• Regional Hucksterism

    The Daily Press today editorializes on ‘A Regional Authority. Best advice: It’s an ugly duckling, but it’s our duckling’ (Friday, April 13, 2007).

    The editors call the transportation plan a “monstrosity” for unknown reasons… but say, “in this imperfect world, the best interests of the majority of the people in Hampton Roads will be served if the regional authority is approved.”

    The Daily Press has supported Regional Government the way Pravda in the 1930s supported collectivization of farms and the Great Leader. Which is why some facts are never be printed on their pages.

    Like, the Hampton Roads ‘plan’ actually adds congested miles after 20 years of construction delays, accidents and deaths. So, their cute comment about “The folks in Poquoson, for example, may not appreciate it, but their nice lifestyle will be damaged if that regional economy frays because of gridlock” doesn’t explain that the plan that Republican legislators (minus Delegates Gear and Rapp) cynically took around the voters just ADDS to the gridlock.

    The DP will never publish the economic relationship between tax increases and job losses – for the working poor first.

    Or, how much the Regional Government will pay in salaries, services, consulting fees, etc.

    Or, that a Regional Government isn’t needed to build bridges, tunnels and roads.

    Or, how many trucks a day the Port of Virginia will dump in the middle of Hampton on I-64.

    Maybe that is why Hampton City Council will put a referendum on the Regional Government on the ballot.

    Already, Newport News City Council (-2) voted for Regional Government even though the law doesn’t take effect until July. Isn’t that illegal?

    Oddly, the editors close in commenting on “this pitiful excuse for a transportation plan.” No idea what they dislike about the plan, when they love unelected, unaccountable, un-separated powers Regional Government.

    There is a chance for the voters to speak on the ’07 Transportation Tax Panic where Republicans challenge business-as-usual, tax-and-spend Republicans in the primary on June 12th.


  • What Would T.J.Say?

    The Board of Visitors of the University of Virginia has jacked up in-state tuition and fees at Mr. Jefferson’s University by 8.3 percent, or $655 per year. (See the Times-Dispatch article.)

    The usual justification for the relentless increases in tuitions year after year is the declining share of funding provided by the state. If you want to remain a world-class university, you gotta make up the difference somehow!

    Well, let’s take a look at the cheap-skate funding provided by those misers in the General Assembly. UVa did take some big whacks earlier in the decade. State support, which had peaked at $166.3 million in fiscal 2002, fell to $117.2 million by 2004. Since then, however, state support has rebounded substantially:

    FY 2004 – $117.2 million
    FY 2005 – $126.0 million
    FY 2006 – $137.2 million
    FY 2007 – $156.1 million
    FY 2008 – $158.6 million

    So, state support next year will have returned nearly to the glory days of the early decade. Not quite, but close. As the state has restored its funding, has UVa moderated its tuition increases in any way? Let’s see:

    FY 2004 – 10.7 percent, or $636 per student
    FY 2005 – 7.9 percent, or $580 per student
    FY 2006 – 8.6 percent, or $665 per student
    FY 2007 – 8.3 percent, or $655 per student

    Answer: No, tuition increases continue unabated. And that’s despite the fact that the University’s endowment, according to Wikipedia, stood at $3.5 billion in 2006, making it the largest endowment of any public university in the United States. What’s more, the University is currently engaged in a $3 billion fund-raising campaign, which is going very successfully, if the recent $100 million donation by Frank Batten, the Norfolk media tycoon, is any indication.

    In the late 1990s and early 2000s, the endowment was a star financial performer. According to a UVa Online article:

    …decisions made by the board in 1974 to invest 75 percent of the fund in equities has paid off handsomely. In looking at the cumulative endowment performance, $1 million invested in 1974 is worth $38.1 million this year. Income from the endowment distribution per share went from $10 per share in 1974 to about $115 per share in 2003, far more than the $45 per share if the University had stuck with the investment in bonds.

    While consistently racking up double-digit returns on its investments — UVa’s endowment even gained 2 percent in the year of the dot.com crash — how much has been allocated to operations? According to a FY 2002 document, endowment income provided only 3.5 percent of the university’s annual revenues. Knowing that UVa’s budget was $708 million and the endowment was $2 billion that year, we can extrapolate that the endowment kicked in roughly $25 million — about 1.25 percent of the endowment and a tiny fraction of the income it generated.

    This data is several years old, so it is conceivable that yields on endowment investments have fallen and/or that UVa now diverts a higher percentage of its endowment to supporting university operations. It’s also possible that in my quick Googling I have compared apples and oranges. So these figures, which need to be confirmed by university authorities, should be regarded only as a rough cut.

    But if the numbers are close to accurate, it appears that the top priority of the Board of Trustees is building a giganzo endowment: reinvesting the vast bulk of its earnings rather than earmarking it for actual expenditures. That’s great for boosting UVa’s position in the U.S. News & World-Report ratings of top universities, but it’s pretty hard on students and parents paying those massive tuition increases.

    I am open to changing my appraisal in light of additional information, but I get the very strong impression that the priority of the University’s administration and board of trustees is empire building: creating a bigger, more beautiful, most prestigious institution — catching up with the Ivy League. The priority is not providing an affordable education. State budget cuts make a convenient whipping boy, but the reality is that the University would rather pay for operating expenses by sticking it to students than tapping its massively expanding endowment.

    Is this what Thomas Jefferson had in mind for his university? I’m not so sure.

    (Photo credit of the proposed South Lawn Project: Campaign for the University of Virginia.)
    Update: The Associated Press reports: “Annual tuition increases of 10 percent and a greater reliance on private gifts are in Virginia Tech’s future, President Charles Steger told the faculty senate.”

  • School’s Out Forever

    A thought provoking piece from Robert Epstein on education wonders whether we’re doing more harm to kids with our current system than good. Snip:

    Our educational institutions today are cursed by at least four fatal legacies of the Industrial Revolutionโ€”ideas that may have been helpful a century ago but have no place in todayโ€™s world.

    First, although cars can be assembled on demand, itโ€™s absurd to teach people when theyโ€™re not ready to learn. As the brilliant German educator Kurt Hahn (the founder of Outward Bound) said, teaching people who are arenโ€™t ready is like โ€œpouring and pouring into a jug and never looking to see whether the lid is off.โ€

    Second, although mass education was exciting in the era that invented mass production, it does a great disservice to the vast majority of students. People have radically different learning styles and abilities, and effective learningโ€”learning that benefits all studentsโ€”is necessarily individualized and self-paced. This is the elephant in the classroom from which no teacher can hide.

    Third, although itโ€™s efficient to cram all apparently essential knowledge into the first two decades of life, the main thing we teach most students with this approach is to hate school. In todayโ€™s fast-paced world, education needs to be spread out over a lifetime, and the main thing we need to teach our young people is to love the process of learning.

    Finally, whereas that first compulsory-education law in Massachusetts was competency-based, the system that grew in its wake requires all young people to attend school, no matter what they know. Even worse, the system provides no incentives for students to master material quickly, and few or no meaningful options for young people who do leave school.

    As the father of an elementary school student, I can appreciate how school seems to be more adept at making learning a chore, rather than a joy. Part of that, I suspect, comes from the curriculum itself, which seems to be based more on hitting SOL benchmarks than letting teachers teach and more importantly, giving kids the incentive to learn.

    Ideas like those that Epstein puts forward here have almost no chance of being tested, let alone adopted, so long as Virginia’s political class and assorted interest groups remain so firmly wedded to the status quo. That’s a shame, bordering on a crime.


  • Developments to Watch: Harbour View Station Towne Center

    Suffolk City Council is nearing approval of a $553 million mixed use project, Harbour View Station Towne Center, that could create a second “downtown” for the sprawling, mostly undedeveloped city.

    According to the Suffolk News Herald, plans call for 1,200 residential units, 600,000 square feet of retail space, 500,000 square feet of office space, 150,000 square feet of medical offices and 750 hotel rooms. Located off Interstate 664, the 126-acre property will be developed in five phases.

    Developers are promoting Harbour View as a “smart growth” that will minimize impact on traffic congestion on the interstate: Many of the people who live in the development also will shop and work there.

    I have an instinctual aversion to any development that adds an “e” to either the words “old” or “town,” and I’m not real happy when Americans use the English spelling of “harbour,” so this project starts in the deficit column, as far as I’m concerned. However, inspiring confidence is the fact that the designer is CMSS Architects, who designed the Town Center of Virginia Beach and is working on Rocketts Landing in Richmond. You can see some conceptual sketches here.

    (Photo credit: Divaris Real Estate.)

  • An End to “Business As Usual” Republicanism?

    Another “Business As Usual” Republican, Sen. Marty Williams, R-Newport News, has picked up a primary challenger. Patricia Stall, a long-time Republican Party activist, is emphasizing her tax-cutting credentials.

    In announcing her candidacy, Stall noted that she had served as the Newport News “KNOWโ€ Campaign” and “Ax the Tax” coordinator that defeated the Sales Tax Referendum in 202. She also served as Executive Director of the Hampton Roads Taxpayer Coalition, an umbrella organization for all Taxpayer Alliances in Hampton Roads. More recently, she has worked to reduce the “skyrocketing real estate tax rate burden” on Newport News citizens.

    Says Stall: “I will be a faithful Public Servant to the voters and taxpayers of the 1st Senate District of Virginia and protect them from unfair higher taxes and regional government run by unaccountable bureaucrats.”

    I don’t keep close tabs on local races, but the backlash against free-spending “Business As Usual” Republicans seems to have some traction. Even here in Richmond, I’ve been hearing a lot about Scott Sayre running in the Valley against incumbent Sen. Emmett Hanger. The RightsideVA blog has a good profile of Sayre. A zealous advocate of market principles and limited government, Sayre is running a very strong race and could well unseat Hanger.

    In my back yard, Henrico County, Joe Blackburn is waging a spirited campaign against Sen. Walter Stosch. Stosch, of course, is an institution in the state senate and will be very hard to unseat. But Henrico is an interesting county. There’s a vibrant small-government impulse here. That applies both to keeping government’s hand off our wallets and its nose out of our bedrooms. Blackburn is pounding hard on the state budget, which has swelled to enormous size during Stosch’s watch in the General Assembly. I don’t hear a lot of specifics coming from Blackburn, but I do believe him when he says he’s committed to setting priorities, making tough spending decisions and advocating the interests of taxpayers as opposed to the special interests that swarm the halls of the state Capitol — something that Stosch appeared reluctant to do.

    Meanwhile, the departure of Sen. John H. Chichester, R-Northumberland, and Sen. Russell Potts, R-Winchester, will dramatically change the tone of the Republican caucus in the General Assembly. If GOP voters throw out a couple of “Business As Usual” senators — Hanger and Stosch are possibilities — other Business As Usual players will get the message.

    Assuming Republicans can hang onto control of the state Senate, the 2008 General Assembly could see a permanent end of the intra-party deadlock that paralyzed Republican governance for years until the passage of The Comprehensive Transportation Funding and Reform Act of 2007.

    But will a less fractious GOP caucus make any difference? Will a Republican Party dedicated to smaller state government display more innovative thinking and fresh approaches to long-standing problems? Will Republicans work to transform the outmoded institutions of governance, land use, transportation, education and health care to meet the needs of the 21st century? Or will they simply continue the politics Business As Usual on a smaller budget?

    The future of Virginia hinges upon the answer.


  • At Last, a Water Taxi on the Potomac

    I went through a brief phase a year or two ago touting the virtues of water taxis as a niche transportation option that could take travelers off the road. Water transport is a viable option in Seattle, the San Francisco Bay area and numerous cities around the world. Why not Virginia?

    At last, an entrepreneur with a solid track record in river transportation is expanding his water taxi business on the Potomac River. The Potomac Riverboat Co., known mainly for its river cruises, also runs a shuttle between Old Town Alexandria and Georgetown. Now the company is pursuing a new opportunity: linking Old Town with National Harbor, the $2 billion waterfront convention and entertainment destination under construction in Maryland, south of Washington, D.C.

    Potomac Riverboat plans to put two 99-passenger boats into service, running every half hour for twelve hours, seven days a week, and charging $12 for the 20-minute crossing, reports the Associated Press.

    Said Willem Polak, president of Potomac Riverboat: “The Potomac River is perhaps the most underutilized transportation artery throughout the capital region, and we are excited at the prospect of continuing to expand the breadth of our service to National Harbor.”

    (Photo credit: Potomac Riverboat Company.)

  • Partial Verdict for Interstate 81

    For Interstate 81, rails are out and tolls are in, reports Garren Shipley with the Northern Virginia Daily. Those are the two main points to emerge from the Final Environmental Impact Study for I-81, which will guide how the Virginia Department of Transportation approaches the highway in the years ahead.

    On trains:

    A “Steel Interstate” proposal put forward by Rail Solution, a Shenandoah Valley group lobbying for a greater emphasis on freight rail rather than road expansion, just won’t work, according to the report.

    Supporters are correct when they argue that a substantial portion of long truck trips would take to the rails if the $3.5 billion-plan were implemented, according to the a section of the report dealing with freight diversion.

    Of the 7.3 million 500-mile or greater truck trips forecast for I-81 in 2035, 16.6 percent, or about 1.2 million, would take the train instead. But the vast majority of trucks, 21 million, are on trips of less than 500 miles, according to the study, and would be much less likely to take the time to offload their cargo onto trains.

    On tolls:

    Tolls also will be a part of I-81’s future, according to the document. Federal officials say they want to go forward with plans to levy fees of anywhere from 7 cents to 14 cents per mile.

    Significant numbers of trucks and passenger cars would try to duck the tolls by using U.S. 11, the report says, but there would be wildly different impacts up and down western Virginia, depending on the location and toll charged.

    In Washington County, near Bristol, a low toll would put 420 more trucks on I-81 every day while having no impact on U.S. 11. But in Shenandoah and Frederick counties, a high toll on trucks only would take 3,400 off of I-81 and put 3,190 more onto U.S. 11.

    Tolls on interstates are generally forbidden, under the theory that taxpayers already paid to build the highways through federal and state taxes on gasoline. But Congress has carved out two exceptions in recent years, one for a “congestion pricing” pilot program, the other for a “reconstruction” pilot program.


  • Dulles Toll Road Commuters to Get Hosed Again?

    Examiner.com makes an interesting point:

    Officials at the Metropolitan Washington Airports Authority late last month unveiled an agreement to build the first 11.6-mile phase of the rail at a total cost of $2.4 billion to $2.7 billion โ€” considerably more than the early estimates of $1.8 billion. Fairfax County and the federal government have pledged a total of $1.3 billion. Tolls will cover the rest of the growing cost.

    That’s just Phase One, extending the rail to Tysons Corner. What happens with Phase Two, which runs the rail all the way out to Dulles, Examiner.com asks. How big will the Phase Two overruns be? What sources of money, other than the toll road, will exist to pay for that leg of the project? Will Dulles Toll Road commuters be asked to take up the slack with tolls even higher than what’s currently projected?

    Instead of sticking it to commuters with ever-escalating flat tolls, I think we should convert the Dulles Toll Road to a congestion-toll arrangement. Take the surplus funds and reinvest in making improvements to the corridor, whether expanding lanes, improving interchanges, setting up Rapid Bus Transit, synchronizing stoplights along parallel roads… or underwriting the Rail-to-Dulles project to a limited degree.

    I want to see Rail-to-Dulles built. But not at any cost. And certainly not overwhelmingly on the backs of people who benefit only indirectly from the project. There has to be a better way. Again, I return to the landowners, who will reap multi-million windfalls from the presence of Metro stations and increases in zoning density. Why are the politicians so unwilling to consider tapping some of that value to help finance the project?


  • Mary Poppins for Governor

    With the steady encroachment of the nanny state in Virginia, it won’t be long before Mary Poppins launches a bid for governor. (If Mary Poppins is too obscure for the younger generation of readers, nominate Nanny McPhee.)

    Booster Seats: New legislation mandates the use of booster seats for children seven years or younger. I agree, booster seats for small children do make sense. Here’s what Gov. Timothy M. Kaine says: โ€œThis legislation was the number-one priority of traffic safety advocates this year, based on research that clearly shows most 6- and 7-year-olds are too small to be properly secured with seat belts and shoulder harnesses.โ€

    I just don’t buy it. There’s a point of diminishing returns. I have an eight-year-old, and I can tell you that the idea of driving him a year ago to basketball practice or Little League in a booster seat would have ludicrous. Our society already coddles and infantalizes our children in too many ways. This is just too much.

    Restaurant Smoking: Gov. Timothy M. Kaine has done his best to ban smoking inside restaurants. I don’t smoke and no one in my family smokes — except one renegade daughter — but I don’t have a problem with other people smoking in restaurants. Restaurant owners should be free to institute their own smoking policies on their own property: ban smoking outright, allow smoking anywhere, or set aside smoking sections. There is no shortage of restaurants in Virginia. If I don’t like cigarette smoke, I’m free to find a restaurant where there isn’t any.

    Kaine has shrewdly side-stepped the property rights objection by defining the issue as an employee safety matter: Waiters and waitresses should be allowed to work in environments free from second-hand smoke. My question: If that’s the real reason, why not ban smoking in all workplace environments? (I probably shouldn’t push that line of logic too far: That’s what’s coming next.)

    Stop Light Cameras. The โ€œphoto redโ€ bill gives localities the option of installing photo-monitoring systems to enforce traffic light signals. God forbid that national security organizations, without a court order, eavesdrop on telephone conversations originated by overseas terrorist operatives to contacts in the United States. But monitoring Americans who might run stoplights? No problem.

    George Orwell described a suffocating totalitarian future in 1984. Mankind’s nemesis was Big Brother. He didn’t foresee today’s threat: rampant do-gooders telling everyone else how to live. Our nemesis today: the smothering embrace of Big Momma.


  • Kaine Launches Ambitious Energy-Savings Initiative

    Gov. Timothy M. Kaine has ordered state agencies to cut energy costs by one-fifth by the end of his term in January 2010. In theory, the initiative could save $58 million a year.

    Said Kaine in a prepared statement: โ€œReducing our energy consumption and costs and protecting our natural resources is a priority for my administration. Last year, Virginia state government spent over $290 million in energy costs to operate our facilities and travel on state business. To reduce the environmental consequences of that level of energy consumption and save taxpayer dollars, I am directing state government to use proven and innovative conservation technologies and energy procurement processes.โ€

    (Christina Nuckols with the Virginian-Pilot has the story here.)

    I applaud Gov. Kaine’s initiative. It’s a perfect example of the kind of cost-cutting that can generate significant savings in the state budget. An older generation of lawmaker looked at the state budget in departmental silos and defied critics of government spending to identify which programs they wanted to cut. That’s not where the waste in government resides. The waste resides in functions and processes that cut across departments, as in energy, information technology and human resources.

    By targeting energy, Kaine gets a two-fer: He can save taxpayer dollars while reducing the impact on the environment.

    I have little doubt that the state can achieve its targets eventually: many, many energy-saving technologies and best practices are available. However, I do have a couple of concerns. Energy saving projects come in all shapes and sizes, and they vary widely in their Return on Investment and the length of their payback. In a rush to achieve the 20 percent goal by the end of Kaine’s term, will state agencies consider only those investments with quick paybacks and ignore those with longer implementation cycles?

    One difficulty in justifying long-term capital investments for the purpose of cutting costs is that Virginia works in two-year budget cycles. Installing Compact Fluorescent Light bulbs is a no-brainer in a two-year budget cycle. Building a cogeneration heating/cooling/ electric generation facility with a 20-year life expectancy is not, no matter how substantial the anticipated savings over the long run. Between the two extremes are all manner of potential projects, from office hoteling programs to building automation systems.

    To help achieve that 20 percent energy savings, the Commonwealth should consider issuing $100 million or more in intermediate- or long-term bonds to pay for projects that can’t be funded out of operating budgets. If the project generates a 25 percent Return on Investment in the form of energy savings, and the cost of capital to the state is six percent, it is irresponsible not to borrow the money.


  • Squeeze the Little Guy First

    Illinois Gov. Rod Blagojevich is working all the angles to win approval for his proposed gross receipts tax:

    Gov. Rod Blagojevich used state economic development programs to target businesses that had received government grants and would support his plan to increase taxes on larger companies.

    State-funded “entrepreneurship centers” were asked to contact businesses and recruit them for Blagojevich’s tour this week touting his proposal, according to interviews and documents obtained by The Associated Press.

    And regional managers for the Department of Commerce and Economic Opportunity were instructed to contact area businesses to gauge support. To ensure they said the right things, managers were given a script that outlines the plan, which calls for $8.6 billion in business taxes to help schools and make health insurance available to everyone.

    I’ve got to hand in to Gov. Blagojevich: he’s put Tim Kaine’s efforts to gin-up support for a transportation tax hike look positively pedestrian.


  • Take a Telecommute and See Me in the Morning

    Long commutes can be dangerous to your health, reports Eric Weiss with the Washington Post. He leads his story with this anecdote:

    For seven years, Gail Ennis has been spending up to three hours a day behind the wheel of her Subaru, commuting between her law office in Washington and her home on Gibson Island in Anne Arundel County. What she’s gotten out of the 100-mile
    daily round trip is sciatica — a shooting pain down one leg — and a lack of time for exercise. “It’s just too much and getting worse every year,” Ennis said.

    Researchers have found that road warriors with long commutes get sick more often and stay home more often. They work out less, are prone to high blood pressure, and suffer more headaches and chest pains. Robert G. Squillante, an orthopedic surgeon in Fredericksburg, said constant road vibrations and sitting in the same position for a long time is bad for the neck and spine and puts special pressure on the bottom disc in the lower back, the one most likely to deteriorate over the years.

    When the Texas Transportation Institute calculates the cost of traffic congestion, I do not believe that it considers these hidden medical costs. Virginia’s transportation system is even more dysfunctional than commonly acknowledged.


  • Home Builders Getting Stoked for Impact Fee Battles

    Mike Toalson, executive vice president of the Home Builders Association of Virginia, vows to fight the impact fees permitted by The Comprehensive Transportation Funding and Reform Act of 2007. The metropolitan dailies have overlooked this obvious follow-up to the legislative duel of the decade. Fortunately, we have the Culpeper Star Exponent to report the story.

    The reason that the Home Builders weren’t a factor in the final days of the debate over the landmark legislation, it appears, is that the association was taken by surprise. Reports Liz Mitchell:

    โ€œWhen the governor released his amendments he included an entirely new component that had never been a part of the bill and no public opportunity for comment,โ€ Toalson said. โ€œWhat he embedded was new road impact fee authority for 67 localities in Virginia, including Culpeper, Fauquier, Green, Louisa and Orange counties.โ€ …

    โ€œHe embedded it in the bill HB3202 in a form we could not get out,โ€ Toalson said. โ€œNormally, we get an opportunity to vote but it didnโ€™t happen that way. It was crafted in a way that we couldnโ€™t touch it.โ€

    The Transportation Act allows localities to imopse permit fees but does not require them to do so. That shifts the debate over how to finance growth from the General Assembly to 67 separate jurisdictions. In a meeting with the Piedmont Virginia Building Industry Association, Toalson got the troops fired up for the coming battles.

    โ€œAre you going to take the cost of doing new business and just eat it,โ€ Toalson asked the room full of builders, real-estate agents and bankers. โ€œNo. Youโ€™re going to pass it on to the consumer. And then what happens? All the neighborsโ€™ houses become more expensive. And then what happens? Real estate taxes get higher. But itโ€™s, โ€˜Youโ€™re the bad guy. Youโ€™re paying your fair share.โ€™ And itโ€™s coming sooner rather than later.โ€


  • NoVa’s New $400 Million-a-Year Honey Pot

    As road-building action in Northern Virginia shifts to the Northern Virginia Transportation Authority, Eric Weiss with the Washington Post profiles that long-obscure body now finding itself in the limelight. The organization’s main accomplishment to date has been to publish “TransAction 2030,” a $16.6 billion wish list of road, transit and trail projects for the region.

    Under The Comprehensive Transportation Funding and Reform Act of 2007, the Authority will have roughly $400 million a year at its disposal, assuming NoVa localities approve. That’s only half of the sum needed to fund the TransAction 2030 list, however, so someone will have tough choices to make. As Weiss points out:

    Although there is a plan, there is no mechanism to decide which projects go first. Also, the money raised by the new taxes will not come close to building all the projects, so members will have to decide which to postpone. Several members said they will seek input on priorities from their local elected boards and lobby for those.

    Another concern (mine, not Weiss’) is that there appears to be no mechanism for coordinating the improvements with, or making them conditional upon, changes in land use.

    Oh, and there’s also the problem that representatives to the Authority are largely unaccountable, mechanisms for public participation have yet to be worked out, and the decision-making process will be influenced disproportionately by the transportation contractors and land owners who can afford to pay full-time lobbyists to work the system.

    Sounds to me like a recipe for back-room deals.


  • Earthquake

    I found early reports and analyses of The Comprehensive Transportation Funding and Reform Act of 2007 to be so confusing that I assigned journalist Peter Galuszka to summarize the land use components of the bill. The thrust of his story filed today: Very few people, not even developers or local government officials, fully appreciate how disruptive to the status quo the reforms will be.

    โ€œI donโ€™t think they completely understand the dramatic change that is going to occur in the next 10 years in Virginia,โ€ Del. Clay Athey, R-Front Royal, a key co-author of the law, told Peter.

    The “laissez-faire” era of real estate development is over, Athey declares. Instead of executing well-planned projects, he says, developers have tended to go for the cheapest land — property that was up for auction after a foreclosure or estate sale — or locate projects in counties where the supervisors had a reputation as zoning pushovers. New tools — Urban Development Areas, Urban Transportation Service Districts, impact fees, devolution of responsibility for secondary roads — will force local government to do a better job of planning.

    I agree with Athey’s overall assessment, although I would quibble with his choice of the word “laissez-faire,” which implies that real estate has been a free market subject to little or no government control. In fact, real estate markets have been shaped by a host of zoning laws, subdivision ordinances, environmental regulations, comprehensive plans and government-funded funding of transportation and infrastructure improvements. It would be more proper to say that the old “quasi-free market” era in real estate is over, to be replaced by a different quasi-free market era.

    Whether applying new layers of power and regulations to land use will yield results superior to those of the past, I dare not venture to predict. Concentrating growth into development districts where infrastructure can be more efficiently provided does make sense to me. But there is no escaping human perversity and the law of unintended consequences. I have a gnawing fear that the reforms will not turn out quite like Athey hopes they will.

    Regardless, change is upon us.