Category Archives: Taxes

Amateur Hour at the General Assembly

virginia_state_capitol502By Peter Galuszka

If you are an ordinary Virginian with deep concerns about how the General Assembly passes laws that impact you greatly, you are pretty much out of luck.

That’s the conclusion of a study by Transparency Virginia, an informal coalition of non-profit public interest groups in a report released this week. Their findings  came after members studied how the 2015 General Assembly operated.

Among their points:

  • Notice of committee hearings was so short in some instances that public participation was nearly impossible.
  • Scores of bills were never given hearings.
  • In the House of Delegates, committees and subcommittees did not bother to record votes on 76 percent of the bills they killed.

“Despite a House rule that all bills shall be considered, not all are. Despite a Senate rule that recorded votes are required, not all are,” states the 21-page report, whose main author is Megan Rhyne, executive director of the Virginia Coalition for Open Government. Transparency Virginia is made up of 30 groups, including the American Civil Liberties Union, NARAL Pro-Choice Virginia, the the Virginia Education Association and the League of Women Voters in Virginia.

The scathing report underscores just how amateurish the General Assembly can be. It only meets for only 45 days in odd-numbered years and 60 days in even-numbered years. The pay is pin money. Delegates make only $17,640 a year and senators earn $18,000 annually.

It is not surprising then that a part-time group of 100 delegates and 40 senators can’t seem to handle their 101 committees and subcommittees that determine whether the consideration of thousands bills proceeds fairly and efficiently.

“A Senate committee chair did not take comment on any bills on the agenda except for the testimony from the guests of two senators who were presenting bills,” the report states. In other cases, legislators were criticized by colleagues for having too many witnesses. Some cut off ongoing debate by motioning to table bills. Bills were “left in committee” never to be considered.

The Virginia Freedom of Information Act requires that open public meetings be announced three working days in advance. A General Assembly session is considered one, long open session. But the FOIA is often subverted by sly legislators who manipulate the agendas of committees or subcommittees or general sessions.

Agendas of the General Assembly are not covered by the FOIA because there is too much work to cram in 45 or 60 days. In the case of local and state governments, similar meetings are, presumably because they meet more regularly. House and Senate rules do not stipulate how much notice needs to be given before a committee or subcommittee session. So, crucial meetings that could kill a bill are sometimes announced suddenly.

The setup favors professional lobbyists who stand guard in the Capitol ready to swoop in to give testimony and peddle influence, alerted by such tools as “Lobbyist-in-a-Box” that tracks the status of bills as they proceed through the legislature. When something important is up, their beepers go off while non-lobbyist citizens with serious interests in bills may be hours away by car.

The report states: “While most of Virginia’s lobbyists and advocates are never more than a few minutes from the statehouse halls, citizens and groups without an advocacy presence may need to travel long distances.” Some may need to reschedule work or family obligations, yet they may get only two hours’ notice of an important meeting. That’s not enough time if they live more than a two-hour drive from Richmond.

The report didn’t address ethics, but this system it portrays obviously favors lobbyists who benefit from Virginia’s historically light-touch approach when it comes to limited gifts. That issue will be addressed today when the General Assembly meets to consider Gov. Terry McAuliffe’s insistence that a new ethics bill address the problem of allowing consecutive gifts of less than $100 to delegates or senators.

The only long-term solution is for Virginia to consider creating a legislature that works for longer periods, is better paid, more professional and must adhere to tighter rules on bill passage. True, some 24 states have a system somewhat like Virginia and only New York, Pennsylvania and California have truly professional legislatures.

The current system was created back in Virginia was more rural and less sophisticated. But it has grown tremendously in population and importance. It’s a travesty that Virginia is stuck with amateur hour when it comes to considering legislation crucial to its citizens’ well-being.

Yearning for Something New from “Rich State, Poor State”

rspsVirginia ranks No. 12 in the American Legislative Exchange Council’s just-issued eighth annual “Rich State Poor State” ranking of the economic outlook for the 50 states based on 15 state policy variables. Generally speaking, states the report authored by supply-side economists Arthur D. Laffer, Stephen Moore and Jonathan Williams, U.S. states that spend less (especially on income-transfer programs) and tax less experience higher economic growth rates than states that tax and spend more.

There is no question in my mind that, all other things being equal, higher taxes discourage business investment, job growth and wealth creation. And the evidence seems incontrovertible that over the long run — ironing out short- and medium-term fluctuations — a lower-tax environment is conducive to economic growth.

However, all other things are never equal. Some public investments, especially in education and infrastructure, have a higher social return on investment than others — and, arguably, a higher return than private investment. Likewise, public investment that is efficiently administered yields greater benefits than public investment guided by politics and cronyism.

The ALEC-Laffer economic competitiveness index was a useful ranking when it first came out. It’s important to know how states compare in their tax burden and other measures of economic freedom, such as debt service, judicial impartiality, number of public employees, right-to-work status and minimum wage. But the discussion can’t stop there. Unfortunately, “Rich States, Poor States” hasn’t substantively advanced the discussion since it was first implemented.

  • Yes, job growth and GDP growth are important measures, but they aren’t the only important measures. How about per capita income growth? How about the distribution of income growth — are the rich getting rich while everyone else stagnates? This study should incorporate a wider range of metrics.
  • Which taxes have the most adverse economic consequences? Do certain taxes distort the economy or alter incentives in ways that are more destructive than other taxes?
  • How have the outlook predictions held up? It would be useful to go back to the very first “Rich States, Poor States” ranking and compare outlook to actual performance. What is the correlation between measures of economic freedom and different metrics of growth? What percentage of the variation between states can be explained by Laffer’s measures? 10 percent? 20 percent? More? Less? What other variables matter?
  • Rather than look at total government spending, the study should look at different segments of spending. Is there a correlation between how much a state spends on education and economic outcomes? How about what a state spends on infrastructure? And how about amenities that supposedly matter to members of the creative class?

It seems like Laffer, Moore and Williams are on auto-pilot. The discussion about economic development has left “Rich States, Poor States” in the dust. Simply reiterating old nostrums, no matter how true in a general sense, doesn’t advance the public policy debate. Whacking tax rates is no recipe for prosperity, as Kansas Governor Sam Brownback has learned from his tax-cutting adventure. If this report doesn’t start plowing new ground, intellectually speaking, it will soon outlive its usefulness.

– JAB

A New, Improved Ken Cuccinelli?

ken-cuccinelliBy Peter Galuszka

Is one-time conservative firebrand Ken Cuccinelli undergoing a makeover?

The hard line former Virginia attorney general who lost a bitter gubernatorial race to Terry McAuliffe in 2013 is now helping run an oyster farm and sounding warning alarms about a rising police state.

This is remarkable switch from the man who battled a climatologist in court over global warming; tried to prevent children of illegal immigrants born in this country from getting automatic citizenship; schemed to shut down legal abortion clinics; tried to keep legal protection away from state gay employees; and wanted to arm Medicaid investigators with handguns.

Yet on March 31, Cuccinelli was the co-author with Claire Guthrie Gastanaga, executive director of the American Civil Liberties Union of Virginia of an opinion column in the Richmond Times Dispatch. Their piece pushes bipartisan bills passed by the General Assembly that would limit the use of drones and electronic devices to read and record car license plate numbers called license plate readers or LPRs.

Cuccinelli and Gastanaga say that McAuliffe may amend the bills in ways that would expand police powers instead of protect privacy. “The governor’s proposed amendments to the LPR bills gut privacy protections secured by the legislation,” they write. The governor’s amendments would extend the time police could keep data collected from surveillance devices and let police collect and save crime-related data from drones used during flights that don’t involve law enforcement, they claim.

When not protecting Virginians from Big Brother, Cuccinelli’s been busy oyster farming. He has helped start a farm for the tasty mollusks on the historic Chesapeake Bay island of Tangier. According to an article in The Washington Post, Cuccinelli got involved when he was practicing law in Prince William County after he left office.

He would visit the business and get roped into working at odd jobs. He apparently enjoyed the physical labor and the idea that oysters are entirely self-sustaining and help cleanse bay water.

Environmentalists scoff at the idea, noting that as attorney general, Cuccinelli spent several years investigating Michael Mann, a former University of Virginia climatologist who noted that humans were responsible for the generation of more carbon dioxide emissions and that has brought on climate change.

Some have pointed out that if Cuccinelli had had his way, he would have helped quash climate science, generated even more global warming and sped up the inundation of Tangier Island by rising water levels.

It will be interesting to see if Cuccinelli intends to rebrand himself for future political campaigns and how he tries to reinvent himself.

Cruz, “Liberty” and Teletubbies

AP CRUZ A USA VA By Peter Galuszka

Where’s the “Liberty” in Liberty University?

The Christian school founded by the controversial televangelist Jerry Falwell required students under threat of a $10 “fine” and other punishments to attend a “convocation” Monday where hard-right U.S. Sen. Ted Cruz announced his candidacy for president.

Thus, Liberty produced a throng of people, some 10,000 strong, to cheer on Cruz who wants to throttle Obamacare, gay marriage, abolish the Internal Revenue Service and blunt immigration reform.

Some students stood up to the school for forcing them to become political props. Some wore T-Shirts proclaiming their support of libertarian Rand Paul while others protested the university’s coercion. “I just think it’s unfair. I wouldn’t say it’s dishonest, but it’s approaching dishonesty,” Titus Folks, a Liberty student, told reporters.

University officials, including Jerry Falwell, the son of the late founder, claim they have the right as a private institution to require students to attend “convocations” when they say so. But it doesn’t give them the power to take away the political rights of individual students not to be human displays  in a big and perhaps false show.

There’s another odd issue here. While Liberty obviously supports hard right Tea Party types, the traditional Republican Party in the state is struggling financially.

Russ Moulton, a GOP activist who helped Dave Brat unseat House Majority Leader Eric Cantor in a primary last summer, has emailed party members begging them to come up with $30,000 to help the cash-strapped state party.

GOP party officials downplay the money problem, but it is abundantly clear that the struggles among Virginia Republicans are as stressed out as ever. Brat won in part because he cast himself as a Tea Party favorite painting Cantor as toady for big money interests. The upset drew national attention.

Liberty University has grown from a collection of mobile homes to a successful school, but it always has had the deal with the shadow of its founder. The Rev. Falwell gained notoriety over the years for putting segregationists on his television show and opposing gay rights, going so far as to claim that “Teletubbies,” a cartoon production for young children, covertly backed homosexual role models.

Years ago, the Richmond Times-Dispatch published a story showing that the Rev. Falwell took liberties in promoting the school he founded in 1971. Brochures touting the school pictured a downtown Lynchburg bank building with the bank’s logo airbrushed off. This gave the impression that Liberty was thriving with stately miniature skyscrapers for its campus.

Some observers have noted that Liberty might be an appropriate place for the outspoken Cruz to launch his campaign. The setting tends to blunt the fact that he’s the product of an Ivy League education – something that might not go down too well with Tea Party types – and that he was actually born in Canada, although there is no question about his U.S. citizenship and eligibility to run for question.

Hard-line conservatives have questioned the eligibility of Barack Obama to run for U.S. president although he is likewise qualified.

With Cruz in the ring and Liberty cheering him, it will make for an interesting campaign.

An Inexpensive Experiment

Henrico industrial property anyone?

Henrico industrial property anyone?

by James A. Bacon

Henrico County, my home county, is conducting an inexpensive public policy experiment. If it pans out, the county could improve its competitive posture as a manufacturing location. If it doesn’t, the county hasn’t lost much and can always revert to the previous status quo.

County Manager John A. Vithoulkas has included a 70% cut to the county’s machine & tools tax in next year’s annual budget from $1 per $100 in value to $0.30, a measure that will cost the county an estimated $1.5 million a year in revenue. The cut appears poised to pass, reports Ted Strong with the Richmond Times-Dispatch. It received no opposition in last week’s legislative budget hearings.

“In the long term, this should lead to more manufacturing jobs, which will add more revenue to the county’s coffers,” Vithoulkas said. “We are competing for jobs in the world market now. And we aim to not just compete, but to win.”

The move will help the county capitalize on increased activity in the manufacturing sector, especially “on-shoring” or the repatriation of manufacturing jobs to the United States from abroad, said Gary McLaren, executive director of the Henrico County Economic Development Authority. “We’re serious about attracting manufacturing jobs to Henrico County, and I think this is proof of that.”

Brett Vassey, president of the Virginia Manufacturers Association, described the tax as one of the biggest impediments to manufacturing expansion in Virginia. The tax discourages companies from spending on new equipment that will make them more competitive. “Capital is like water. It flows to the lowest point,” he said.

I’m not totally convinced that the tax cut will make a difference, and it will be hard to determine if is a decisive factor even if Henrico does attract new manufacturing investment. But I think it’s worth a try. On-shoring is a major trend, and Virginia localities should try to exploit it. As labor costs rise in China, many companies are thinking about pulling some of their manufacturing operations back to the U.S. The trend is especially strong in energy-intensive industries that can take advantage of super-low natural gas prices.

But I have two questions. First, will the surging value of the U.S. dollar hurt Virginia (and the rest of the nation) as a manufacturing platform? The economic commentary is almost unanimous that manufacturing will be one one of the hardest-hit sectors. As long as Europe and Japan persist in competitive devaluations of their currencies as a tool to stimulate their economies through their own versions of Quantitative Easing, U.S. manufacturing will suffer.

Second, will Virginia be in a position to exploit natural gas prices? Virginia produces very little of its own natural gas; it relies upon pipelines to bring in gas from the Gulf Coast or (in the future) the Marcellus Shale gas-producing areas of the country. Virginia is bumping up against the ceiling of its gas capacity.

During a February cold snap, Virginia Natural Gas, the AGL Resources subsidiary that distributes gas to the Hampton Roads area, was hard pressed to keep the gas flowing. “Every valve was open,” Ken Yagelski, managing director of gas supply, told me in a recent interview. “We were utilizing all the capacity resources we had to serve our customers.” The company curtailed service to all 108 of its customers who had contracted to have their gas supply interrupted in exchange for a discount in rates. Those customers were prepared for the interruption, so no harm was done, but Yagelski says the incident could be a prelude to the future.

Demand for natural gas in in VNG’s service area is growing one or two percent yearly. VNG is looking to the proposed 550-mile Atlantic Coast Pipeline, a venture in which it is a partner, to supply the gas for the next generation of growth. But the routing of that pipeline has proved to be incredibly controversial, and there is no guarantee at this point that it will be built. If it isn’t,  supply curtailments likely will become more frequent and, at some point, VNG would have to stop taking new customers.

VNG serves Hampton Roads, but would-be industrial customers in the Richmond region would be just as concerned about the reliability of gas supplies.

Bacon’s bottom line: Attracting new manufacturing investment through lower machine & tool taxes is no slam-dunk, and it would be unwise to create expectations that it will lead to sudden success. But if the spike in the value of the dollar proves to be temporary and the Atlantic Coast Pipeline does get built, Henrico’s bet should be one well worth taking. At the very least, a broad-based tax cut that benefits incumbent businesses as well as newcomers is vastly preferable to doling out subsidies and tax incentives to bribe one specific company to invest here.

Interview: McAuliffe’s Economic Goals

 maurice jonesBy Peter Galuszka

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

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

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

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

Read more, read here.

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

Whatever Happened to “Boomergeddon?”

rush_limbaugh5By Peter Galuszka

Attention ditto-heads!

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

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

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

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

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

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

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

Thank You, Congress

fallonby James A. Bacon

With apologies to Jimmy Fallon:

Thank you, Congress…. for your inability to pass the Marketplace Fairness Act. Your legislative ineptitude not only spared Virginians from paying an estimated $250 million a year in online sales taxes, but it triggered a provision in Virginia law replacing the anticipated set-aside of $168 million of that sum with a 5.1% wholesale gasoline sales tax — actually requiring people who drive cars to pay a portion of the cost of building and maintaining roads.

The Rube Goldberg taxation scheme was enacted by the 2013 General Assembly as part of the McDonnell administration’s transportation tax deform program to raise an estimated $880 million for new road and mass transit projects. The law scrapped the retail gas tax, jacked up the retail sales tax, hiked fees on motor vehicle sales and titling and tapped the expected revenue geyser from the sales tax on online sales. Virginia’s lawmakers were astute enough to anticipate the possibility that a gridlocked Congress might not get around to passing the online sales tax, however, and approved a backup, the higher wholesale gasoline tax, as a replacement.

Virginia’s 2013 tax deform was an abomination because it obliterated the user-pays principle for transportation funding, in which the people who use roads and rail are the ones who pay for it. Legislators embraced the essentially socialist principle that everyone should help pay for transportation infrastructure, regardless of how much they use it, or indeed whether they use it at all.  Telecommuters, bicycle riders, pedestrians and little old ladies who drive 3,000 miles a year contribute as much through their sales taxes as road warriors driving 20,000 miles a year and rail riders who pay nothing toward the cost of building their projects.

By jacking up the wholesale price of gasoline, the commonwealth will partially, though incompletely, restore the user pays principle, at least for road users. The system for financing transportation improvements in Virginia remains hopelessly broken, but it’s a little less hopelessly broken than it otherwise would have been.

Virginia’s Top Stories in 2014

mcd convictedBy Peter Galuszka

The Year 2014 was quite eventful if unsettling. It represented some major turning points for the Old Dominion.

Here are my picks for the top stories:

  • Robert F. McDonnell becomes the highest-ranking former or serving state official to be convicted of corruption. The six-week-long trial from July to September of the Republican former governor and his wife, Maureen, was international news. In terms of trash, it offered everything – greed, tackiness, a dysfunctional marriage, a relationship “triangle,” and an inner glimpse of how things work at the state capital.  More importantly, it ends forever the conceit that there is a “Virginia Way” in which politicians are gentlemen above reproach, the status quo prevails and ordinary voters should be kept as far away from the political process as possible. It also shows the unfinished job of reforming ethics. The hidden heroes are honest state bureaucrats who resisted top-down pushes to vet dubious vitamin pills plus the State Police who did their investigative duty.
  • Eric Cantor loses. Cantor, another Republican, had been riding high as the 7th District Congressman and House Majority Leader. A wunderkind of the Richmond business elite, Cantor was positioned to be House Speaker and was considered invulnerable, at least until David Brat, an unknown college economics professor and populist libertarian, exploited fractures in the state GOP to win a stunning primary upset. Cantor immediately landed in a high-paying lobbying job for a financial house.
  • Terry McAuliffe takes over. The Democrat Washington insider and Clinton crony beat hard-right fanatic Kenneth Cuccinelli in a tight 2013 race. He bet almost everything on getting the GOP-run General Assembly to expand Medicaid benefits to 400,000 low income Virginians. He lost and will try again. He’s done a pretty good job at snaring new business, notably the $2 billion Shandong-Tralin paper mill from China for Chesterfield County. It will employ 2,000.
  • Roads projects blow up. Leftover highway messes such as the bypass of U.S. 29 in Charlottesville finally got spiked for now. Big questions remain about what happened to the $400 million or so that the McDonnell Administration spent on the unwanted U.S. 460 road to nowhere in southeastern Virginia.
  • Gay marriage becomes legal. A U.S. District Judge in Norfolk found Virginia’s ban on gay marriage unconstitutional and the U.S. Supreme Court pushed opening gay marriage farther. The rulings helped turn the page on the state’s prejudicial past, such as the ban on interracial marriage that lasted until the late 1960s.
  • Fracking changes state energy picture. A flood of natural gas from West Virginia and Pennsylvania has utilities like Dominion Resources pushing gas projects. It’s been nixing coal plants and delaying new nukes and renewables. Dominion is also shaking things up by pitching a $5 billion, 550-mile-long pipeline through some of the state’s most picturesque areas – just one of several pipelines being pitched. The EPA has stirred things up with complex new rules in cutting carbon emissions and the state’s business community and their buddies at the State Corporation Commission have organized a massive opposition campaign. McAuliffe, meanwhile, has issued his “everything” energy plan that looks remarkably like former governor McDonnell’s.
  • State struggles with budget gaps. Sequestration of federal spending and defense cuts have sent officials scrambling to plug a $2.4 billion gap in the biennial budget. It is back to the same old smoke and mirrors to raise taxes while not seeming to. Obvious solutions – such as raising taxes on gasoline and tobacco – remain off limits.
  • College rape became a hot issue after Rolling Stone printed a flawed story about an alleged gang rape of a female student at the prestigious University of Virginia in 2012. Progressives pushed for raising awareness while conservatives took full advantage of the reporter’s reporting gaps to pretend that sex abuse is not really an issue.
  • Poverty is on the radar screen, especially in Richmond which has poverty rate of 27 percent (70 percent in some neighborhoods) and other spots such as Newport News. Richmond Mayor Dwight Jones got a lot of national press attention for his campaign to eradicate poverty but it is really hard to understand what he’s actually doing or whether it is successful. The real attention in Richmond is on such essentials as replacing the Diamond baseball stadium, justifying a training camp for the Washington Redskins and giving big subsidies for a rich San Diego brewer of craft beer.
  • Day care regulation. Virginia has a horrible reputation for allowing small, home day care centers to operate without regulation. Dozens have children have died over the past few years at them. This year there were deaths at centers in Midlothian and Lynchburg.
  • The continued madness of the Virginia Tobacco Indemnification and Community Revitalization Commission. This out-of-control slush fund in the tobacco belt continued its waywardness by talking with Democratic State Sen. Phil Pucket about a six-figure job just as Puckett was to resign and deny a swing vote in the senate in favor of expanding Medicaid. The commission also drew attention for inside plays by the politically powerful Kilgore family and giving $30 million in an unsolicited grant to utility Dominion.

Big Energy’s Conspiracy with Attorneys General

Former Va. Atty. Gen. Miller --toady for Big Energy

Former Va. Atty. Gen. Miller –toady for Big Energy

By Peter Galuszka

What seems to be strong opposition to a host of initiatives by President Barack Obama and the U.S. Environmental Protection Agency to curtail carbon and other forms of pollution is no mere coincidence.

According to a deeply reported story in Sunday’s New York Times, some state attorneys general, most of them Republicans, are part of what seems to be a covert conspiracy to oppose carbon containment rules in letters ghost-written by energy firms.

And, there’s a big Virginia connection in former Democratic Atty. Gen. Andrew P. Miller and George Mason University which have been bankrolled by conservative and Big Energy money for years.

The cabal has drawn its modus operandi from the American Legislative Exchange Council, funded by the ultra-right, oil-rich Koch Brothers of Kansas. In that case, ALEC prepares “templates” of nearly identical legislation that fits the laissez-faire market and anti-government and regulation principles held dear by the energy and other big industries. Many marquee-name corporations such as Pepsi, McDonald’s and Procter & Gamble have dropped their ALEC membership  after public outcries.

In the case of the attorneys general, big petroleum firms like Devon Energy Corporation of Oklahoma draft letters opposing proposals that might hurt their profits such as ones to regulate methane, which can be a dangerous and polluting result of hydraulic fracking for natural gas. The Times notes that Oklahoma Atty. Gen. E. Scott Pruitt then took Devon’s letter and, almost-word-for-word, submitted it in his “comments” opposing EPA’s proposed rules on regulating fracking and methane.

The secretive group involves a great deal of interplay involving the Republican Governor’s Association which, of course, helps channel big bucks campaign contribution to acceptable, pro-business attorneys general. In 2006 and 2010, Greg Abbott of Texas got more than $2.4 million from the group. Former Virginia Atty. Gen. Kenneth Cuccinelli got $174,5638 during his 2009 campaign.

One not-so-strange bedfellow is former Virginia Atty. Gen. Andrew P. Miller who was in office from 1970 to 1977 and is now 82 years-old. He’s been very business promoting energy firms. As the Times writes:

Andrew P. Miller, a former attorney general of Virginia, has in the years since he left office built a practice representing major energy companies before state attorneys general, including Southern Company and TransCanada, the entity behind the proposed Keystone XL pipeline. The New York Times collected emails Mr. Miller sent to attorneys general in several states.

“Mr. Miller approached Attorney General Scott Pruitt of Oklahoma in April 2012, with the goal of helping to encourage Mr. Pruitt, who then had been in office about 18 months, to take an even greater role in serving as a national leader of the effort to block Obama administration environmental regulations.

“Mr. Miller worked closely with Mr. Pruitt, and representatives from an industry-funded program at George Mason, to organize a summit meeting in Oklahoma City that would assemble energy industry lobbyists, lawyers and executives to have closed-door discussions with attorneys general. The companies that were invited, such as Devon Energy, were in most cases also major campaign donors to the Republican Attorneys General Association.

“Mr. Miller asked [West Virginia Attorney General Patrick Morrisey] to help push legislation opposing an Obama administration plan to regulate carbon emissions from existing coal-burning power plants. Legislation nearly identical to what Mr. Miller proposed was introduced in the West Virginia Legislature and then passed. Mr. Morrisey disputed any suggestion that he played a role.”

Not only that, but George Mason has an energy study center that is bankrolled by Big Energy and tends to produce policy studies of what the energy firms want. It also has the Mercatus Center, a right-wing think tank bankrolled by the Koch Brothers.

So, when you see what seems to be a tremendous outcry against badly needed regulations to curb carbon emissions and make sure that fracking is safe, it may not be an accident. And, it comes from attorneys general who should be protecting the interests of average residents in their states instead of being toadies for Big Energy.