Category Archives: Science & Technology

“The Economy of the Past Is Over.” But What Comes Next?

McAuliffeby James A. Bacon

So, Virginia faces a $2.4 billion projected budget shortfall, which Governor Terry McAuliffe blames largely on defense funding cuts mandated by sequestration. Surprise, surprise. We’ve seen this train wreck coming for years. Some (including multiple writers on this blog) have seen it more clearly and shouted about it more loudly than others. Now it’s here — the slowing economic growth, the stalled budget revenues and the general malaise. The question is, what do we do about it?

McAuliffe is making the right noises. As the Washington Post reports, the governor said the state needs to make a fundamental shift away from its reliance on federal spending. “It is obvious that the economy of the past — where we could simply take the economic benefits of the Department of Defense for granted — is over,” he said. “We need to move past this reliance — and build a new entrepreneurial, innovative and dynamic economy.”

Vague and platitudinous as the statement is, it has the virtue of being true. The hard part is figuring out how to move to that new entrepreneurial, innovative and dynamic economy. Part of the answer is not doing the same thing we’ve done before, only more of it.

McAuliffe can make a lasting mark on Virginia if he avoids that trap. But it will be difficult. When he solicits advice, whether in private conversations or through public mechanisms like study commissions, he’ll hear from the established special interests — not from startup entrepreneurs who are too busy building their businesses to participate in the public policy process. He’ll hear from the economic development lobby that we need to spend more money on corporate recruitment. He’ll hear from the convention & visitors lobby that we need to spend more money promoting tourism. He’ll hear from the agriculture lobby that we’ll need to spend more money on overseas trade missions. He’ll hear from incubators that we need to spend more money on incubators. He’ll hear from the public universities we need to spend more money on university R&D. He’ll hear from the chambers of commerce that government, not business, needs to spend more money on workforce development to give Virginians the skills they need in the marketplace.  McAuliffe will touch bases with all the stakeholders and he’ll hear the same thing they’ve been telling state government for decades: Give us more money!

In the early 2000s, back when I started Bacon’s Rebellion,  Governor Mark Warner initiated the state’s first economic development strategic plan. Before running for governor, Warner, a successful technology entrepreneur and venture capitalist, had traveled the state meeting with local business communities and setting up local venture funds. From first-hand experience, he understood the nexus between technology and entrepreneurial innovation. He appointed a highly capable attorney, Michael Schewel, as commerce secretary to oversee the study.

Schewel sought out new thinking, including the work, which was novel at the time, of economic geographer Richard Florida’s on the central role of the creative class. The final product of the study group included some interesting small-bore initiatives, strengthened business-university ties and represented genuine progress over previous thinking. But it conceptualized economic development along the lines of Virginia’s existing administrative organization and reflected the established institutional thinking of the “stakeholders.” Nothing really changed. If Warner and Schewel couldn’t push Virginia economic development into a fundamentally new direction, I fear, no one can. At least they tried. No one since then has made an effort to buck the conventional wisdom.

The most important thing we can do, as I blogged yesterday, is to think how to stimulate new business formation — especially of companies with high growth potential. We need more companies like Washington, D.C.-based SmartThings, an Internet-of-Things start-up which earlier this month sold out to Samsung for $200 million. SmartThings got its start literally two or three years ago with a Kickstarter fund raiser and $15 million in venture funding. That’s the kind of wealth creation we should be looking for.

One strategy would be to cull unnecessary regulation. Contrary to the views of some who frequent this blog, the state regulates many aspects of the economy to the detriment of innovation. Uber, Lyft and the taxicab sector is but one example of many that could be mentioned. Given time, I will detail others. But that is only a partial and incomplete solution. Perhaps more fundamentally, we need to build the kinds of communities where members of the creative class want to live. We need to recognize that economic development equals community development (smart growth). We also can work harder to help government do better those things that only government can do (smart cities).

The traditional pillars of economic development — industrial recruitment, tourism, agriculture — all have valuable contributions to make. But they are not sufficient by themselves to drive the economy forward. It is time for a stem-to-stern rethinking of how to move Virginia to the next level. If the budget crisis prompts that re-evaluation, it may prove more a blessing than a curse.

Innovative Virginia

Innovative State, 2014, by Aneesh Chopra; used with permission of the publisher, Grove/Atlantic, Inc.

Innovative State, 2014, by Aneesh Chopra; used with permission of the publisher, Grove/Atlantic, Inc.

In his new book, “Innovative State: How New Technologies Can Transform Government,” Aneesh Chopra makes the case for using technology to transform government in the United States. Weary of the old liberal-conservative debate of more government/less government, Chopra espouses effective government. In this book, he comes across as conservative in his frank acknowledgment that government often falls short in the execution of its goals. But the former Virginia Secretary of Technology and former Chief Technology Office for the Obama administration remains steadfastly liberal in his conviction that government can be a force for good.

While I hew to the view that less is more when it comes to government, I concede that certain core functions in American society are best provided by government. I believe that what government chooses to do, it should do well. And, like Chopra, I believe that technology can play a major role in improving government performance. That’s why I’m excited to make available to readers of Bacon’s Rebellion Chapter 3 of his book, which describes his experience as Secretary of Technology during the Kaine administration. I expect that readers will be impressed by Chopra’s approach as a pragmatic problem solver and encouraged how often, away from the spotlight, Virginia politicians are willing to cooperate on a non-partisan basis to get things done.

After resigning his job as CTO for the federal government (you’ll have to buy the book to find out what he did in that post), Chopra made an unsuccessful bid for the Democratic Party nomination as Lieutenant Governor. But he remains active in Virginia, as co-founder of Hunch Analytics, based in Rosslyn, which applies Big Data and Predictive Analytics to solve problems in education, energy and health care, and working behind the scenes with Governor Terry McAuliffe on workforce development and veterans affairs. I expect we’ll be hearing more from Chopra who, at 42, has a long career ahead of him. — JAB

Chopra

Aneesh Chopra

Chapter 3
The Virginia Model

Back in 1999, the Virginia legislature was seeking to make someone accountable for nurturing entirely new industries throughout the state, while making sure the government’s internal use of information technology was effective and efficient. Virginia became the first state in the nation to create a cabinet position for a Secretary of Technology. Three men would fill that role over the next six years, and their work over that time contributed to Governing magazine’s 2005 selection of Virginia as the “Best Managed State.”

In 2006, Tim Kaine, the successor to outgoing Governor Mark Warner, chose me to the the fourth Secretary of Technology. He had a different spin on the position, one in tune with the times. By 2006, the Internet had transformed the way consumers accessed information and conducted commerce. yet, though it had improved some services such as e-filing tax returns and renewing professional licenses, it had not meaningfully transformed the relationship between citizens and their government. Kaine assigned me to prioritize the improvement of that interface. I realized that one of the most important things government can do is remove restrictions that exist for really no good reason. On a visit to Google, for example, I learned two things: one, most people get to government websites through search engines, not by typing in their URLs, or bookmarking them; and second, government, perhaps unintentionally, made it difficult for search engines to index information that the public had the right to know. Within 90 days, we initiated a no-cost collaboration to simplify and standardize the interface between search engines and government websites, making it easier for the public to find what they need. We formed a coalition of four states, two led by Republican governors (Utah, California) and two by Democratic ones (Arizona, Virginia), whereby Google, Yahoo and Ask.com agreed on a standard sitemap protocol that the states agreed to adopt. Those states then assigned their webmasters to implement the new protocol, a task that took about an hour per site. By the launch in April 2007, Virginia had tagged about 80,000 of our own web pages (URLs) for addition to the participating search engines. In the first year of the initiatives, we observed a 40 percent spike in site visitors, at no cost other than the modest incremental staff effort.

One of the promising aspects of that initiative was its bipartisan backing. Before my term even started, and as it progressed, I made a point to reach out to members of the Republican-led legislature. Through those conversations, I became convinced that many in both parties viewed technology, data, and innovation initiatives from a more pragmatic prism, beyond the usual, inflexible left-right division. That was evident when those Republicans invited me, a Democrat, to partner as a nonvoting participant on the Joint Committee of Technology and Science (JCOTS), which organized small working groups that included members of the executive and legislative branches, as well as concerned citizens. More than a dozen bills endorsed by JCOTS passed through the legislature with overwhelming bipartisan support and were signed into law by Governor Kaine, including Republican-sponsored legislation to expand rural broadband access, adopt health IT standards, and permit school boards to purchase open source education resources.

Democrats, while a minority in the legislature, also attempted to put their signature on the smarter government movement, with the endorsement of the executive branch. Consider the way Business One Stop came together. Governor Kaine, wanting to buoy the state’s reputation as business friendly, sought to offer every Virginia entrepreneur a single destination to complete all the forms required to start a new enterprise — a task that otherwise might involved as many as seven state agencies, such as the State Corporation Commission, the Virginia Department of Taxation, and the Virginia Employment Commission. Governor Kaine, inspired by South Carolina’s presentation at a National Governors Association meeting, gave me the assignment of creating something similar.

Upon digging in, our team estimated that implementing the South Carolina model — which not only improved the user experience but also connected with existing systems within each impacted agency — would require an investment of roughly $7 million. That estimate far exceeded our available funds. So I improvised… Continue reading.

Map of the Day: Average Broadband Speeds

broadband_map
While Virginians beat themselves up over Medicaid expansion, slow economic growth and the McDonnell corruption trial, here’s a morsel of good news: According to Akamai’s latest “State of the Internet” report, Virginia has the highest average broadband speeds of any state in the nation — 13.7 Mbps (megabytes per second). That’s world-class, exceeded only by the average speed in South Korea and Japan. When it comes to the most important infrastructure of the knowledge economy, we’re in good shape.

global_connection_speedsThe news is not so good for the nation as a whole. Broadband penetration and speeds lag in many parts of the country. As a nation, the United States doesn’t even rank in the Top 10 nations for average broadband speed.

Also, there’s no way of telling how evenly those great speeds are distributed around the commonwealth. I’d guess that the statewide average is powered by phenomenal speeds in Northern Virginia, location of a ginormous percentage of the world’s Internet traffic. The region is laced with fiber-optic cable lines and studded with server farms.

Here in Henrico County, I’m served by Comcast (having just switched from Verizon FiOS). When I conducted an XFINITY speed test, my download speed was 121.15 Mbps while my upload speed was a lame 11.77 Mbps. Averaging the two numbers, that sounds awesome compared to the national average, but I don’t know if I’m comparing apples with oranges. (I can’t believe I’m four or five times faster than the national average.)

If you understand the technical issues, you can read Akamai’s notes on its methodology for calculating broadband speeds here. Take the EXFINITY speed test yourself (I don’t think you need to subscribe to Comcast). I’d be interested in hearing what others are experiencing.

(Hat tip: Larry Gross)

– JAB

Confessions of the Tic-Tac Man

Jonnie WilliamsBy Peter Galuszka

On afternoon last week, I was leaving the seventh floor courtroom at U.S. District Court  after Judge James Spencer called for a break. Jonnie R. Williams Sr., the prosecution’s star witness against former Gov. and Ms. McDonnell, had been on the stand for hours, playing various roles as remorseful solicitor, confident businessman, and obstructionist witness.

It just so happened that Williams and I were going to cross paths in the crowded outchamber of the courtroom. Without missing a beat, Williams stopped walking, made eye contact with me, and graciously held out his arm to signal that I should pass first.

I have no idea if Williams knew who I am, but the summer before, I had tried repeatedly to interview him for a serious of reports I was writing about Star Scientific, the tobacco company turned dietary supplement that is at the core of the trial against the McDonnells in perhaps the most important ever corruption trial in Virginia history.

Williams, 58, had been on the stand for four days, dressed as always in a shiny, expensive suit, his thinning hair coiffed around a high, bulbous forehead.

He has a strange voice, soft and proper, that sounds at times like an elder Marlon Brando or, without the harshness, Strother Martin, the man who played the cruel prison warden in the Paul Newman movie “Cool Hand Luke.” Either way, Williams does have a remarkable presence and he always seems to be selling, selling, selling something — either Anatabloc, his product that he claimed could do anything from cure Alzheimer’s to MS, or simply to promote  his own persona.

Williams, who has extensive immunity from the government, keeps underlining that his deal that could keep him out of jail, which means he must be honest. Honest means making “mea culpas.” They must sound sincere. When he said he pressured Maureen to get Bob to call his aging father on his 80th birthday, he recalled:  “That cost me hundreds of thousands of dollars to be able to do that,” he said. “The McDonnells were not my personal friends. It was good for my company,” noted Williams, who gave them more than $150,000 in gifts, loans, trips and cash.

That’s one version of Jonnie — pensive, regretful, honest. There was another one as well that came out when defense lawyer William Burck asked him to talk about his background in business. It was ego bait that Williams couldn’t resist.

It all came out — the confident kid from Fredericksburg who went to a little known business college in Rhode Island and came home to sell used cars and then took over a faltering eyeglass shop, learning how to pick up on one entrepreneurial idea and spin it into another.

Name dropping is a critical part of the Williams psyche, showing how impressed Williams was that his keen intellect had attracted helpful personalities far beyond his social kin. He keeps mentioning Johns Hopkins University Medical School and the “very bright” Dr. Frank O’Donnell who somehow came down from Baltimore and met Williams when he was working in the optical business. O’Donnell was a big league ophthalmologist, Williams said, and served as his mentor, even when he moved to the Midwest. Dr. O’Donnell came in with one business deal after another. One helped lead him to making machinery to cure near-sightedness, earning him millions and securing his personal finances.

Perking up during testimony, Williams ticked off medical terms as if he were the head of a medical school department. He also had developed a keen sense of what could and could not be said in good company, sort of like a small town boy of modest background who’s being let into the local country club for the first time.

When he took the McDonnells and a few others to La Grotta, an expensive Italian restaurant in downtown meeting after an Anatabloc session, he picked thousands of dollars’ worth of wine and informed the courtroom and jury that it was bad form to let your guests know if it’s $50 a bottle vintage of $500 a bottle. Of course, when he picked out the Louis XIII cognac for his male model friend, the McDonnells and some of their staff at a New York eatery in 2009, he was proud to reveal it cost $5,000.

“I really didn’t like it all that much but some people do,” he said. He also didn’t really like the Ferrari that he made a big effort to drive to Smith Mountain Lake in July 2011 so McDonnell could drive it at Maureen’s request while vacationing for free at Williams waterfront house. Williams says he prefers his Toyota Camry.

This same snobbery constantly extends to the medical and business hot shots who were helping build the idea that Williams’ use of anatabine, a substance found in tobacco, had remarkable curative powers. Jonnie was more than willing to tell you all about it, over and over, in his slow, calm, methodical voice.

Maureen McDonnell, who is being set up as the Fall Girl by her own lawyers, bought into the Williams’ spiel, big time. McDonnell’s professional staff, including Phil Cox and Jasen Eige, testified that they were deeply worried about Williams and kept on telling the governor to limit his engagement.

Smitten by Williams, Maureen kept pushing Jonnie and his miracle supplements, somehow overlooking the fact that there hadn’t been clinical trials on it and that Star Scientific had lost $230 million over the past decade (she still bought stock anyway despite Williams testimony that he told her it was a bad idea).

Rank and file Virginia researchers, whose imprimatur Williams so badly wanted, also were suspicious. When he’d show up pushing pills as samples, they called him the “Tic Tac Man.”

Diet Denier

Perhaps you could call Nina Teicholz a “diet denier.” The journalist and author of “The Big Fat Surprise: Why Butter, Meat and Cheese Belong in a Health Diet,” is part of the growing backlash against a half century-long orthodoxy that aimed to limit fat and cholesterol in the American diet. That orthodoxy, which ruled the medical establishment and the federal health apparatus, unwittingly engineered a society-wide shift to the sugar-heavy diet now deemed responsible for the surge in obesity and heart disease that afflicts the country.

In her book, Teicholz delved into the history of how fats, trans-fats and cholesterol came to be demonized and how public policy strove to drive fats out of the American diet. The movement began in the 1950s with a famous study by Ancel Keys, which postulated a link between cholesterol and heart health. The American Heart Association jumped on the bandwagon in 1961, the United States Department of Agriculture issued new dietary guidelines in 1978, and momentum built from there. Food companies rolled out low-fat, low-cholesterol food products, typically substituting sugar and salt for fat. Pharmaceutical companies introduced anti-cholesterol drugs. Schools and media brainwashed generations of Americans to change their behavior.

How could things have gone so wrong? As Teicholz explains in her TED talk above:

The same group of people were on all the expert panels. They all reviewed each others’ papers. These groups controlled all of the funding, so if you didn’t get on this cholesterol bandwagon, you couldn’t get funding, you couldn’t do research, you couldn’t be a scientist. Over the course of 25 years, this diet-heart hypothesis became ingrained in the institutions. There became an institutional bias. There was a bias in the media. And everybody lined up behind this hypothesis. You couldn’t be a scientist if you didn’t get on board.

Thankfully, a new generation of scientists questioned the orthodoxy. Now researchers are focusing on the excess consumption of sugar as the main culprit responsible for our dietary woes.

Fortunately, we’ve learned from our mistakes. Our scientific, media and government officials would never enforce another orthodoxy on the grounds that “97 percent of all scientists” in a given field agree that “the science is settled.”  We’d never rig the peer-review process to suppress unpopular scientific viewpoints. We’d never channel billions of dollars of federal funding into supporting one particular point of view of a massively complex phenomenon while de-funding dissenters. We’d never demonize skeptics as “anti-science,” tools of evil, self-interested corporations and moral analogues of holocaust deniers. We’re far too enlightened in the United States to ever let that happen.

Or are we?

– JAB

How Not to Shift From Coal

coal-plantBy Peter Galuszka

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

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

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

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

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

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

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

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

Does Virginia Want to Be a Wireless Friendly State?

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

Writes Hill in The Hill:

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

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

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

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

– JAB

More Defense Cuts Plague Virginia

Special deliveryBy Peter Galuszka

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

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

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

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

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

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

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

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

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

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

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

These are interesting, but very difficult choices.

McAuliffe Hits Private IT Outsourcing

mcauliffeBy Peter Galuszka

Just a decade ago, privatizing and out-sourcing traditionally government work was all the rage.

Virginia’s Democrats and Republicans alike saw a philosophical advantage in fending off Information Technology, road maintenance and other work to for-profit, private companies who supposedly – if you believed the hype then  –could always do things better, faster and more efficiently than state workers.

The concept of “government” workers always seemed to be negative. Not only would taxpayers have to pay their health and retirement benefits, they might try to join unions and make labor negotiations even more difficult. It didn’t wash with Virginia’s conceit of being an anti-labor, “right-to-work” state that promised to keep workers docile as the state tried to recruit outside firms.

Now, Gov. Terry McAuliffe is turning this concept on its head. He is ordering a review of state contracts, especially on out-sourced IT service work that he says may be inefficient and expensive. “I am concerned that state government is inappropriately dependent on expensive contract labor when traditionally appointed state employees can perform at a higher level at a lower cost.”

Now that’s a major turn-around, even for a Democrat. After all, it was fellow Democrat and former Gov. and now U.S. Senator Mark Warner, currently running for re-election, that worked the get the state to accept a $2.3 billion contract for defense contractor Northrop Grumman to take over and upgrade the state’s antiquated IT system in 2005.

That deal proved disastrous as the contractor’s performance issues brought on bouts of oversight and renegotiation. The state ended up extending its contract with Northrop Grumman by three years.

An underlying problem is that while the contract lasts until 2019, the state must make some decisions if it wants to continue with the outsourcing route or start relying on its own state workers.

Another problem is whether the state identifies independent contractors as such or employees of state organizations. About 1 percent of the state’s workers were misidentified as independents. Apparently, state workers have their Social Security and taxes withheld from paychecks. But are they really independents? Or is it just window dressing to play homage to some fad thought up by fiscal conservatives?

McAuliffe is right to start thinking in these terms. What he’s going to have to face, however, is the conventional wisdom in Virginia that “public” is always bad and “private, for-profit” is always good. For evidence of this hidebound view, just read this blog regularly.

Finally, Some Sense on Climate Change

mowbray archBy Peter Galuszka

Pulling the state’s head out of the sand, Gov. Terry McAuliffe has reversed his predecessor’s policy on addressing climate change.

He has reestablished a 35-member panel to see what the state can do to deal with what many scientists believe is an impending crisis. McAuliffe revived the panel first created by Democratic Gov. Tim Kaine and then left to wither away by former Republican Gov. Robert McDonnell.

Ironically, the new panel includes Michael Mann, a former University of Virginia climatologist who was the target of bitter and petty attacks by former arch-conservative Atty. Gen. Kenneth Cuccinelli over his view that mankind was responsible for carbon dioxide-driven greenhouse gases that are helping warm up the earth, melt polar ice caps and potentially flood huge sections of coastal cities such as Norfolk.

It’s about time that Virginia rejoined the 21st Century. McDonnell took the state backwards on environmental issues by gutting commissions such as this one and creating others that were devoid of ecological viewpoints and stacked with members of the fossil fuel industry and utility executives.

McAuliffe’s new commission has utility people like Dominion Virginia Power President Robert M. Blue and Bernice McIntyre of Washington Gas Light Company. But it is also well stocked with green types such as the Sierra Club, the Chesapeake Bay Foundation and the Southern Environmental Law Center whose views were pretty much in the wilderness during the McDonnell term.

It is finally time for the state to realize that climate change is real. Study after study shows that the state is vulnerable – from agricultural impacts brought on by different weather patterns to rising water in coastal areas. One area worth study is doing more to speed the switch to renewable energy sources like solar and wind.

McDonnell had pushed a policy that would make Virginia “the Energy Capital of the East Coast,” but the effort excluded renewables in favor of offshore oil and gas companies, nuclear power and coal.

Curiously, McAuliffe also favors such endeavors as offshore petroleum development. That raises questions in the face of massive fracking onshore for natural gas and the revolution it has sparked. Perhaps the new commission can provide some guidance.

It is refreshing that Virginia is finally emerging from the intellectual horse blinders that kept the debate stuck in Benghazi-style debates over emails at a British university or trying, unsuccessfully, as Cuccinelli did, to harass scientists globally over a ridiculous claim that Michael Mann had defrauded Virginia taxpayers by asserting what most climatologists do – that climate change is real and mankind is a reason for it.

Finally. . .