Category Archives: Poverty & income gap

The Boston Globe Visits Richmond

Slavery? What slavery>

Slavery? What slavery?

 By Peter Galuszka

An outside view is always welcome, especially in these incredible days when a lot of Southern mythology is being turned on its head.

Richmond is a great locus for the examination given its tortured history. The former Capital of the Confederacy (more by accident than anything else) is a true crucible.

The Boston Globe is running a series of articles from cities across the country examining how Americans citizens view their identities and how they are reacting to the fast-moving examination of slavery, the Civil War and the debates over its twisted symbols, especially the Confederate flag.

Globe reporter Michael Karnish starts with Ana Edwards, an African-American Richmonder, as she stands near the Jefferson Davis Monument on the city’s famed Monument Avenue packed with Confederate generals, Arthur Ashe and an aviator.

Confederate President Jefferson Davis, who led the insurrection against the United States, is praised as backing “Constitutional Principles” and “Defender of States Rights” (strangely similar to the conservative reaction to the recent U.S. Supreme Court decision on gay marriage).

Nowhere is it inscribed about what the war was all about – slavery.

You might go down to Shockoe Bottom for that. It was once the second busiest slave trading market in the country. There’s a site for an old gallows, a “Burial Ground for Negroes.” Lumpkin’s Jail. Ghosts of about 350,000 slaves “sent downriver from Richmond over a 35-year period before the Civil War.

One of them was Anthony Burns, 19, who escaped to Boston in 1853 but was arrested under a fugitive law and after lots of public demonstrations, was returned to Richmond with federal troops at the ready. He ended up in Lumpkin’s Jail.

There’s not a lot in Richmond to remind about slavery. In fact, when one drives north across the James River on Interstate 95, the Virginia Holocaust Museum makes a bigger impression even though Virginia had nothing to do with the Nazi Final Solution.

The Globe reporter does a fair job of contrasting Carytown, the chic and artsy shopping district (that goes hand to mouth with the city’s annoying fetish for fancy food and craft beer) with other parts of the city that are chock full of impoverished people. One out of every four Richmonders is officially poor.

Mayor Dwight Jones, an African-American, discusses his plans to eliminate public housing and fill it with mixed-use and mixed-income developments.

The next page to turn will be the UCL World Cycling Championship where 1,000 international cyclists will converge on Richmond for nine days in September. It is expected to draw 450,000 spectators (as the promoters insist they be called). Jones is a big promoter.

But plans are to have the cyclists zip past the 1907-era Confederate generals and Jefferson Davis on the city’s most famous avenue about 16 times before video cameras that will be broadcast globally. What kind of impression will that make? Given Richmond’s enormous and unresolved image problems and insecurity, can it simply and politely avoid facing the past as it has for 150 years and expect everyone else to go along with it?

I wouldn’t expect Mayor Jones to come up with an answer since he has failed to do much to put a slavery museum in Shockoe Bottom, the most appropriate spot for it. Instead, he was pushing some kind of museum along with an expensive project including a minor league baseball stadium and bars and restaurants.

To be sure, I am not completely sure people or newspapers from Boston have a lock on any moral compass. I went to college there for four years in the early 1970s and heard so much self-righteous nonsense that I began to think of myself as a Southerner.

After all, in the fall of 1974, just after I graduated and went back to North Carolina, Boston erupted into racial violence over court-ordered busing to integrate its de facto segregated schools.

In this case, however, the Globe has a good perspective on Richmond. It is a valuable addition to the debate.

Why There’s No Swimming Pool at Gilpin Court

gilpin courtBy Peter Galuszka

Heat and humidity seem to have been especially intense this summer. But it can be much worse at an inner city public housing project where there are few trees and other vegetation and lots of bricks and concrete that and retain heat.

So, wouldn’t a swimming pool seem nice, especially when your housing project already has one?

That’s what I thought when I visited Gilpin Court, one of Richmond’s 11 public housing projects. Housing 2,200 residents, many of them children, Gilpin is one of the worst ones run by the Richmond Redevelopment and Housing Authority. It was built in the 1940s. Here’s my story in Style Weekly.

There is a swimming pool. But, the indoor basin has been shut down for three years and the RRHA says it can’t be fixed. “The pool is closed for maintenance and repairs and diminishing funds we have available,” a spokeswoman says.

In the meantime, the RRHA has been spending money on other things, according to the Senate Judiciary Committee.

A list:

  • The RRHA spent $1,515 in 2012 to take 55 residents of Creighton Court, another project, for a bus charter to a West Virginia gambling casino.
  • The former RRHA police chief spent $900 on a television and more for cable services for an emergency operations center” that didn’t exist.He and his wife also got to go to a conference in San Diego with a side trip to Las Vegas.
  • Former authority chief executive Adrienne Goolsby, who resigned under a cloud in January, was being paid $183, 800 a year plus a $10,000 bonus. This is well above U.S. Department and Urban Development guidelines of $155,500 a year. The state governor makes less: $175,000.

U.S. Sen. Charles Grassley (R-Iowa) wrote to Goolsby last year asking for answers for these matters. His staff says he never got an answer.

Meanwhile, RRHA is being run by a temporary chief. No one seems to know when a permanent one will be appointed.

Gilpin children say they can swim at other city-owned pools or at Pocahontas State Park, which is 27 miles away.

One other takeaway: one hears a lot on this blog from writers about how the problems of poverty are a lack of personal responsibility. I guess if you grow up in a furnace like Gilpin, you just have to work harder.

Don’t Stop a Welcome Purge

confederate flag dayBy Peter Galuszka

The Confederate Battle flag is quickly unraveling throughout the Old Dominion. With it are going many icons of an era racked with controversy and hatred, along with mythology, which regretfully will still continue in some form.

Following the example of South Carolina Gov. Nikki Haley who asked that state’s legislature to take the Confederate flag off State Capitol grounds, Virginia Gov. Terry McAuliffe ordered the Department of Motor Vehicles to stop issuing specialty license plates showing the flag along with the Sons of Confederate Veterans logo.

National retailers such as Walmart and Amazon likewise nixed the flag and removed items displaying it from their shelves and warehouses.

Two events helped push this national movement with remarkable speed.

One was a U.S. Supreme Court decision – split evenly between liberal and conservative judges – that Texas had the right not to allow the Confederate flag on its license plates. The other was the shooting death of nine African-Americans by a self-styled white supremacist as they prayed at a Charleston church.

It’s about time some movement was made on this matter. But in Virginia, as in other parts of the South, there’s a lot more to do. Richmond’s famous Monument Avenue has the statues of Confederate generals Robert E. Lee, Thomas “Stonewall” Jackson and J.E.B. Stuart. Why aren’t they dismantled?

Richmond area schools have “Rebels “or “Confederates” as their mascots, namely Lee-Davis High School in Mechanicsville and Douglas S. Freeman in Henrico County.

Throughout the state are street names celebrating the Southern war machine. There are Jefferson Davis Highways in Alexandria and South Richmond. Only recently were flags removed from the Confederate Memorial Chapel on the grounds of the Virginia Museum of Fine Arts and at private Washington & Lee University.

Of course, the flag is an insult to those oppressed by it, notably African-Americans. But mythology – about an honorable South tragically plundered and lost – has provided cover and let it fly 150 years after the Civil War.

Having grown up mostly in the South or Border States in the 1950s and 1960s and then having worked there for years, I have dealt with the Confederate flag for years. I don’t find it absolutely shocking as some do, but I have always wondered why it keeps flying on public property.

It wasn’t until I was in college in the Boston area when I started really asking myself questions. For one course, I read “The Strange Career of Jim Crow,” historian C. Vann Woodward’s 1955 masterpiece. He demolished the idea that legal segregation was a long-time Southern tradition. Instead, it started up in the 1890s, he pointed out.

That’s not a very long time, especially for white Southerners who purport to be so sensitive to history. Instead, they have invented a mythology. Virginia is becoming more diverse and includes people who have no family tie to state during the mid-19th century. One reason Gov. Haley had the fortitude to do what she did was that she is an Indian-American, born in South Carolina. In other words, she is neither white nor black according to the old rules and didn’t need to be guided by them.

My immediate concern is that this long-needed purge won’t go far enough. And as long as the generals preside over Richmond’s Monument Avenue, the fairy tales will endure.

Only Marginal Gains from Obamacare Insurance Overhaul

insurance_coverage_national

Percentage of adults 18-64 who lacked health insurance coverage, 1997-2004. Graphic credit: National Health Interview Survey

by James A. Bacon

After all the strum and drang over Obamacare, the restructuring of the United States health care system, the re-engineering of the medical insurance industry and dislocation to millions of Americans who discovered they could not necessarily keep their doctor or their health care plan, even if they liked it, it turns out that the piece of the program that made the biggest difference in increasing health coverage for the American people was Medicaid expansion. Take that away, and the number of Americans lacking health care coverage declined only slightly — and the reasons for that decline are not clear.

That’s not the spin put on the numbers you’ll read in the media. (See the Richmond Times-Dispatch spin here.) But it’s certainly a legitimate interpretation of the numbers reported by the 2014 National Health Interview Survey, which is not a libertarian think tank or funded by the evil Koch Brothers but a program of the National Center for Health Statistics.

The number of Americans under 65 years old covered by the infamous health care exchanges amounted to 6.7 million — or about 2.5% of that segment of the population. (Remember, that number includes Americans who previously had private insurance and found themselves bumped into an exchange.) That compares to 170 million, or 63.6%, who were covered by private health insurance plans, and 36 million (11.5%) of Americans without any kind of insurance, public or private.

A major driver behind the improved numbers was expansion of Medicaid. Among working-age adults in states that expanded Medicaid, states the report, the percentage with Medicaid coverage expanded from 17.7% in 2013 to 19.9% in 2014 — a gain of 2.2 percentage points, while comparable adults in states that did not expand Medicaid, like Virginia, saw no significant change in public coverage. Literally half the gains in the insurance-coverage rate could have been achieved by expanded Medicaid (in the states that chose to expand it) and scrapping the rest of Obamacare.

Here are the Virginia numbers for all ages:

Private health coverage — 67.0%
Public health coverage — 31.3%
Uninsured — 10.8%

Lost in the weeds is the bigger picture. Look at the chart of uninsured Americans at the top of the page. While the number of uninsured  dropped significantly between 2013 and 2014, the uninsured population had been shrinking since 2010 at the worst of the Great Recession. Significant gains in insurance coverage occurred simply as the result of increasing employment.

Now compare the 2014 numbers to the 1999 numbers — the number of uninsured is about the same. Anyone remember 1999? That was the tail end of the Clinton-era Internet boom. Unemployment was exceedingly low. The best way to ensure that Americans enjoy health care insurance is to ensure that they have a job. Not every job provides medical coverage but most do. The more employers find themselves competing for labor, the more likely they are to provide some level of medical insurance.

Instead of pursuing macro-economic reforms and institutional reforms that bolster productivity and sustainable economic growth, the United States got a one-shot stimulus plan, higher taxes, more regulation, Obamacare and sub-par economic growth. While Americans have made marginal gains in gaining access to health insurance, thanks to Obamacare, we’re also experiencing a consolidation of the hospital industry into a handful of cartel-like “health systems,” the conversion of physicians from independent providers into salaried minions of hospitals, and a consolidation of the health insurance industry. The health care industry is becoming stodgier, more bureaucratic, more risk averse, more prone to rent-seeking and less interested in innovation. For marginal gains in the percentage of the insured population, we will all be losers in the long run.

Tobacco Commission: Six of Eight Projects Fail

The old logo

The old logo

 By Peter Galuszka

Down Danville way, of eight companies that have received money from the Tobacco Region Opportunity Fund (the old, embattled tobacco commission) only two have managed to fulfill contractual obligations to create jobs and help the local economy.

According to a report by Vicky M. Cruz in the Danville Register & Bee, the six firms that have failed to meet their obligations mean a loss of 1,340 potential jobs and $63 million in local investment. It also means that Danville owes the tobacco commission $5.47 million.

Here’s a list of the companies.

The tobacco commission has been around since 1999 to supposedly help residents in the tobacco growing areas of the state move into non-leaf related jobs. The money came from the huge multi-billion dollar Master Settlement Agreement between four cigarette companies and 46 states that had sued them over health concerns.

The tobacco commission has been a bit of a sham. Money has been doled out without checks on how it was spent or how successful projects have been. A former director ended up in prison for siphoning off funds. A state audit has been ultra-critical of the fund, which figured in the political corruption conviction of former Gov. Robert F. McDonnell and his wife.

Last month, Gov. Terry McAuliffe renamed the fund, appointed a new director and changed its board. The cases reported by the Register & Bee obviously date before the reforms. Let’s hope they work.

(Hat tip to Larry Gross).

Map of the Day: Disconnected Youth

youth_disconnection

Source: Social Science Research Council

A new report by the Social Science Research Council, “Zeroing in on Place and Race,” defines “disconnected youth” as Americans between the ages of 16 and 24 who are neither working nor in school. Disconnected youth, who consist disproportionately of minorities and the poor, are at higher risk for a variety of social pathologies such as criminal activity and teenage pregnancy. Their delay in acquiring workforce skills and experience portends ill for their longer-term earning prospects. Here are the numbers for Virginia’s largest metros (listed by their ranking among the nation’s 98 largest metros):

disconnected_youth

— JAB

Crossing the Rubicon

cost-share

By Steve Haner

I don’t know about others, but I notified the Governor’s Office in March that I did not want another term on the State Council for Higher Education in Virginia (SCHEV). My goal in going on that panel was to advocate against skyrocketing tuition. Four years of a losing battle was enough.

The Richmond Times-Dispatch reported recently that incoming in-state freshmen at William and Mary will pay $30,350 a year, or $121,400 over four years, with room and board included. The “affordably accessible” University of Virginia will soon catch up. In both cases some of the increased tuition revenue is openly diverted to scholarships for others. How much remains to be seen.

In a presentation on “affordable excellence” to the General Assembly last month, the president of UVA argued that only 30 percent of Virginia families will be classified as so wealthy they have to pay this new top tuition price. That is not the question – the question is how many of the families of high school graduates entering UVA will have to pay it? That may be far higher than 30 percent. How many families will find that years of saving for college means they end up paying the higher price?

The economic incentive for both UVA and W&M will be to take in more and more students paying full freight. The economic incentive will be to limit the number of students accepted who need financial aid. Having moved this far without objection, I fear they will go further – seeking tuitions equal to the private schools they consider their competition.

The General Assembly may be accepting the new “from each according to his means” pricing structures at UVA and William and Mary because it is removes pressure to fund the alternative. As recently as 2011, in the so-called “Top Jobs of the 21st Century” legislation, the Assembly reaffirmed its commitment to funding 67 percent of the cost of an undergraduate program for in-state students. And the year before the state came very close to that, funding 62 percent overall.

The four years that followed were a period of erosion in state funds and tuitions rising far faster than inflation. In the school term ending in the spring of 2014, according to data I asked State Council for Higher Education in Virginia to compile, Virginia had crossed the Rubicon. The percentage of the cost of higher education for in-state undergraduates covered by the state fell to below 50 percent. In the school term just completed, it dropped another couple of points to 47 percent. Even at the low cost community colleges, the gateway schools, the state now covers less than half.

Tuition increases have made up the difference. From 2010 to 2014 the basic general fund account for the state schools started and ended at $1.3 billion (with a dip in between), which means due to inflation it lost value. From 2010 to 2014 non-general fund revenue (mostly tuition and fees) rose from $2.2 to $2.8 billion, an additional $600 million a year. Much of that money had to be borrowed by families. And those figures do not reflect what William and Mary and UVA are now doing. That will be fully reflected in future reports.

In the most recently adopted state budget there is a slight uptick in general funds for the schools for 2015-16. But two schools are receiving less support in 2015 than in 2010. Guess which two. The question now is how soon will Virginia Tech, James Madison or George Mason adopt the same pricing policy? Will they be forced to even if they would rather not?

This is a sea change in Virginia’s system of public higher education. I’m sure this will be popular with Virginia taxpayers (and voters) who feel they have no stake in the public institutions and thus resent paying taxes to support them. But it deserves more debate and discussion than it is getting, because I cannot see how raising the price of getting educated is going to result in a more educated populace.

Hottest Primary May Be 10th Senate District

 By Peter Galuszka

Emily Francis

Emily Francis

Primaries in Virginia used to be a bore, but no longer.

Last year, Dave Brat’s Tea Party-backed insurgency against the seemingly impregnable Eric Cantor garnered national headlines in the 7th Congressional District.

This year, you have several General Assembly races come June 9 that will seek to replace several prominent politicians who are retiring, including Republicans John Watkins of the 10th Senate District; Walter Stosch of the 12th Senate District; and Democrat Charles Colgan of the 29th.

I picked the 10th District race for a piece in Style Weekly. There, historic tax credit developer Dan Gecker, a long time Chesterfield County planning commissioner and supervisor, is up against progressive non-profit consultant Emily Francis and former delegate and lawyer Alex McMurtrie for the Democrat candidacy. Whoever wins faces Republican nominee Glen Sturtevant and Libertarian Carl Loser.

Dan Gecker

Dan Gecker

The race could well determine whether the state senate remains in Republican hands. Should the Democrat win, the mix in the senate could bounce back to 20-20; it is 21-19 now in favor of the GOP. Stephen Farnsworth, a political analyst at the University of Mary Washington,  told me this is the race to watch.

What’s also curious is that the 10th District is a true anomaly. One might assume that such as district would be comfortably GOP. It isn’t since it stretches from the blue areas of Richmond like the Museum District and the Northside. It covers parts of the more conservative mega-neighborhoods of Brandermill and Woodlake in Chesterfield and then all of Powhatan County.

Instead of having the likes of Brat saying that his opponent isn’t conservative enough, Francis says she’s the only true progressive in the race.

Another quirk is that Gecker, a moderate who says he’s a progressive, figured in the Bill Clinton impeachment.

Back in the 1990s, he was lawyer to Kathleen Willey, a Powhatan resident who claimed that Clinton groped her in the White House. Gecker represented her in a book deal. Some Democrats have said that Gecker is a Clinton-basher – an interesting claim now that part of the Democratic establishment is gearing Hillary Clinton for another presidential run.

Gov. Terry McAuliffe, a Clinton confidante, has tried to smooth things over by endorsing Gecker.

Two Stories on Change in Richmond’s Suburbs

 

New wegmans site

New wegmans site

By Peter Galuszka

Well, well,

Jim Bacon has this month’s cover story in the Henrico Monthly about the changing nature of office parks in one county that has plenty of them.

Not to be outdone, I have my own cover story in the Chesterfield Monthly, a sister magazine published by the same people.

My piece is about how Midlothian Turnpike, the main artery of suburban sprawl in Chesterfield County, is being led into its next iteration y two new types of grocery stores.

One is the high-end Wegmans. The other is New Grand Market, a large-scale international food store that reflects Richmond’s fast-growing diversity and foreign flare.

I think both of our pieces, in different ways, reflect big shifts in two of the largest counties in the state. (I wonder if I got paid more than he did).

Will the “Ferguson Effect” Kill Urban Renewal?

by James A. Bacon

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

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

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

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

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

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

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

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

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

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