• Bacon’s Rebellion: Back to School Edition

    Bacon’s Rebellion has given insufficient attention to the indoctrination of Virginia’s young people regarding the “appropriate” way to think about public policy at the state and local level. As schools across our great Dominion open their doors to students, you should consider introducing your 4th or 5th grader (start early!) to the Rebellion.

    Your precious munchkins can start their journey to proper thinking by reading the August 25, 2008, edition of the e-zine right here. Or you can do your tots a real favor and sign them up for a free subscription here. Much more illuminating than the Weekly Reader, don’t you think?

    For those too lazy to click over to our website where the e-zine is posted, I have thoughtfully posted all of this week’s column here for your convenience. (Rebellion with a smile.)

    Salvaging Tysons
    The Tysons task force on land use has articulated a compelling vision for the future of Virginia’s largest — and most dysfunctional — business district. Just one problem: It’s not clear who will pay for it.
    by James A. Bacon

    Asphalt Deserts
    The American addiction to Autonobiles and imported oil drains our economy of wealth in ways obvious and subtle. We convert green landscape into swaths of pavement, contributing to our own desertification.
    by EM Risse

    Closing the Budget Shortfall
    Virginia’s secret weapon in the budget wars is a little-known agency, the Commonwealth Competition Council, that seeks savings through privatization and outsourcing.
    by Leonard Gilmore

    State spending out of control? Enact a Tax and Expenditure Law that caps spending at the rate of inflation and population growth. If pols are unhappy with the limits, they can…
    Tell It to the TEL
    by Norman Leahy

    10 Annoying Things About Virginia
    Sure, we’re smart and prosperous, but some things still turn my crank.
    by Peter Galuszka

    Saving Southside
    It’s too early to write off Southside Virginia’s mill town economy. But the Tobacco Commission does need to re-think its strategic priorities.
    by Tom McLaughlin

    Nice & Curious Questions
    Cathedrals, Temples and Mosques: Spiritual Shrines in Virginia
    by Edwin S. Clay III and Patricia Bangs


  • 10 Annoying Things About Virginia

    Sure, we’re smart and prosperous, but some things still turn my crank.

    Thereโ€™s a New Old Dominion afoot. As evidence, Barack Obama is using the state as an economic model for the rest of the country. Virginians, thanks partly to federal money and nudges, are smarter, more prosperous and more productive than ever before. And, they are becoming politically bluer and more moderate than ever before.

    Wonderful, but there are still some things that really bug me. For your amusement and just to keep us modest, hereโ€™s a list:

    Barbecue sandwiches.
    In Virginia , BBQ isnโ€™t on the level of, say, Eastern North Carolina , but it is perfectly OK. The problem is the buns. They always use these cheap, white hamburger buns that disintegrate when you pick them up. BBQ slops all over your lap. If you have an important meeting after lunch, you end up looking like an incontinent derelict.

    Court costs
    . Have you ever given in to temptation while driving alone in Northern Virginia and gone onto the HOV-3 lanes when it isnโ€™t the legal time yet? At the roadblock, the State Policeman cheerfully hands you the ticket as if you have just won the State Lottery. Of the $120 penalty, most goes to โ€œcourt costs.โ€ What are those, exactly?

    The new state capitol building. After all those millions, the new underground part of Thomas Jeffersonโ€™s masterpiece has all the style of an airport terminal. The old amenities are gone, such as Chickens snack bar where you could get hand-squeezed limeades and good Brunswick stew. Gone is the Old South ambience where you could almost hear those seersucker-clad ghosts proclaim that God has a special place for Negroes and that Massive Resistance is a great idea.

    For the rest of the list, click on https://www.baconsrebellion.com/Issues08/08-25/Galuszka.php

    Peter Galuszka


  • FANNIE AND FREDDIE

    The front page of todayโ€™s WaPo Business section has a nice clear diagram on how the Fannie and Freddie balloon is deflating โ€“ by reversing the process that created the bubble in the first place.

    On the same page Columnist Steven Pearlstein, who recently did a fine job of nailing Sir Alan (Greenspan) to the wall for his role in the current unpleasantness, has some sound advice for Treasury Secretary Hank Paulson on Fannie and Freddie as well โ€“ get out the bazooka.

    Strange as it may seem there is STILL no mention in WaPo coverage of the REAL problem with Fannie and Freddie โ€“ financing dysfunctional settlement patterns by failing to create any guidelines on the LOCATION of the dwellings covered by the mortgages they bought and packaged.

    Perhaps the editors should reread the story by Juliet Eilperin datelined Seattle from 4 May 2008 in, of all places WaPo. The May story has a climate change focus but she presents a nice simple explanation of why LOCATION, PATTERN AND DENSITY โ€“ in a phrase โ€˜human settlement patternsโ€™ are so important. Eiplerin underestimates the level of impact settlement patterns by a factor of 5 (the is 500%) but it is a start and should be enough to make clear what the REAL problem is with Fannie and Freddie.

    The Eilperin story also reinforces the point Jim Bacon makes in Peter Gโ€™s post on Obama / Virginia: “When are we going to start making transport investments based on supporting functional and sustainable human settlement patterns?” More in Mondayโ€™s column.

    EMR


  • The Transmission Line Saga Continues

    Virginia’s State Corporation Commission may have bought Dominion’s logic for building a high-voltage transmission line across the northern Virginia piedmont, through Maryland and Pennsylvania, but regulators in Pennsylvania have not. Regulatory judges have recommended that the Public Utilities Commission in the Keystone State deny the application of Dominion and Allegheny Power to build the interstate line, report the Northern Virginia Daily and Winchester Star.

    Dominion contends that the power line is needed to avoid power blackouts in Northern Virginia that could begin as early as 2011. Foes, including the Piedmont Environmental Council, have argued (a) that Northern Virginia’s energy needs can be met through demand management, and (b) that the true purpose of the transmission line is to wheel cheap electricity from the Midwest to markets in the Northeastern U.S.

    According to Garren Shipley’s account in the NVDaily, the Pennsylvania judges agreed with the latter point.

    The utility firms “settled on a global transmission solution because … the true impetus for the [line] is to transport cheaper coal-fired generation from western [grid areas] to eastern [grid areas] and to encourage the siting of new generation in western [grid areas],” they wrote.

    “We question the modeling that was done to support the alleged need for the [Frederick to Loudoun] segment,” they added.

    Of course, Pennsvylania doesn’t have the same skin in the game that Virginia does. It doesn’t harm Pennsylvania if Northern Virginia suffers electricity blackouts.

    A decision by the Pensylvania utility commission to adopt the judges’ recommendations would deal a significant blow to the transmission line, which needs approval from all three states, but would not end the controversy. Dominion and Allegheny could take their case to the Department of Energy, which has the power to override state decisions in “National Interest Electric Transmission Corridors,” a designation that includes the area that transmission line would run through.


  • How Virginia May be a Model for Obama

    Virginia is one of the models of economic success that presumed Democratic presidential candidate Barack Obama may be using in his campaign, according to an upcoming New York Times magazine article.

    I found the story by Times economics columnist David Leonhardt while scrolling around the Web today and thought it might be useful for Baconauts everywhere. The piece comes out this Sunday just for the Dem confab in Denver.

    It shows how the Democrats are considering modern economic revival models as keys to the nation’s future and how Gov. Tim Kaine, still a possible Obama VP candidate, has influenced thinking. Here’s a quote form the upcoming Times magazine piece:

    “I came to think of this part of Obamaโ€™s agenda as the Virginia model, thanks to Tim Kaine, Virginiaโ€™s governor, who was one of the first Democrats to endorse Obama. Last year, Kaine began making the case to (Obama economic adviser Austan) Goolsbee that the campaign should view Virginia as a model for the rest of the country. In just a few decades, the state has managed to transform itself in precisely the way that economists think the United States now must โ€” to a higher-wage economy with a more-educated population, a place that has prospered even while losing many of its old-line manufacturing jobs. And it did so with a crucial shove from the government.

    “For much of the 20th century, Virginia was a poor state, but after World War II, with the cold war under way and the military growing, well-paying defense contractors began to sprout up around the Pentagon, in northern Virginia. By the 1970s, Darpa, the Pentagonโ€™s research arm, began working on a computer network, which soon spawned a new form of communication: electronic mail. That computer system eventually became the Internet, and Northern Virginia suddenly had the beginnings of a brand-new industry. In recent decades, Virginia has also invested money in the port near Norfolk and has vastly expanded its colleges and universities. Today the stateโ€™s per-capita income is 7 percent higher than the national average.

    The trick for someone trying to replicate Virginiaโ€™s success is figuring out which investments to make. As any Chicago School economist would remind you, the federal government has made its share of mistakes in this area, a recent example being subsidies for ethanol, which Obama, a farm-state senator, has championed and McCain has opposed. But Obama at least seems to have learned one lesson from the experience: His proposed new infrastructure spending would be overseen by a bipartisan board of unelected officials, rather than members of Congress. “

    Obama’s platform calls for a $50 billion fund to improve infrastructure such as roads and bridges and boost scientific R&D.

    Virginia is getting mentionned, obviously, because it is an important swing state. But it also shows how Virginia is becoming bluer by the day. The Good Ole Days of Republican dominance are past. There’s a new Old Dominion afoot and it’s getting noticed.

    Peter Galuszka


  • It’s a Nuclear Power Plant, Dude, What Were You Thinking?

    In 1971, Dominion Virginia Power created a man-made lake, Lake Anna, to serve as water coolant for the power company’s two nuclear power generators situated on the shoreline. As part of the project, the company built a series of dikes and lagoons through which water from the power plant passed. The design allowed for a “cool” end of the lake — around 99 degrees.

    Soon thereafter, the state established a state park, and landowners began selling lots for recreational development. Today, about 2,600 homes — some valued as high as $1 million — are scattered around the edge of the lake.

    You can guess what’s coming, can’t you? Now some residents are concerned by Dominion’s plans to build a third generator. They’re worried what might happen to water levels, water temperatures and water quality in the lake, according to Calvin Trice, writing in the Times-Dispatch. Some residents fear that warmer water will lead to algae blooms and the appearance of Naegleria fowleri, also known as “brain-eating amoebae.”

    Harry Ruth is head of the Friends of Lake Anna, which has joined with the Lake Anna Civic Association and the Lake Anna Boating and Recreation group to form a task force. His main objective, judging from the Times-Dispatch story, is to keep the water temperature at the public end of the lake under 100 degrees. Let’s recapitulate the pertinent facts:

    Dominion built the lake to serve its nuclear power plant.

    Dominion owns the lake.

    Dominion was there first.

    The power plant is highly visible — there is no way anyone could buy property on the lake and not know they were building within a few miles of a nuclear, friggin’ power plant.

    When Dominion built the facility, it set aside land to accommodate a third nuclear generator. It was no secret that Dominion was keeping open the option of building it one day.

    When people bought land on the lake, they paid less for their lots than they otherwise would because not everybody wants to live within a few miles of a nuclear, friggin’ power plant. When you build that close to a nuclear power plant, you assume a modicum of risk that something less than desirable might happen one day!

    Dominion doesn’t need another PR controversy that makes it look like the bad guy, so it has altered the design for the prospective third reactor to incorporate a cooling tower that would use considerably less water than originally planned.

    My question: How much does that new cooling tower cost? How many tens of millions of dollars will Dominion’s rate payers fork out over the next 30 years so lake residents don’t have to worry about algae blooms that have yet to be seen and brain-eating amoebae that state environmental officials have found no evidence of?

    “I guess we would feel a whole lot better if the water were at least under a hundred degrees, but Dominion doesn’t appear to want do anything to help with that,” Harry Ruth told the Times-Dispatch.

    Waaaah. I’d feel a whole lot better if I didn’t have to pay to maintain the lifestyle amenities of Ruth and his neighbors.

    Update: Reader Larry Gross raises some interesting issues regarding the impact of Dominion’s third nuclear generator on water levels and water flows downstream from Lake Anna. Read the comments for his observations. The situation appears to be more complicated than I have portrayed it, basing my remarks as I did on the Times-Dispatch story alone.

    (Photo credit: Skywash.net. Click on image for bigger picture.)


  • Kaine Appoints Dominion Counsel to SCC Judgeship

    Gov. Timothy M. Kaine has appointed James C. Dimitri, the McGuire Woods attorney who has led Dominion Virginia Power legal team bidding to build a high-voltage transmission line through Virginia’s horse country, to the State Corporation Commission.

    In making the announcement, Kaine noted that Dimitri had served as senior counsel at the SCC between 1994 and 1996, and has represented numerous clients before the SCC and other regulatory agencies. The governor’s press release did not specifically mention his role in representing Dominion.

    “Jimmy Dimitri has worked on utility matters before the SCC for more than 25 years,” Kaine said. “His representation of consumers, manufacturers, utilities, the Commonwealth and the commission itself has given him a complete understanding of all the challenging and important issues before the SCC.”

    The appointment has drawn fire from Rep. Frank Wolf, R-10, many of whose constituents oppose the proposed construction of a high-voltage transmission line through the horse country of the northern piedmont. Dimitri is the lead attorney representing Dominion Virginia Power in the highly controversial bid. โ€œVirginia deserves an impartial SCC that will act in the consumer interest,โ€ Wolf wrote in a public letter to Kaine.

    Normally, the General Assembly appoints the SCC judges, reports the Northern Virginia Daily. But the legislature has wrangled for three sessions over a replacement for Judge Theodore V. Morrison, Jr., forfeiting the decision to Kaine.

    Kaine spokesman Gordon Hickey defended the appointment, noting that in addition to his work for Dominion and the attorney general’s office, he has also been counsel to the commission and the Virginia Poverty Law Center — often opposing utilities like Dominion. Said Hickey: “The fact is that Mr. Dimitri is unique in that he has the broadest perspective on the work of the State Corporation Commission that an individual could have.”

    Bacon’s bottom line: I’m not totally buying Hickey’s argument. In his capacity as a defender of consumer interests, Dimitri may have opposed Dominion on issues like rates. But that’s a far cry from saying that he’s neutral on the many environmental issues that come before the SCC. The environmentalists/conservationist community is one key constituency that it appears Dimitri has never represented and, indeed, has actively opposed.

    I haven’t received any e-mail alerts from my usual conservationist sources and I can’t find any reaction to the appointment on the Piedmont Environmental Council website, however, so it’ s possible that Dimitri is held in such high regard by everyone whose path he has crossed that he has sparked little opposition.

    On the other hand, maybe the PEC and other environmentalists are so stunned by the appointment that they haven’t collected their wits enough to respond. Alternatively, even if they are dismayed, they may not want to alienate Dimitri.

    Wolf is pretty tight with the PEC, so it’s conceivable that he represents a back-channel line of communication. But then again, maybe not. Wolf also mentioned Dimitri’s role in representing the Toll Road Investors Partnership in seeking rate increases for the Dulles Greenway. Hard to tell.

    Environmentalists and conservationists have had a love/hate relationship with Gov. Kaine. I would be surprised if this appointment doesn’t nudge the needle closer to the hate side of the meter.


  • Dominion Seeks Loan Guarantees for Nukes

    Dominion Virginia Power has submitted an application to the U.S. Department of Energy for a loan guarantee to help finance construction of a third nuclear reactor at the North Anna Power Station. The DOE loan guarantee program was established by the U.S. Energy Policy Act of 2005 to assist companies pursuing the licensing of new nuclear units to finance the first wave of new commercial reactors in the United States.

    If a loan applicant’s project is selected under this program, the federal government could guarantee all of the project’s debt so long as it does not represent more than 80 percent of the project’s qualified construction costs. Congress has appropriated $18.5 billion to support the nuclear loan guarantee program.

    “Today’s filing is another important step in the process we began more than seven years ago to position ourselves to be among the first to get a license for a new nuclear unit,” said Mark F. McGettrick, CEO of Dominion Generation.

    Dominion is on track to become the first power company in three decades to construct a nuclear power generator in the United States. It would utilize novel technology known as Economic Simplified Boiling Water Reactor, developed by GE-Hitachi Nuclear Energy. Dominion anticipates that the project will incur $500 million on regulatory, engineering and design costs before construction even begins. That up-front cost will be split between Dominion, GE-Hitachi and the Department of Energy. Total project costs will run into the billions of dollars. (Cross-posted from R’Biz.)

    Bacon’s bottom line: Once again, we have an example of how embroiled government is in the energy economy. Dominion’s nuke will benefit from at least two government programs: (1) support for the up-front engineering/design costs, and (2) loan guarantees that will lower the cost of capital. No wonder environmentalists feel justified in demanding comparable tax breaks for their preferred energy sources, such as wind, solar and biomass.

    I fully support nuclear power — as long as it incorporates the full environmental costs of its technology and meets a market test for economic efficiency.

    The problem is that there are so many subsidies, loan guarantees, tax breaks and the like that investments in energy resources are determined as much by government incentives as by underlying economics. Instead of investing in new technology, many businesses will invest in rent seeking (lobbying, campaign contributions, Boone Pickens-style advertising campaigns). It is frightening to contemplate how many tens of billions of dollars the United States will squander on ill-considered schemes like the now-discredited ethanol subsidies.

    And we think OPEC and/or the oil companies are the enemy?


  • The Budget Debate Framed: Spending Cuts, No Tax Increases

    Gov. Timothy M. Kaine didn’t offer much new data in his presentation Monday to Virginia’s House and Senate money committees about Virginia’s deteriorating fiscal picture, but he did have one thing to say that will shape how the budget debate unfolds: He won’t ask to increase any General Fund taxes.

    “We will continue to manage through the national economic decline without increasing the general-fund tax burden on Virginia residents,” Kaine said, as quoted by the Times-Dispatch.

    Kaine’s unwillingness to try raising General Fund taxes comes in marked contrast to his effort, defeated earlier this summer, to jack up taxes to pay for transportation projects. As a consequence, the debate over how to respond to a revenue shortfall that could exceed $1 billion in the current, two-year budget, will be framed around which programs to cut. Kaine offered few specifics, but did say that programs spared in previous cost-cutting rounds, such as K-12 education, may not escape unscathed.

    The two-year budget passed earlier this year included 2.2 percent increase in General Fund spending for fiscal 2009 and another 6.8 percent increase in fiscal 2010. But revenues are falling short of even those modest expectations for this year, and there is little optimism that 2009 will shape up much better.

    Republicans are engaging in a round of “I told you so.” Republicans did indeed warn earlier this year that revenues were slowing and that Kaine’s attempt to create new spending programs, such as the pre-school initiative, were ill advised. But that line of logic will take them only so far. After raising a much-justified ruckus early in the year, they did not dispute updated economic forecasts made in February, and they passed Kaine’s revised budget.

    Of greater interest to me is the analysis of House Appropriations Committee Chairman Lacey E. Putney, I-Bedford, who framed today’s fiscal crisis in the context of the budgetary debate that has raged since the last economic downturn:

    “In 2004, then-Gov. [Mark R.] Warner stated that the tax increase approved by the General Assembly would align our longer-term revenue and spending requirements. Clearly, this did not work. The fact that state spending continues to grow faster than revenue growth is not indicative of the need for more revenue, rather the need for spending reform.”

    I quite agree: The immediate problem is a revenue shortfall resulting from an economic slowdown (or outright recession), but long-term the problem has been increases in state spending that have significantly outpaced growth in inflation and population.

    Virginia Democrats seem to be resigned to an ever-expanding state budget. Republicans, to their credit, are not. But the Elephant Clan has yet to (a) say which core services they are willing to cut, (b) outline strategies for delivering those services more efficiently, or (c) articulate market-based alternatives to government programs.


  • Will Georgia Spark a Russian Arms Race?

    Russiaโ€™s incursion into Georgia is one of the most dangerous turning points in recent years. In my view, it could lead to far more serious consequences for the U.S. than anything like Iraq and Afghanistan.

    President George Bush and his successor must make it absolutely plain to Vladimir Putin that such aggression wonโ€™t be tolerated. Negotiations are, of course, in order, but my view as a long-time Russia-watcher is that we must play the threat-of-force card since it seems to be the only thing some of them understand.

    That said, I found it especially interesting just how obsolete Russian weapons were during the conflict.

    First, some caveats. I know this is supposed to be a Virginia blog and that some fellow bloggers will take my head off for straying off topic. Virginia, however, is where the Pentagon and the CIA are located, plus many military and naval bases. Also, Virginia is the No.2 defense industry state. What happens next is of utmost importance to the Old Dominion.

    Besides noting the vigor and recklessness of the Russian incursion, some observers have picked up that the Russia strikes in the Georgian provinces of Abkhazia and South Ossetia and in Georgia proper raise big questions about their military equipment. That intrigues me since the Soviet/Russian defense industry was one thing I paid a lot of attention do when I was a BusinessWeek correspondent in Moscow from 1986-1989 and again from 1993 to 1996.

    Aircraft, tanks and assault rifles were some of the few products they seemed to make well. I saw them up close and personal on several occasions, including the Uzbek border where I watched Soviet troops withdraw from Afghanistan in 1989. Four years later, much of the fighting during an anti-Yeltsin coup in Moscow happened just outside my office and apartment where my wife and two children huddled in a bathtub. Iโ€™ve waited at armed checkpoints in Azerbaijan and although I was never in Chechnya, I knew a lot of people who were.

    On a lighter note, I was once invited to a weapons demonstration by Russian export companies in the city of Vladimir. After a lunch of vodka and heavy appetizers, we went to exhibits where pretty young Russian models displayed mortar tubes and rocket propelled grenades along with lots of leg and cleavage. Then we went out to a firing range and were allowed to shoot any weapon we wanted, including machine guns, despite our somewhat inebriated state. I chose an evil-looking submachine gun, called a โ€œbez-shumโ€ (without noise) because it had a long silencer on its barrel. It made flitting sounds as I squeezed the trigger.

    Yet, according to observers such as the Moscow Times, Russian weaponery showed its age in Georgia. The tanks were old T-72s produced in the 1970s to counter NATO armor on the plains of Western Europe. The primary aircraft were close-support Sukhoi-25s, dubbed โ€œFrogfootโ€ by NATO, which were first used 25 years ago in Afghanistan.

    Georgia fielded some of the same weapons, but, according to the Moscow Times, they had been upgraded with night-vision capabilities, unlike the Russian ones. Presumably a bit of the technical upgrades came with help from U.S. and Israeli advisors in Georgia. The Georgians had help with electronic warfare and general training as well, presumably from the same Israeli and U.S. sources. โ€œThe Russian forces had to operate in an environment of technically inferiority,โ€ the Moscow Times quoted Konstantin Makiyenko, deputy director of the Center for Analysis of Strategies and Technologies as saying.

    Despite the Georgianโ€™s technical superiority, however, Russia prevailed through brute strength of numbers. Georgian President Mikhail Saakashvili made a bad move by provoking the fight by sending 7,500 Georgia troops into the contested and heavily-Russian province of South Ossetia that has been fought over since the Soviet Union fell in 1991 and Georgia became independent. Unfortunately for the Georgians, the initiative failed and the Russians responded in force.

    Despite Russiaโ€™s victory, the conflict revealed shortcomings in Russian tactics along with the aforementioned ones in weaponery. For example, Russian air forces could not prevent the shelling of a convoy and the wounding of a top commander, despite Georgia’s smaller forces, the Moscow Times says.

    Old guns and tanks result, of course, from the economic mayhem that befell the Soviet Union after the 1991 breakup. The military and civilian economies had been merged in ways hard to imagine in the West. But Russia is now awash in oil money. One wonders if the poor showing in Georgia and Putinโ€™s belligerence will spark a major arms buildup in Russia, not to mention more aggressive moves in spots around Russia’s border. If so, the U.S., and by extension, Virginia, had better be ready.

    Peter Galuszka


  • Two Jim Bacons, Two Huge Boobs

    There are a surprising number of “Jim Bacons” in the world. Besides me, there is my father, of course. There is the Hollywood reporter, now retired, who went by the byline of James Bacon. There also was the deceased premier of the Australian state of Tasmania. And last but not least, there is my West Coast alter ego, the proprietor of Mighty Big Media.

    The “other” Jim Bacon is politically conscious, too, although his leanings may be harder to classify than mine. In a pandering effort to “titillate” my readers during the summer doldrums, I’m posting one of his political statements on Bacon’s Rebellion. You’ll probably find “Two Huge Boobs” to be more edifying than anything I write.


  • Another Stinkin’ Budget Crunch

    Now comes the news that Virginia is facing a $1 billion budget shortfall in the two-year budget that commenced a month and a half ago.

    Oops. How did that happen?

    Let’s dial back the time machine to Jan. 31, when the Washington Post reported, “House Republican leaders warned Thursday that there may be a shortfall of as much as $1 billion in Gov. Timothy M. Kaine’s 2009-10 budget, and they demanded that he quickly revise revenue projections.”

    Well, with mounting evidence of a slowing economy, Kaine did ratchet back his revenue growth forecasts, and Republicans signed on to the revised budget after pushing for a reserve fund and trimming some of the governor’s spending initiatives. But it looks like they didn’t crank down spending enough. Here we are, not two months into the fiscal ’09 budget, and we’re already in a big, steaming mess of trouble.

    Along these lines, while writing a short story for R’Biz recently, I ran across an interesting statistic. The good news (for we Richmonders) was that, according to the latest Bureau of Labor Statistics data, the Richmond regional economy had experienced a net gain of 3,900 jobs over the previous 12 months. The bad news was, they were all government jobs, split fairly evenly between state and local government. That’s really bad news for the rest of the state, which is paying for those state government jobs through taxes.

    Could that data be correct? I wondered. After all the angst and pain over budget cuts this spring, was the state government in Richmond still padding payroll? To be sure, I checked the state department of human resource management website, and what did I find?

    Between January and June 2008, the state increased the number of non-university job rolls by 662 jobs. That doesn’t match up with the BLS numbers exactly, but it is consistent with the fact that government jobs are growing.

    However, the really big jump in jobs occurred among public university employees: up more than 5,000! That’s 15 percent. That makes public higher education, not government, the real growth industry in Virginia. Of course, it’s easy to grow if you can jack up charges and fees with impunity. (See “Tuitions Gone Wild.”) Is there any way to persuade universities to restructure, re-engineer processes or otherwise find ways to boost productivity and drive down costs? Can Gov. Kaine and the General Assembly ever get a handle on increasing payroll and costs until they tame higher ed?

    The governor will provide more authoritative information than the patch-work data I can glean from the Internet. We should hear more Monday on how bad the situation is and what can be done about it.

    (By the way folks, I’m leaving tomorrow on another long weekend jaunt. Off to Cincinnati. I won’t be blogging again until Tuesday.)


  • Trani to Retire in Mid-2009

    Breaking news. Eugene Trani has announced that he will step down from his position as president of Virginia Commonwealth University on July 1, 2009, a year earlier than previously planned. Recovering from quintuple coronary bypass surgery, Trani made the decision over the weekend, reports the Times-Dispatch. He will remain employed with the university as a professor.

    The decision comes at a time the university is under fire for the handling of the Rodney Monroe degree scandal and the university’s relationship with tobacco giant Philip Morris USA. VCU Rector Thomas G. Rosenthal insisted that the decision was entirely health related and had nothing to do with the recent controversies. “Zip, zero, zilch.”

    No surprise. As I asked about three weeks ago, “Has Trani Stayed On Too Long?

    Update: In a press conference today, Trani reiterated that he was retiring early for personal reasons related to poor health. He did add one interesting, if cryptic, note: “If I have one regret about what’s gone on this summer, it is there is an air of fear and intimidation at VCU. That’s not the VCU I know.”

    It’s not clear from his statement who he believed was intimidating whom. But Trani’s detractors have often accused him, or his administration, of intimidating dissenters. If he was thinking otherwise, I would like to know.


  • Do Virginians Support Off-Shore Drilling? Maybe.

    What do Virginians think about drilling for oil and gas off the Virginia coast? I haven’t seen any polls that ask that question specifically, but the American Petroleum Institute has generated data hinting that they might approve by large numbers.

    In a poll that encompassed 18 key states, the Institute found that 70 percent of 501 registered Virginia voters (likely to participate in the upcoming presidential election) would “support increased access to domestic oil and natural gas resources.”

    Admittedly, the question is pretty vague. While Virginians, like most other Americans, endorse the idea of producing more fossil fuels as a general idea, the data don’t tell us how they would respond to drilling in specific instances — especially if the drilling occurs near them. Would Virginians support drilling on the continental shelf off Virginia’s coastline by the same margin? The fact is, the API data doesn’t tell us.

    Even if someone framed the question to ask about drilling off Virginia’s coastline, I’m not sure how meaningful the answers would be. Very few voters are conversant enough with the economic and environmental trade-offs associated with offshore drilling to have informed opinions. Virginia media — and that includes blogs — haven’t begun to examine the latest drilling technologies, the experience of oil/gas companies in other regions, or the unique factors that might come into play off the Virginia coastline. All the evidence I have seen is anecdotal.

    The trouble with most polls — and that includes polls from the environmentalist/conservationist camp — is that they are designed to elicit responses that can be used for propaganda purposes. Rarely do they probe the complexities and nuances involved. Even if they did, they’d probably find that most voters were too ignorant to have intelligent opinions.


  • Don Defends Karl

    Don Harrison is one of my favorite bloggers because of posts like this, where he takes the measure of Karl Rove’s Richmond bashing and finds it…pretty fair:

    Some may judge a cityโ€™s size by its population or its land mass, others may use a different barometer โ€” one that measures small-minded attitudes and the institutional aversion to inclusion, fairness and common sense. If we use this last standard, we should not be too harsh on Mr. Rove for calling it like he sees it. If we stack Richmond up against some of the cities that the man affectionately nicknamed โ€œTurd Blossomโ€ mentioned on โ€œFace The Nation,โ€ we are clearly not ready for prime time.

    And that’s just the warm-up.