• Shaking up the Rail-to-Tysons Debate

    I normally let Bacon’s Rebellion e-zine contributors plug their own columns in this blog, but I’m making an exception today. I want to bring to readers’ attention Ed Risse’s column, “All Aboard!“, which takes a fresh look at the Tysons Corner heavy rail project.

    The backdrop of Ed’s column is the controversy over Gov. Timothy M. Kaine’s decision, largely on the basis of practical funding considerations, to pursue an above-ground rail line rather than the underground rail line that many Fairfax County residents wanted. The rap against the above-ground rail line is that it would chop up Tysons Corner, disrupting the effort to reconfigure the business center as a connected, pedestrian-friendly, mixed-use community.

    Not necessarily so, argues Risse. A “pyramid” development pattern, in which tall buildings and high densities are permitted above the Metro stations and taper off within a 1/4-mile radius, combined with Public Way Rights, which permit development above the Metro station and on publicly owned roadway around it, would create just as much connectivity for travelers as an underground station.

    Plus, if I extrapolate from Ed’s reasoning correctly (Ed, please correct me if I go astray) a Pyramid/Public Way Rights approach would have a huge bonus: Because the public owns the rights of way, the public could reap some of the economic value created by the Metro presence to pay for construction of the rail line.

    At full build-out, Risse calculates, the property within a 1/4-mile radius of a Metro station could be worth, at current prices, about $1.9 billion at each of the four Tysons Corner stations, for a total of $7.6 billion. (Important caveat: The number would be lower if we do a net present value analysis; such a huge volume of space would take years, if not decades, to absorb.) Compare that to the cost of extending the above-ground rail line through Tysons Corner: between $2.4 billion and $2.7 billion. Extracting the economic value from the publicly owned rights of way could cover most of the cost of building the rail line — and that doesn’t even include the option of tapping the value created for private land owners.

    The column is “must” reading for anyone interested in the future of Rail to Tysons and Rail to Dulles.


  • Saving the Countryside

    One of the special attributes of Virginia is the beauty of the countryside, especially in the northern piedmont. The rolling hills and curving country roads… the vineyards and manicured horse farms… the charming hamlets with quaint, historical downtowns. It’s an extraordinary asset for all of us city and suburban dwellers who enjoy the occasional weekend getaway.

    A huge question is: How do we preserve that bucolic landscape from leapfrogging suburbanization (scattered, disconnected, low density development) emanating from Virginia’s New Urban Regions? More to the point, how do we preserve it without turning the region into a cultural museum — in other words, while also preserving economic opportunity for the people who live there?

    The most fully developed economic development strategy for Virginia’s countryside is the Journey Through Hallowed Ground, which pursues several interlocking themes: heritage tourism, sustainable agriculture, landscape preservation and Main Street revitalization. The author and driving force of this strategy is Cate Magennis Wyatt, Secretary of Commerce during the Wilder administration, who lives in an old Quaker village, Waterford, in Loudoun County. What’s most remarkable about the initiative is not the individual ideas, bits and pieces of which have been implemented elsewhere, but the comprehensiveness of the vision and the energy with which it has been embraced by literally dozens of local governments and civic organizations between Monticello and Gettysburg, Pa.

    I describe the economic development thinking behind the Journey Through Hallowed Ground in today’s column, “Honoring Hallowed Ground.” Many other swaths of Virginia countryside could learn from the experience of Virginia’s northern piedmont.


  • The Lounge Chair Rebellion Strikes Again

    The April 16, 2007, edition of the Bacon’s Rebellion e-zine has been published. Visit the e-zine here. Never miss a single issue, subscribe here and get the latest edition e-mailed to you free.

    Here are this week’s columns and features:

    Honoring Hallowed Ground
    Cate Wyatt is reinventing the economy of Virginia’s northern piedmont. The Journey Through Hallowed Ground weaves together heritage tourism, sustainable agriculture, landscape preservation and Main Street renewal.
    by James A. Bacon

    Rule of Law
    Jamestown 2007 is taking Virginia back to basics.
    by Doug Koelemay

    All Aboard!
    An above-ground version of METRO rail can work in Tysons Corner. But it will take two things: Public Way Rights and a Pyramid development strategy.
    by EM Risse

    Call for a “Roads Blueprint”
    Between the new taxes just enacted and financing by the private sector, Virginia should have ample funds to keep traffic congestion under control. The trick is crafting a plan and sticking to it.
    by Michael Thompson

    Legislative Tyranny
    Speaker Bill Howell and AG Bob McDonnell circumvented the Virginia Constitution by passing the 2007 transportation bill in defiance of the multiple object rule.
    by Phil Rodokanakis

    I Think We Should See Other People
    Libertarians have lost patience with big-government Republicans. But it’s not clear where they’d feel more welcome.
    by Norman Leahy

    Road to Ruin: Auto Busters
    Arlington County’s population is growing but traffic congestion isn’t. What makes the difference? Five Metro stations, smart land use and control over local streets and roads.
    by Robert L. Burke

    Nice & Curious Questions
    Ties that Bind: Virginia’s Sister Cities
    by Edwin S. Clay III and Patricia Bangs


  • Nichol Bound for Duke?

    My old friend Veritatus has submitted another satire in the form of a news story from Durham, N.C.

    Nichol to be Recruited by Duke’s Group of 88

    Durham, NCโ€”In the wake of the dismissal of rape charges against three former Duke University lacrosse players, Dukeโ€™s Group of 88 professors are regrouping to continue their struggle against racism, mysogyny and privilege. Their plans include recruiting College of William and Mary President Gene R. Nichol, who would resign his position in Williamsburg, Va., and join the Duke faculty as Dean of Inconsequential and Politically Correct Studies.

    The fact that Attorney General Roy Cooper after three months of investigation could find no evidence of wrong-doing on the part of the former players, leaves the Group undaunted and reenergized to take up their cause to spread their brand of mindless political correctness to every corner of the Duke campus. Their success to date in cowing the Duke administration and board has given them a taste of victory and capitalist blood.

    Soon after allegations of rape and other crimes surfaced in the spring of 2006, 88 members of the faculty and 16 Duke departments and programs denounced the lacrosse players in a public statement asserting that something โ€œhappenedโ€ to the accuser. The Group committed themselves to โ€œturning up the volumeโ€ and thanked the campus protesters who branded the players โ€œrapistsโ€ while distributing โ€œwantedโ€ posters around campus. The Group promised that their crusade โ€œwonโ€™t end with what the police or the courts say.โ€

    โ€œGene Nichol will be a perfect 89th member of our group,โ€ confirmed Professor of Empathy Studies Y.R. Feelings. Heโ€™s got it all in one package. Feelings went on to identify some of Nicholโ€™s major accomplishments while at the helm of William and Mary. These include:

    1) A campus-wide email condemning the cowardice of those who had released into the public domain the name of a woman who had accused a male student of rape. The male student whose name was prominently featured in the media was bounced out of William and Mary. Later the county prosecutor dropped all charges.

    2) A running media battle over the failure of the local voter registrar to allow students from other states to register to vote in Williamsburg, VA, home of William and Mary. Apparently the misguided registrar thought that students, in order to register, should declare full Virginia citizenship by paying Virginia state and local taxes and registering their cars in Virginia. The flap died down when it became clear that these new Virginia residents would be entitled to in-state tuition and thereby seriously deplete the William and Mary revenue budget.

    3) Removal of the cross from the almost 300-year-old campus chapel in a move to be more sympathetic to persons of other faiths who might be offended by the chapelโ€™s cross. Voices raised in protest largely went unheard by Nichol though the cross will now be displayed in a glass case as an inconvenient relic.

    โ€œIf we get Nichol, this will be a twofer,โ€ stated B.E. Stronger Duke Professor of Self-Esteem Studies. โ€œThis guy Nichol is the grand guru of political correctness, and heโ€™s a china shop bull who can be counted on to create controversy where there is none.โ€

    The Group also is counting on Nichol to deal with the considerable embarrassment of the Duke Chapel, possibly converting it to an indoor practice field for lacrosse.


  • 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.