• The Right Vote for the Wrong Reasons

    Republicans in the state Senate have spiked the so-called homestead exemption, a proposed constitutional amendment that would have enabled local governments to shift the property tax burden from homeowners to commercial property owners.

    There are good reasons to oppose the legislation, as I’ve blogged in the past: It would hurt renters, who are disproportionately poor and working class, and it would provide the middle class only a temporary reprieve from steadily upward marching tax rates. If lawmakers really want to help taxpayers, quit with the gimmicks and address the rising cost of government.

    Unfortunately, according to the Washington Post, the Republicans didn’t cite those legitimate reasons for killing the bill. Aside from worrying about the higher tax on business, they told the Post, “It was a flawed bill that needed more scrutiny. In particular, they said, the language could be construed to let only certain neighborhoods receive the exemption.”

    They’re objecting to the legislation on the basis of a technicality? If the language of the bill were corrected so that exemption applied to an entire locality and not just “certain neighborhoods,” they might consider supporting the homestead exemption? C’mon.

    The problem with the legislation is that it is structured as a win-lose proposition: For every person who benefits from tax relief, the tax burden gets shifted to someone else. It’s inherently divisive. The only long-term solutions to the problem of overtaxation are productivity and efficiency. That means streamlining government administration. Encouraging the development of human settlement patterns that are less expensive to serve with roads, utilities and services. Squeezing the bureaucratic bloat out of K-12 education. Reforming a dysfunctional health care system that drives up Medicaid costs. Develop programs that rehabilitate prisoners and ease their re-entry into society. Anything else is rearranging deck chairs on the Titanic.


  • Profiles in Courage

    From a Washington Post article this morning recounting the defeat in the state Senate of a Democratic-backed proposal to increase the state gasoline tax:

    [Del. Brian Moran, D-Alexandria,] a likely Democratic candidate for governor next year, said he voted against the increase because it failed to garner support from Republicans. “Any effort to raise taxes has to be bipartisan,” Moran said. “This was an opportunity for rural legislators to take the lead, and they chose not to.”

    Moran’s decision could become an issue in next year’s Democratic primary for governor. Sen. R. Creigh Deeds (D-Bath), who also is running for governor, voted for [the] bill in the Senate.

    Presumably, Morgan supports the idea of the gas tax — he just doesn’t want to take the heat for it. Hmm… Wonder what kind of governor he would be.


  • Curriculum VITA

    Behind the scenes, a major backlash against the Virginia Information Technologies Agency seems to be underway. One bill favored by the Kaine administration, but since deep-sixed, sought to transfer power over the purchase of computer hardware and peripherals to the Department of General Services, which oversees procurement for everything else in state government. Meanwhile, Sen. Ken Stolle, R-Virginia Beach, has pushed a bill that would direct the Joint Legislative Audit and Review Committee (JLARC) to evaluate the cost, quality and value of services that VITA provides state agencies.

    After I raised a number of issues in a recent post, VITA chief Lemuel Stewart offered to address them. He invited me to the Commonwealth Enterprise Solutions Center, the state’s new IT nerve center south of Richmond, for a tour and interview. It was an offer I couldn’t refuse.

    Today’s e-zine column, “Curriculum VITA,” summarizes my findings from that visit. Let me make this very clear: This is just one side of the story, VITA’s side. I did not have the time to solicit quotes from agency administrators, most of whom would have been politically constrained in any case from stating their true opinions. Even so, Stewart makes a strong case that VITA has racked up impressive achievements in overhauling an IT infrastructure that had operated inefficiently as some 90 disjointed, feudal-style entities across state government. Accomplishments include:

    • Greater security from a catastrophic failure of the system due to a hurricane, hackers, saboteurs or some other external cause.
    • A statewide IT system built on 2000s-era technology, a big upgrade from the ’80s-era technology that served about 60 percent of the state bureaucracy.
    • Leveraging the state’s size to drive down the price of PCs and applications, saving tens of millions of dollars each year.
    • Electricity savings from energy-efficient PCs, servers and other hardware — the benefit for which shows up in agencies’ electric bills, not their IT budgets.
    • No IT project failures, in contrast to a track record of tens of millions of dollars in pre-VITA projects that crashed and burned.

    Plus, there’s one more benefit that I didn’t get into the story: Construction of a back-up facility in Lebanon, in Southwest Virginia, by VITA partner Northrop Grumman, creating more than 400 quality, knowledge-economy jobs in an economically distressed region of the state.

    Stewart attributes the dissatisfaction to three primary causes: (1) agency loss of authority over IT projects costing more than $100,000; (2) the migration of state government to the new system one agency at a time, delaying the benefits for some; and (3) changes in the formula that allocates IT costs between agencies, resulting in some winners and some losers. When the three-year transition phase winds up by the end of this year, he predicts, much of the unhappiness should dissipate.

    To repeat, this is Stewart’s side of the story. If you have other perspectives, please consider this blog a forum to air them.


  • The Big Lie?

    Virginia Attorney General Bob McDonnell got headlines throughout the region Feb. 21 by showing he was tough on both immigration and sex offenders. Boasting that his cooperation with federal and state law enforcement authorities could be a model nationally, McDonnell said that more than 171 immigrant sex offenders had been identified and set up for deportation.

    A closer reading (see my column, “The Big Lie?”) shows that most of the foreign-born people on the sex offenders list werenโ€™t here, had been deported or were about to be deported. Thatโ€™s hardly a call to arms for ever tougher enforcement.

    It doesnโ€™t matter, though, because headlines boost McDonnell, GOP gubernatorial candidate in 2009, once again unfairly tainting newcomers for craven political purposes. Research canโ€™t decide if immigrants are a bigger sex crime threat than native born Americans. But if right-wing politicians like McDonnell keep repeating a Big Lie, people will believe it.

    (Posted on behalf of Peter Galuszka.)


  • From an Undisclosed Location in Henrico County…

    The elusive militants behind Bacon’s Rebellion have issued another missive, apparently timing their communication to influence the current session of the General Assembly. Authorities say that the Feb. 25, 2008, edition of the Bacon’s Rebellion e-zine, which can be found online, made an appeal to elements of the population disaffected with Business As Usual. Particularly insidious, officials noted, was the e-zine’s technique of offering free subscriptions as a tactic to recruit more adherents.

    Here is a summary of the contents:

    Curriculum VITA
    The overhaul of the Commonwealth of Virginia’s antiquated IT system is a textbook study of how government can improve performance and save money — without a dime of taxpayer investment.
    by James A. Bacon

    Walking Ahead of the Times
    Virginia’s stagnation two centuries ago reminds us that true leaders slip the bonds of the present, not just the past.
    by Doug Koelemay

    Learning from the Mouse
    Why do people travel halfway around the world to visit Disney World and Octoberfest? One big reason: Both are places where you don’t need cars to get around.
    by EM Risse

    Fund the Child, Not the Bureaucracy
    Virginia’s formula for distributing state aid to schools is indecipherable. A little common sense would make the system more transparent.
    by Chris Braunlich

    The Big Lie?
    Headlines tie immigrants to sex crimes as politicians like GOP gubernatorial hopeful McDonnell cash in on the xenophobia they stir up.
    by Peter Galuszka

    The Untold Story
    House Republicans warrant much of the criticism they get, but give them credit for this: They share power more fairly with minority Democrats than the Dems ever did with them.
    by Frank Kilgore

    Nice & Curious Questions
    The Physics of Incentives
    Or, Enterprise Zones in the Old Dominion
    by Edwin S. Clay III and Patricia Bangs


  • Richmond-y Goodness

    For people like me, who’ve been deeply distracted all week and haven’t had much of a chance to blog, there’s no better way to get in touch with what’s shaking in River City than reading Don Harrison. This one’s a beauty, covering the mayoral election, the city’s war on nightlife, the decrepit schools…it’s all good.

    But Don does raise a few issues that need to be addressed. The first is the city’s aptly-titled war of attrition against night clubs it deems unsavory:

    Youโ€™d really have to be a โ€œcertifiableโ€ apologist for the status quo in order to defend the cityโ€™s totally-illogical targeting of the Cotton Club and Club 534, as detailed in this weekโ€™s Style Weekly. Still, Iโ€™ve heard no staunch defenders of property rights out in the blogosphere or anywhere else standing up to denounce the cityโ€™s blatant harassment and targeting of nightclubs they donโ€™t approve of โ€” but canโ€™t legally close down.

    I plead guilty to not following this story, but will admit that it has that special statist odor which usually seeps from the pores of bureaucrats with more time on their hands than common sense in their heads. Or, to be more precise, they seem to have more than one master…in this case, very possibly, VCU, which wants one of the properties in question and tried recently to purchase it, but were unsuccessful. Read the whole Style piece to get a sense of the byzantine maneuvering going on here… and then ask yourself whether the much vaunted changes in Richmond’s political culture are merely cosmetic, or simply illusory.

    The real fun for locals, though, is the upcoming race for Richmond mayor. The current incumbent, Doug Wilder, has systematically burned and then dynamited the ruins of just about every bridge he has during his tenure. That’s not to say some of those bridges didn’t deserve what the treatment they got. They did. However, residents are right to ask whether the Wilder years have really, truly, beneficial. Having left the city nearly four years ago (owing almost entirely to the condition of the city’s schools), it’s hard for me to say whether the day-to-day operations have improved. But even from a distance, it is apparent that Richmond has a long way to go before it is fully clear of the incompetence that characterized its government. Somehow, the great white elephant of a performing arts center is still moving forward. For whatever reason, the school system’s overseers still seem more interested in settling personal scores than improving the lot of their young charges. And the political culture still seems to be as backward and tribal as ever.

    For those reasons and more, folks like Paul Goldman and Jackie Jackson have decided to run for mayor, while Wilder remains publicly uncommitted. Perhaps he will dive in, and I suspect that if he does, he will be the prohibitive favorite. However, Paul Goldman’s mere presence in the race should make any contest between the two worth watching. As for Jackson, who still seems to be shopping for a constituency, I can’t say that her presence will make much of a difference. That could change as the race develops, of course, but for now, Richmond residents may be in for a contest pitting the Wild One against his one-time Richelieu. They could (and maybe should) sell tickets to that one.


  • The W&M Board Answers Its Critics

    I was reading between the lines the other day when I drew some harsh conclusions about recently resigned William & Mary President Gene Nichol (see “The Nichol Resignation Narrative Is Looking Weaker and Weaker“). The charismatic but erratic college president had baldly misrepresented the circumstances of his resignation, I’d written, and in doing so had generated waves of negative headlines for the university he purported to love. He was not fired for ideological reasons, as he claimed, but for his failures as an administrator. I now feel totally vindicated in drawing those conclusions.

    At last the W&M Board of Visitors has directly answered the falsehoods and misrepresentations that Nichol made in his resignation letter and has allowed his admirers to perpetuate. As Bill Geroux reports for the Times-Dispatch, “Board members insisted it was Nichol’s shortcomings as as a fundraiser and administrator, not his stands on the Wren Cross and other controversies, that made them decide not to renew his contract.”

    Indeed, the very manner in which Nichol handled his resignation — misrepresenting the facts, going public in an impulsive and dramatic fashion, and allowing falsehoods to spread uncorrected — only confirms that the BoV was utterly correct in its appraisal of the man. Nichol was, and remains, a loose cannon. He has no business being a university president.

    When eight of 17 board members gathered on campus yesterday to answer a barrage of questions from irate students and faculty, Rector Michael K. Powell added new details of the BoV’s concerns about Nichol’s performance. Nichol’s Gateway program to provide financial help for low-income students, he revealed, was on the verge of foundering for lack of money. The board also had suggested a year ago that the president hire a chief operating officer to help him with administrative matters, but he showed no interest. We’ll never know the full story, unfortunately, because Powell is restrained by his respect for Nichol’s privacy and dignity from delving into the ugly details.

    Board member Kathy Hornsby also put the lie to charges that the board was swayed by the outcries of conservative alumni or meddling by members of the General Assembly. She descibed herself as a “liberal Democrat” who was not intimidated by the conservative critics. Likewise, board member Anita Poston said that, as “a child of the ’60s,” she found the controversial sex workers show to be “very, very tame.” Nichol’s I-was-fired-because-of-my-principles storyline is a red herring.

    Bacon’s bottom lines: There are two bottom lines. First and most important, it is increasingly clear that Nichol misrepresented the circumstances of his resignation. Through his dramatic departure, he plunged the university into controversy and besmirched its good name. Frankly, I think he should be run off campus (he’s staying on as a law school professor): not because he’s a “liberal.” There are many other college professors as liberal as he, if not more so, but they contribute to the university rather than diminish it. Nichol should be evicted because he has demonstrated that he has no regard for the truth and he has inflicted great harm on a fine institution.

    The second lesson is that the conservatives in the General Assembly who politicized Nichol’s handling of the sex workers show should have butted out. By hauling in BoV members for questioning, they made the board’s job more difficult by lending credence to the idea that Nichol was the victim of a witch hunt. I stand by my observations in January, “There’s a Right Way and a Wrong Way to Get Rid of Nichol,” that political grandstanding by politicians was unhelpful. The system worked as it was designed to work without any interference from the outside.

  • Virginia’s Climate Change Agenda

    I’ve long been concerned that the “climate change” debate has morphed from a subject of legitimate scientific inquiry into an ideological movement that pits liberal world views vs. conservative, and that reasoned discourse has transmogrified into tribal, us-versus-them combat. I hope fervently that Gov. Timothy M. Kaine’s commission on climate change can avoid falling into that trap.

    I find some cause for optimism after reviewing a work plan for the commission between now and November. This document, volunteered to me by Preston Bryant, secretary of natural resources, addresses many of the issues that I have raised in this blog, as well as many that I had not thought of, and it does so in a seemingly dispassionate manner.

    Expected impact. How will climate change affect Virginia? Topics include rising sea levels and ocean acidification; impact on agriculture, Chesapeake Bay fisheries and natural systems such as forests, wetlands and wildlife; impact on the built environment such as transportation, utilities, ports, tourism, military installations and (as I interpret it) oceanfront development.

    Sources of greenhouse gas emissions. Where do greenhouse gases originate in Virginia? How much comes from electric utilities and industry? What impact do development patterns have on transportation and automobile emissions? What contribution can “carbon sinks” (such as forest land, I presume, or perhaps carbon sequestration technologies) make to absorbing greenhouse gases?

    Adapting to climate change. What options do Virginians have to cut emissions? What emerging technologies, such as wind farms and algal biofuels, can we turn to? What potential is there for conservation through building practices, energy use management, and building codes?

    Cost-benefit analysis. What is the cost-benefit ratio of the various strategies proposed?

    Overall, the approach seems reasoned and technocratic — but I am perturbed by one inherent bias in the work plan. The Kaine administration has boxed itself in by laying out a goal of cutting greenhouse gas emissions by 30 percent compared to what they would be otherwise. That goal is all fine and good, but Virginia could cut emissions to zero and we would have an infinitesimal impact on global trends. Conservation and renewable fuels are good, very good. But, if by focusing on those goals we neglect priorities such as adapting to adverse impacts, we’re doing ourselves a tremendous disservice.

    Climate change will be whatever it will be, however much we reduce our greenhouse gas emissions, however much hot air we vent in debate. If sea levels are going to rise, nothing that Virginians do can stop them. If Virginia is destined to experience droughts and higher temperatures, we cannot alter that fate. But we can adapt to those conditions. How we adapt is very much within our control. That, in my humble opinion, is where the Governor’s Commission should focus more of its attention. But we’ll see how the study unfolds before drawing any conclusions.

  • Coming Soon: Conservation Incentives for Natural Gas

    In a rare display of bipartisanship and common sense, a Senate committee has endorsed a bill allowing a new rate structure that would encourage natural gas companies to promote conservation. The House of Delegates had previously approved the measure 98-0. Greg Edwards has the story for the Times-Dispatch.

    Jim Kibler, vice president of governmental relations for AGL Resources, laid out the logic for “decoupling” in a December column, “Cleaner, Cheaper, Better.” One key — not the only one, but a very important one — to conserving energy and combating climate change is to unleash the power of the marketplace. This bill represents a huge step forward.

  • Warning: Don’t Let Your Legislator Play with Guns

    We’ve all enjoyed a good laugh at the bull-testicles bill, but nothing strikes me as more mock-worthy than the debate over the right to carry concealed weapons in restaurants. Surely, people must have something better to worry about!

    I don’t own a gun, never have and never will. But I don’t get exercised about other people who do — unless they’re convicted felons, of course, or their last name is Cho. The Swiss are armed to the teeth. Every male of military age is enrolled in the national guard and stores a semi-automatic weapon in his home. But I would feel safe in Switzerland. The Swiss have a culture in which people control their emotions (in stark contrast to a United States steeped in an impulsive, Jerry Springeresque, show-us-how-you-really-feel culture where it’s considered unhealthy to repress one’s rage); as a consequence, there are very few murders in cities like Zurich and Geneva. By contrast, the Hutus didn’t need guns to massacre tens of thousands of Tutsis — they used machetes.

    Even though I subscribe to the theory that guns don’t kill people, people kill people, I just can’t get exercised about the prospect of guns in restaurants — or guns banned from restaurants. Either way, I really don’t care.

    But The Virginian-Pilot decided to take the concealed-weapons-in-restaurants bill seriously. In a story today, reporter Richard Quinn quoted Mike Standing, owner of the Waterman’s Surfside Grille and a gun owner himself: โ€œWhy would somebody want to have a gun in a restaurant? In case the crab legs came alive and got angry?โ€

    Yuk, yuk! Pretty funny. Why would someone want to bring a gun into a restaurant… unless his name was Guido?

    But then we hear from Del. Harvey Morgan, R-Gloucester: โ€œIโ€™ve been waiting for this bill for years. I thought it was absolutely insane for someone who was legally carrying a firearm to find a way to dispose of it to get a bite to eat.โ€

    Morgan has been waiting for years? Kinda makes you wonder. Does ol’ Harvey pack heat? He sure sounds like someone who speaks from experience. But, yeah, I can see his point of view. You carry around a hidden gun all day, and then you want a bite to eat. What a pain, you’ve got to take the gun out of the holster and hide it in the back trunk of your car. It might take all of… 20 seconds. What a cruel hardship! I’m weeping with empathy.

    Next, we hear from Del. Jennifer McClellan, D-Richmond, who says, โ€œGuns and alcohol donโ€™t mix. They lead to trouble.โ€ Sure, that makes sense. Just one little problem: The bill says you can bring a gun into bars and restaurants — but only if you don’t drink. Kinda takes the fun out of going to a bar, but, hey, the no-drinking restriction would seem to make McClellan’s concern… what’s the phrase I’m looking for? … totally irrelevant.

    Finally, we hear from Gov. Timothy M. Kaine: โ€œMy strong feeling, has been that bars and Pizza Huts where families go to have pizza with their kids, that more weapons in those places does not lead to public safety.โ€ Ay, yi, yi. Why do we have to drag “the children” into this? Well, there’s no turning back now. Let’s dissect this. Ol’ Harvey walks into a Pizza Hut with his wife and grandchildren. He’s packing heat. Is he going to be any more dangerous in a restaurant than he would be, say, strolling through the mall? Give me a break.

    Something about guns renders their friends and foes barking mad. Maybe we should amend the bill to ban legislators, on either side of the issue, from ever talking about the topic.


  • Sub-Prime Lending and the Slums of Tomorrow

    American citizens have long associated the word “slum” with inner cities — and for good reason. That’s where the slums were. But Christopher B. Leinberger, a Brookings Institution fellow writing for The Atlantic, thinks the United States is on the cusp of a change: Tomorrow’s slums will be in what we commonly refer to as the “suburbs.”

    The recent, deceased housing boom may represent the crest of “suburban” development. Leinberger sees changing market preferences pushing growth and re-development back into the urban core of America’s metropolitan areas. And he sees poverty leaking out of the inner city slums into the subdivisions of the aging “suburbs” outside the core. Where traditional cities once experienced fiscal stress and suburban counties prospered, he now sees the opposite:

    Many of the fringe counties in the Washington, D.C., metropolitan area, for instance, are projecting big budget deficits in 2008. Only Washington itself is expecting a large surplus. Fifteen years ago, this budget situation was reversed.

    A number of factors are driving this change (reader warning: This is Leinberger’s analysis as viewed through Jim Bacon’s lens.):

    Consumer preferences. Surveys have shown that roughly one third of the population would prefer to live in traditional urban environments with mixed uses and grid streets designed around walkability. Another third are torn between traditional urbanism and low-density communities with segregated land uses. But only 5 to 10 percent of the housing stock in most urban areas is in walkable places. Combine that imbalance with the rising cost of gasoline, which discourages long-distance community, and the fact that families are getting smaller — hence their need for large, suburban-style dwellings is decreasing — and market demand will shift capital and developers’ energy into urban re-development at the expense of single-family dwellings on the metro fringe.

    Political barriers to suburban redevelopment. In theory, developers could re-develop aging subdivisions and shopping centers into walkable communities. In practice, that’s very difficult. Two problems. First, suburban utility systems and road networks are designed to support lower density populations. Re-development would require tearing much of the infrastructure and rebuilding it from scratch — very, very expensive. Second, NIMBYs and other obstructionists fight re-development that might increase density and, in their perception, congestion. While a market may exist in “suburban” counties for redevelopment, the economic and political obstacles are formidable.

    Durability and livability. The quality of stick-built housing in jursdictions outside the urban core is lower than the quality of housing built four or five decades ago. (There are exceptions, of course, but as a rule this is true.) Houses will depreciate faster. Furthermore, I would add, communities of cul de sac subdivisions and shopping centers do not generate the pride of place that older communities do. People are less inspired to reinvest in maintaining and upgrading their properties. These areas will rapidly lose value compared to areas elsewhere.

    The sub-prime mortgage mess. Suburban housing is way overbuilt. With foreclosures mounting, vacancies are mounting. And that creates social problems. Leinberger cites the case of Windy Ridge outside Charlotte, N.C., where 81 of the subdivision’s 132 small, vinyl-clad houses were in foreclosure late last year.

    Vandals have kicked in doors and stripped the copper wire from vacant houses; drug users and homeless people have furtively moved in. In December, after a stray bullet blasted through her sonโ€™s bedroom and into her own, Laurie Talbot, whoโ€™d moved to Windy Ridge from New York in 2005, told The Charlotte Observer, โ€œI thought Iโ€™d bought a home in Pleasantville. I never imagined in my wildest dreams that stuff like this would happen.โ€

    Outmigration of the poor. When affluent households move back into the city and gentrify the neighborhoods, where do the displaced poor people go? Many move into decaying, inexpensive property outside the urban core — into the “suburbs.” We can see this happening in the Richmond region, as urban slum dwellers from the City of Richmond move into neighboring Henrico and Chesterfield counties, accelerating the decline of ’50s and ’60s-era neighborhoods through crime, vandalism and insufficient financial means to maintain properties.

    This thesis is not entirely new. University of Virginia professor William Lucy has tracked the demographic changes I write of from census to census, and I have been making this argument myself for more than a decade now. What’s new in 2008? We’re hitting the trough of another housing cycle and the glaring deficiencies of the past are becoming more visible to all. If we look hard enough, I’m confident that we could find more than a few Windy Ridge-like subdivisions here in Virginia.

    The slummification of Virginia suburbs will not be uniform. Some neighborhoods, where houses are newer and better constructed, and where neighborhood amenities are superior, will hold back the tide. In some instances, county governments will encourage re-development of mixed-use, walkable neighborhoods. But overall, the migration of the “urban” poor into suburbia is not a process easily reversed.

    (Hat tip to Deena Fulchum for pointing me to The Atlantic article.)


  • Transportation Revenues Still Tumbling, System Still Dysfunctional

    The economic slowdown isn’t just hammering the General Fund, it’s also putting the squeeze on the Transportation Trust Fund. Reports Peter Bacque with the Times-Dispatch: State transportation revenues will be $1.1 billion less than projected over the next six years.

    Virginia Department of Transportation CFO Reta Busher attributes the revenue shortfall to lower-than-expected tax receipts on vehicle, home and retail sales, fuel consumption, and vehicle licenses, as well as the pending repeal of abusive-driver fees.

    Debt payments get first claim on Virginia highway dollars, followed by maintenance expenditures and state matches to federal funding. That means the cuts will fall hardest on the new construction budget. Local street and highway construction will see an average 44 percent reduction, and funding for transit will decline an average of 10 percent per year.

    Bacon’s bottom line: Virginia’s transportation financing system is broken. Clearly, Virginia needs to invest more in its transportation system. But there’s no more agreement on how to raise the money than there is on where to invest it. Little wonder: There is no transparent nexus between who pays and who benefits from the current system.

    The only way around the logjam is to move to an explicitly user-pays system so citizens can see a direct link between what they pay and the benefits they receive: (a) a gasoline tax (with plans to convert eventually to a Vehicle Miles Traveled tax) to cover maintenance and to match federal funds; (2) privately funded ventures to build major new projects, paid for with tolls; (3) congestion tolls for gridlocked corridors and urban districts; (4) impact fees and/or proffers for secondary roads; (5) CDAs and TIFs to tap the increased value of private property made possible by public improvements, especially as a means of mass transit funding; and (6) no General Funds for transportation.

    Advantage #1: Requiring drivers to pay the cost associated with their road use will dampen automobile travel demand, thus reducing Vehicle Miles Traveled and easing the strain on the system.

    Advantage #2: Such a system would not be dependent upon political vagaries for funding. Funding would materialize as demand materializes.

    Advantage #3: A user-pays system would eliminate the inter-regional transfer of funds to build new roads and bridges. Citizens could be assured that they’re not getting reamed by politicians and lobbyists manipulating the system.


  • Whatever Happened to the Lockbox for the Transportation Trust Fund?

    Gov. Timothy M. Kaine delivered some bad news to the Axis of Taxes yesterday, saying that a state Senate plan to raise the gas tax by five cents per gallon won’t make it through the House of Delegates. Reports Jeff Schapiro with the Times-Dispatch (my italics):

    Kaine, who favors new taxes for transportation but won’t fight for them this year, said House Republicans are firm in their opposition to any tax increase.

    “They haven’t decided the way they’re going to kill them, but they’re going to kill them,” Kaine, a Democrat, told reporters yesterday.

    Does anybody remember when Tim Kaine was running for office? Does anyone remember his promise not to raise taxes for transportation until an amendment to the state constitution prevented any budgetary raids on the Transportation Trust Fund? I still remember but Mainstream Media has been seized with amnesia. You can argue that the lockbox is a moot point as long as Kaine is not actively plugging for hikes in the gas tax, as opposed to merely expressing sympathy for them. But you’d think that maybe, just maybe, a reporter would ask him, “Whatever happened to that lockbox idea? Why aren’t you trying to move that forward?”

    Here’s my hunch: The lockbox idea was a ploy to make tax hikes for transportation more palatable — not born of a genuine conviction that it was needed. It serves no useful political purpose anymore, so it has been all forgotten. For what it’s worth, I still think it’s a good idea.


  • Nichols Ally Resigns from W&M Board

    Protesting criticism of former President Gene Nichol by fellow board members, Paul Blair has announced his resignation from the William & Mary Board of Visitors. In a letter to the William & Mary community posted on a Student Assembly web page, he praised Nichol’s track record of promoting diversity at the university. Nichol resigned last week after the Board refused to new his employment contract.

    Blair’s letter lends some insight into the reaction of Board members to the firestorm set off by Nichol’s abrupt resignation.

    In praising Mr. Nichol I in no way seek to diminish the critical work and achievements of our former President Tim Sullivan. They are many. Some would try
    to drive a wedge between Mr. Sullivan and Mr. Nichol, because Mr. Nichol takes credit (and is blamed) for progressive policies now in place, some of which I think built upon Mr. Sullivan’s work. …

    There has been an incipient effort by some members of the Board of Visitors to pick apart President Nichol’s accomplishments. To what end? They gained their stated objective. I have also seen mean-spirited communications that are not worthy of the professional deliberations of any managing board, but most especially not the Board of Visitors of William and Mary. Such communications call into question the real motivation for the initial decision not to renew the President’s contract.

    I know the reasoned reactions, as well as the emotional ones, of Board members are in response to the President’s message of February 12th to the William and Mary Community. Would I have refrained from some of what Mr. Nichol said? Certainly, but then I knew more than he.

    Based on this letter, I have to modify a key statement that I included in a previous post (“The Nichol Resignation Narrative Looks Weaker and Weaker“): that the Board of Visitors decision not to renew Nichol’s contract was unanimous. As Blair makes clear, Blair was one among “several” board members who fought for the renewal of the contract. (However, Board member John W. Gerdelman confirmed to the Daily Press that board members were unanimous in their final decision, although no formal vote was taken.)

    The letter also highlights what some board members are not saying publicly: They were angered by the way in which Nichol, in his resignation letter, had hogged the credit for achieving greater diversity at William & Mary — presumably at the expense of his much-beloved predecessor Timothy Sullivan. Not all BoV members, it appears, were as willing as Blair to overlook Nichol’s one-fingered salute to them on his way out.


  • Financial Terrorists

    Payday lenders got a black eye yesterday when Cameron Blakely denounced in a press conference yesterday the predatory lending practices he engaged in last year as manager of a Washington, D.C., Check ‘n Go. As the Associated Press reports, Blakely said he was trained to encourage people to take out the maximum $500 payday loan as a way to keep them coming back for more money.

    “I realized I was working for financial terrorists, bent on financially enslaving as many hardworking Americans as they possibly could,” Blakely said at a news conference. He appeared with John LaCombe, founder of CapAmerica, a group of former payday loan borrowers and whistleblowers.

    Check ‘n Go attorney Yancy Deering countered that the company does not lend the maximum amount to people it doesn’t think will be able to repay the loan. “We want the product to work, and for it to work people must be able to pay it back on the date that the loan becomes mature.”

    Blakely’s charges, if true, would prove very damaging to the Payday lending industry. It’s one thing to offer emergency loans with high interest rates and high fees — the loans are small, short-term, expensive to adminster and inherently risky. It’s quite another to deliberately entrap customers in a cycle of indebtedness. The Payday people had better present some convincing evidence that Blakely’s charges are either untrue or an aberration, or they’ll lose me, an otherwise consistent defender of the industry, just as they’ve lost many others in this debate.

    I would say this, though. Rather than imposing all sorts of restrictions on interest rates and other lending terms and conditions, shouldn’t the General Assembly simply ban the practice of deliberately cultivating indebtedness? I can’t think of how that would be done, but there must be a way that more precisely targets the abuses that Blakely described than the restrictions the Payday foes are clamoring for.