• Wading in the Muddy Pool

    I am posting this book review on the behalf of Barnie Day. — Jim Bacon

    So now comes to the literature of Virginia politics a self-published good look back, “Wading in the Muddy Pool: A Virginia Political Memoir, 1972-1982” ($15.00, Old Favorites Bookshop, PO Box 8347, Richmond, 23226) by Richmond book dealer Gary S. Oโ€™Neal.

    Oโ€™Neal, who began a 10-year sojourn through Virginiaโ€™s political corridors in 1972, when he signed on as an aide to Speaker of the Virginia House of Delegates John Warren Cooke, has served up a rare inside look that reads like an oral history, despite wording here and there that seemsโ€ฆwellโ€ฆa touch quaint.

    Iโ€™ll translate one for you: โ€œrecently passed from the earthly sceneโ€ means somebody died.

    Still, this is a good, snappy read, as much for its candid observations as anything. (The two-page memory of the House Clerkโ€™s Office is worth the purchase price.)

    Virginia politics now is a bland vanilla team sport. It used to be a game of individuals. Many of the personalities here have โ€œpassed from the earthly scene,โ€ and wonโ€™t be recognized by anyone, even inside players, under the age of 60, or so.

    A few will stir the dust of memory:

    โ€œRobert B. Ball, Sr., a Democrat from Henrico County, was a self educated man and one-time butcher who became a success in the hotel-motel business and real estate. He amassed a fortune in the 1950โ€™s by putting pay TV sets in his motels and used to brag that he took a wheel barrow of quarters a week to the bank.โ€

    โ€œWilliam Dudley, Democrat, โ€œBullet Bill,โ€ a former NFL great and football star at UVA. Nice man, but fairly dense, more adept at attending local sports banquets than debating the issues of the day.โ€

    โ€œGeorge Mason Green, Republican, one of the last Arlington County Republicans before the Democrats became the dominant party in that area. One of the new breed of right-wing ideologues.โ€

    โ€œFrank Mann, Democrat, Alexndria politician and former mayor of that city. Went back on his word to Delegate Lane (Ed Lane, of Richmond) on a committee vote at the 1973 session, a disagreeable man with little character.โ€

    โ€œThomas W. Moss, Democrat, Norfolk politician, liked the ladies and the bottle.โ€

    โ€œStanley Owens, Democrat, Prince William County, at that point growing somewhat senile, later known throughout the Assembly for crashing into a water fountain with his car at an Interstate 95 rest stop and then trying to bill the House of Delegates for the damage to his auto.โ€

    โ€œAs Speaker, Philpottt (Albert Lee, of Henry County) was more politically assertive than Cooke. He saw the role of the Speaker as that of an active participant in the political process, rather than a nonpartisan referee like Speaker Cooke. I donโ€™t mean that Cooke had no party loyalty, but he exercised it gently while A. L. used a whip.โ€

    โ€œDorothy McDiarmid, Democrat from Fairfax, whose husband Hugh constantly trailed her around the Capitol.โ€

    Oโ€™Neal has given Virginiaโ€™s political junkies a tasty appetizer (91 pages). I wish it had been an entrรฉe.

    You could do worse than buying this book.


  • Act Now to Head Off Nuclear Fireworks

    While most of the talk about uranium mining in Virginia focuses on Pittsylvania County in Virginia’s southern piedmont — home to the richest deposit of uranium in North America — don’t forget about the northern piedmont. Madison and Orange counties also contain substantial uranium deposits, although not on the same scale, and could be impacted by any regulatory precedents established for Pittsylvania.

    The Charlottesville Daily Progress has taken note of the deposits in a recent editorial, observing that the ratio of benefits to drawbacks will be quite different up north than down in Pittsylvania, where communities are still looking to reinvent their mill-town economies after the devastation of their manufacturing base.

    Even in Pittsylvania County, environmental concerns are surfacing. The prospect of mining has drawn the attention of the Southern Environmental Law Council and the editorial writers of the Roanoke Times. Environmental sensitivities are far more acute in the northern piedmont, where players like the Piedmont Environmental Council have demonstrated a grassroots prowess in the battle against Dominion and its high-voltage transmission line that could be more than a match for the out-of-state uranium industry. (Note: The PEC sponsors Bacon’s Rebellion.)

    Economic opportunities like this don’t come along very often for South/Central Virginia. The elements exist to build a world-class nuclear power cluster around uranium mining/processing and nuclear services along the U.S. 29 corridor. Such a sector would create economically sustainable, value-added, high-paying jobs for a part of the state that desperately needs it.

    If things aren’t handled properly, the environmental debate could trigger a public policy melt-down the likes of which Virginia has never seen before. The warning lights are flashing. The Kaine administration needs to make it a high priority now to bring all of the safety and environmental issues into the open, assemble all parties around the table, and start working on a consensus that will both support the development of a wealth-creating nuclear cluster in Southside and protect the environment from radioactive leakage.


  • Micro-Fundraising for Virginia Schools

    The RTD’s Olympia Meola writes about the state’s embrace of an online micro-fundraising program called Donor’s Choose, and how individual teachers are already using the site to fund projects for their students.

    Having been on the receiving end of numerous fundraising pitches from my son’s school (to fund programs, trips, equipment and even personnel), I have to say that this sort of approach is much better. Not only do the teachers have to make the case for why you should give, but they give you details on exactly what your (tax-deductible) gift will provide. That’s the sort of transparency I like. Plus, unlike some of those other, school-wide fundraisers, there’s no middle man skimming up to 40percent of your contribution (though donors have the option of adding to their gift to cover the site’s administrative costs).

    You can look here at the proposals I found by entering the keywords “Richmond Virginia.”


  • Another Higher Ed Bond Referendum Coming

    You heard it here first (unless you heard it from the same source I heard it from): The Kaine administration is putting the finishing touches on a monster bond offering to finance another round of higher education construction projects.

    If approved in a voter referendum, this bond initiative will be even bigger than the one launched during the Warner administration. It will have goodies for everyone — colleges, universities and community colleges.

    In 2005, the State Council for Higher Education in Virginia (SCHEV) was projecting an enrollment increase of 56,510 students between 2004 and 2012. Most of the demand was expected to occur in the Community College system, with half of it coming from Northern Virginia and Hampton Roads.


  • State Spending: 38 Percent Real Growth Over Last Decade

    Here is the summary conclusion of the 2007 Review of State Spending published by the Joint Legislative Audit and Review Commission:

    Virginiaโ€™s operating budget doubled between fiscal years (FYs) 1998 and 2007, a result of increasing prosperity, population growth, and policy decisions. Adjusting for the effects of inflation and population growth, the budget increased by 38 percent, an average annual increase of 3.7 percent.

    How could this be? I thought Virginia had been chronically under-funded its obligations thanks to the obstructions of the anti-tax Neanderthals!

    Read the details and weep.

    (Hat tip: Steve Horton)


  • Who Would Have Guessed? Abuser Fees Spiral Out of Control.

    I’m back from an out-of-town trip, so I’m catching up on things. I couldn’t overlook this article from the Washington Post. It seems that Virginia may have to issue up to 300,000 license suspensions to drivers for failure to pay abusive driver fees.

    A report prepared by the Joint Legislative Audit and Review Commission, “paints a picture of a fee system that is almost out of control, with descriptions of some police officers unwilling to write tickets because they are sympathetic to motorists or wary of too much time in court.” Also, write Anita Kumar and Tim Craig:

    The report … shows that thousands of motorists are unwilling or unable to pay the fees. As the fees were approved in February, a person convicted of a felony or misdemeanor driving offense has to pay $250 to $1,050 a year for three consecutive years. If the motorist fails to pay, the Department of Motor Vehicles will suspend the person’s driver’s license.

    The report estimates there could be 137,000 suspensions because of the fees through the end of June. An additional 181,000 suspensions could occur because of the fees in the next fiscal year. State officials said the projections represent a substantial increase over the numbers of suspensions generally issued, but they could not provide exact figures.

    Enough said. No need to beat a dead horse.

    (Hat tip: John Betts)


  • Arlington Confronts Its Institutional Racism

    Arlington County Schools are engaging in “courageous conversations about race,” as part of the school districtโ€™s Cultural Competence Initiative. One of the main goals of that initiative, according to the Arlington County Citizen, is to create “a school climate where tolerance and respect are encouraged and modeled.”

    To help accomplish that goal, the schools brought in diversity consultant Glenn Singleton to “provide a framework” to begin the conversation about race. And what perspective does Singleton bring to the conversation? I’ll just quote from his Pacific Educational Group website:

    Systematic racism is the most devastating factor contributing to the diminished capacity of all children, especially African American (Black) and Latino (Brown) children to achieve at the highest levels, and leads to the fracturing of the communities that nurture and support them.

    In Singleton’s schema, institutional racism apparently encompasses more than overt discrimination: It includes supposedly “white” cultural characteristics such as individualism and a future orientation (which I interpret to mean a willingness to defer gratification). The Pacific Educational Group helps educators focus on “heightening their awareness of institutional racism” and develop strategies for closing the achievement gap in their schools.

    Gee, I thought that Arlington County was one of the more politically progressive municipalities in Virginia when it came to race and diversity. I imagined that expressions of “institutionalized racism” would be relatively subdued. But I guess I’m wrong. If the school system has to call in an outside consultant to root out all that racism, prejudice and discrimination must be rampant.

    But maybe not. Hans Bader, an Arlington County attorney, is less than impressed with Singleton’s track record. He has a few comments on Openmarket.org blog, the staff blog of the Competitive Enterprise Institute.


  • TYSONS CONTEXT

    On Sunday, 02 December, Jim Bacon summarized the latest news on “Rail to Dulles” in a post titled “Big Tysons Landowners Fear Billions in Windfall Profits May Be in Peril.” So far there are nearly 60 comments following this post.

    As we noted in our comment of 8:44 PM on 03 December “Jim Baconโ€™s Post is correct “in the current context.” Many of the subsequent comments are heartfelt, earnest and based on the commentorsโ€™ understanding of their experience. As is often the case with statements on human settlement pattern / transport โ€“ especially those concerning shared-vehicle systems โ€“ many are out of alignment with the reality of Greater Tysons Cornerโ€™s current context.

    Before outlining the Tysons Context, one should be clear on the goal of extending METRO to Tysons Corner and beyond. We suggest that the goal of building a shared-vehicle system to Tysons Corner should be to enhance Mobility and Access. Specifically, the goal should be Mobility and Access that supports the evolution of an Alpha (Balanced) Community in Greater Tysons Corner. An Alpha Community is a place that optimizes citizen happiness, safety and prosperity. In other words maximizes citizen well being.

    To achieve functional and affordable Mobility and Access for Greater Tysons Corner there must be Balance. In this context, Balance has three major components:

    1. Relative Balance of J / H / S / R / A for the entire Community as defined in GLOSSARY.

    2. Balance of the whole Community also requires relative Balance of J / H / S / R / A in each of the projected four station areas proposed to serve the Zentrum of Greater Tysons Corner.

    3. The most important aspect of Alpha Community Balance is Balance between the travel demand generated by the settlement pattern throughout Greater Tysons Corner and the capacity of the Mobility systems that serves the Community, including pedestrian travel.

    The existence of a shared-vehicle system โ€“ and to a lesser extent a supportive, but not dominate private-vehicle system โ€“ is what allows there to be “relative” Balance rather than “absolute” Balance in the organic components of Greater Tysons Corner.

    Now the Greater Tysons Corner Current Context:

    There are millions of factors that make up the Context but there are six major ones that may be considered the controlling elements of Tysons Corner Contextual Reality:

    1. Land Owner / Land and Building Developer Objectives

    Land Owners and Land and Building Developers (here-in-after “land owners”) make more money from some land uses than from other land uses. Some land uses required to achieve Balance do not generate a profit, at least not immediate profit. Others support the whole Community and do not directly benefit any specific individual, Household or Organization.

    Less expensive space for Affordable and Accessible Housing and for Enterprise and Institution incubators is the most commonly noted “below market” needs but functional Openspace is another important one.

    Land owners focus on the land uses that make the most money, the fastest. That is what Enterprises are created to accomplish.

    Land owners lose money every day if they do nothing with the land in which they have invested.

    Land owners have information and / or the ability to gather data and create intelligence on the evolution of functional human settlement patterns. However, information is power and they use their power to enhance their economic leverage, they do not use it to create more functional human settlement patterns. That is also what they are in business to do.

    2. Too Much Land

    There is vastly more development potential in four METRO station-areas than can be adsorbed by the market in a time frame that would return a profit on investment. In addition, there is a need for the creation of a Critical Mass in each station area to achieve Balance. There cannot be four partial station-areas over a long time period.

    For a further discussion of the fact that there is far more land than market, see Backgrounder “It is Time to Fundamentally Rethink METRO and Mobility in the Nation Capital Subregion.” and the Shape of the Future column “Rail to Dulles Realities” 4 January 2004.

    Not all land owners / developers can be successful. They know this and so Enterprises jockey for position and try to limit the amount of land that can be developed by other Enterprises. For example they scoff at Air Rights over land that the public owns โ€“ unless the particular entity does not own land. See “All Aboard” 16 April 2007.

    3. Limited METRO Capacity

    The “Silver Line” has very limited capacity as everyone has now admitted.

    Even the S/Pโ€™s “Turquoise Line” proposal from the 1980s has less than optimum capacity due to flaws in the original METRO system concept. For that reason S/P has, since the late 90s, advocated extending METRO to Greater Tysons Corner and then creating a different shared-vehicle service to Dulles via a new system with a station in Greater Tysons Corner but with technology and alignment that would get travelers from Dulles to Capitol Hill in 5 stops vs the 25 stops now envisioned.

    Because of METROโ€™s limited capacity, the “relative” Balance at each station must be much closer to “absolute” Balance. This makes the first two contextual realities far harder to address.

    4. What makes “Mass Transit” Work

    The optimum shared-vehicle system from a revenue perspective is one that serves at one end a Gulag where everyone lives (Houses) and at the other a Gulag where everyone works (Jobs). There is a stop in the middle where all the Services / Recreation / Amenity are located. Finally the three stop are too far apart to walk and there is no vehicle alternative. On this hypothetical system, the seats are filled 24 / 7 because everyone has to ride.

    Not many would be happy in this settlement pattern configuration.

    The optimum station-area settlement pattern for quality of life of citizens and prosperity of Enterprises and Institutions as well as the residents / workers is one where the citizens have to resort to a vehicle of any sort infrequently to assemble a quality life.

    Existence of a shared-vehicle system is what makes this settlement pattern possible and SYSTEM-WIDE Balance of capacity with travel demand is what makes it economically feasible. The private-vehicle system is the cherry on the top of the sundae, not the only way to get from any A to any B.

    Given minimum capacity of METRO this is a back breaker for all the simple minded “transit feasibility” tests that US DOT generates.

    5. Business as Usual Support for Growth and Consumption

    Most Enterprises, many Institutions and some Agencies see any new transport system as “progress” and believe that “growth raises all boats.”

    These Organizations jump from supporting one proposal to supporting another. The only criteria is that they do not get taxed to pay for any new Mobility and Access services.

    This is what the activities that were reported in the original WaPo story upon which Jim Bacon posted were all about.

    6. Political Process

    The process by which decisions are now made on new transport services is a process controlled by politicians. The first priority of politicians is getting elected again. The first priority of politicians is not creating functional human settlement patterns or Balancing travel demand with transport system capacity.

    To get reelected politicians must make the fewest voters mad as possible since results of any major decision are from two to five election cycles away.

    Politicians must rely on land owners / land and building developers and the denizens of Business As Usual for contributions to convince uninformed potential voters that they are doing the right thing.

    The conflict is obvious. The land owners / land and building developers want the public to pay for the shared-vehicle system and any other actions needed to achieve Balance so that they can optimize their profits.

    Voters want the opposite.

    Because of the dysfunctional settlement patterns that have agglomerated โ€“ since 1920, especially since 1950 and overwhelmingly since 1990 โ€“ the cost of any alternative is very high.

    The political process involves uninformed and misinformed citizens as demonstrated by comments following Jim Baconโ€™s post. Many are well meaning and believe they are acting in their best interest. Others are just trying to confuse those who are not well informed.

    In the Tysons Context, a stalemate is fine with many citizens. Some are NIMBYs, some say “I have mine you need get your own somewhere else” and some just cannot see an upside from change. The result is least common denominator settlement patterns.

    The studies and meetings go on endlessly. Politicians hire staff trained to not make uninformed citizens mad and they in turn hire consultants with the same objective.

    See Backgrounder “The Role of Municipal Planning in Creating Dysfunctional Human Settlement Patterns,” 23 January 2002.

    In the current Tysons Context, there are no advocates for intelligent, Fundamental Change. This the Context in which decisions will be made on an extension of METRO.

    That is why a functional media โ€“ subject of the four part Backgrounder “The Estates Matrix” โ€“ is so important.

    EMR


  • Americans Favor Smart Growth — Sez Smart Growth America

    Three-fourths of Americans believe that smarter development and more public transportation are better long-term solutions for reducing traffic congestion than building new roads, according to the 2007 Growth and Transportation Survey.

    Some highlights from the survey, which was sponsored by the National Association of Realtors and Smart Growth America:

    • 90% believe that new communities should be designed so people can walk more and drive less
    • 80% favor redeveloping older urban and suburban areas rather than build new housing and commercial development on the edge of existing suburbs.
    • 55% approve of charging tolls on more roads if it improves roads and decreases congestion. On the other hand, 84% are opposed to selling roads and highways to private companies who would charge a toll and give a portion of the toll money to the state.

    I would like to think the American people really are so strongly in support of the policies I advocate. But I’m guessing the situation is more complex. When people are asked these questions in the abstract, they give the answers the pollsters want. But when people make real-life decisions in concrete situations, the outcome is often very different. Still, I find the answers encouraging.

    (Hat tip: Diana Sun)


  • Transit, Walking, Biking and Telecommuting Gain Market Share

    First the bad news: The percentage of workers in the Washington region riding in carpools or vans declined about five percent between 2000 and 2006 — putting roughly 17,000 more drivers onto already crowded rush-hour roads.

    Those numbers come from a just-released “Regional Travel Trends Report” issued by the Metropolitan Washington Council of Governments. (See Table 7 on page 14.)

    Now for the good news. A smaller percentage of commuters is driving solo. Commuters are shifting to transit, telecommuting, walking and biking. The number of transit riders surged from 279,000 to 393,000 over that six-year period — an increase of 114,000.

    The number of people walking to work metro-wide increased by about 6,300, while the number of bicyclists rose by nearly 3,900. The number of people telecommuting rose by 19,700.

    Despite the shifts in transportation mode, the absolute number of solo drivers still increased, and so did congestion. Pessimists will say that the positive numbers for transit, walking and biking are negligible in a metro region with a workforce of nearly 2.8 million. But I see the numbers as a sign that change is possible. The increase in those modes is all the more remarkable considering that the vast majority of population growth occurred in outlying municipalities of the Washington region where cars are the only transportation option. In jurisdictions where transportation alternatives exist, the gains were encouraging indeed.

    (Hat tip to Jim Wamsley for this citation. His comment: “Transit ridership statistics obtained from WMATA and local jurisdiction transit systems show the growth in weekday transit ridership in the 2000 to 2006 period increasing at a rate 38% faster than that of weekday VMT. The differential in these two rates of growth rate suggests a measurable modal shift from auto to transit for some daily trips in this time period.”)


  • Good News and Bad about the Bay

    Let’s see, Gov. Timothy M. Kaine says Virginia expects to meet key goals for cleaning up the Chesapeake Bay. From yesterday’s press release:

    “…Kaine today announced Virginiaโ€™s largest wastewater treatment facilities and industries within the Chesapeake Bay watershed expect to meet their nutrient reduction goals by the end of 2010. Facilities will reduce the amount of nutrients in wastewater by participating in Virginiaโ€™s nutrient trading program and installing pollution control technology. …

    โ€œThis will be a huge step forward for Virginians and the Chesapeake Bay,โ€ Governor Kaine said.

    In other news the Chesapeake Bay Foundation says in its annual “State of the Bay” report that the condition of the Bay is getting worse. Reports the Virginian-Pilot:

    On a scale of 1 to 100, with 70 representing full recovery, the Chesapeake Bay Foundation gave the Bay a score of 28 this year, down from 29 last year. That means the mid-Atlantic estuary remains in serious trouble, choked by excessive nutrients, too much algae and dirt, and a lack of oxygen in the water.

    “We must all voice our outrage so that those with the power to effect change – the governors and legislators at the state and federal levels – do more to implement the known solutions of reducing pollution and restoring nature’s filters,” the foundation’s president, William C. Baker, wrote in a letter accompanying the report.

    Will the real Chesapeake Bay please stand up?


  • Lightening the Load

    The Commonwealth of Virginia has entered into a contract with EnergyConnect, of Portland, Ore., that will ease the strain on Virginiaโ€™s electricity grid and improve its reliability. According to a press release from the Governor’s office, the program will reduce the need for Virginia electrical utilities to build additional generating plants, transmission, and distribution lines.

    As a bonus, the contract contains provisions that could allow state agencies to reap $10 million a year in incentives to curtail demand.

    As a “Curtailment Services Provider,” EnergyConnect will work with state agencies, electric utilities, and the PJM regional transmission organization to reduce the electric load during periods of peak demand. How so? That’s not entirely clear from the descriptions provided, but here what the EnergyConnect website says:

    EnergyConnect, Inc. unlocks the potential of intelligent building automation control systems and communication networks by enabling its participants to participate directly in wholesale energy markets. EnergyConnect extracts significant economies by fully integrating energy use with energy supply and delivery.

    Pretty vague. Presumably, there’s a lot of proprietary knowledge involved that EnergyConnect doesn’t want to spell out.

    Regardless, the Kaine administration deserves kudos for pursuing this initiative. Conceptually, it sounds like a good idea. If successful, it could provide a conservation template for other large industrial and commercial users in Virginia. โ€œVirginiaโ€™s Energy Plan recommends that the state government lead by example,โ€ Kaine said in the press release. โ€œThis contract does exactly that.โ€


  • If You’ve Gotta Be Poor, You’re Better Off in Virginia (but Best off in Utah)

    One would expect Virginia children to be better off than children in other states if only for the reasons that our household incomes are higher than the national average and Virginia has a smaller percentage of poor children. But what happens when you focus on just the poor? How well off are Virginia’s poor children compared to their peers in other states?

    Given the chintziness of Virginia’s social welfare programs, one might expect that poor kids in the Old Dominion get a raw deal. But that’s not so, as it turns out.

    The Annie E. Casey Foundation has studied the issue, compiling a wide variety of indicators of well being. Virginia’s composite score is 18th in the country — 4th best in the country east of the Mississippi River. (Believe it or not, West Virginia edges us out!)

    Here’s how Virginia fared in the category scores (the lower the score, the better):

    Health status — 10
    Social and emotional well being — 19
    Cognitive development and educational attainment — 10
    Family activities — 41
    Family and neighborhood context — 26
    Social and economic context — 26

    What I find interesting is that Northeastern states known for the generosity of their social services fare the worst in the country. Poor children in Massachusetts rank 50, Rhode Island 49, New York 48, and New Jersey 47. And who’s at the top? Utah, not exactly a bastion of the welfare state, ranks No. 1. Other top performers are the Great Plains and Rocky Mountain states — all part of “red state” flyover country.

    Maybe the Annie E. Casey folks can do a follow-up study next year and examine the apparent reverse correlation between government social spending and child welfare.

    (Image credit: Annie E. Casey Foundation. Click on image for a larger, more legible graphic.)

  • Kaine Pondering Subsidized Medical Insurance for the Poor

    Gov. Timothy M. Kaine wants to create a state-subsidized medical insurance program to make health care more affordable for the working poor. A pilot plan under consideration would feature low-cost premiums with no deductibles and a $50,000 annual cap on benefits, secretary of health and human resources Marilyn Tavenner said at a recent meeting of the Fredericksburg Chamber of Commerce.

    The plan, similar to one outlined in September by the Health Reform Commission, would be a “three-share” model, reports Jim Hall with the Free Lance-Star.

    It would be offered to workers who earn less than 200 percent of the federal poverty level and whose employers do not offer health insurance. Private insurance companies would administer the plan. The cost of the monthly premium would be shared equally by the state, the employer and the employee.

    The pilot program could cost an estimated $20 million. But, as Tavenner acknowledged, that may not be affordable given the fact that the state faces a $650 million revenue shortfall this year.

    If the state has any funds free to pursue new initiatives in Fiscal 2009, this should be at the top of the list. (Personally, I would rate it higher than Kaine’s pre-K initiative — the social payback is quicker and more certain.) Virginia has more than one million uninsured citizens, and the number is growing. By any measure, the unaffordability of medical insurance is one of the most pressing social problems in the state. Not only are uninsured medical bills a leading cause of personal bankrutpcy and financial insecurity for the uninsured, the system costs the rest of us: When uninsured patients fail to pay, health care providers jack up rates for private insurance plans to make up the difference.

    I don’t know if Kaine’s idea will work or not. There may be problems that no one has considered. But $20 million seems like small change to test the idea. We have three broad options: (1) We can do nothing, and the problem will get worse; (2) We can roll out a massive, full-scale program to tackle the problem, crossing our fingers and praying we get it right; or (3) we can run pilot programs, see what works, and make adjustments before ramping up to a larger scale. I pick the third option.

    An inexpensive insurance program would offer benefits to enrollees all out of proportion to its costs. Here’s why: Insurance companies can negotiate much better terms from health care providers than individual patients can. An example: My wife recently had a medical procedure for which the hospital charged $1,227. Her PPO paid $115 and she paid $91. The hospital discounted the rest — about $1,000! Some poor, working class stiff would have been billed the entire amount. A failure to pay would have gone on his credit report, and he’d be well on the way to bankruptcy.

    Because of the massive discounts they can negotiate, insurance companies provide enormous benefit to their customers even if they don’t pay out a dime. How expensive would it be to offer an insurance policy that provided subscribers the discounts, perhaps wrapped around some catastrophic coverage? For a nominal cost, subscribers would receive 50 percent to 90 percent deductions on their medical bills, depending on the procedure. There is lots of room for innovation in this area, and Virginia should get cracking!


  • Big Tysons Landowners Fear Billions in Windfall Profits May Be In Peril

    Yet another special interest group has emerged in the political wrangling over the Rail-to-Dulles heavy rail project: Tysons Tomorrow, a consortium of some 20 landowners “poised to develop a new city of high-rises around the four Metro stops planned for Tysons,” reports Amy Gardner with the Washington Post.

    In contrast to the Tysonstunnel.org group, which recently filed to block federal funding of the project unless it ran the rail line underneath Tysons Corner, Tysons Tomorrow’s priority is to get the project built one way or the other — even if it means routing the rail above-ground. The business coalition is seeking to end the pressure from tunnel advocates, Gardner writes, because it fears the push could cause further delays and scuttle the project.

    Tysons Tomorrow does not yet have a website (although I would expect to see one any day), and Gardener provides only a few tantalizing details of who is underwriting it. She notes that backers includes huge property owners like Lerner Enterprises and the Macerich Group, owners of two Tysons Corner malls, as well as “mom and pop” owners of scattered, smaller parcels.

    Gardner hints at the underlying motivation of this group: Jonathan Cherner, whose family owns the Cherner Automotive Group on Rt. 7, and other Tysons landowners, she writes, “have remained quiet through much of the tunnel vs. aerial debate, in part to avoid calling attention to the handsome profits likely to result if the rail line is built. “

    Bingo! Give the woman a prize. Construction of the Metro, whether above ground or below, would create massive profits for the lucky landowners whose property happens to lie along its route. Combined with the increased density that would be permitted around the Metro stations, Tysons landowners collectively stand to make hundreds of millions of dollars — potentially billions of dollars — while paying only a modest fraction of the cost of the rail project. (Property owners would be assessed a tax to cover Fairfax County’s share of the project, but the tax district encompasses a broad swath of territory that spreads the burden to many landowners who would benefit only marginally.)

    What someone needs to do is to research (a) who are the property owners around the proposed Metro stations, (b) how much is their property worth now, and (c) how much would that land be worth after increased density and construction of the Metro stations? Would extending Metro to Tysons Corner increase property values by $1 billion? $2 billion? $5 billion?

    If property values would increase only $1 billion, it would not be reasonable to ask property owners to foot more than, say, $500 million to $900 million of the bill. But if property values would increase by $5 billion, and property owners would be paying less than one quarter of that amount in taxes, reaping multi-billions in windfall profits, why are we asking the federal government, outlying landowners and commuters along the Dulles Toll Road to pay the balance?

    This information is basic, but no one seems to be asking for it. If the Rail to Dulles project creates as much value as its backers say it does — and I think there is a possibility that it does — then it should be possible to finance the project without stiffing the taxpayers of the United States and toll-road commuters who will never use it, and still allow property owners to make a handsome profit. As it stands right now, however, the project is shaping up — if it ever happens — as the biggest undisguised transfer of wealth in Virginia since the tobacco planters were lording it over the slaves.