areas.

These are interesting, but very difficult choices.

Virginia’s Jobs-Skills Mismatch

skills_mismatchEvidence is mounting that a reason for slow economic growth and high unemployment — not the main reason but a significant one — is the mismatch between the skills required for the jobs that American companies have to fill and the skills that American workers actually possess.

A recent survey of 87 small and midsize business CEOs conducted by the Robins School of Business at the University of Richmond and the Richmond Council of CEOs found the following: 70% staffing was a significant issue, particularly the finding, recruiting and training of operational and sales talent.

When asked how much their annual revenues might increase if their talent concerns were resolved, more than half of all CEOs (51.7%) indicated they would experience growth of 11% or more, with 17.2% of firms indicating potential revenue growth of more than 20% if they could solve their staffing issues.

The problem is concentrated in two main areas: sales and IT. “The CEOs I work with are very concerned with attracting talent in two areas,” says Scot McRoberts, executive director of the Virginia Council of CEOs. “Many small business CEOs are raising the bar for their sales teams. … In our local IT community, programmers and coders are just not there in sufficient skill and quantity.”

Let’s see…. Businesses want employees with different skill sets. Employees want skills that will get them hired. Virginia has a massive educational/job training establishment — colleges, universities, community colleges, job training programs — that spends billions of dollars a year. Yet, somehow, the system is not functioning properly. Old skills are obsolescing faster than ever as businesses strive to incorporate new technologies, and the education/training system can’t keep up.

Bacon’s bottom line: If those 87 CEOs are representative, thousands of jobs in Central Virginia alone are going begging. Instead of trying to create jobs by building baseball stadiums and sports arenas, perhaps our political and civic leaders should focus on the jobs-skills mismatch. On the other hand, maybe they shouldn’t. Given their track record, maybe they should just stay out of the way.

Regardless, we need a new system to equip Virginians with the skills they need to be employable and that businesses need to be competitive — a system that can keep up with fast-evolving technology. Will we get that system? Don’t count on it. The existing system is ossified in place by funding streams determined more by politics and institutional privilege than by market demand.

– JAB

Should Virginia Beach Subsidize a New Arena?

Image credit: ESG Companies

by James A. Bacon

United States Management (USM), a Virginia Beach development company, wants to build a $200 million, 18,000-seat arena and sports complex adjacent to the city’s convention center, which, it claims, will create jobs, boost the local tourism industry, bolster city property values and bring events to Hampton Roads that enhance the regional quality of life. Backed by $150 million in financing from Chinese interests, the company would spend $200 million of its own money.

All it will take from the City of Virginia Beach is a $52.7 million contribution to infrastructure costs for road improvements, utilities and parking. … Plus $26 million in optional streetscape improvements and additional road improvements…. Plus $7 million yearly in tax revenue generated by the project to pay down USM’s debt.

This project has consumed the attention of Hampton Roads much in the way that the Shockoe Bottom baseball stadium has absorbed Richmond residents. The arena is back in the local news thanks to the release of a consultant report detailing the commitment the city would have to make under the terms of the deal proposed by USM. That commitment, though large, is significantly smaller than called for in a proposal made and rejected earlier in the year, which makes it look good by comparison. Virginia Beach Mayor Will Sessoms is supportive of the project, although some City Council members have expressed concern about the public cost.

If Hampton Roads residents wonder why their region has been such an economic laggard in the current business cycle, the fact that Virginia Beach is debating how much to subsidize a sports arena should tell you all you need to know. Sessoms had shown a penchant for grandiose public projects — extending light rail from Norfolk to the Virginia Beach resort area is another — that require the expenditure of massive public funds for highly speculative benefits. Rather than focusing resources on making Virginia’s largest city more competitive in a technology-intensive knowledge economy, the mayor is doubling down on the city’s past as a tourism destination – a second-tier tourism destination, at that.

It is undoubtedly true that the proposed arena, which could host everything from a pro basketball team to monster truck rallies, would stimulate economic activity. In a 2012 study, economist and former Old Dominion University James V. Koch estimated that an arena would generate $98 million in revenue throughout Hampton Roads, two thirds of it in Virginia Beach itself. (Two critical caveats: Koch’s study assumed that the arena would attract an NBA team that would play regular games there, and it included a multiplier effect as initial spending rippled through the economy.)

As Koch made clear in his study, he drew no conclusions regarding whether the arena should be built or how it should be financed. Nor did he, nor anyone else that I have been able to find, analyze the city’s Return on Investment of public dollars. Nor did he or anyone else conduct a risk analysis of what could go wrong, and what exposure the city would have, if, say, a recession came along and the wonderful assumptions behind the economic forecasts fell short. Risk analysis, as citizens of Southeastern Virginia should have learned from the U.S. 460 fiasco, is critical. Finally, I have seen no analysis of what alternative uses Virginia Beach might have for $53 million to $79 million.

Personally, I can think of many other ways for Virginia Beach to invest sums of that magnitude, although none would be as flashy as a new arena. The city could invest in creating islands of mixed-use, higher-density urbanism that bring in far more taxes, with fewer offsetting spending liabilities, than traditional suburban-style development. The city could invest in “smart cities” technologies that could cut energy expenditures, reduce water consumption and do a better job of managing traffic. The city could invest in integrating online learning into the curriculum of Virginia Beach schools. If city officials were feeling especially adventurous, they could foster the creation of innovation districts that would stimulate sustainable, entrepreneurial-based economic growth. Most of those priorities, however, require a decidedly un-sexy, stick-to-the-basics approach in which government focuses on those things that government can do well while leaving risky development schemes to the private sector. Alas, stick-to-the-basics doesn’t garner headlines or add to the aura of activist mayors.

Local governments in Virginia face chronic fiscal challenges. Virginia Beach doesn’t have a lot of money to waste. City officials need to show discipline in allocating tens of millions in discretionary spending. Once they commit to spending that money, they foreclose alternatives that could offer bigger payoffs at less risk.