Category Archives: Federal

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 Real “War on Coal”

Blankenship at 2009 Labor Day rally

Blankenship at 2009 Labor Day rally

By Peter Galuszka

Over in West Virginia, some things never seem to change.

Families of the 29 miners killed on April 5, 2010 at Massey Energy’s Upper Big Branch are asking a federal judge to lift her gag order so they can testify before West Virginia legislators considering tougher rules that would make it easier for workers to sue employers over job-related injuries and deaths.

U.S. District Judge Irene Berger issued the gag order last year after Donald L. Blankenship, the former chief of Richmond-based Massey Energy, was indicted on four criminal charges for his role in the disaster – the worst one in 40 years. He is scheduled to go on trial in Beckley on April 20.

The question seems to be that the judge is protecting Blankenship’s rights over those of the people hurt by his management. It is not really news in the Mountain State that has always supported Coal Barons over workers. It’s a weird, neo-colonialist thing that never seems to change.

This month, Berger denied a move by several news agencies, including the Charleston Gazette and The Wall Street Journal, to lift the gag order.

As head of Massey Energy, which has since been taken over by Bristol-based Alpha Natural Resources, Blankenship was a true publicity hog. He was never shy about pushing his arch-conservative, pro-business views or bankrolling politicians and judges. Worrying about protecting his legal rights at the expense of free speech is a real travesty.

Yes, there is a “War on Coal” – but the other way around. The conflict is how coal bosses wage war on their employees and their families.

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)

Yes, Boomergeddon Still on Track

obamaby James A. Bacon

President Barack Obama seemed pretty darned impressed with his economic and fiscal stewardship of the United States during his State of the Union speech last night. “We’ve seen the fastest economic growth in over a decade, our deficits cut by two-thirds, a stock market that has doubled, and health care inflation at its lowest rate in 50 years,” he crowed.

Let’s unpack that statement. Yes, we have seen the fastest economic growth in ten  years — which is a real indictment of the economic growth before the last two quarters. The last time we had economic growth this strong was… yikes!… during the George W. Bush presidency!

Yes, our deficits have been cut by two-thirds. The FY 2014 deficit was “only” $483 billion — one-third the $1.4 trillion deficit in in FY 2009. Unfortunately, the deficit is still massive by historical standards, and the Congressional Budget Office (CBO) expects the deficit to start climbing in FY 2016 to nearly $1 trillion by 2024.

Yes, the stock market has doubled. That’s one thing we truly can credit Obama’s economic policies for. The Federal Reserve Board’s zero-interest rate policy, pursued with the full backing of the administration, has pushed the stock market to record highs. As a small-time stock investor, I’m grateful. I’m sure America’s millionaires and billionaires are grateful, too. The poor and middle class, not so much.

Yes, health care inflation is at its lowest rate in 50 years. Of course, that has absolutely nothing to do with Obamacare, as many assume. The cost curve in health care started bending before Obamacare was implemented, and the slowdown in increasing costs mainly reflects private-sector strategies: (a) efficiencies gained by the consolidation of the hospital industry into health systems, and (b) the shifting of private-sector plans of costs to employees, in effect forcing them to exercise more diligence as health care consumers. To quote PWC:

Doctors and hospitals are adopting standardized processes that offer the prospect of better value for our health dollar. At the same time, consumers are starting to price-shop for health services and put new demands on the delivery of care. Over one-quarter of employers have a high-deductible health plan as their highest enrolled medical plan in 2014—the highest percentage ever. With more individuals making healthcare purchasing decisions, value and price are the new mantra.

Ironically, the federal government, which pays for Medicare and Medicaid, is the biggest beneficiary of these changes. Because health care is the biggest single driver of expected deficits, “bending the curve” of health care inflation could make a big difference over the long term. Let’s just be clear where those cost savings are coming from.

So, is the U.S. still headed to Boomergeddon? The spending discipline imposed by sequestration has made a difference. My prediction, made in 2010, of fiscal calamity by 2025 to 2027 now looks excessively pessimistic. Calamity may be forestalled until 2030 or so.

Only a fool would think the U.S. is out of the fiscal woods. The CBO says that, without major policy changes, built-in structural deficits will grow relentlessly from hereon out. The projection goes out only ten years, but by year eleven, the deficit likely will be running at 1 trillion annually. Meanwhile, we have unresolved problems looming like the Social Security Disability Insurance trust fund running out of money next year, triggering a 20% cut in benefits to the disabled. Congress likely will shore up the program by reallocating funds from the Social Security Old Age & Survivors Insurance fund, but that will accelerate the day when both funds run out of money — in 2030.

In effect, that means we have 15 years to fix the largest and most critical component of the U.S. social safety net. It is theoretically possible to restore the Social Security system to health if we make a series of tweaks that make a difference over a long period of time. But the longer we wait — and it doesn’t look like anyone is in a hurry to act — the bigger and more politically painful those tweaks will have to be.

The U.S. is deep into one of the longest (though weakest) economic recoveries in its history. Another 10 years of steady economic growth would be unprecedented. There will be another recession. Hopefully, it won’t be nearly as calamitous as the last one, but it will drive deficits higher. The reversal of Federal Reserve Bank’s quantitative easing will have an impact, too. The Fed has been handing over nearly $100 billion a year in profits, resulting from its purchase of long-term bonds and its manipulation of interest rates, to the U.S. Treasury. As interest rates resume their climb, that source of pain-free deficit reduction will evaporate. Meanwhile, it’s becoming increasingly evident that our precipitous withdrawal from the Middle East is not sustainable from a geopolitical perspective. We would like to walk away from the Middle East but al Qaeda and ISIS don’t seem to want to walk away from us. There will be considerable pressure for defense spending to increase.

Without dramatic corrective action, we’re still heading to Boomergeddon. I would expect a major fiscal-financial crisis around 2030 when the combined Social Security trust fund runs out. With a divided government in Washington, D.C., there’s no chance of getting that corrective action over the next two years. After that? Who knows.

Whatever Happened to “Boomergeddon?”

rush_limbaugh5By Peter Galuszka

Attention ditto-heads!

Before President Barack Obama’s State of the Union address last night, there was an interesting piece on CNN of hard-line conservatives claiming two years ago that the U.S. economy would collapse if Obama were re-elected.

They claimed that the U.S. faced uncontrollable government spending and ever-growing budget deficits. Obama’s efforts to kick-start the economy were just one missfire after another. Don’t believe me? Look up a zillion posts in Bacon’s Rebellion written by the usual suspects.

My favorite segment on the CNN report was radio talk show host Rush Limbaugh making his usual dire predictions about our plunge to Boomergeddon:

“How long does this country have if Obama wins? We’re headed toward an economic collapse and we are the leader of the world. ….If Obama’s re-elected, it will happen. There’s no IF about this. And it’s gonna be ugly. It’s gonna be gut-wrenching, but it will happen. The country’s economy is going to collapse if Obama is re-elected. I don’t know how long: a year and a half, two years, three years.”

Well we’re almost there and guess what? Obama felt comfortable enough strong economy last night to rebrand himself as a liberal and push programs to finally help out the middle class. They include a more fair tax system and helping make community college study free. In a University of Richmond poll in last year’s fourth quarter, most of the 62 chief executive officers of Central Virginia companies said they had “strong optimism” about the country’s brightening economic picture.

What about deficits? Well, not to raise any names associated with this blog, but last October, the budget deficit had dropped to its lowest level since the Great Recession. It had fallen to $483 billion in f/y 2014. That’s only 2.8 percent of GDP and less than the average of the previous 40 years, the U.S. Treasury Department reported.

Hmm. Does anyone have a copy of the book “Boomergeddon?” I can’t find mine and want one as a keepsake.

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.

Wind Power Hits Some Nasty Gusts

offshorewindturbines By Peter Galuszka

Wind power has taken some hits with the New Year.

A proposed 145-acre, 20-megawatt project in Clarke County is being scuttled because Dominion Resources has shown little interest in buying its power. In New England, a pioneering offshore wind project, Cape Wind, is on the ropes because of the merger of two utilities and opposition by one of the Koch brothers.

According to the Winchester Star and blogger Iveymain, OCI Power is pulling the plug on its plan to erect 100,000 solar panels – enough to power 20,000 homes –due “due to the lack of long-term solar procurement efforts by Dominion and other VA utilities.”

There is no clear program in Virginia to push solar power. The General Assembly and Gov. Terry McAuliffe have paid lip service to the idea but haven’t done anything to actually fund it. Moreover, Virginia has no mandatory renewable portfolio standard as do other states so efforts for renewable energy are set up to dawdle. Dominion also has been slow, if not downright negative, about buying renewable party from third party sources.

Cape Wind off Cape Cod had been might have been the nation’s first real offshore wind farm. It would run 130 turbines in Nantucket Sound with electric utilities buying the output.

But the project’s price tag of $2.5 billion seemed daunting. One group, National Grid had agreed to buy half the power, but another utility, NStar, wanted to drop its interest in the project when it was being taken over in a $17.5 billion merger with Northeast Utilities.

Cape Wind had drawn opposition from people one might expect, such as conservative activist William Koch, who owns millions of dollars’ worth of seafront vacation real estate, but also from odd sources such as the late TV anchorman Walter Cronkite who likewise owned waterfront land.

Closer to Virginia, there have been auctions of offshore areas from wind farms. Dominion has about $50 million in federal funds to build two, six-megawatt turbines 27 miles off the Virginia shore. Dominion says it wants to develop wind, but the reality is that it wants to take tiny steps to it while dominating the market.

Another factor is the rush to natural gas that has Dominion and other regional utilities pitching billions worth of pipelines. Cheap gas hurts renewables because it takes away the urgency to get them going.

That may change. There is so much gas and oil, in fact, that drilling is slowing quickly. Petroleum prices are way low. This is a normal cycle. When production slows because of low prices, supply will likewise diminish. When that happens, prices will rise and drilling will be robust again.

The problem is really an economic one. As long as natural gas remains in its current cycle, it’s going to be really hard to force a play into wind – at least – without some kind of top-down, government involvement. Dominion, once again, is getting away with playing it just as it wants.

Takeaways From Bob McDonnell’s Sentencing

Mcd sentencedBy Peter Galuszka

The outpouring of support for convicted former Gov. Robert F. McDonnell was overwhelming at his sentencing hearing yesterday at which he was told that he will serve two years in a federal penitentiary.

And this very support stands in marked contrast to McDonnell’s performance on the witness stand during his marathon trial last summer. There he alternated between saying that he “holds himself accountable” and then blaming his aides, vitamin salesman Jonnie R. Williams and, of course, his estranged wife Maureen who was set up to take the fall.

So which Bob is really Bob?

In U.S. District Judge James R. Spencer’s courtroom, the hours’ long reading of letters of support and 11 witness testimonials from the stand became tedious and repetitive. Bob kneels down to comfort a sick woman. Bob helps out Katrina hurricane victims on his week-long vacation, builds a basketball court and breaks his jaw. Bob restores voting rights to 8,128 convicted felons who had served their time. Bob’s only flaws are his gullibility and naïvite. Bob writes thank you notes.

The most impressive supporter by far was L. Douglas Wilder, the former Richmond mayor who became the first-ever African-American governor. Always unpredictable, the Democratic politician came down hard on Bob’s side, saying he’s known him for years and found him to “to be of his word.” Wilder touched off applause in the courtroom he blamed Williams as “the man who started this bribe” as “the one who got away clean.”

All of these people were trying to convince Judge Spencer that Bob should not get jail time but 6,000 hours of community service. One option would be to stick him in a service coordination job on the island nation of Haiti. The job normally would pay $100,000 including benefits but Bob wouldn’t get the money and would work and have to sleep in a hot and buggy room. Other possibilities including holding an unpaid $60,000 job coordinating a food bank in southwest Virginia.

To his credit, Judge Spencer didn’t bite. Prosecutor Michael Dry said that McDonnell is free to do all the community service he wants after he serves his time behind bars. McDonnell could have gotten more than 12 years in prison. Spencer gave him two.

The sentence is on the light side but is probably fair. McDonnell has been tremendously humiliated. He completely dishonored his public trust and will go down in history as the Virginia governor who was corrupt. At least he is getting some jail time.

And he might win on appeal. It’s not a slam dunk but there is respected legal opinion out there that “honest services fraud” can be viewed in a tight or loose focus. Spencer chose a tight focus but we will have to see if the appeal McDonnell has filed gets to the U.S. Fourth Circuit and then Supreme Court.

Next up is wife Maureen, who is a tragic figure and also was convicted of corruption. Her own daughters characterized her as a sick woman who badly needs help. Some columnists have pumped her up, saying she’s the unsung heroine stuck raising the kids while the ambitious politician is selfishly away building his career.

Something about that argument doesn’t ring true to me. Maureen McDonnell may well have despised the time Bob spent away from her but she also was right beside him, pushing her own agenda such as selling nutraceuticals and backing pet programs such as marketing Virginia wines and helped injured military veterans. As First Lady, she was no shrinking violet when it came to letting her wishes known to state employees.

She comes up for sentencing Feb. 20 and now that her husband’s fate is known, it seems likely she won’t get any jail time. If so, maybe she can get the help she seems to badly need and the McDonnell family can start to heal their terrible wounds.

One of the character witnesses Tuesday was William Howell, the Republican Speaker of the House of Delegates who provided the enormously valuable insight that “people would describe Bob as a Boy Scout.” Not only is Howell’s remark insipid, it hides how much he’s responsible for maintaining the total mess that policing ethics among Virginia public officials has become.

No matter how many Wednesday morning Bible studies Howell says he attended with McDonnell, he still did nothing to improve regulation of political donations and gifts. If anything, he’s the problem not the solution since he minimizes every decent initiative to rationalize Virginia’s loosey-goosey system. If there were clear rules, McDonnell may never have gotten caught in his quagmire. He might have known when to avoid crossing the line.

Howell told the court that the General Assembly is busy setting its house right and that McDonnell’s predicament “Most certainly . . . has had a deterrent effect.” That was likely the most ridiculous statement during the five hours of court testimony on a horrid sentencing day.