• RIGHT ON CUE

    Jim Bacon did a find job of pointing out some of the problems with innovation in shared-vehicle systems in his lead column this week. “The Innovation Gap.”

    Right on cue, METRO demonstrated how right he is.

    In todayโ€™s WaPo it is reported that METRO is considering running some Blue Line trains through the underutilized Yellow Line Potomac tunnel. We will not bother with the details, except to say it is a good idea.

    It is such a good idea that over 25 years ago, while working to increase the capacity of the Orange line we suggested this very same move.

    Most of the ideas that became the Backgrounder “It is Time to Fundamentally Rethink METRO and Mobility in the National Capital Subregion” https://www.baconsrebellion.com/ surfaced in white papers by EMR and reports by the Fairfax County Chamber of Commerce Transportation Committee. (FCC of C Trans Comm was one of the seven large Enterprise-backed Organizations EMR chaired / served on from the mid 70s to the late 80s.)

    The initial feedback from staff at METRO was positive on the ideas including the Turquoise Line. Later we learned that they were vetoed by senior staff. “We are going to complete the 101 mile system before we make any changes,” and “it would cost too much to reprint all the maps” were the only specifics that we ever heard.

    So Jim is right. To understand why he is right read Supercapitalism by Robert Reich.

    The problem is now that the settlement pattern in most of the urbanized area within R=23 to R= 25 is not suitable for METRO-like shared-vehicle systems (aka, Heavy Rail). That means citzens must morph the settlement patterns and come up with new technology.

    We focus on these critical issues in column after column on Rail to Dulles. See “Who Killed Rail-to-Dulles?” and “Why METRO-to-Tysons Is a Mess.”

    In a comment yesterday, Larry Gross noted interest in Personal Rapid Transit. For years the advocates of PRT including our friends who started the Advanced Transit Organization have said that PRT can better serve dispersed origins and destinations.

    We have reservations. Those interested in PRT search “PRT” in the back columns at https://www.baconsrebellion.com/

    Vocabulary is also an issue here as it is everywhere in the real world. As long as shared-vehicle systems are called “mass transit” few will be interested in the topic.

    EMR


  • The Coldest Vote

    Given the hype, I expected a long line at the Tuckahoe Elementary polls in Henrico this morning. But that wasn’t the case. There were a few signs waving in the chilly breeze, no poll workers and only a few folks ahead of me — all taking the red, Republican ballots (this being one of the most Republican areas in the county).

    I asked one of the workers whether he’d been busy. Yes, he said, steady traffic and lines all morning. I suppose compared to any other primary, that was probably true. I hesitated for a moment on seeing Fred Thompson still listed, and almost touched the screen for him. But I didn’t, instead tapping the screen for Johnny Mac, if only to tweak the righty talk radio gods.

    Saw Del. John O’Bannon on the way out, but didn’t stop to chat — it was just too chilly for idle pleasantries.


  • Proffers and Housing Prices: What’s the Connection?

    An interesting debate has arisen over the Watkins bill to cap proffers and impact fees: To what extent do proffers and fees contribute to higher housing prices? Sandhya Someshekhar and Anita Kumar in the Washington Post report that Home Builders Association of Virginia officials said the bill “would stabilize the market and slow the double-digit percentage increases in housing values. Opponents argue that rising housing values have little or nothing to do with proffers.”

    The article does not specify which individuals are making these claims, but it strikes me that both sides are blowing smoke. You can make theoretical arguments for both positions, but no one is presenting any data. Everyone, it appears, is making unsubstantiated claims.

    I don’t have any hard facts that would shed any light, but perhaps I can provide some conceptual clarity. Let us start with a point so obvious that it requires no supporting data. If a developer negotiates a $30,000-per-dwelling proffer with Prince William County, to pick an example, he will incorporate that expense into the selling price of the house. Only an utter fool would commence building a house knowing that he will sell it for less than what it cost to build and pay off a $30,000 proffer. No, not even a fool could get away with such a thing — his banker would stop him.

    Admittedly, it’s possible that the builder will miscalculate. The supply and demand equation can shift, as has happened in the aftermath of the sub-prime mortgage debacle, and the builder can wind up selling speculatively built houses at a loss under distress conditions. But no builder will start construction of a new house knowing up front that he will lose money! Thus, insofar as cost establishes a base price at which houses will sell under normal conditions, proffers and impact fees undeniably contribute to higher selling prices. For foes of the legislation to assert that “rising housing prices have little or nothing to do with proffers” is simply ludicrous.

    But that doesn’t make the home builders entirely right: The price of housing is set by the interplay of supply and demand. In Northern Virginia, where debate is the most intense, the problem over the past decade has been twofold: (1) insufficient supply of new housing in locations where the demand is greatest, and (2) speculation and easy credit driven by the mortgage bubble. Local government policies continue to restrict the development of housing supply in locations where demand is the strongest (closer to the urban core), but a decisive change has occurred in real estate markets in the past year: The mortgage bubble has popped, speculation has subsided and real estate prices are falling.

    Thus, the home builder argument that the legislation would stabilize the market and “slow the double-digit increases in housing prices” is specious. Housing prices have already backed off from double-digit increases! Proffer/impact fees are only one factor among several that influence prices. I don’t know of a single economist who believes that housing prices will resume their double-digit climb. Many believe that housing prices, after settling into a new equilbrium, will track the slow but steady growth in consumer buying power.

    The real issue, in my appraisal, is the mismatch in supply and demand in regional sub-markets. Demand for housing is greatest in or near the urban core, but it is exceedingly difficult to increase the supply there. Too many people raise too many objections, and the cost of getting land rezoned for redevelopment can be prohibitively expensive. It is simply easier for developers to move to the metropolitan periphery and build on open fields — where expensive infrastructure must be built from scratch. Now, even counties on the metropolitan fringe are erecting barriers to growth. Long term, the restriction of housing supply in growing metro areas will exert a upward effect on housing costs. Trouble is, nobody is talking about that problem.

    Breaking the logjam requires two things: (1) Finding a formula for requiring new development to “pay its own way,” and (2) Relaxing local government policies that inhibit new development in more balanced, more cost-efficient human settlement patterns. Otherwise, we’ll be arguing until the cows come home…. And, given the rapid disappearance of farmland in Northern Virginia, the cows may never come home.


  • University Endowments, Tuition Relief and Charitable Restrictions

    Carlos Santos with the Times-Dispatch has joined Bacon’s Rebellion and others who experience cognitive dissonance from the fact that Virginia’s public universities continue to jack up tuitions even as their endowments soar to record levels. The University of Virginia endowment, he notes, grew by roughly $800 million last year even as the university hiked tuitions by 8.3 percent. The experience at Virginia Tech and William & Mary were comparable. (If this sounds familiar, it may be because you read it here.)

    United States senators are paying attention, too. Santos quotes Sen. Charles E. Grassley, R-Iowa, as follows: “Tuition has gone up, college presidents’ salaries have gone up, and endowments continue to go up and up. We need to start seeing tution relief for families go up just as fast.”

    Santos does make a couple of valid points in defense of the universities. Much of a university’s endowment is restricted — people attach conditions to their gifts. As Yoke San Reynolds, vice president and CFO of UVa, says, “We cannot spend the distribution from an endowment for cancer research to reducing tuition.”

    Fair enough. The next step is getting more information from universities about their endowments. How much of the endowment is restricted, and how much is not? Inquiring alumni and donors want to know.


  • The Problem with Cars…. and with Mass Transit

    Today’s e-zine contains two essays, one penned by E M Risse and one by myself. In “What is the Problem with Cars?”, Ed argues that automobiles (he calls them “autonomobiles” to emphasize their distinctness from shared vehicle transportation systems) are economically and environmentally unsustainable. Cars are getting increasingly expensive to drive, they are aggravating traffic congestion, they kill thousands of people every year, they pollute, they engender dependency upon volatile sources of overseas petroleum, encouraging military adventurism overseas… (pant! pant! take a breath, there’s more)… they induce a change in human settlement patterns that uglify the built landscape, strain the fiscal resources of municipal governments, lengthen commutes and generally keep people Running as Hard as They Can.

    In this column, the first of four parts, Ed also explores how we got ourselves into such a predicament. He points to three causes. First, by designing our communities around automobiles, we have effectively locked out transportation alternatives. The prevailing pattern of scattered, disconnected, low-density development is inimical to people reaching their destinations on foot, on bicycles, in buses or on rail. Short of tearing down trillions of dollars of real estate investment and public infrastructure and starting over, there is no way back. Second, auto-centric human settlement patterns are perpetuated in new development projects thanks to advertising by those who benefit from automobility. Third, the Mainstream Media has failed utterly in its Fourth Estate responsibilities to inform the public of the complex reality.

    I might quibble with a few details and I might emphasize one thing over another, but by and large I subscribe to Ed’s understanding of the problem. There will always be a role for cars, but our society cannot afford to maintain its abject dependence upon the automobile. We simply must find transportation alternatives.

    The most obvious alternative is mass transit. Intuitively, the public, the punditry and the politicians understand that fact — hence, Virginians who were once content to throw vast amounts of money blindly at highways, now are willing to throw huge amounts of cash blindly at mass transit, too. Witness the $5 billion Rail-to-Dulles project that came within a whisker of happening. Unfortunately, mass transit has problems all its own. The most obvious one is that mass transit requires certain levels of density and pedestrian connectivity to be financially sustainable — conditions that are rarely found in Virginia.

    There is a less obvious problem as well, which I have spotlighted in my column, “The Innovation Gap.” One reason that people continue, despite all the reasons not to, to shift from shared ridership to driving solo in cars stems from the competitive structure of the automobile industry. The auto industry is continually reinventing itself, constantly innovating, and learning to move faster. By contrast, the mass transit industry sector (in the U.S. at least) has the metabolic dynamism of a flatworm.

    The jumping off point for my column is a presentation that Jim Buczkowski, a senior executive with Ford Motor Company, made the other day in Richmond as part of the company’s launch of its Sync, voice-activated technology for hands-free driving. Young people today, said Buczkowski, are deeply attached to their devices — their cell phones, BlackBerries, iPods, whatever. They like to take their stuff with them. Ever attentive to changing tastes and trends, Ford is converting its cars into mobile computing platforms that can accommodate all those devices. Plus, it’s throwing in GPS technology to boot.

    It gets better: According to Buczkowski, Ford hopes to mesh the rapid product-development cycle of consumer electronics with the slower product-development cycle of the automobile. Instead of buying a new car to acquire the latest new electronic gadgets, you’ll be able to drive to your dealership and download new applications — just like you do with your PC. That is serious change. That’s what happens when you have a globally competitive, private-sector industry.

    Compare the commitment to innovation at Ford, an also-ran in the auto industry, to that of the mass transit sector in the Virginia and the rest of the U.S. Mass transit enterprises are owned by governments or quasi-government agencies. They enjoy monopoly protections. Relying upon public subsidies, they have few resources to invest in innovation — and no one is rewarded for risking taking anyway. Is it any surprise, then, that the mass transit experience of 2008 is pretty much the same as the mass transit experience of 1958?

    (I don’t want to diminish the efforts of a few inspired leaders in Virginia who want to drag mass transit kicking and screaming into the 21st century. But they have to struggle against overwhelming forces of inertia.)

    If we want to revitalize Virginia’s mass transit sector, we need to undertake two Herculean challenges: (1) Create balanced communities capable of supporting mass transit economically, and (2) Restructure the mass transit industry to make it more competitive, innovative and market driven. Unless we do both of those things, the cars will win…. Until things all fall apart, and then we all lose.


  • Fire, Flood, Plague, Pestilence… and Bacon’s Rebellion

    Brace yourselves for another round of provocative, hard-hitting op-ed columns, such a refreshing change of pace from the safe, sonorous expressions of the conventional wisdom you find in the daily newspapers. The February 11, 2008, edition of Bacon’s Rebellion is now online.

    If you are not a consistent reader of this blog, you really need to sign up for our free subscription so you can be sure to catch every single issue.

    Now, for your reading pleasure…

    The Innovation Gap
    There are compelling reasons for people to ditch their cars and use mass transit. Unfortunately, auto companies are reinventing themselves while the transit sector stands still.
    by James A. Bacon

    It’s There to Be Used
    Level-headedness is the key to the use of the revenue stabilization fund.
    by Doug Koelemay

    What Is the Problem with Cars?
    Cars are a 20th century answer to a 19th century problem. Tweaking our auto-centric transportation system will not address the 21st century realities of traffic congestion, escalating energy prices and Global Warming.
    by EM Risse

    Let the Sun Shine In
    Getting the political establishment to agree to budget transparency is like pulling teeth — from a saber-tooth tiger. But Virginia is slowly making progress.
    by Michael Thompson

    Virginia Is for Lovers – Behind Closed Doors
    Virginia has been roiled of late by a sex workers’ show, mildly racy Abercrombie & Fitch displays and trailer hitches that look like bull testicles. What’s going on?
    by Norm Leahy

    Call for Philip Morris
    Richmondโ€™s elite lauds the cigarette maker for putting its R&D center downtown. But its newly spun-off sister unit still aims to make butts the old-fashioned way, endangering the lives of millions around the world.
    by Peter Galuszka

    A Transit Network for NoVa
    The odds look good for the General Assembly to study a rapid transit network covering Northern Virginia to points as far flung as Winchester and Fredericksburg.
    by William Vincent

    Toro! Toro!
    Tim Kaine is upset that the Federal Transit Administration turned down funding for Tysons-Dulles heavy rail. But the project had more red flags than a bull-fighting ring.
    by Ken Orski

    Nice & Curious Questions
    Virginia: Home of the Outdoor Privy Race. Or, Whatever Happened to Outdoor Plumbing?
    by Edwin S. Clay III and Patricia Bangs


  • Happy Birthday Jim

    On behalf of bloggers, policy wonks and human settlement pattern junkies everywhere, happy birthday, Mr. Bacon. And many happy returns!


  • Want to Stop Growth? Pass the Watkins Bill.

    “Be careful what you wish for,” warns Corey Stewart, chairman of the Prince William County board of supervisors. SB 786, which would eliminate proffers and impose uniform impact fees on new real estate development, “will shut down residential development all over the county. I will make sure it shuts down residential development in Prince William.” So reports Kipp Hanley with the Manassas Journal-Messenger.

    Under the bill, Northern Virginia jurisdictions could impose impact fees of no more than $8,000 to offset the cost of improving roads and building public facilities. Although the bill would collect impact fees from by-right developers, who don’t need to file rezoning requests and consequently pay nothing, local governments would not come close to covering the costs of growth. In William County, proffers currently run around $38,000 per dwelling; Stewart has pushed to raise them to $51,000.

    The bill would boomerang on the very home builders who help draft the legislation that was submitted by Sen. John Watkins, R-Powhatan. Supervisors in fast-growth counties would routinely deny rezoning requests — including larger, better planned, mixed-use, pedestrian friendly and transit-friendly projects. Virginia would experience an acceleration of scattered, disconnected, low-density development — sprawl on steroids. My initial, ill-considered reaction to the bill was favorable. But now that critics have surfaced with powerful arguments against it, I have to say the legislation would be a disaster.


  • Who Will Report the News? WaPo Gets New Publisher

    Katharine Weymouth, granddaughter of legendary Washington Post chairman Katherine Graham, has been named chief executive of Washington Post Media, a new division that encompasses The Washington Post newspaper and its online component, washingtonpost.com, WaPo has reported.

    The appointment accompanies news that in March, WaPo will offer an undetermined number of early-retirement packages to newsroom staffers and other employees. The latest culling follows buyouts in 2003 and 2006, which reduced staff by about 120 employees.

    Weymouth has a tough job ahead. Newspaper circulation, which peaked at 832,232 in 1993, has eroded to 638,000 papers Monday through Saturday. Quarter-to-quarter print advertising revenue at the Post declined 13% in the third quarter of 2007, with once-lucrative classified advertising revenues getting especially hard hit.

    Revenues at the Post’s website is increasing, but not fast enough to offset newspaper losses. Website revenues added $2.7 million in revenue during the third quarter – far short of the $16.3 million in advertising that the newspapers lost. I would speculate that the newspaper and website combined have more readers than ever. The problem is that Web readership generates smaller ad revenues and tighter profit margins than print. That is the nature of the Web — and the bane of newspapers everywhere.

    And what can we expect of Weymouth, a 41-year-old mother of three, a Harvard grad and recipient of a Standford law school degree? It looks like the newspaper and website will collaborate more closely. “We hope to get under the sheets, look at each other more closely, exchange information more freely and figure out what areas we can be more effective in working closely together and what areas should remain separate.”

    Read the article and watch a short video clip. They do not inspire confidence. Weymouth surely knows the enormity of the challenge facing one of the world’s great newspaper brands, but she (or the newspaper article describing her ascension to the CEOship) doesn’t mention it, much less offer any path — futile or otherwise — to reverse the slide. But, hey, she does have a Facebook profile! That’s where the photo above is from. (Photo credit: Washington Post.)

  • HOT Lanes at 45 MPH Not So Hot

    If High Occupancy Toll lanes are placed on Interstates 395 and 95 in Northern Virginia, their private-sector operator would be required to assure average speeds of only 45 mph, reports Lillian Kafka with the Manassas Journal-Messenger.

    The Virginia Senate Transportation Committee decided not to up that average speed to 55 on Thursday.

    “We believe it is going to be too difficult to maintain that 55 mph average speed,” said Keith Martin, policy director at the Virginia Department of Transportation. “It may discourage companies from partnering with us.”

    Or, he added, it could raise the variable rate tolls even higher than they could already increase as the HOT lanes become more congested.

    Interesting question: Which would the public prefer, faster lanes and higher tolls, or slower lanes and lower tolls?

    Here’s my question: Why is the Virginia Senate Transportation Committee making this business decision? Why isn’t that left to Fluor/Transurban?


  • Awesome New Transportation Technology On the Way

    The I-95 Corridor Coalition, which includes Virginia among 16 states, has signed a contract with Kirkland, Wash.-based INRIX, to provide travel time and speed data on a network of U.S. highways and arterials for the purpose of contributing to interstate movement along the I-95 Corridor.

    According to an INREX press release, the company’s Smart Dust Network and INRIX Traffic Fusion Engine will aggregate and blend traffic data from a variety of sources, including more 750,000 GPS-enabled vehicles and traditional road sensors. The I-95 Corridor Coalition initiative is the largest implementation of real-time traffic flow data sharing across a multi-state region and the first multi-state project leveraging GPS vehicle probes and traditional road sensor information.

    The initiative is just one example of what the Kaine administration is doing to leverage technology to improve the flow of traffic, Aneesh Chopra, Virginia’s Secretary of Technology, told the Greater Richmond Technology Council this morning. “We want to put information into the hands of folks so they can make better judgments about where to drive.”

    Chopra made the remarks while introducing Jim Buczkowski, director of electrical systems engineering for Ford Motor Company. Buczkowski then outlined Ford’s initiative to convert automobiles into mobile computing platforms capable of handling everything from Ford’s new voice-activated Sync technology to GPS navigation. I’ll have more to say about Bucskowski’s comments in the e-zine Monday.


  • A Cure that’s Worse than the Disease

    While I’m no fan of Gene Nichol’s policies at William & Mary — I totally share the concerns of certain members of the House of Delegates about the decisions the college president has made — I’m not sure that hauling members of the W&M Board of Trustees into the General Assembly for questioning is a good idea either.

    As Olympia Meola reports for the Times-Dispatch, “Delegates spent 90 minutes yesterday grilling four members of The College of William and Mary’s board of visitors on their view of recent school events, including the Sex Workers’ Art Show, and their intentions for the future.”

    I am very uncomfortable with the idea of the General Assembly micro-managing decisions made by Virginia’s college presidents — even when I happen to agree with the delegates on the issues concerned, and even though I have frequently argued in this blog that universities are largely unaccountable to anyone other than their own internal constituencies. As the same time, I worry that politicizing college decision-making could be a cure that’s worse than the disease.

    The governor, if I am correct, has the power to appoint the trustees to the boards of Virginia’s public colleges and universities. If W&M trustees back up the president, what can you do? Elect a governor who will put trustees with a different philosophy onto board.

    Otherwise, the impetus for accountability should come from college stakeholdersm not from politicians. Recent events at the University of Richmond, a private institution, were noteworthy: An unpopular president was recently unseated by alumni who rose up in revolt and threatened to stop contributing, thus jeopardizing fund raising. Why can’t W&M alumni hold the Nuckol administration accountable, as some already have, by voting with their pocketbooks?


  • Virginia, West Virginia, Trailer Trash — What’s the Difference?

    Now that Sen. Richard Saslaw, D-Fairfax, is top dog in the state Senate, the General Assembly is getting a lot more entertaining. Last month, the Senate majority leader characterized Southwest Virginia gun rights zealots as Deliverance creatures (see “Quote of the Day: But First Cue the Banjos“). Once again, to paraphrase Britney Spears, oops, I think he’s done it again.

    Here’s the latest from the Senate majority leader, as reported by the Washington Post:

    “We are West Virginia, if we pull Northern Virginia out of the equation,” Saslaw said, referring to the difference in the tax base between Northern and southern Virginia.

    It’s easy to get mad at Saslaw, but he’s simply reflecting the views that many Northern Virginians feel but are too circumspect to say out loud. I remember hearing something similar 20 years ago from George Johnson, the former president of George Mason University: “Take away Arlington, Alexandria and Fairfax County, and what you’re left with is…. Arkansas.” Badda boom! (Johnson had better delivery.)

    Northern Virginians are an interesting bunch. As well as disowning downstate Virginia, they wash their hands of Washington, D.C. A good number of them would love to secede from the Commonwealth, perfectly happy to leave the inner city (Washington) and outlying countryside counties to fend for themselves. I can’t think of any other place in the country that’s quite so ruthless in wanting to slough off underperforming jurisdictions — or so contemptuous of their neighbors.

    For the record, here’s how metropolitan statistical areas in RoVa (the rest of Virginia) stacks up to West Virginia in 2005 per capita income (a good proxy for a region’s tax base):

    Richmond – $36,537
    Charlottesville – $35,570
    Hampton Roads – $33,163
    Roanoke – $32,587
    Lynchburg – $28,846
    WEST VIRGINIA – $27,215
    Harrisonburg – $26,419
    Danville – $25,647
    Blacksburg – $24,647
    Please note that the MSAs with higher incomes than West Virginia are considerably more populous than the MSAs that are lower.

  • Watkins’ Impact Fee Bill Advances in Senate

    A state Senate bill to replace proffers with impact fees has won approval from the Senate Finance Committee and now faces a vote in the full Senate.

    As Chelyen Davis with the Free Lance-Star reports, the bill’s author, Sen. John Watkins, R-Powhatan, told the Senate Finance Committee that the proffer system is “out of hand, it is out of control.” Some localities charge proffers up to $40,000 per new house, which raises housing prices, makes homeownership less affordable, and artificially inflates real estate taxes.

    Smart Growth groups have criticized the bill, which would cap the impact fees at $8,000 per house in Northern Virginia and $5,000 in the rest of the state, although it would extend to houses built under “by-right” development (not requiring rezoning), which currently are exempt from proffers. Such fees, they claim, don’t come close to the cost of covering the expense of roads, utilities and public services to new development.

    And, according to Davis, it appears that Roger Wiley, with the Coalition of High Growth Communities, agrees. Said he: “The dollar caps in the bill are arbitrarily and artificially low. They are, make no mistake about it, designed to reduce the contribution of the development community. Give us some time. We aren’t rejecting the principle behind the bill. We’re willing to talk, as we’ve been doing already, to see if we can come up with some solutions to this problem.”

    Davis reveals — as I had suspected but did not know for sure — that the Home Builders Association of Virginia not only backs the bill but helped Watkins write it.

    The idea of treating all development, whether rezoned or by-right, on an equal footing strikes me as reasonable. Of course, while large developers, who frequently seek rezonings, will favor the idea, small developers, who tend to build on by-right lots that don’t require zoning, will oppose it. Still, I see that aspect of the bill as a positive because scattered, by-right development is the mortal enemy of efficient human settlement patterns.

    The problem with the Watkins bill is that the impact fees are ludicrously low. Compounding that deficiency is the fact that a two-sizes-fit-all system will not work. The cost of extending infrastructure and services varies considerably from county to county, and each jurisdiction may seek a different balance between charging newcomers vs. existing residents for the cost of providing that infrastructure.

    If the Watkins bill opens up a broader conversation on the reform of proffers and impact fees, it will serve a useful purpose. If it gets signed into law as is, it will be a travesty.

    Update: “The Loudoun County Board of Supervisors voted unanimously Tuesday to “strongly oppose” a Senate bill that would require the proffer system to be replaced with a system of impact fees,” reports Leesburg Today. Chairman Scott K. York called the bill the “anti-taxpayer bill” that would “completely obliterate what we have worked through for 30 years with respect to the proffer system” with about “30 minutes of work.”


  • After Filling 1,368 Positions, Kaine Moves to Trim State Workforce

    Concerned about deteriorating tax revenues, Gov. Timothy M. Kaine is putting a freeze on state hiring — and may consider more layoffs, reports Jeff Schapiro with the Times-Dispatch. “Anything is possible; everything is on the table,” Kaine press secretary Gordon Hickey said of firings, which have been limited to less than 100 so far.

    By way of background, the number of state employees classified as “General Funded” (which, I presume, means funded by the General Fund, which excludes university employees and other groups over which the governor has little authority) stood at 39,420 in Jan. 2006, when Kaine became governor. By Nov. 2007, the number had risen to 40,788 — an increase of 3.5 percent in note-quite two years.

    Given the surge in state spending, that increase in employee count doesn’t sound unreasonable. On the other hand, much of that surge was programmatic — spending on state aid to schools, Medicaid and the like, which should not take many more employees to administer. Also, the increase in the number of state employees should be compared to employment trends among large organizations in the private sector. I can’t readily find any productivity numbers for the service sector, but my sense is that most service-sector companies the size of the Commonwealth of Virginia are reducing employee count, not raising it.

    Admittedly, the productivity (or lack of it) of the state workforce cannot be laid exclusively at the feet of Tim Kaine, who inherited an organizational culture that, for many reasons including oversight by the General Assembly, is highly resistant to change. But it is appropriate at this moment of Virginia’s fiscal history to ask: Where are the productivity gains promised by the reorganization of the state’s IT functions? In theory, Virginia is supposed to be saving lots of money on IT spending and equipping its employees to do their jobs more productively. Is that happening?

    How is the Virginia Information Technologies Agency working out? Is it over the hump in its difficult reorganization? Is its quasi-independence from the executive branch proving to be a help or a hindrance? Is the contracting out of major functions to the private sector creating the promised benefits?

    Inquiring minds want to know.