Category Archives: Economic development

Back to Big Lick

The old Norfolk & Western Railway headquarters complex, with Hotel Roanoke in the background.

The old Norfolk & Western Railway headquarters complex, with Hotel Roanoke in the background.

by James A. Bacon

In the early 1880s, Gilded Era industrialists created a railroad junction at the town of Big Lick in the Roanoke Valley, opening up the western Virginia coalfields to development. The community renamed itself Roanoke after the river running through it, and the newly formed Norfolk & Western Railway set up its headquarters there. In the late 19th century, Roanoke was a boom town: a hub of railroad traffic and manufacturing and a gateway to the burgeoning Central Appalachia coal industry.

Eventually, the boom subsided, but Roanoke continued to fare well. Besides hosting a number of corporate headquarters, the Star City of the South, so named for the giant star on Mill Mountain, served as the retail and administrative center for much of western Virginia. When I lived there in the early 1980s — covering the coal and railroad beat for the Roanoke Times — Roanoke was a delightful community surrounded by natural beauty. I enjoyed living there and was sad to leave.

But my personal journey mirrored the intractable economics that Roanoke, and other cities its size, is struggling against. As a young reporter, I didn’t see much of a career path upward. To get ahead, I had to move. Ambitious young professionals in other fields faced the same dilemma. No matter how much they liked living there, many had to relocate to rise in the world. As the United States evolved into a Knowledge Economy, large metropolitan regions enjoyed tremendous advantages over Roanoke-sized cities by virtue of larger labor markets.

Roanoke has stagnated since I lived there. The writing on the wall appeared as early as 1982 when the Norfolk & Western Railway merged with the Southern Railway and located the new corporate headquarters in Norfolk. The top jobs left the city but, as part of the deal, the combined Norfolk Southern Railway did keep a major administrative presence in Roanoke. Now, three decades later, comes news that 500 employees working in marketing, accounting, information technology and other departments — desirable white-collar jobs — will be moved to Norfolk and Atlanta.

The company said it is closing the Roanoke office building to achieve departmental synergies, to make better use of its real estate assets and to support its goal of streamlining its management workforce. According to the Roanoke Times, Norfolk Southern President James A. Squires described the action as a consolidation having nothing to do with work force or business issues peculiar to Roanoke. The Roanoke office was less utilized than the offices in Norfolk and Atlanta, he said.

But that’s disingenuous. Of course the move had everything to do with Roanoke — or, more precisely, the size of its labor market. If Norfolk Southern had excess space in Norfolk, Atlanta and Roanoke, in theory, it could have shut down a Norfolk or Atlanta office and consolidated employees to the other two. Office space in Roanoke, I’m willing to wager, has the added advantage of costing less. But, the fact is, Norfolk and Atlanta are much larger labor markets, making it significantly easier for the railroad to recruit employees with white-collar skills.

The migration of corporate operations and white collar employees in the United States goes one way — from smaller cities and towns to bigger ones. The process does not work in reverse.

Looking back, Roanoke had one shot at bucking the trend — hitching up with the scientific and engineering brainpower at Virginia Tech. In theory, Blacksburg and Roanoke could have supported one another, with Virginia Tech spinning off high-tech start-ups and Roanoke providing financial, legal and other professional services. Despite the efforts of the Roanoke-Blacksburg Technology Council to bridge the 42-mile gap, the hoped-for synergies never really materialized. The Roanoke and New River valleys are divided by rugged mountains and connected by a single thread, Interstate 81. The 45-minute travel time created a psychological divide that has been hard to overcome.

It’s tremendously sad. The people of Roanoke are good people. In my personal experience, they are friendly, community-minded and egalitarian in spirit. It doesn’t seem fair that their economic prospects are leaking away because of forces beyond their control. But the world isn’t fair.

Dominion’s Strange Ploy to Avoid Audits

dominion By Peter Galuszka

Dominion Virginia Power appears to be getting its way with strange legislation to freeze its rates and avoid regulatory audits for the next six years.

The state senate will hold hearings today on a bill that would cancel biennial rate reviews by the State Corporation Commission to 2020. Dominion’s rates will be frozen and couldn’t go up or down.

The utility’s reasoning is that it may have to spend a lot to comply with unfinished regulations by the U.S. Environmental Protection Agency that would cut carbon emissions from coal plants by 30 percent by 2030 compared with 2005 levels. Always looking out for its customers, Dominion doesn’t want to stick them with astronomical rate hikes resulting from the EPA rules.

The bill was drafted by Dominion, the state’s largest donor to political campaigns, by Sen. Frank Wagner (R-Virginia Beach) who is the go-to guy for laws favoring energy firms.

In 2004, Wagner sponsored legislation that allowed companies the right to survey land for proposed natural gas pipelines without having to obtain the owner’s permission first. The nettlesome law figures heavily in the current battle by property owners over proposed gas pipelines in the state, notably the $5 billion Atlantic Coast Pipeline in which Dominion is a partner. The pipeline would take gas 550-miles from West Virginia, through Virginia and on into North Carolina. Dominion has sued more than 240 landowners who have refused to grant access. They are challenging the constitutionality of the pipeline law in federal court.

There’s a lot odd about Wagner’s current bill. The first problem is that it would supposedly protect Dominion customers from federal rules that aren’t even final. It is weird that Dominion would use the excuse that it might be socked with huge costs by having to shutter coal-fired plants. Surprise, surprise! Dominion announced several years ago that it would shut down aging coal units in Yorktown and Chesapeake. So, what’s the connection between the new EPA rules and coal-plant closures?

Atty. Gen Mark Herring says that the Wagner bill is a ploy to keep Dominion from having its profits overseen by the SCC because the utility might have a $280 million surplus that ordinarily might have to go back to ratepayers. After  a 2011 SCC rate review, Dominion had to pay back $78 million to customers.

The other oddity is why Dominion and Wagner are suddenly so scared about exploding costs brought on by the EPA. After all, prices for natural gas, which fuel some of Dominion’s units and is  less polluting than coal, are very low – so low that the fracking boom that released a flood of cheap gas is slowing down considerably.

Environmental groups say that the Wagner bill is a gift for Dominion. The senator has received more than $43,000 in donations from the utility over the years.

The Many Problems of Offshore Drilling

deepwaterBy Peter Galuszka

Almost five years after the infamous Deepwater Horizon disaster in the Gulf of Mexico, President Barack Obama has again proposed opening tracts offshore of Virginia and the southeastern U.S. coast to oil and natural gas drilling.

The plan poses big risks for what may be little gain. Federal surveys show there could be 3.3 billion barrels of crude oil and 31.3 trillion cubic feet of natural gas in the potential lease area stretching from Virginia to Georgia.

Energy industry officials praised the plan while complaining it doesn’t go far enough. Environmental groups including the Sierra Club and the Chesapeake Bay Foundation condemned it. Besides the ecological risk, the move is a step away from refocusing energy on renewables that do not lead to more carbon emissions and climate change.

Obama’s plan would restrict drilling to areas more than 50 miles off the coast. This is a sop to the Navy and other military which conduct regular exercises offshore and to the commercial and sports fishing industries.

Is the restriction worthwhile? It is generally easier for oil rigs to be placed in shallow water and much of the areas off of Virginia and northeastern North Carolina and off of South Carolina and Georgia are in plateaus that aren’t very deep – maybe just a few hundred feet. Yet the Atlantic takes a huge plunge not far off of Cape Hatteras, descending as much as two miles down.

Drilling in deep water presents special problems for oil companies involving high pressure and high temperatures. That was the case with the Deepwater Horizon tragedy on April 20, 1010 that killed 11 workers. One big factor that a blowout preventer, designed to shut down the rig if drilling hits abnormally high levels of pressure, didn’t work completely. The rig was in 5,000 feet of water and crude spewed uncontrolled. Winds from the south washed the oil towards land and polluted nearly 500 miles of coastline in Florida, Alabama, Mississippi and Louisiana. An estimated 49 million barrels of crude were released.

oil-drilling-mapAlthough it isn’t certain if energy firms would drill in the very deep waters off of North Carolina, there is cold comfort in the fact that the Deepwater rig was only 48 miles from shore. In other words, it would have been too close in for the latest plan involving the southeastern coast. Supposedly, blowout preventers have been upgraded but there were still spills involving them off of Brazil and China post-Deepwater.

If something like that happened closer to home, it is not exactly certain where the oil would go. Winds can blow from the ocean and currents are very fickle. The Labrador Current might tend to push spilled oil back onto environmentally sensitive shoreline while the Gulf Stream might tend to take the spilled oil out to sea.

There is no question that drilling off any of the southeastern coast would be of some benefit to the now-struggling Tidewater economy since it has plenty of steel-bending industries, an able workforce and no significant bridges to pass under to reach deep water. It might help since the defense sector is winding down, but who knows what world conflicts will be like in 2025. Hampton Roads would be a more logical staging area than other ports such as Wilmington, N.C., Charleston or Savannah.

There’s a rub, however. The 3.3 billion barrels of estimated reserves isn’t that much. It is a fraction of the total estimated reserves in the country. Energy sector officials claim there is probably much more. Okay, fine, but no one knows for sure. The natural gas reserves involved are also somewhat small – just a fraction of the estimated reserves in the U.S.

It’s not the first time offshore drilling has come up locally. There was a big push for it in the late 1970s, prompting oil rig giant Brown & Root to buy up land near Cape Charles for fabricating rigs. Nothing happened and much of the land now is used for a luxury golf community. Obama was supposed to back lease sales in 2010 but then Deepwater happened. This begs the question – if the offshore petroleum is so valuable, why has it taken so long?

Yet another issue is what cut Virginia would actually get from offshore drilling. There was a flap a few years ago when offshore drilling was being pitched. Some revenues to states from offshore petroleum production are computed by how much shoreline a state has. In Virginia’s case, it is not much, at least when compared to North Carolina. Virginia politicians have pointed this out and hope for some adjustment.

No one can predict energy markets a decade from now. For instance, no one knew that hydraulic fracturing would increase petroleum production by 64 percent and possibly make the U.S. a petroleum exporter for the first time since the 1970s. Granted it is a rock and a hard place kind of choice. Fracking is fraught with pollution problems just as offshore drilling is.

There are certain to be plenty of lawsuits over the offshore plan and economics will likely determine its future. An important choice is whether it is worth risking Virginia’s military, resort and fishing businesses for Big Oil whose promise is uncertain when it comes to offshore drilling.

The Strange Story of Health Diagnostic Laboratory

HDL's Mallory before her fall.

HDL’s Mallory before her fall.

By Peter Galuszka

The biggest problem facing the health care industry in Virginia and the rest of the country isn’t Obamacare or the lack of new medical discoveries. It the lack of transparency that hides what is really going on with pricing tests, drugs and hospital and doctors’ fees. Big Insurance and Big and Small Pharma cut secret deals. We are all affected.

I’ve been wanting to blog about this – especially after Jim Bacon’s recent post on the supposed tech trend in health care – but I wanted to wait until a story I’ve been working on for a few weeks was posted at Style Weekly, where I am a contributing editor.

In it, I explore the strange story of Health Diagnostic Laboratory, a famed Richmond start-up that went from zero to $383 million in revenues and 800 employees in a few short years. The firm said it was developing advanced bio-marker tests that could predict heart disease and diabetes long before they took root. HDL’s officials thought it would transform the $1.6 trillion health care industry.

Richmond’s business elite applauded HDL founder Tonya Mallory, a woman who grew up just north of the city and had the strong personality and drive to create the HDL behemoth. Badly wanting a high tech champion in a not-so high tech town, the city’s boosters did much to publicize HDL and Mallory, believing they could draw in more startups.

The story was too good to be true. It start to deflate last summer when the federal government noted that HDL was one of several testing labs being probed for paying doctors $17 for using HDL tests for Medicare patients when Medicare authorized $3 per test. Mallory resigned Dept. 23. Several lawsuits by Mallory’s former employer, Cigna health insurance and another have accused HDL of fraud. HDL has responded in court.

One legal picture suggests that HDL wasn’t a true tech startup but a new firm that stole intellectual property and sales staff. HDL says no, but its new leader Joe McConnell has taken steps to reform sales and marketing and is said to be working with the U.S. Department of Justice to settle a federal investigation.

The HDL affair raises issues about the inside marketing and apparent payoffs that are the biggest problem the health care industry faces. It doesn’t matter what kind of “market magic” combined with new technology comes up if something like this keeps happening.

This is all the more reason for a universal payer system. That may be “socialized” medicine but in my opinion it is the only logical way to go.

The Importance of “Selma”

Selma_posterBy Peter Galuszka

“Selma” is one of those fairly rare films that underline a crucial time and place in history while thrusting important issues forward to the present day.

Ably directed by Ava DuVernay, the movie depicts the fight for the Voting Rights Act culminating in the dramatic march across the Edmund Pettus Bridge in Selma, Ala. in 1965. It portrays the brutality and racism that kept Alabama’s white power structure firmly in charge and how brave, non-violent and very smart tactics by African-American agitators shook things loose.

Holding it all together is British actor David Oyelowo as Dr. Martin Luther King Jr. Oyelowo’s subtle and vulnerable approach while dealing with infighting among his colleagues and revelations of his marital infidelities contrast with his brilliant skill at oratory. During the two hours or so of the film, Oyelowo’s booming speeches and sermons never bored me. By contrast, the recent “Lincoln,” the Steven Spielberg flick filmed in Richmond, was a bit of a snoozer.

To its credit, “Selma” never gets too clichéd even with the extremely overexposed Oprah Winfrey assuming roles as a film producer and also as an actress portraying a middle-aged nursing home working who gets beaten up several times protesting white officials who kept her from registering to vote.

“Selma” has been controversial because nit-picking critics claim the film misrepresents the role President Lyndon B. Johnson played in getting the Voting Rights Act passed. The film shows him as reluctant and the Selma event was staged to push him to move proposed legislation to Congress. A series of LBJ biographies by highly-regarded historian Robert A. Caro show the opposite – that Johnson, a Southern white from Texas — was very much the driver of civil rights bills. In fact, his deft ability to knock political heads on Capitol Hill was probably the reason why they passed. It was a feat that even the Kennedys probably couldn’t have achieved.

One scene in the movie bothered me at first. King leads protestors to the Selma court house to register. When a brutal sheriff stands in their way, they all kneel down on the pavement with their arms behind their heads in a manner very reminiscent of last year’s protests against a police killing in Ferguson, Mo.

I thought, “Hey, I don’t care how they present LBJ, but fast-forwarding to 2014 is a bit of stretch.”

Then I decided that maybe not, history aside, the same thing is really happening now. There’s not just Ferguson, but Cleveland, Brooklyn and other places. The Richmond Times-Dispatch reports this morning that over the past 14 years, police in the state killed 31 blacks and 32 whites. Only 20 percent of the state’s population is black. Now that is a disturbing figure.

Another disturbing allusion to the present is the widespread move mostly by Republican politicians in the South and Southwest make it harder for people to register to vote. In one move scene, Oprah Winfrey wants to register before an arrogant white clerk. He asks her to recite the Preamble to the U.S. Constitution. She does. He then asks her how many judges there are in Alabama. She gives the correct number. He then demands that she name all of them, which very few might have been able to do. She is rejected.

The moves to blunt new voters today is focused more on Hispanic immigrants but it is just as racist and wrong. And, Virginia is still stuck with the anti-voter policies of the Byrd Organization that was in power at the time of the Selma march. The idea, equally racist, was to keep ALL voters from participating in the political process as much as possible. That is why we have off-year elections and gerrymandered districts.

I was only 12 years old when Selma occurred but I remember watching it on television. I was living at the time in West Virginia which didn’t have that much racial tension. But I do remember flying out of National Airport in DC on the day that King was assassinated. The center of town, mostly 14th Street, appeared to be in flames.

Governance Reform for the Tobacco Commission

Two decades later, and still looking for an economic replacement.

Two decades later, and still looking for an economic replacement.

This is the year for governance reform. Not only will the General Assembly tighten up state ethics laws and consider proposals to strengthen the autonomy and transparency of the Commonwealth Transportation Board, legislators are proposing an overhaul of the way the Tobacco Indemnification and Community Revitalization Commission does business.

A 2011 study by the Joint Legislative Audit and Review Commission found that the $756 million the tobacco commission had spent had only a marginal impact on Southside and Southwest Virginia, tobacco-growing regions whose economies the spending was supposed to diversify.

Now Governor Terry McAuliffe has backed a set of proposals by Republican lawmakers, including commission chair Del. Terry Kilgore, R-Scott, to make the organization more accountable. According to the Richmond Times-Dispatch, proposals include:

  • Establishing an online database of all awards;
  • Reviewing all loans, grants and distributions of money by a “viability manager” such as the Virginia Resources Authority.
  • Adopting a strategic plan every two years to set priorities, measurable goals and quantifiable outcomes.
  • Reducing the number of commission members from 31 to 25;
  • Setting a requirement that 60% of commission members have an expertise in business, economic development, investment banking, finance or education.

Bacon’s bottom line: I’m not sure that anything can take the politics and favoritism out of the dispensation of tobacco commission dollars, but these proposals seem to be a modest step toward more transparency and accountability. So, that’s good.

Alas, the problems of Southside and Southwest Virginia are far bigger than these modest reforms can address. Traditional economic development strategies will not transform the region. The commission needs to underwrite some radical experiments with the venture capital-like mentality that, while most likely will fail, a handful might open up previously unimagined possibilities. The proposed reforms are likely to reinforce group-think, however, and that’s not good.

–  JAB

Inching Closer to Accountability on the U.S. 460 Fiasco

Aubrey Layne speaking to reporters yesterday. Photo credit: Richmond Times-Dispatch

Aubrey Layne speaking to reporters yesterday. Photo credit: Richmond Times-Dispatch

by James A. Bacon

In the year that he’s served as Secretary of Transportation, Aubrey J.  Layne Jr. has been reluctant to blame any individual or group of individuals for the U.S. 460 toll road fiasco. But he abandoned that reticence yesterday during a hearing of the House Appropriations Committee.

“All of the information was funneled through the secretary’s office, and they were clearly in charge,” Layne said, referring to the office of his predecessor Sean Connaughton. The McDonnell administration allowed “political and media” considerations to dominate its decision making when fast-tracking construction of the Interstate highway-quality connector between Petersburg and Suffolk, the Richmond Times-Dispatch quotes Layne as saying.

Layne was himself an avid supporter of the public-private partnership project, which then-Governor Bob McDonnell touted as economic development boon for Virginia ports and industrial development in Southeastern Virginia. But when when Governor Terry McAuliffe appointed him as transportation secretary last year, Layne discovered that the state had spent $300 million on the project without obtaining wetlands permits from the United States Army Corps of Engineers (USACE) and had little prospect of ever getting them. He promptly pulled the plug on the project.

A “Special Review of the U.S. Route 460 Corridor Improvements Project” ordered by Layne laid out in detail how the McDonnell administration and the Virginia Department of Transportation (VDOT) had ample warning of the USACE’s wetlands concerns but pushed them aside to get construction started on the project before McDonnell’s term ended.

But the Special Review studiously ignored the question of who drove the decision-making process and who made the decision to omit critical information in the formal presentation to the CTB when seeking the board’s approval for project financing.  As I observed last April in “Feet-to-the-Fire Time for Layne, Kilpatrick,” there were three key individuals who could plausibly be held responsible — Transportation Secretary Connaughton, then-Virginia Highway Commissioner Greg Whirley, and then-Deputy Commissioner Charlie Kilpatrick, who actually delivered the presentation. Whirley retired and Connaughton moved on to become president of the Virginia Hospital and Healthcare Association, but Kilpatrick was elevated to Virginia Highway Commissioner.

The issue died in the media but members of the General Assembly apparently were in a mood for answers yesterday. Layne pointed to the “secretary’s office” without mentioning Connaughton by name. By omitting any mention of Kilpatrick, the implication is that he holds the highway commissioner blameless. (Connaughton did not respond to media queries.)

I harp on this matter while others ignore it not to flog Connaughton, whose current job has no bearing directly or indirectly on transportation policy, but to clear Kilpatrick. Back when I was actively covering transportation issues, I had the sense that Kilpatrick was widely liked and respected. But as the chief operations guy at VDOT at the time, he was neck deep in the U.S. 460 imbroglio. He was the one who delivered the misleading presentation to the CTB.

Now that Kilpatrick is Numero Uno, the public has the right to know: Did he have a hand in crafting U.S. 460 policy? Was he just carrying out orders? Did he privately express any reservations to Connaughton about fast-tracking the project? My hunch is that Kilpatrick was acting as the loyal trooper following direct orders when he omitted mention of the permitting issue in his CTB presentation. If I were a wagering man, I’d  bet that he did express private concerns to his higher-ups. But don’t know either of those things for a fact. If I were a state legislator, I would want to know for a fact. The full truth needs to come out, if only to clear the cloud over Kilpatrick’s head.

Interview: McAuliffe’s Economic Goals

 maurice jonesBy Peter Galuszka

For a glimpse of where the administration of Gov. Terry McAuliffe is heading, here’s an interview I did with Maurice Jones, the secretary of commerce and trade that was published in Richmond’s Style Weekly.

Jones, a graduate of Hampden-Sydney College and University of Virginia law, is a former Rhodes Scholar who had been a deputy secretary of the U.S. Department of Housing and Urban Development under President Barack Obama. Before that, he was publisher of The Virginian-Pilot, which owns Style.

According to Jones, McAuliffe is big on jobs creation, corporate recruitment and upgrading education, especially at the community college and jobs-training levels. Virginia is doing poorly in economic growth, coming in recently at No. 48, ahead of only Maryland and the District of Columbia which, like Virginia have been hit hard by federal spending cuts.

Jones says he’s been traveling overseas a lot in his first year in office. Doing so helped land the $2 billion paper with Shandong Tranlin in Chesterfield County. The project, which will create 2,000 jobs, is the largest single investment by the Chinese in the U.S. McAuliffe also backs the highly controversial $5 billion Atlantic Coast Pipeline planned by Dominion because its natural gas should spawn badly-needed industrial growth in poor counties near the North Carolina border.

Read more, read here.

(Note: I have a new business blog going at Style Weekly called “The Deal.” Find it on Style’s webpage —   www.styleweekly.com)

Dodging a Bullet

dodging_bulletTen years ago, Richmond-area officials campaigned to become the home of the NASCAR Hall of Fame. We gave it a good shot but there was no competing with the deal that Charlotte, N.C., put together. Ten years later, it looks like we dodged a bullet. Writes Style Weekly:

Organizers of the Hall of Fame said it would draw between 400,000 and 700,000 visitors annually. But only about 170,000 visitors are making the stop. The project lost more than $1 million a year, and last night, Charlotte City Council voted to write off more than $22 million in debt that city and local banks took on to finance the project.

It’s not clear how much money the Richmond region was willing to expend in order to attract the $100 million project, but the state and Henrico County would have had to pony up a big chunk. Then-Governor Mark Warner predicted a “substantial investment from the state,” reported the Daily Press. The Henrico County Economic Development Authority undoubtedly would have been called upon to support the debt.

Bacon’s bottom line: Richmonders often speak with envy about the ability of Charlotte’s business, government and civic leadership to “get things done.” In this case, Charlotte leaders are probably wishing they hadn’t been so adept. Let this be a reminder: State and local government should focus on excelling at their core missions. Promoting tourism is not a core mission. That’s a job of the local business community.

– JAB

Back to Pork at Ft. Pickett

fort pickettBy Peter Galuszka

It was curious that Gov. Terry McAuliffe, while emphasizing that the state needs to wean itself from the sweet milk of federal spending, pushed a very interesting government project in the piney woods of Nottoway  and three other counties.

In his speech to the 2015 General Assembly on Wednesday, McAuliffe said he was “thrilled to help convince the State Department and the General Services Administration to choose Fort Pickett as the home of the Foreign Affairs Security Training Center, bringing as many as 500 jobs and millions in investment along with it.”

The U.S. State Department has been trying for years to get an adequate training facility for its guards and U.S. embassies and consulates around the world. The U.S. Marines they use are pretty much ceremonial and the deployment of private armies such as the former Blackwater of Moyock, N.C. is fraught with problems as several recent high-profile court trials attest.

The need for well-trained, non-privatized guards was underlined on Sept. 11, 2012 in the bloody siege of the U.S. consulate in Benghazi, Libya. Last spring, Ft. Pickett, a Virginia Army National Guard base, was chosen for the $461 million Foreign Affairs Security Training Center which will create 1,500 permanent and part-time jobs.

It’s a project both parties can love. Republican U.S. Reps. Randy Forbes and Robert Hurt are smitten as are Democratic U.S. Sens. Tim Kaine and Mark Warner and of course, McAuliffe. It may be ironic that the Ft. Pickett site can draw such bipartisan support in Virginia when Republicans beat everyone up so badly, especially former Secretary of State Hillary Clinton, over Benghazi. It’s also curious that a national security expense like this goes down so easily with politicians while accepting federal money to expand Medicaid coverage to 400,000 lower income Virginians is such a no-no. Conservatives argue that Medicaid would hurt budget discipline, but won’t this training center do the same?

The State Department says it has 2,000 security people in 160 countries and plans 75 more. They now take a 10-week training course at a military base in West Virginia that includes a local race track that is considered inadequate.

Ft. Pickett is probably a logical site. Its 45,000 plus acres were carved out of several counties during World War II and an airfield was built. During the Cold War (as now) the facility was used for artillery and tank practice since its rolling pine-gum forest somewhat resembled the terrain of Eastern Europe where the real fighting might be.

It had been marked for closure but somehow survived, sustaining the small town of Blackstone where one often sees troops in utilities at the local Hardees or McDonald’s. From time to time, Ft. Pickett hosts special guest trainees such as the Navy SEALS, the Marines, Army rangers and Delta Forces, the FBI, Secret Service, Drug Enforcement and others. I live about 20 miles from the base and from time to time, my house shakes either from artillery shots or helicopters that roar at low altitude. One particularly loud weekend, I looked up the fort’s website to see who was there. It was the Canadian Army shooting up Old Virginny.

There was a rumor going around a couple years ago that Ft. Pickett housed a to-scale mockup of Osama Bin Laden’s hideout in Pakistan and that SEALS used it to train before killing him. The story was so juicy that it ended up on the Blackstone Chamber of Commerce Website for a while but I don’t think it is true. It was probably in North Carolina at a CIA base at Harvey Point on Albemarle Sound or at Ft. Bragg.

The State Department facility will be built on 1,500 acres of land and supposedly 10,000 students a year will use it. I can’t understand where they get that number if there are only 2,000 State Department guards, but never mind.

The base used to be fairly open. When my German Shepherd was alive sometimes we’d drive down there to see what was going on. Usually, nothing, but on occasion you’d see helicopters or an Air Force cargo jet practicing takeoffs and landings.

The facility will help the local area but I am sure the old access will be limited. Meanwhile, it’s back to federal money that Virginia loves so well, at least in this case.