Category Archives: Governance reform

Former Massey Coal Chief Indicted

DonBlankenshipBy Peter Galuszka

The indictment today in Charleston, W.Va. of coal baron Donald L. Blankenship, the former head of the notorious Massey Energy Company, for violating federal mine safety and securities laws, has been long awaited, especially by the families of the 29 miners who died on April 5, 2010 in a huge explosion at Massey’s Upper Big Branch mine in Montcoal, W.Va.

It was the worst coal mine disaster in this country in 40 years. It topped off a wild run by Blankenship, who thought he had political potential and spoke for the Appalachian coalfields while dodging safety violations and blowing away mountains in horrific surface mining practices.

He was a poster man for the view, popular among this country’s business elite, that cost cutting and productivity are sacrosanct, human lives are cheap and environmental concerns such as climate change are mere diversions from the country’s true goals. At one point he literally wrapped himself up in the American flag to push his ideas.

A federal grand jury today turned those arguments on their heads. The four charges accuse Blankenship of conspiracy in blunting the numerous federal safety violations that lead to the catastrophic disaster at the Upper Big Branch mine.

For several years leading up to that fateful day, Blankenship allegedly connived to ignore concerns that the mine had broken equipment and excessively high levels of highly inflammable coal dust. He also is accused of keeping federal mine inspectors from doing their jobs.

The grand jury also claims that Blankenship violated federal securities laws by giving investors misleading information about Massey stock.

Blankenship was a huge celebrity in the Appalachian coalfields. Tying himself to a reactionary ideal of doing what he thought was best for America, he spent a million dollars at what was an anti-Labor Day celebration in West Virginia in 2009. He wore a costume formed from an American flag and hired testosterone-infused country music stars Hank Williams Jr. and Ted Nugent to entertain his crowd.

The irony was that it was a holiday to celebrate labor unions while Blankenship and his firm were notorious for union-busting. He also had a habit of taking the chief justice of the West Virginia supreme court on vacation on the French Riviera.

Another irony is that Blankenship, like much of the U.S. coal industry, promotes the propaganda that there is a “War on Coal” and that coal is essential to “keeping our lights on.” Never mind that the free market and the flow of natural gas from hydraulic fracturing drilling from the very same area, not the U.S. Environmental Protection Agency, are what is really hurting the Appalachian steam coal market.

The coal mined at Upper Big Branch, however, had nothing to do with power generation. It was metallurgical coal that was exported to make steel in markets such as China. At the time of Upper Big Branch, China’s steel market was hot and met coal prices were going through the roof.

The indictment reads that the group of mines associated with Upper Big Branch “generated revenues of approximately $331 million, which represented 14 percent of Massey’s approximately $2.3 billion in in revenue.” Obviously, it was in Blankenship’s interest to keep the steel-making coal flowing.

In that process, according to the indictments, Blankenship oversaw efforts to cut corners, dodge safety issues and keep miners on edge. They are rich in detail about poor ventilation; flawed water sprays to keep explosive coal dust down and warning when federal coal inspectors were on the prowl.

After he was forced to resign from Massey Energy with an over-sized golden parachute, Blankenship kept quiet for a couple for of years. Recently he came back on the scene with a self-made documentary just on the eve of the fourth anniversary of the Upper Big Branch disaster. The movie was so tasteless that even Joe Manchin, a U.S. Senator from West Virginia who was quoted in the film, disassociated himself from it. Families of the dead mines were appalled.

The long-in-coming indictments illustrate the problems of coal as an energy and steel source and just how its issues have been ignored in the Appalachians for about 150 years. In the past, huge mine disasters, such as the 1968 blast at Farmington W.Va. that killed 78, sparked real safety reform.

Not so after Upper Big Branch. Pro-coal Republicans in Congress have blocked bills to toughen rules. This is a reason why the federal indictments are so important. They show that leading a culture of safety laxity will no longer be tolerated.

It may be curious that Blankenship’s indictments come just after President Barack Obama has just agreed to a turning point treaty with heavy polluter China to cut carbon emissions. But they should give some closure to long-festering problems in a part of the United States where industrial death and destruction are considered business as usual.

Kudos: U.S.-China Climate Pact

Shanghai: Soot City

Shanghai: Soot City

By Peter Galuszka

President Barack Obama’s trailblazing pact with Chinese leader Xi Jinping to limit greenhouse gas emissions through 2025 is welcome news and could do much to reduce carbon dioxide emissions since the two countries are responsible for about 40 percent of the globe’s total.

China is an economic powerhouse so energy hungry it builds a new coal-fired generating plant about every eight to 10 days. Its leaders have pledged to cap  carbon emissions by 2030 or earlier.

Obama announced a plan to cut U.S. emissions by 26 to 28 percent below 2005 levels by 2025. This is a bigger cut than the 17 percent reduction by 2020 that he had announced earlier.

The agreement, reached in Beijing, is most welcome for the obvious reason that it would make a huge contribution to reducing greenhouse gases. It also undercuts the arguments by the fossil fuel industry, some utilities and their drum beaters that any steps the U.S. takes in cutting carbon pollution are pointless since China (or other Asian countries) will keep polluting anyway.

The arguments are crucial since Virginia’s Big Energy industry and the staff of the State Corporation Commission are attacking plans by the EPA to greatly reduce carbon.

Consider this gem of wisdom from another correspondent on this blog: “Virginia could revert to stone-age levels of zero greenhouse gas emissions tomorrow, and the savings would offset the increase in CO2 from coal-fired power plants built in India and China in a year! (OK, maybe not a year, but over a very short period of time.)”

Sadly, this kind of mentality is regressive and, with the new Washington-Beijing pact, is becoming increasingly irrelevant.

One thing many American commentators don’t seem to realize is that China isn’t necessarily a primitive business juggernaut stomping on any rational plan to check pollution. Beijing and Shanghai have some of the highest rates of air pollution in the world and its leadership, especially engineers and policy makers capable of understanding how technology can help them, knows they just can’t continue as before.

Three years ago, I visited both cities to research a book on the coal industry (newly out in an updated paperback, by the way, see below). I also went to Ulanbatour, the capital of coal-driven Mongolia where the air was so bad, I felt delirious within hours after arrival and by the next morning I showed signs of pulmonary illness.

The promise for changing things seems to money and the system.

In the U.S., we have a regulatory oversight apparatus over energy generation. This is reasonable because it prevents electric utilities from using their monopoly power to stick customers with high rates. But the system is flawed because: (1) it too often favors big utilities over average consumers and; (2) it is rigged to prevent new, experimental and possibly transformative technologies that very well could allow the use of dirty and dangerous but still cheap coal.

In the latter case, the thinking seems to be to go for ephemeral cost benefits (like using natural gas) without having any long-term strategy that actually might save lots more money through better health and more efficient, less-polluting energy.

In several cases, regulators nixed pilot plants that burn coal but use special new ways of doing so that capture a lot of carbon either in a chemical process involving ammonia or by stripping off the carbon emission from the pollution stream and sequestering them safely away. The plants cost big money. They are much cheaper to do as greenfield sites but regulators are more inclined to prevent them in favor with the soup d’jour of power that happens to be cheapest at the moment, in our current case, natural gas. Continue reading

Takeaways From the GOP’s Big Win

gillespie warnerBy Peter Galuszka

The night of Tuesday, Nov. 4 was an ugly one for the Democrats and a big win for Republicans. Here are my takeaways from it:

  • U.S. Sen.Mark Warner clings to a tiny lead that seems to grow slightly, still making it uncertain if opponent Ed Gillespie will ask for a recount. The surprisingly tight race is an embarrassment for Warner. It likely takes him out of consideration to be Hillary Clinton’s running mate in 2016 although Democrats Tim Kaine and Jim Webb are still possibilities.
  • Ed Gillespie ran a smart campaign and came off as a solid candidate. Of course, we are comparing him against Kenneth Cuccinelli and that’s a very low bar but Gillespie’s projection of being relaxed and confident helped him. Gillespie did very well despite being dissed by the national Republican money machine. Look for him in the gubernatorial race of 2017.
  • Barack Obama takes his lumps — again. The country’s on the mend and things are going fairly well (despite what you may watch on Fox), but Obama is incapable of cashing in on that. His cool, detached style is a big minus and makes him seem careless and incompetent, especially when crisis like ebola come up that are not of his making.
  • The Republican wins on Capitol Hill are more significant than the Tea Party inspired once during the 2010 midterms.But the earlier races brought in a kind of mindless negativity and gridlock by both parties that truly hurt the country. Will that happen again? Or will older, wise heads prevail?
  • Increase in coverage my Obamacare The New York Times

    Increase in coverage by Obamacare
    The New York Times

    You might get some bipartisan action on taxes and the budget, but deadlock remains for Affordable Care and immigration. The fact is that Obamacare is too far along to change much and people actually like it, despite what you hear in the right-wing echo chamber. This chart from the New York Times shows that the ACA has boosted health coverage in some of the poorest parts of the country, such as the Appalachian coal country, the African-American belts of the Deep South; and poor parts of the Southwest like New Mexico and parts of Arizona. This alone is a big success.

  • Immigration. Look for Obama to use executive authority to come up with an immigration plan. It is an emotional, hot button issue that reveals lots of ugly attitudes. But something needs to be done fast. The GOP has no plan, except for George W. Bush who actually pushed a workable solution that was compassionate. That got soaked by the Tea Party, but then Republican Mitt Romney came up with a health care plan for Massachusetts that looks remarkable like Obamacare and was a precursor. If the GOP can get back to those helpful ideals, there may be hope.
  • Warner lots big swaths of voters who had been with him, like Loudoun County and parts of rural Virginia. This is alarming for the Dems and shows they need to project their messages a lot better. Warner’s poor performance in debates didn’t help either.

It is a big win for the GOP, but somehow I don’t feel as bitter as I was in 2010.

In Energy Studies, No Renewables, Please

Karmis of VT's Center for Coal Research

Karmis of VT’s Center for Coal Research

By Peter Galuszka

For years, Virginia Tech has operated the Center for Coal Research which is dedicated to studying bituminous product, enhance its marketability and make mining it safer and less environmentally destructive.

The center receives funding and has sponsors and an advisory board made up of big utilities like Dominion, coal-hauling railroads like Norfolk Southern, a few state officials and coal company executives from Alpha Natural Resources, Arch Coal and Patriot Coal. No environmental advocates are advisers nor are proponents of renewable energy.

So, it was with considerable interest that I was introduced to a new “watchdog” group named the Checks and Balances Project, based in Northern Virginia and  funded by advocating clean energy and sustainability such as the New Venture fund and Renew American Prosperity Inc.

In several intriguing blog posts, Scott Peterson, a former media spokesman for the New York Stock Exchange and now executive director of Checks and Balances, asks why Michael Karmis, an internationally-known VT coal expert, was asked to write the cost-benefit analysis for the State Energy Plan released last month that will guide the General Assembly in passing laws relating to energy.

Peterson notes that Karmis’s report was a foundation document used by the State Corporation Commission staff when it gave a big thumbs down to the U.S. EPA’s proposed rules to cut carbon dioxide. The SCC claimed that the rules would shutter much coal-fired generation (much of which was going to be shut down anyway) and that renewables like solar and wind are too expensive, unreliable and scarce to replace the lost generation capacity.

I blogged about this repeatedly in recent weeks and I asked why Virginia has such a puny share of renewable energy compared to its neighboring states. I got responses from the SCC and also from Dominion as well as the Virginia Chapter of the Sierra Club and posted them.

Peterson’s points are spot on. Why would the state and the SCC go to such an overwhelmingly pro-coal group for what seems like a self-serving and self-dealing cost-benefit analysis? Do Virginians not deserve input from other players pushing forms of energy? Why did they not consult economic forecasting groups specializing in energy but chose instead Chmura Economics & Analytics of Richmond, which has no special energy expertise and has been criticized (by me) for tending to say what state officials want.

It is really a shame that the administration of Gov. Terry McAuliffe is following the same stacked-decks that former Gov. Robert F. McDonnell used to use. During his time in office, I outlined several instances where McDonnell chose “advisors” mostly from the coal and nuclear and natural gas industries to “study” energy needs or whether uranium mining near Chatham would be safe.

Also take a look at who the sponsors of the Virginia Tech coal center are:

  • Alpha Natural Resources of Bristol bought the extremely troubled and controversial Massey Energy whose renegade CEO, Don Blankenship, was so loose with safety and so strong on production demands that 29 miners lost their lives in a massive blast at the Upper Big Branch mine in West Virginia on April 5, 2010, according to three probes of the incident. I wrote a book about it.
  • Arch Coal is one of the most controversial users of ecologically devastating mountaintop removal surface mining in southwest Virginia, Kentucky and West Virginia,.
  • Evan Energy Investments is a Richmond-based firm started by E. Morgan Massey, whose family started A.T. Massey coal which later became Massey Energy. E. Morgan Massey had no corporate duties at Massey Energy during the 2010 blast but during the 1980s, he beat the United Mine Workers by instituting his “Massey Doctrine” of tough negotiating.
  • Patriot Coal is a spin-off of Peabody Coal, the largest coal firm in the U.S. Peabody had assets in the Central Appalachians but found that its western U.S., Illinois Basin and foreign operations were more profitable so it created Patriot. The spin off has been bankrupt at least once and has been criticized for trying to cut benefits for retired miners who had worked for Peabody.

To be sure, several state and federal organizations are also sponsors and I’m told that the center does do worthwhile working on setting up computer-based networks of sensors that would automatically shut down a deep mine’s operations if it found bad levels of explosive coal dust or methane. It also has done work to find carbon capture technologies that could allow coal to be burned cleanly.

The larger point is that the state is structured in ways that do not provide a place at the table for people not associated with big, traditional, base-loaded energy such as coal and nuclear power stations. Many accounts show that solar and wind are becoming much more technically and cost effective. Although the U.S. Department of Energy does not expect wind or solar to be more than about 20 percent of the total energy mix any time soon, its growth is picking up speed.

If more houses and businesses adopt solar panels as they get cheaper and better, they will reduce their need for Big Energy. As that happens, the large utilities, coal firms and railroads may get stuck with trillions of dollars’ worth of “stranded” and unused assets. Guess will end up paying for a lot of them? The ratepayers, of course, with the SCC’s blessing.

No More Hippies in Old Sneakers

dominion-building By Peter Galuszka

Last week, I posted a blog item titled “Why Virginia Has No Renewable Energy,” which drew considerable comments from readers. The day after it ran, I got a call from Chester G. “ Chet” Wade, the vice president of corporate communications for Dominion Resources who had a complaint about my item.

I had written that one reason why Virginia has a tiny amount of renewable energy sourcing compared to its neighbors was it that they have a mandatory “renewable portfolio standard” while Virginia’s is only voluntary.

One major reason, I wrote, was that :

“Dominion, of course, is a huge political contributor. According to the Virginia Public Access Project, Dominion and Dominion Resources combined are the No. 1 corporate donors in this state. They gave about $1,042,580 this year. The No. 3 corporate donor is Alpha Natural Resources, a major coal company based in Bristol that gave $218,874.”

Chet didn’t dispute my facts but said I failed to note the wealth of contributions from green outfits that Terry McAuliffe, our Democratic governor, got in the 2013 gubernatorial campaign. I hadn’t brought up McAuliffe’s race in my post, but I do try to be fair, so I asked Chet to write a response and said that I’d post it. He hasn’t yet.

In last year’s race, McAuliffe raised $38 million compared to $21 million for Kenneth N. Cuccinelli, the hardline Republican conservative who spent part of his time and tax payers’ money going after Michael Mann, a former University of Virginia climatologist, when he was attorney general.

Although I am not certain what Chet’s point was as far as McAuliffe, I went back and confirmed what he said. In the 2013 race, McAuliffe got part of the $1.9 million from the League of Conservation Voters; almost $1 million from the national and Virginia chapters of the Sierra Club; and $1.6 million from NextGen, an environmental PAC started by Bay Area hedge fund manager Tom Steyer who has strong views on the dangers of climate change.

Chet said it was unfair for me not to note the money from Big Green. (By the way, Dominion gave McAuliffe $75,000 in the governor’s race and somewhat less to Cuccinelli.)

So, to be fair to both Big Green and Dominion, I called Glen Besa, head of the Virginia Chapter of the Sierra Club. Glen said that, yes, indeed, a coalition of environmentalists had gone out of their way to back McAullife because they badly wanted to keep Cuccinelli from becoming governor. “You had a clear climate change denier with Cuccinelli,” said Glen. “He would be an embarrassment to Virginia and would have caused damage in the national debate about global warming.”

So, the greenies pulled out the stops and let their money flow. Glen, however, said that the contributions “were exceptional” and not really sustainable. Usually, the Sierra Club donates in the tens of thousands of dollars in Virginia races.

Now that McAullife has won, I don’t think Dominion can say he’s against them. If anything McAuliffe has disappointed environmentalists by coming out for continued use of coal, the introduction of East Coast offshore oil drilling, nuclear and building a 550-mile pipeline for fracked natural gas that would run from Clarksburg, W.Va. through much of Virginia to the North Carolina border. A second gas pipeline is in the works through Southwestern Virginia. Local activists and Greens are on the streets protesting the projects. Dominion is a backed and major player in the first pipeline. McAuliffe is not exactly out to get them.

What’s the upshot? Dominion is one of the few enormous, Virginia-based companies like Alpha Natural Resources and Altria that have long been dominant players in the political arena. Like well-oiled machines, they hand out millions in cash to political candidates. They have also bankrolled useful groups to voters such as the Virginia Public Access Project, a non-profit that collects and makes available donation data. Dominion has one of the most experienced and professional team of lobbyists anywhere.

Dominion almost always gets things its way. Back about 15 years ago, for example, a deregulation wave for setting electricity rates was sweeping the country and Dominion asked to be part of it. But a few years later, Dominion realized that dereg wasn’t working quite to their advantage, so they got the General Assembly to change it all back again to regulation. “It is testimony to how much power they have,” says Glen. “(State Sen.) Tommy Norment just reached into his drawer and pulled out a re-reg bill,” he adds.

What seems to miff Dominion and the corporate elite is that the environmentalist lobby has grown up and become sophisticated and professional, just as they are. They can raise big money and throw it around when they want to. Somehow, this is viewed as an unsavory intrusion on Dominion’s sacred turf. No more hippies in old sneakers.

FLOP! Goes Their Argument

maureen_and_bob(1)By Peter Galuszka

How confusing can we make it?

Together, former Gov. Robert F. McDonnell and his wife Maureen had numerous conversations with businessman Jonnie R. Williams from 2011 until 2013 about more than $177,000 in gifts and loans. They were convicted of corruption in federal court on Sept. 4.

In an opinion piece that is breathing taking in its misrepresentation and confusion, Jim Bacon, Paul Goldman and Mark J. Rozell wrote in the Roanoke Times Sunday and on this blog that the government’s case against the McDonnells is substantially flawed because Bob McDonnell did not discuss terms on one of Williams’ loan  payments to them.

The opinion piece also says that U.S. Atty. Gen. Eric Holder must come clean about supposedly fiddling with evidence before the McDonnells are sentenced next year. The opinion piece fails to present any hard evidence that Holder did just this.

Their argument falls apart because Bob McDonnell did most definitely discuss loans and terms with Williams on several occasions.

Here’s what Bacon, Goldman and Rozell wrote:

“Prosecutors conceded Maureen McDonnell had personally asked Williams for the loan on May 2, 2011. She promised to reciprocate by helping Star. Williams testified understanding she spoke solely for herself, not her husband. Virginia’s first lady is not a public official under federal anti-corruption laws. While disgraceful, this two-way deal did not break the law.

“The Star pitchman personally delivered a $50,000 check payable to her on May 23 when they met at the Executive Mansion. Gov. McDonnell swore he didn’t learn about the check until two weeks afterwards. The prosecution self-evidentially believed it crucial to show his knowledge prior to her accepting the money.

“During testimony, Williams said he couldn’t remember when he spoke to the governor, or even whether he had spoken by telephone or in person. But he remained adamant, saying, “I am not writing his wife any checks without him knowing about it.”

But wait, here’s Trip Gabriel in the New York Times reporting about ANOTHER loan nearly one year later.

“Mr. Dry, who has led the federal investigation for 16 months, began the timeline with Mr. McDonnell’s own notes on a legal pad from Feb. 3, 2012, when he was negotiating a loan from Mr. Williams of Star Scientific.

“That initial deal was for 50,000 shares of Star Scientific stock, at $3.15 a share, worth more than $150,000, to be paid back with the repurchase of 50,000 shares at $1.90 a share. In other words, Mr. McDonnell would have had to repay a $150,000 loan with $90,000, after he was out of office, according to his own notes.

“Five days later, an aide to Mr. McDonnell sent an email saying Ms. McDonnell and the governor “were going over the list last night for the health care industry event.” The email indicated that both wanted Mr. Williams and his company at the event, where they could mix with university researchers in Virginia.

“On Feb. 9, Ms. McDonnell emailed her husband about potential clinical trials at the University of Virginia and Virginia Commonwealth University. “Here’s the info from Jonnie. He has calls into VCU, UVA and no one will return his calls,” she wrote.

“On Feb. 10, Ms. McDonnell emailed Jasen Eige, the governor’s senior policy adviser and lawyer, saying, “Gov wants to know why nothing has developed with studies.” Mr. McDonnell said he wanted no such thing.

“At 12:02 a.m., Feb. 17, Mr. McDonnell emailed Mr. Eige: “please see me about Anatabloc issues at VCU and UVA.” Four minutes later, the lawyer responded, “will do,” and added, “We need to be careful with this issue.”

“On Feb. 18, Mr. McDonnell personally emailed Mr. Williams to resume loan negotiations.

“Then on Feb. 29, Mr. McDonnell and Mr. Williams held a private meeting ostensibly on the health care leaders’ meeting that night. But the subject was the loan, which was growing more favorable. Mr. Williams offered 52,000 shares of Star Scientific, valued that day at $3.75 — a $187,000 offer, to be repaid with 50,000 shares repurchased at $2.20 a share, or $110,000.

“That night, less than five hours later, Mr. Williams was back at the Governor’s Mansion for the health care leaders’ meeting.

“Mr. McDonnell said the terms of the loan were of no consequence, since ultimately the stock loan fell through and he took $50,000 in cash for his real estate company, known as MoBo.

“Mr. Dry, if you are suggesting I got a $50,000 loan for MoBo in order to get Mr. Williams’ calls returned, you’re completely off base,” a prickly Mr. McDonnell snapped at one point.”

Hmm. Let’s see. We have one loan in 2011 apparently without Bob and another in 2012 with Bob (not to mention the golf bag, Ferrari, vacations, golf jackets, and so forth.)

The three authors have made a serious error by cherry picking one of several loans involving the McDonnells and Williams and making, forgive the pun, a federal case out of it. Flop goes their argument.

Good Ruling on Congressional Redistricting

The 3rd Congressional District

The 3rd Congressional District

 By Peter Galuszka

A panel of federal judges in Richmond has scrambled the carefully laid plans of legislators, most of them Republicans, to pack African-American voters into one congressional district to give the GOP an advantage in some of the  state’s 10 other districts.

The panel of U.S. District Court judges decreed that the General Assembly’s 2012 decision to draw new boundaries in the 3rd Congressional District stretching from Richmond east to several Tidewater cities was in error.

The state has until next April to redraw the 3rd District, now represented by U.S. Rep. Robert C. “Bobby” Scott, a Democrat who is the state’s only African American congressman.

That will undoubtedly impact other districts represented by white Republicans including U.S. Rep. Randy Forbes of the 4th District, U.S. Rep. Scott Ringell of the 2nd District and Robert J. Whitman of the 1st District.

This is indeed an interesting start to what could end up being a messy line of dominoes falling. And it shows just how wrongheaded politicians are when they tinker with voters by race by packing people of color in one district so races in other ones will be decidedly less competitive.

It also raises other questions about ways the GOP is doing its best to minimize the influence of young and non-white voters through the use of voter identification cards and other means.

To get an idea of how nuts the 3rd District is, look at a map. Moving west to east, it goes through eastern Richmond and Henrico County, swoops down the James River peninsula, and hop-scotches parts of the 1st District to include heavily African-American parts of Newport News and Hampton. Then, the District crosses Hampton Roads to include heavily black parts of Norfolk and Portsmouth and then heads west again to take also-black parts of counties on the south shore of the James River.

Scott is Virginia's only African-American Congressman

Scott is Virginia’s only African-American Congressman

This scheme packs African-Americans into one unit while mostly-white parts of Virginia Beach, Norfolk and Chesapeake and Williamsburg are covered in the 1st, 2nd and 4th Districts, all represented by white Republicans. Mostly-black Petersburg, a city of 32,000, was taken out of the 4th District and put in Scott’s 3rd District, giving white Republican Forbes of the 4th District an advantage.

Democrats such as State Sen. Mamie Locke have long complained about schemes that hop-scotch geography to give white candidates an advantage. They want tighter, more contiguous districts.

One can tell just how serious this is when Del. William Howell, the Republican House Speaker, had nothing to say about the court’s decision. He will have to somehow help navigate drawing up new district plans.

He’s really under the gun. He can’t just set up a road block as he did with Medicaid expansion and tell Democratic Gov. Terry McAuliffe where to stick it. If Howell shuns a bipartisan effort, then McAuliffe would likely veto whatever he and his colleagues come up with. Then it would go back to the judges to decide.

It is in Virginia’s interest to make sure all of its districts and not just ones for Congress are shaped to allow for more competitive races. Very few elections for state positions are contested. This, in turn, ruins bipartisan consensus and makes the primaries, usually for Republicans, more consequential than the races themselves. The results are either legislative gridlock or laws that have little to do with the wishes of many voters.

Another issue that needs to be addressed is what Mother Jones magazine has identified as a large-scale, national effort, mostly by Republicans, to make it harder for minorities and young people to vote. They tend to vote Democratic and helped Barack Obama win the presidency in 2008 and in 2012.

Since 2012, 22 states have passed new voting restriction laws that shorten voting hours or require a government-issued identification card or proof of citizenship. North Carolina has perhaps the worst of such measures. There are shorter hours and no more same-day registration to vote. It even gives the nod to “poll watchers” who can stand around outside polling places and hassle voters about their eligibility to vote. I guess that means if you look black or Hispanic or youthful, you get rousted by vigilantes. The odd part is that states, including Virginia, went for more restriction when there wasn’t much evidence of voter fraud.

To be sure, Virginia’s redistricting efforts were begun by federal initiatives such as the Voting Rights Act which gave Bobby Scott an opportunity to win as an African-American in the early 1990s. The Voting Rights Act was meant to ensure that minorities were represented but that concept has been cynically morphed into a Frankenstein that keeps minorities “packed” in a district or districts so whites maintain their hold on most of the other districts in a state.

The court’s decision is most welcome. Let’s hope it grows into a movement to return democratic competition and ends undemocratic restrictions like demanding extra and unnecessary pieces of identification for qualified voters.

 

Et Tu, McAuliffe?

mcauliffeBy Peter Galuszka

Sure, parents want to help their children but in the case of former State Sen. Phillip Puckett, it is getting ridiculous.

And the latest disclosure in this morning’s Washington Post makes the Terry McAuliffe administration look just as sleazy as their Republican counterparts.

Puckett, of course was a Democratic senator who held a key vote when McAuliffe, also a Democrat, was desperately trying to get past a GOP road block in the General Assembly to somehow expand Medicaid health coverage to some of the 40,000 low income people who might be eligible.

GOPers knew that Puckett’s daughter, Martha Puckett Ketron, wanted a job as a District Court judge but could not be appointed as long as she had a relative in the Senate. So, they pitched a deal where Puckett would resign on the eve of the key Medicaid vote, throwing the decision the Republican way.

In exchange, Puckett might get a six figure job with the infamous Virginia Tobacco Indemnification and Community Revitalization Commission, thanks, in part to the influence of the powerful Terry and Jerry Kilgore brothers. That would clear the way for Puckett’s daughter’s judgeship.

It all came out and the FBI is probing.

Now, it turns out that, Paul Reagan, McAuliffe’s chief of staff, left a curious voice mail on Puckett’s phone on the eve of the vote. It suggested that Puckett’s daughter could get some kind of high profile state job if he stayed in the Senate and voted McAuliffe’s way.

So much for McAuliffe taking the high ground on ethics reform following the spectacular corruption conviction of former Gov. Robert F. McDonnell.

Tobacco Commission Needs Huge Makeover

tobacco leafBy Peter Galuszka

One more glaring example of mass corruption in Virginia is the grandly named Virginia Tobacco Indemnification and Community Revitalization Commission formed 14 years ago to dole out Virginia’s share of a $206 billion settlement among 45 other states with cigarette makers.

I’ve been writing for years about how millions of dollars are doled out with little oversight to economic development projects supposedly helpful to the former tobacco-growing parts of the state from the bright leaf belt around Dinwiddie out west to the burley leaf land of the mountains.

There have been no-strings giveaways to absentee tobacco quota holders, a board member sent to prison for siphoning off grant money and the shenanigans of the extended Kilgore family which is very politically powerful in those parts. The commission even figured in the McDonnell corruption trial starring the former and now convicted governor and back-slapping witnesses for the prosecution, entrepreneur and tobacco-believer Jonnie R. Williams Sr.

I revisit the issue in Sunday’s Washington Post and I ask the obvious question of why no one seems to watching the commission. I raise broader ones, too, such as why the commission  serves only people in the tobacco belt. That doesn’t seem fair since the Attorney General’s office represented all of the state in the 1998 Master Settlement Agreement against four major tobacco firms. People in Hampton Roads, Arlington, Onancock and Winchester should be benefit but get nothing from the settlement. They didn’t  because tobacco road legislators pulled a fast one back in 1999 when they set things up.

There needs to be a thorough disassembling of the commission’s current governance structure with many more people far from Tobacco Road included. There’s far too much family and friend back-scratching as it is. It is like watching a vintage episode of the Andy Griffith show but it really isn’t funny.

(Hat tip to James A. Bacon Jr. who spotted the commission as a great story back in the year 2000 when he was publisher of Virginia Business).

So, please read on.

It’s Oh, So Richmond!

By Peter Galuszka

cantorWhen I looked at my Richmond Times Dispatch, I was stunned. I couldn’t find a story that their wunderkind Congressman, Eric Cantor, the kind of Republican they love, had gotten a big deal job with Moelis & Co., a New York boutique investment bank.

There was the story in the Wall Street Journal and the Washington Post. Finally, the RTD straggled  on with brief piece at 6:22 a.m. on its Website.

Maybe it’s embarrassment. Cantor, the former House Majority Leader, could do no wrong with his Main Street Republican friends or the editors of the local newspaper. His wife, Diana, was on the board when the newspaper was owned by Media General. Then came his stunning defeat in a June primary to unknown David Brat, who ran a mash-up of a Tea Party and Libertarian insurgency.

Moelis says it is hiring Cantor “for his judgment and experience” and ability to open doors, says the Journal. He’ll live in Virginia and have offices in Washington and New York.

Well, that was quick! Or maybe not. Cantor has raised $1.4 million from the financial services sector, as well as lots from managed care. His sense of entitlement is astounding. First, he thought he didn’t have to bother with the home folks in the Seventh District any more, costing him the election. They he arranged (with Gov. Terry McAuliffe’s help) a special election.

Doing so would get his replacement in office faster and thus Virginia can keep its seats on some important committees. But it also frees Cantor to take his plum job.

You didn’t read it in the RTD first! Somethings will never change.