• A Pathetic Pander

    It’s back to school time, folks, and that means…. tax holiday! Save money on Susie’s Shrek-bedecked looseleaf binder. Pocket some change from the purchase of Johnny’s new Nikes!

    Grrr. Makes me mad just to think about it!

    As The Roanoke Times rightfully described this gimmick, the back-to-school holiday on the sales tax this weekend is a “pathetic pander from lawmakers.” Last year, the state lost $3.8 million in revenues thanks to the tax break. Consumers may have saved a few dollars each. Most Virginians probably didn’t even notice.

    The Roanoke Times is worried about the erosion of the state’s tax base — the state has better things it could spend the money on. I suppose that’s true, but what really twists my tail is that the state finds it worthwhile to encourage consumer spending. We don’t have a consumer-spending problem in the United States. Oh, let me rephrase that. We do have a consumer spending problem — consumers spend too much. They rack up credit card debt and default on their loans. They pile up all sorts of junk they don’t need and often, upon reflection, conclude they don’t even want. If anything, the state should encourage people to save, not spend!

    This narrow-bore tax break doesn’t do too much damage by itself, but it’s part and parcel of a larger problem: littering the state tax code with a special exemptions. When you see a McDonald’s bag on the side of highway, you don’t notice it. But when the fast food bags, candy bar wrappers, soft drink cans and other detritus from our mass consumer culture pile up, the road looks pretty nasty. It’s the same with tax exemptions.

    Back in 2003, the Warner administration calculated that dozens of loopholes in the sales, corporate income tax and personal income taxes added up to $600 million per year. (Here’s the list.) No social or economic objective of critical importance was advanced by those tax breaks. The General Assembly has only added to the list since then, repealing very little — if anything at all. If we scotched all these mini tax breaks, we could do something meaningful with the money. The Roanoke Times might prefer to spend the money on poor people, while I recommend using it to eliminate the corporate income tax. Whatever, with that much money, the state could do something bold and make a difference.

    To quote the Roanoke Times again, “the tax holiday has nothing to do with sound fiscal policy. It is all about diverting voter attention from the real problems confronting the state.” Amen.


  • Land Use and the International Financial Crisis

    Wendell Cox, a visiting fellow with the Heritage Institute, has published a new report, “How Land Use Restrictions Exacerbated the International Finance Crisis” that makes an important contribution to our understanding of the residential real estate bubble and the ensuing financial collapse that has roiled the global economy. Unfortunately, he undercuts a potentially valuable study by characterizing excessive regulation as “smart growth,” badly misconstruing the meaning of the phrase.

    First, let’s talk about what Cox gets right. One of the elements missing in the hand wringing over the ongoing mortgage melt-down, he writes, is the roll of excessive land use regulation. A variety of regulations — minimum lot sizes, confiscatory impact fees, urban growth boundaries and building moratoria — have created a scarcity of developable land in many metropolitan areas. That scarcity, he maintains, has raised the price of housing.

    Tight housing supplies interacting with liberal mortgage loan policies created the mortgage meltdown. Explains Cox: “When more liberal loan policies were implemented, metropolitan areas that had adopted these more restrictive policies lacked the resilient land markets that would have allowed the greater demand to be accommodated without inordinate increases in house prices.” Out-of-control lending policies, he emphasizes, were the proximate cause of the fiasco. But land use controls leveraged the damage several-fold.

    Between 2000 and 2007, there was tremendous disparity between metropolitan regions at which housing prices increased. In the ten markets that experienced the greatest increase in housing prices over normal affordability ratios, Cox says, house prices increased an average of $275,000 compared to incomes. Among the second 10 markets, prices rose $135,000 more. In markets that remained the most affordable, house prices increased only $5,000 more.

    While the gross value of U.S. housing stock increased $5.3 billion relative to household incomes, over that period, $4.4 billion occurred in the 20 markets with the fastest escalating prices. Writes Cox: “It is estimated that in 10 metropolitan markets with the most steeply rising prices, mortgage exposures rose by approximately $3.1 trillion compared to the exposure that would have existed had the previous price to income ratios been maintained. These 10 markets have ‘rung up’ 64 percent of the mortgage exposure overhang, yet account for only 16 percent of the nationโ€™s owner occupied housing stock.”

    What the 20 most unaffordable housing markets — the markets with the greatest “mortgage overhang” — have in common, says Cox, is excessive land use regulation. (In Virginia, Cox classifies the Washington, D.C., and Hampton Roads metro areas as having “strong” land use regulation, and Richmond as not.)

    Unfortunately, Cox devises a hard-to-decipher measure for ranking unaffordability. He calls it the “aggregate value of housing stock in 2007: change from 2000 price/income ratio.” I sorta, kinda understand it but not really, and I can’t find an explanation of it. But I’ll accept it for purposes of argument. (For what it’s worth, the Washington region ranks 5th out of the 50 largest metro areas in this ranking, Hampton Roads ranks 14th, and Richmond ranks 20th.)

    What Cox hasn’t done, is correlate growth controls and housing affordability with the current mortgage foreclosure rates. If he had, I’d bet he’d get a pretty good match up.

    Now, let’s discuss how Cox is terribly confused. He equates housing regulation with “smart growth.” Some of the development restrictions he cites — urban growth boundaries, for instance — are rightly associated with smart growth. But large lot sizes are the antithesis of almost anybody’s definition of smart growth. Outside of Arlington and Alexandria, no municipality in Northern Virginia has embraced “smart growth,” which advocates compact development, mixed uses and alternatives to automobile transportation. Instead, Northern Virginia municipalities have employed their formidable arsenal of powers to promote scattered, disconnected, low-density development — a policy mix criticized by Smarth Growthers that has created a shortage of affordable and accessible housing.

    “Accessibility” is the key here. Within metro areas, widespread anecdotal evidence suggests, housing prices have collapsed the fastest in areas that are the least accessible to jobs — characterized by the longest commutes and suffering the greatest impact from rising gasoline prices.

    Bottom line: Cox’s argument withstands scrutiny if the villain in the mortgage mess is excessive government control over land use. But such a conclusion is a very blunt instrument: It fails to distinguish between different types of land-use regimes, and it ignores the critical variable of accessibility in accounting for the mortgage mess.

    (Hat tip to Tim Wise.)


  • An Example of ‘Government’ Speech

    This is the written ‘ government’ speech from an Act of the General Assembly passed in 1786. Written by Thomas Jefferson.

    “An Act for establishing religious Freedom. Whereas, Almighty God hath created the mind free; that all attempts to influence it by temporal punishments or burthens, or by civil incapacitations tend only to beget habits of hypocrisy and meanness, and are a departure from the plan of the holy author of our religion, who being Lord, both of body and mind yet chose not to propagate it by coercions on either, as was in his Almighty power to do, that the impious presumption of legislators and rulers, civil as well as ecclesiastical, who, being themselves but fallible and uninspired men have assumed dominion over the faith of others, setting up their own opinions and modes of thinking as the only true and infallible, and as such endeavouring to impose them on others, hath established and maintained false religions over the greatest part of the world and through all time”

    Okay, class, is the Almighty God referred to in this act any God other than the deity of the King James Bible?

    So, does the reference to this author of our religion (which religion might that be?) make this an unconstitutional disestablishment of the official state church of Virginia?

    Why is it that Thomas Jefferson never referred to ‘government speech’, but Sandra Day O’Connor did? Why don’t any of the Founding Fathers write or speak about ‘government’ speech?


  • Tobacco Commission Meets the Energy Crisis

    The Virginia Tobacco Indemnification and Community Revitalization Commission will likely approve the expenditure of $12 million to establish two energy-research centers in the region, reports David McGee with the Bristol Herald Courier.

    The centers, to be located in Abingdon and Wise, would study clean coal and other environmentally friendly technologies.

    The Southwest Virginia Clean Energy Research and Development Center would be housed in a 16,000-square-foot building to be constructed on the campus of Virginia Highlands Community College in Abingdon. The center would employ a staff of 20 by its third year, have an annual operating budget of $7 million and generate more than $11 million in annual economic impact, according to commission documents.

    A second center, located in the Lonesome Pine Technology Park in Wise, would be dedicated to clean-coal technology, converting coal to liquid fuels, mercury remediation and reducing sulfur levels. Other energy sources, including solar power and the production of hydrogen gas, also could be studied.

    Meanwhile, the Tobacco Commission is considering other proposals to fund a sustainable energy research center in Danville, a nuclear energy research facility in Bedford, and a facility in Gretna that would convert crops into bio-fuels.

    I’m all in favor of research to promote alternate fuels, but I’m wondering… Will these initiatives receive enough funding to make commercially viable breakthroughs? If so, what are the odds that the breakthroughs will be commercialized locally? Do the research centers have plans for transitioning to financial independence, perhaps by developing ties to local industry, or will they become wards of the Tobacco Commission?

    Finally, will these research centers contribute to the creation of an industry cluster big enough and strong enough to recruit and retain human capital? Even if they’re successful, what larger vision or strategy for SS and SW Virginia will they advance?


  • When Is It Time for Civil Disobedience in Virginia?

    (From Larry Oโ€™Dell, AP, July 23, 2008) โ€œA three-judge panel of the 4th U.S. Circuit Court of Appeals unanimously rejected the Rev. Hashmel Turner’s lawsuit challenging a nonsectarian prayer policy adopted by the council in 2005.

    The court said the policy does not violate Turner’s rights because the prayer is “government speech,” not individual speech.

    “Turner was not forced to offer a prayer that violated his deeply held religious beliefs,” wrote retired Supreme Court Justice Sandra Day O’Connor, who participated in the case as a visiting judge.

    O’Connor wrote that Turner was given the chance to pray on behalf of the government, but was not willing to do so within the government’s guidelines. She wrote that he “remains free to pray on his own behalf, in non-governmental endeavors, in the manner dictated by his conscience.”โ€

    The City Council of Fredericksburg made a discriminatory religious test in its prayer policy. But, given the First Amendment โ€“ as it was written, not as re-written by Courts โ€“ their actions werenโ€™t unconstitutional. Just biased against Christians.

    The City Councilโ€™s policy is contrary to Virginiaโ€™s Statute of Religious Freedom โ€“ โ€œBe it enacted by General Assembly that no man shall be compelled to frequent or support any religious worship, place, or ministry whatsoever, nor shall be enforced, restrained, molested, or burthened in his body or goods, nor shall otherwise suffer on account of his religious opinions or belief, but that all men shall be free to profess, and by argument to maintain, their opinions in matters of Religion, and that the same shall in no wise diminish, enlarge or affect their civil capacities.” But, I donโ€™t know if these words remain in the Code of Virginia.

    What other deities โ€“ than Jesus โ€“ are proscribed from public prayer in Fredericksburg? Jesus is the only name that canโ€™t be spoken? Does a Muslim prayer meet the nonsectarian standard? How so? Or a Wiccan prayer?

    Itโ€™s up to the citizens of Fredericksburg to elect a city council to correct their policy.

    The Court decision is a different matter. Where is โ€˜government speechโ€™ defined in the Constitution?

    If judges can make up a category of speech, then judges can define speech as they like. As they already have in Sandra Day Oโ€™Connorโ€™s addled logic above. Which means they can do far worse in the future.

    When did We, The People, as Sovereigns of the United States of America and the Commonwealth of Virginia, give federal judges the power to re-write free speech in the individual free exercise of religion?

    The judicial branch is a co-equal political branch of government. The judiciary is semper inter pares only in their constitutional duties to adjudicate existing laws โ€“ not to make up new ones.

    The issue of who prays what in public in Virginia lies squarely with the cities and counties and Commonwealth of Virginia.

    Itโ€™s time to take individual freedom back from judges. The Courts seized the power to re-write the First Amendment โ€“ especially since 1962. The Legislatures and Executives need to do their constitutional duty to limit judicial excesses โ€“ abuses of authority.

    The judiciary is as wrong about religion as it was about race for so many decades. Judges built up a body of legal precedents supporting slavery and segregation for over a hundred years after Dred Scott. The five decades of legislating religious prejudices from the bench is less time and no different, politically, than the racial prejudices of former judges.

    So, when is it time for civil disobedience in Virginia? If a person prays a public prayer in Jesusโ€™s name, who will arrest him? Do Federal Judges issues bench warrants? Who will prosecute? What is the crime? What is the punishment?

    The Apostle Paul spent time in jail. What better reason could there be to be in jail than, โ€œI prayed in Jesusโ€™ name?โ€


  • Southside’s Nuclear War Still Simmering

    The battle over Pittsylvania County’s uranium deposit — the largest undeveloped deposit in the United States and reputedly the seventh largest in the world — has attracted the attention of the Wall Street Journal. Max Schultz, a senior fellow with the Manhattan Institute, quotes two environmental foes but makes it clear he does not sympathize with them.

    According to Schulz, the Piedmont Environmental Council warns of “enormous quantities of radioactive waste.” Jack Dunavant, head of the Southside Concerned Citizens, paints a picture of environmental apocalypse. “There will be a dead zone within a 30 mile radius of the mine. Nothing will grow. Animals will die. The radiation genetically alters tissue. Animals will not be able to reproduce. We’ll see malformed fetuses.

    But, then, James Kelly, former director of nuclear engineering at the University of Virginia, told Schultz that the fears are exaggerated. “It’s an aesthetic nightmare, but otherwise safe in terms of releasing any significant radioactivity or pollution. It would be ugly to look at, but from the perspective of any hazard I wouldn’t mind if they mined across the street from me.”

    Who’s right? I’ve got no idea. Earlier this year, environmentalists blocked a General Assembly proposal to study the safety of uranium mining. Virginia Uranium, owner of the Pittsylvania uranium deposit, will continue pushing for an independent study.

    Schulz concludes:

    If the U.S. is to expand nuclear power’s role in a time of energy insecurity and climate change worries, we will have to confront the hysterical antinuclear pronouncements that have been the currency of environmentalists for nearly 30 years. The Old Dominion could be a good place for a new start.


  • SCC Official Endorses Dominion Power Line

    A State Corporation Commission hearing examiner has endorsed Dominion’s plan to build a 65-mile, high-voltage transmission line through Virginia’s northern piedmont.

    In a written opinion, Alexander F. Skirpan Jr. wrote that Dominion made a solid case for the line, reports Sandhya Somashekhar with the Washington Post. The company contends that the $243 million project is needed to avoid blackouts in Northern Virginia that could begin as early as 2011.

    However, Skirpan recommended that the SCC condition approval of the Virginia segment of the transmission line upon Dominion obtaining approval in the two other states it would run through: West Virginia and Pennsylvania.

    Opponents of the transmission line, which would string power cables atop towers ranging in height from 75 feet to 165 feet, contend that the true purpose of the line is to wheel electricity from Midwest power plants to New Jersey and New York, by way of the Washington area. The Piedmont Environmental Council, which has spent more than $3 million on lawyers and experts to rebut Dominion’s case, also argues that aggressive conservation programs could reduce Virginia energy use by 10 percent within the next five years.


  • The Price of Gas in China

    The price for a gallon of gasoline plunged noticeably over the weekend. Maybe it was just my selection of gas stations, but I paid about $.40 less Sunday per gallon of premium on the way home from a funeral in Florence, S.C., than I paid Friday on the way down. It sure would help the ol’ wallet if the price of gasoline backed off even more.

    But I’m not counting on prices to ever drop back to the $2.80 average price of a year ago — which now seems blessedly low. Either are American consumers, who are switching to fuel-efficient cars on a scale not seen since the “energy crisis” of the 1970s. A sign of the times: Home-town used-car company CarMax, took massive write-downs on its national inventory of trucks and SUVs because the market price for those vehicles had collapsed 25 percent in just the previous three months.

    Americans, Europeans and the Japanese may be conserving gasoline, but not everyone is. The Washington Post has a fascinating article this morning about the phenomenal increase in automobile traffic in China. Not only are more Chinese driving than ever before, they’re driving bigger cars, not smaller. China just may represent the last growth market for General Motors’ Hummer behemoth anywhere in the world.

    Fifteen years ago, China had very few privately owned cars. Today it has more than 15 million. The Chinese government, which is stimulating domestic demand to balance the nation’s export-led economy, wants its citizens to buy more cars. National and provincial governments have subsidized the price of gasoline — it costs only $3.40 per gallon — cut the sales tax on cars, improved the availability of bank loans, and built a massive road and parking infrastructure to accommodate more vehicles. The Chinese, who regard automobile ownership as a sign of modernity, are obliging by buying more.

    Here’s the scary part. The increasingly affluent Chinese are moving out of their urban high-rises into suburban-style suburbs “with spacious villas and two-car garages, big-box chain stores, strip malls and office parks.” Like American human settlement patterns, these new Chinese communities are totally dependent upon the automobile.

    On, there’s one more scary part: Only four percent of the 1.3 billion Chinese people own cars. The other 96 percent represents latent demand. As it is, China accounts for 40 percent of the global increase in demand for oil as. There are no signs that the nation’s appetite is slackening.

    Meanwhile, in India, home to a population of one billion, demand for gasoline is growing 20 percent annually. This year, the combined consumption of China, India, Russia and the Middle East will increase 4.4 percent and for the first time exceed that of the United States, according to the International Energy Agency.

    Bottom line for Virginia: Barring economic upheavals in China and India, demand for gasoline will continue to increase globally, even as global oil production has peaked. Supply and demand assures that the current lull in petroleum and gasoline price hikes is only temporary. A transportation system built for cheap oil no longer makes sense. We can no longer afford Business As Usual.

    (Hat tip: Nova Middle Man.)


  • Conservation Voters Release Annual Scorecard

    The Virginia League of Conservation Voters has released its ninth annual Legislation Conservation Scorecard. The scorecard ranks 140 members of the General Assembly based on their votes on bills ranging from the application of fertilizers (to reduce runoff into state waters) to performance standards for state road projects, from the reporting of greenhouse gas emissions generally to uranium mining and natural gas rate decoupling.

    Only one member of the state Senate — Sen. R. Edward Houck, D-Spotsylvania — made it into the League’s list of “Legislative Heroes.” By contrast, 40 members of the House of Delegates were recognized.


  • Variable Speed Limits Come to Virginia

    Many Northern Virginians soon will get to experience a key feature of the congestion tolling on the Interstate 495 HOT lanes: variable speed limits.

    The Virginia Department of Transportation is deploying variable speed limits to help manage congestion on the Capital Beltway when lanes are closed for construction in the approaches to the Woodrow Wilson Bridge. By adjusting speed limits, VDOT hopes to reduce the funnel effect that causes blockages, reports Sarah Karush for the Associated Press.

    When a road narrows, or when lanes merge, smoothly flowing traffic typically bunches up. The chances for sideswipes and rear-end collisions increases as well. Using an analogy of rice pouring through a funnel, VDOT officials contended that if grains of rice (or automobiles) traveling through a funnel flow more slowly, they can get through it without bunching up and clogging the narrow gateway.

    Traffic operators monitoring the Beltway traffic with cameras and sensors will raise and lower the speed limit in increments of 5 to 10 miles per hour. Initially, VDOT plans to use the technology only during nighttime lane closures associated with the Woodrow Wilson Bridge construction project. If it’s successful, officials hope to deploy it during the day as well.

    Ultimately, the variable-speed strategy could be used around Northern Virginia both for recurring congestion and incident management — possibly even in locations like Tysons Corner where there aren’t any land closures but a large number of drivers try to get onto the highway all at once.

    Bacon’s bottom line: Kudos to VDOT. The Woodrow Wilson Bridge experiment could acclimate drivers to the paradoxical notion that driving at slower speeds can actually reduce congestion and get drivers to their destinations faster. It can also demonstrate the degree to which the operators of the Beltway HOT lanes, for which construction has recently begun, can keep tolled lanes flowing freely under dynamically changing conditions.


  • Just What We Need: More Businesses Begging for Public Funds

    The Virginia State Rail Plan is a dangerous document. The Kaine administration report, prepared by the Virginia Department of Rail and Public Transportation, lays out an intellectual justification for aggressive expansion of state planning and funding not only for commuter rail, as one might expect, but for freight rail.

    The plan is dangerous because, if acted upon, it would transform Virginiaโ€™s private railroad companies โ€“ Norfolk Southern, CSX Corp., and any short lines that may do business here โ€“ into supplicants of the state. The politicization of Virginiaโ€™s freight rail system would encourage yet another special interest to raise PAC money to sway legislators, hire lobbyists to roam the halls of the state capital, and form business coalitions to persuade Virginians to part with hard-earned tax dollars to support another mendicant industry.

    Some elements of the rail plan are worthwhile. It contains a cornucopia of data for public policy junkies, and it makes some worthwhile recommendations, such as acting to preserve abandoned rail corridors for possible future use. Even the emphasis on the critical importance of the privately operated freight rail is not entirely misplaced. Diverting more freight from trucks to railroads serves the laudable purpose of taking traffic off of Virginiaโ€™s increasingly congested Interstate highways.

    But the report leaps from that last, uncontroversial observation to the unfortunate conclusion that it is the stateโ€™s role to accelerate that shift โ€“ implicitly assuming that market forces in the form of rising energy and congestion costs are not sufficient to induce the change. Arguing that railroads can help alleviate congestion on state Interstates, a goal that has widespread public support, the rail report proceeds to spell out how the state can help make it happen.

    Here are key objectives spelled out in the report, listed under the goals of โ€œEconomic Competitiveness and Quality of Lifeโ€ and โ€œVirginia DRPT Public-Private Partnership Efforts and Program Delivery.โ€

    Objective: Provide incentives for businesses to ship by rail whenever this is the most effective method available.
    Future Strategy โ€“ Virginia DRPT should continue to connect businesses to rail and work to improve the overall freight rail system to improve its competitiveness and value against other modes. Virginia DRPT should track progress toward this objective by accounting for the value of freight traffic shifted to rail following the implementation of industrial connections and/or the improvement of main line corridors.
    (Bacon: If shipping by rail is the “most effective method available,” why are incentives required?)

    Objective: Promote continued dialog and cooperation between Virginia DRPT and the freight railroads to maximize system efficiency and investments.
    Status โ€“ In addition to the support provided to Virginiaโ€™s short line railroads, Virginia DRPT is actively leading major investment studies involving public-private partnerships.
    Future Strategy โ€“ Virginia DRPT should continue maintaining an open dialog with the private railroads and shippers to promote a unified vision of an efficient and competitive rail network for the Commonwealth.
    (Bacon: In theory, public-private partnerships are a tool to induce railroads to make private investments with public benefits they might not otherwise make. But almost any project can be justified on the basis of public benefits– and you can be sure that railroad companies, once trained to seek state funds, will start identifying public benefits in everything they do.)

    Objective: Secure stable and sufficient funding for a program of rail investment that will include funding for operating, constructing, and maintaining the rail network.
    Status โ€“ Virginia DRPT administers several programs with generally continuous funding and advocates for additional funding for important strategic initiatives, including interstate corridor projects.
    Future Strategy โ€“ Virginia DRPT should continue to advocate for increased and continuous investment in rail. Virginia DRPT should track its progress in securing funding by assigning a probability of funding to future projects.
    (Bacon: Aaaargh!)

    I will give the rail study credit for one recommendation not always heard in public policy circles: It advocates measuring โ€œcost effectiveness of investmentsโ€ in terms of air pollution reduced, traffic congestion ameliorated, etc. Unfortunately, such objective considerations are routinely ignored when a project has been turned over to the tender mercies of lobbyists and politicians.

    To this point, the big rail companies have shown little interest in plundering the state purse. Once they are persuaded that it is easier and cheaper to financing their capital spending programs by hiring lobbyists and organizing PACs than taking their case to Wall Street, citizens and taxpayers will be the inevitable losers.


  • With Big Stories Brewing, Bacon Goes AWOL

    So much to blog about and so little time… Unfortunately, my wife suffered a death in the family, and we have to travel to South Carolina today to attend the funeral. I will have no time to blog today.

    If I did, I would dearly like to turn my attention to Gov. Timothy M. Kaine’s announcement of budget cuts — and the Republican response to the effect that, “We told you so.” (Readers of Bacon’s Rebellion may recall that we blogged this spring about those very concerns.)

    If I had the time, I would read, absorb and report upon Virginia’s new rail plan as well.

    If I can sneak away during the wee hours of the morning and tap into the Hampton Inn’s Internet connection, you may hear from me yet!


  • Has Gene Trani Stayed On Too Long?

    Someone has to ask the question: Has Eugene Trani stayed on too long as president of Virginia Commonwealth University?

    I have enormous respect for Trani, who has done an extraordinary job building VCU as an institution and will no doubt go down in Richmond history as one of its great, visionary leaders. He has transformed VCU from a third-tier, little respected “State U” into an up-and-comer with nationally recognized programs. By emphasizing interdisciplinary programs between schools and departments that traditionally stay pigeon-holed, he has made VCU a genuinely exciting place to study and conduct research.

    The VCU president has always had his critics. Some said he was too authoritarian, or that he emphasized bricks and mortar over program development. But there was no arguing with his ability to raise money from the community or squeeze more funds out of a parsimonious General Assembly.

    Now those accomplishments are beginning to fray. The simultaneous eruption of the Rodney Monroe and Philip Morris controversies (see “Scandal Reaches Critical Mass at VCU”) raise the possibility that systemic problems might plague VCU’s administration.

    Frankly, I have to wonder if Trani’s heart is still in the job. Trani, who turns 69 in November, originally planned to retire from the VCU presidency a few years ago, but the board of trustees apparently could not imagine a VCU without him and begged him to stay another five years. (I draw from memory — I cannot find any reference to the contract renewal on the VCU website. If someone can find it, please let me know.)

    While he agreed to stay on, Trani maintained other interests. For example, he serves on three outside boards: LandAmerica Financial, a Fortune 500 title insurance company; Universal Corp., a tobacco trading company; and the SunTrust Central Virginia Bank. Directors at the first two companies (and perhaps the third) are highly compensated and entail significant commitments.

    Meanwhile, Trani continues to pursue his academic interests. A historian, he has managed to juggle his administrative duties with scholarly research and writing. His official VCU biography lists an impressive number of columns, scholarly articles and even books written during his tenure as president. In 2005, he spent the summer in Oxford, England, working on a soon-to-be-published book, “Distorted Mirrors: American Images of Russia and China, 1891 โ€“ 1991,” and he was intending to spend this summer at Harvard.

    Whether this workload — enough to keep two or three normal people busy — affected Trani’s health is a matter of conjecture. But there is no getting around the fact that he was admitted for emergency surgery two weeks ago for a quintuple bypass surgery. A VCU press release stated that he would spend six to eight weeks at home recuperating.

    I’ve met Trani a couple of times, including once a few years ago when I interviewed him for an in-house VCU publication. He spoke enthusiastically about his research into early U.S.-Soviet relations — he was particularly interested in the U.S. expeditionary force dispatched to Archangel in 1919, as I recall. Trani also displayed a voracious appetite for information. One thing that struck me: He made a practice of Googling “Virginia Commonwealth University” every morning to see what people were saying about the institution.

    Gene Trani is a remarkable man. But it’s a legitimate question to ask: Has he taken on too much? Given his multiple pursuits and responsibilities, not to mention his ill health, can he possibly stay on top of the pressing issues that consume Virginia’s largest university? Who’s calling the shots in his absence? Is the eruption of simultaneous scandals a coincidence, or a sign of a deeper malaise at VCU? I don’t know the answer. But let us hope the Board of Visitors is asking that question.


  • Scandal Reaches Critical Mass at VCU

    It looks like Peter beat me to the punch on the latest developments at Virginia Commonwealth University (see “A Tale of Two Outrages.”) Rather than repeat the points he made, I want to amplify his comments about the “neo-Stalinist” atmosphere at VCU. I wouldn’t choose that particular, highly loaded adjective to describe the Trani administration — nobody’s been hauled off in the middle of the night and executed — but there is big, festering problem that must be dealt with.

    By way of background: I criticized Style Weekly magazine last month in R’Biz for publishing an article that gave breathless credence to fears expressed anonymously by VCU faculty members and researchers that the administration would retaliate if they openly expressed their objections to the controversial contracts with Philip Morris USA. Style noted that “senior people” at VCU had left because of the Philip Morris controversy but did not identify them. The weekly failed to present any other evidence that the dissidents’ fears were grounded in previous VCU actions.

    Well, I owe Style an apology. Peter’s subsequent reporting turned up the fact that one senior person (not “people”) at VCU — former vice president of research Marsha Torr — did depart in a controversy over Philip Morris a few years ago. And today we read in the Times-Dispatch that VCU officials made “improper threats” in an unrelated investigation into a degree improperly given then-Richmond police chief Rodney D. Monroe.

    The controversy over Monroe’s degree erupted into a full-fledged uproar when two prominent VCU faculty members resigned their senior administrative positions in protest earlier this week. Robert D. Holsworth, a noted Virginia political commentator, stepped down as dean of the College of Humanities and Sciences, and Michael D. Pratt resigned as interim director of the school of government and public affairs. As Karin Kapsidelis reports for the T-D, the VCU board will take up allegations contained in letters written by two of the four senior officials — presumably Holsworth and Pratt — that “some improper interviewing” took place during the Monroe-degree investigation.

    Kapsedelis quotes Dan Ream, president of the faculty senate, as saying that there were “improper threats made to potential tenure. … You don’t threaten tenure.”

    Well, if VCU officials can threaten tenured professors, non-tenured professors and research staff cannot be blamed for being skittish about expressing their concerns publicly about the Philip Morris contracts. Add to this latest development the fact that the task force assigned to study the university’s research contracts and recommend new guidelines is chaired by Francis Macrina, the vp of research whose underlings negotiated the contracts, and there is every reason for outsiders to wonder about the integrity of the process.

    VCU is the state’s largest, fastest-growing university, and it’s a pillar of the Richmond economy. VCU is an engine of economic development, critical to the growth of the life sciences sector in the region. Anyone who wants to build a more prosperous, livable and sustainable Richmond region needs to take an interest in what happens at VCU.

    As Peter rightly asks in the context of this dual controversy, if William & Mary alumni were outraged by the culture-war antics (my word, not his) of President Gene R. Nichol, where are Richmond’s community leaders and VCU alumni? Why aren’t they expressing outrage — or at least concern — about events at VCU that go to the heart of academic and research integrity? It’s a fair question.


  • A Tale of Two Outrages

    The drumbeat of bad news continues at Virginia Commonwealth University. The latest is that four top officials have resigned as part of the controversy over former Richmond Police Chief Rodney D. Monroeโ€™s improperly awarded VCU undergraduate degree.

    According to news accounts, one of the reasons for one of the resignations was that when VCU officials investigated the Monroe degree, threats may have been made that tenured professors might lose their tenure.

    Wow, thatโ€™s pretty strong stuff that stabs at the heart of academic freedom.

    But I can believe it. When I spoke with dozens folks in the VCU community for my reporting on another scandal, the erroneously secretive research contracts VCU entered into with Philip Morris USA, I constantly heard of the neo-Stalinist atmosphere at VCU. Faculty were afraid their e-mails were monitored and used their cell phones, instead of university lines, to communicate. After all the contracts that VCUโ€™s vice president for research now says are flawed stipulated that any discussion or inquiry of the two research deals had to be reported to Philip Morris (Big Brother) immediately.

    So, I keep asking myself, whereโ€™s the outrage? At least the outrage on my outrage-meter that goes as high as that involving Gene R. Nichol, the former president of another state school, William & Mary, who ran afoul of Virginiaโ€™s right wing thought police and was hounded out of office.

    Nichol was a highly regarded legal scholar who had taught at law schools in Colorado and North Carolina. He also was a liberal and an activist with the American Civil Liberties Union. Nichol did a lot of good at W&M by upgrading the schoolโ€™s financial aid program to reach more minority and poor students and had to deal with demands by the NCAA that W&M drop the feathers from its logo because they might offend Native Americans.

    Then, Nichol really stepped in it by having a cross removed from W&Mโ€™s chapel with orders to display it when Christian-related activities were taking place in the structure. That set off howls of rage from the โ€œChristiansโ€ in Virginiaโ€™s right wing community even though there are Jews, Muslims, Buddhists, etc., who attend the state-funded school and might find the implied religious bias of the crucifix offensive. (And please, dear readers donโ€™t come after me for not understanding your version of โ€œChristianity.โ€ I am a former altar boy who had it all drilled into him by the Jesuits and whose greatly-respected uncle was a Catholic priest who spent his life working with the poor.)

    The cross thing really brought out the yahoos. One was Jim McGlothlin, an alumnus who made his zillions ripping coal out of the ground. Miffed at Nichol, he withdrew a $12 million donation.

    Now back in my day, my school would have told McGlothlin where to stick it. But not W&M. They whimpered and scampered and howled. The right wing thought police went on alert and the ouster began. It wasnโ€™t helped when Nichol, correctly pointing to academic freedom, did not force out a sex worker exhibit at the school. After all, this isnโ€™t Liberty University or even Georgetown where one might not expect such as show.

    It was enough, however, to do Nichol, in. He resigned and left, leaving W&M for the worse.

    Move on over to VCU. Now there you have a far more serious situation where academic freedom seems to be getting trampled again and again. Rules were bent to allow Police Chief Monroe to win a degree in ways not permitted to your ordinary 21-year-old. But then, Monroe was tight with Richmond Mayor Doug Wilder and, by extension, with VCU President Eugene Trani. Ditto tobacco research. After weeks of dodging the issue, abetted by Richmondโ€™s local rag of a newspaper, Traniโ€™s junta finally admitted that the secrecy aspects the tobacco contracts were wrong.

    What about this reign of fear that wafts over VCUโ€™s two campuses? Thereโ€™s an awful lot of smoke. And this is serious stuff, not some parlor debate about a crucifix in a public school. But then, Nichol had โ€œliberalโ€ tendencies and he had to be targeted and smeared and ousted as if it were the days of Joe McCarthy in the 1950s.

    Peter Galuszka