Bacon's Rebellion

Who will report the news? That’s the question I keep asking as the Mainstream Media continues losing reader share. If digital media — websites, e-zines and blogs — are to take their place, they need to develop a business model that brings in enough advertising or subscription revenue to support the hiring of journalists to gather and package news for an interactive, online environment.

Market research released by Borrell Associates Inc., of Portsmouth, describes the rise of local websites as a competitive force in local media markets. Hundreds of independent websites are making money, some reporting revenues well into the six figures. Some even have been acquisition targets. Said author Dorian Benkoil: “Six years ago everybody was rushing into the local space with city guides. AOL was pursuing Digital Cities, MSN was launching Sidewalk and CitySearch was everywhere. They all retrenched or abandoned the space. But with tremendous growth in local advertising in the past two years, city guides and local independent city sites are back with a vengeance.”

There’s only one problem: The profitable websites shun local news, focusing almost exclusively on “fun and interesting things to do around town.” There is still no viable business model for an online publication that gathers and packages state/local-level news. But it’s a sign of progress to see that any category of online publication is proving to be financially viable. One step at a time… We’ll get there eventually.

As a supporter of capital punishment, I find no fault with Gov. Mark R. Warner’s decision yesterday to commute the death sentence of Robin Lovett, who stabbed a man to death with scissors during a 1998 pool hall robbery. The odds are overwhelming that Lovett was guilty of the crime he was convicted of and, thus, deserves to die. But Warner rightly notes that there is a higher principle at stake: The destruction of evidence in Lovett’s case by a court official rendered it impossible for Lovett to exonerate himself by a testing of DNA evidence. (See Frank Green’s story in the Times-Dispatch.)

To my mind, there is only one legitimate argument against the death penalty: The possibility that an innocent man (or woman) might be put to death. The criminal justice system is imperfect; people have been wrongfully convicted. Who knows how many innocents have been unjustly executed? It is incumbent upon death penalty supporters to go the extra mile to ensure that such horrors never occur.

While I object to the endless, often frivolous appeals that death penalty foes use to delay the administration of justice, I don’t object to testing DNA samples in instances where such tests had not been conducted before. The delay caused by testing is trivial. In Lovett’s situation, however, a circuit court employee violated a state law that had just gone into effect when he (or she) destroyed the evidence. I agree with Gov. Warner that Virginia’s criminal justice system must adhere rigidly to the protections granted all defendants. Failure to do so would undermine the legitimacy of capital punishment.

For my money, the best article in the most recent Bacon’s Rebellion e-zine was Debbie Kurtz’s “Beware the Blog!” It’s “sponsored content,” a nice euphemism for an advertisement, but that makes it all the more noteworthy. Few ads are provocative op-eds.

As a disclaimer, I know Debbie Kurtz in passing. She’s a top-notch marketer and economic developer.

Anyway, Ms. Kurtz warns that bloggers might eat the lunch of the old-style, buttoned-down, message-controlling economic developer. All a prospect has to do is a google search and all sorts of “dirty laundry” about a community might appear, much of it from cause-espousing and/or truth-telling bloggers. The solution is to hire Ms. Kurtz’s firm to track blog activity.

While that’s probably a good idea and a smarter investment than some of the expensive print media economic developers buy, I would suggest that an additional measure would be for the economic development agency to have its own blog. Blogging is a wonderful way to focus on a community and all the diverse viewpoints it represents, as opposed to the one-dimensional sales approach most economic developers favor.

To a certain extent, Ms. Kurtz sees bloggers as “the enemy.” I would differ. If the rage in economic development now is feeding the “creative class,” what is a more creative force than bloggers? Many bloggers equals vibrant community, in my estimation. Richmond, for example, has a number of bloggers representing a variety of viewpoints on the city and region’s direction. Their creative conflict is a positive sign of interest in the future and a way for innovative ideas to surface.

How many bloggers are in Martinsville, debating that area’s future? There might be a message there.

Virginia’s legal system ranks the 4th best in the nation, according to a survey conducted by the Institute for Legal Reform, an organization founded by the U.S. Chamber of Commerce to address the country’s litigation explosion. “Best,” in this context means “business friendly.”

Virginia trails only Delaware, Nebraska and North Dakota — and it’s the best in the South by a long shot. The second best Southern state, North Carolina, ranks 20th, while the bottom four slots are reserved for Louisiana, Alabama, West Virginia and, the worst, Mississippi.

The Institute study was based on a survey of over 1,400 practicing corporate attorneys and general counsels who answered a comprehensive battery of questions. The Institute argues that business-unfriendly legal systems discourage investment and hurt local economies. “Companies dont want to do business in states where the courts are perceived to be unfair. People living in low-ranking states are losing out on jobs, tax revenue and other economic development opportunities fueled by business.”

The disappointing news for Virginia: Our No. 4 spot represents a decline from a No. 3 ranking last year.

Want to know more about the future of public-private transportation partnerships in Virginia? Then you need to attend the Public-Private Partnership Forum, Dec. 16-17 at the Virginia Crossings Resort in Glen Allen, Va.

With the Commonwealth relying increasingly upon toll roads and private sector cash to build its transportation system, this timely conference will explore issues related to transparency, risk and accountability in public-private partnerships — as applied to both community development and transportation.

Confirmed speakers include:

– House Speaker William J. Howell
– Pierce Homer, Virginia Secretary of Transportation
– Jim Regimbal, Fiscal Analytics, Ltd
– Edd Hauser, UNC Charlotte Center for Transportation Studies
– Alan Pisarski, Independent Consultant
– Ken Klinge, Former Chairman, Commonwealth Transportation Board

Plus many more….

Click here to see an updated version of the program.Click here to visit the conference home page and access registration information.

In its final days, the Warner administration appears to have developed its own, unique approach to the transportation crisis: Solicit public-private partnerships on an unprecedented scale to upgrade major traffic corridors, using tolls and private capital to pay for improvements that the state cannot. We are living through what may be the greatest boom in public-private transportation partnership solicitations and proposals in the history of Virginia.

In theory, PPTAs inspire the private sector to inject fresh thinking and outside capital into Virginia’s transportation system. But critics worry that the PPTAs elevate lower-priority projects to the top of the list for state funding at the expense of the general welfare. Bob Burke highlights the issues in his latest Road to Ruin reporting, “Show Me the Money.”

We have tracked the fortunes of the Virginia Information Technology Agency on this blog with some regularity. Clearly, the Warner administration has ambitious plans to transform the delivery of IT services in state government: The 10-year, $2 billion contract assigned to Northrop Grumman may be the biggest chunk of state IT business entrusted with the private sector anywhere in the country.

At the same time, this blog has received input from state employees wondering, Where’s the Beef? If VITA’s such a hot idea, where are all the efficiencies and savings that were promised? Back in 2003, then-Secretary of Technology George Newstrom forecast that the state would have reaped $100 million in cumulative savings by 2005. Well, 2005 has come and darn near gone. Show me the money!

Eugene Huang, Newstrom’s successor, answers those questions in my latest column, “Mission Creep.” Bottom line: Savings so far amount to about $50 million total, about half of what was expected. Huang blames the General Assembly: Legislators wouldn’t pony up the modest up-front capital to invest in money-saving improvements the administration was counting on. Meanwhile, in its contract with Northrop Grumman, the state is getting an IT system with greater security and redundancy than exists now. Huang maintains that the state will save $240 million compared to the cost of undertaking the upgrade itself.

Is Huang dishing out the straight poop, or he is blowing smoke? I’d welcome comments from informed observers.

The Nov. 28, 2005 edition of Bacon’s Rebellion has been published. We have set a new record for content — 17 columns, plus our regular “Nice & Curious Questions” feature, a new Road to Ruin feature, and sponsored content. People had a lot to say!

You can read the latest edition here.

It’s rare to see the Washington Post criticize Gov. Mark Warner, but an editorial today takes him to task for delaying a decision on DNA testing of evidence in the Roger Keith Coleman case. One little-noticed reason for Warner’s overwhelming popularity is his avoidance of discussing or acting on controversial, hot-button issues.

No “honeymoon” for Lt. Gov-elect Bill Bolling in the editorial pages of the Daily Press. Should we tell them the Lt. Gov. position is basically ceremonial and that there’s no danger he will implement his “dangerous free-lunch” ideas?

The Richmond Times-Dispatch editorial page advises that Governor-elect Tim Kaine has said that a “non-partisan redistricting commission, made up of individuals who are neither officeholders nor party officials, is the best way to draw legislative districts.” It will be interesting to see if Kaine makes an effort to end gerrymandering in Virginia.

The Roanoke Times editorializes on a pet Bacon’s Rebellion topic: “Kaine’s victory should put sprawl control on the legislative agenda. But finding the right balance between unrestrained growth and regulations that will hold the line on taxes and preserve quality of life is no simple task. Thoughtful debate in Virginia is past due.”

There is grumbling about the noble Brown v. Board of Education scholarship program, according to Jamie Ruff of the Richmond Times-Dispatch. No reparations-like program can ever be perfectly designed. I would have favored a provision allowing eligible individuals to assign their scholarship to a relative or a high school scholarship program, but even that would create potential problems.

The headline of a recent article in USA Today tells it all: “Outlook good for tax cuts by states: Revenue growth creates surpluses.”

A chart accompanying the article shows the projected increases in state and local revenue in 2005: 7.25 percent nationally (based on the first nine months of the year). The story then proceeds to describe tax cut proposals in Utah, South Carolina, West Virginia, North Dakota, Michigan and New Hampshire.

Absent from the list: Virginia.

Tax revenues for the first three months of Virginia’s fiscal year are running 14 percent ahead of the same period last year. (See my blog post of Nov. 7.) There’s a good chance the month-over-month revenue gains will moderate, although that’s what the Warner administration said would happen last year, and the revenue just kept flowing. But let’s assume that the revenue gusher does moderate by 20 percent to 30 percent. That still puts Virginia’s revenue performance way ahead of that of other states.

But no one here is talking tax cuts. The only people talking about taxes — most vocally, the editorial writers of the Washington Post, Virginian-Pilot, Roanoke Times and Daily Press — still want to increase them.

How much is enough? The list of “unmet needs” is endless. But taxpayer paychecks are all too finite.

This is what happens in Virginia when to are judged to have intended to deceive voters and this is what happens at the federal level for a violation that appears to be just a paperwork snafu. Something else for Virginia political operatives to be thankful for? Perhaps, but I suspect the bills to close the disparity are already being drafted, given the events of the past campaign. And I don’t think the Virginia fines will be going down.

Mr. Kaine’s New Campaign

Thursday’s WaPo editorial: “Having dodged the question of new taxes for transportation as a candidate, Mr. Kaine takes office lacking a revenue-raising mandate. Accordingly, he faces an uphill battle, as well as a relatively poor political climate. His initiative comes just two years after Gov. Mark R. Warner (D) fought a bitter fight for a $1.5 billion tax overhaul and increase for public education. Pulling off a second major tax increase in three years will be a colossal challenge.”

Lack of Revenue? Major Tax Increase? Colossal Challenge?

Hmm…

~ the blue dog

The State Board of Elections, in perhaps their last update until Monday, now shows Bob McDonnell leading Creigh Deeds by 323 votes. That’s a gain of one for McDonnell. The canvassing conducted since Monday afternoon found three votes for McDonnell versus only two for Deeds.

November 22, 2005

STATEMENT OF FORMER DEMOCRAT ATTORNEY GENERAL AND FORMER STATE BOARD OF ELECTIONS MEMBER

-Regarding the Attorney General Election-

RICHMOND – Former Democrat Attorney General Stephen Rosenthal and former State Board of Elections member and Republican Delegate John H. (“Jack”) Rust issued the following statement today regarding the Attorney General election:

“We are troubled by the lack of transparency in a vote certification process that consistently has shifted vote totals in the attorney general election.”

“Election day is a public event open to observers. Local electoral boards were required by law to conduct canvasses at public meetings attended by citizens, the press, and observers from both political parties. After the local canvasses concluded, however, the State Board of Elections’ certification process has gone behind closed doors with little or no explanation to the public. In what should be an open and readily apparent vote certification process, the State Board appears to have ignored its role of managing the certification process and has allowed local electoral boards free reign to do so without public involvement.”

“After the initial election night count, the margin of victory was roughly 3,000 votes. In the ensuing time, that margin has decreased by about 90% to less than 350 votes. The public and both political parties have been provided little explanation by neither the State Board nor the local election boards for such a significant shift in vote tallies.”

“We agree wholeheartedly with respected political scientist Larry Sabato as quoted in the Richmond Times-Dispatch: “‘It’s amazing, that’s all you can say,’ he said. ‘The net changes are all going in one direction, toward the Democrat, which is unusual but possible.’”

“The statistical unlikelihood of such an odd occurrence raises concerns. More worrisome is the undisclosed process, not provided for in the Code of Virginia, by which some of these changes have been discovered. For example, the State Board of Elections notified both campaigns that 56 additional paper ballots had yet to be counted in Chesapeake. This number subsequently has changed multiple times. Apparently, additional ballots were counted last Friday. Then, after the counting was supposedly complete, the tally changed again on Monday with no explanation other than that an ‘error’ had been made. Last Thursday, the State Board of Elections reduced the vote total for Bob McDonnell by 10 votes in Fauquier County notwithstanding the fact that the Fauquier County electoral board had certified the higher number and without providing any explanation to the public.”

“It appears that the electoral boards in Chesapeake, Fauquier and elsewhere have unilaterally decided to re-open sealed envelopes or locked machines or to change vote totals without public participation and without being directed to do so by the three-member State Board of Elections or a court. Such renegade vote ‘counting’ falls outside the powers these boards hold under the law of Virginia and raises serious questions about the integrity of the process by which the vote total has changed since Election Day.”

“We call upon the State Board of Elections to manage and control a certification process that is fair and transparent to the public, press and both political parties.”

Paid for and Authorized by the Republican Party of Virginia

——————————————————–

I hope this is a passing concern. Local election boards need to follow the rules and just follow the rules and carefully follow the rules.

Coverage of the genesis and ongoing process of Virginia’s massive IT outsourcing projects has been late and not particularly illuminating. It wasn’t mentioned during the gubernatorial campaign and no one seems to be out in front on it, making the case. I’ve been interested from the beginning on just who is or was the guiding force–who will take the applause or the blame a few years down the road?

Columnist William Welsh of the boosterish Washington Technology magazine had a piece yesterday that provided some insight.

Was the outsourcing Governor Mark Warner’s baby? Welsh says he spoke with Warner:

I don’t know if Welsh got a more expansive answer from the Governor, but the response is vintage Warner, a sign of his genius. Instead of answering the question asked, he set himself up to take the legacy credit if the initiative succeeds or to deflect blame if it fails.

Welsh credits former Secretary of Technology George Newstrom and Chief Information Officer Lemuel Stewart for the outsourcing project, but without so much as a quote or third party confirmation.

What really might be the driving force behind the outsourcing is revealed in Welsh’s closing comment:

Contractors have waited a long time for a state IT outsourcing opportunity of this scope. They should make every effort to ensure it succeeds by meeting milestones and performance standards, ensuring the state gets the savings and new facilities promised, and that state workers get job benefits and fresh opportunities that are as good, if not better, than what they had working for the state.

It’s the responsible thing to do.

In other words, Virginia let us get our nose under the tent–here’s our big chance. Get this right and there will be more opportunities in other states.

There’s nothing wrong with that strategy, but we should be vigilant that perception and reality are aligned. Beware of the big vendors managing perceptions for the Virginia project to gain contracts elsewhere.