Author Archives: James A. Bacon

Rent Seeking, Runaway Medical Costs, and the Middle-Class Squeeze

Source: The Commonwealth Fund

by James A. Bacon

Mirroring national trends, Virginia healthcare markets are severely out of whack. The main difference is that here in the Old Dominion, they’re even more out of whack than they are for the country as a whole. In 2018, total out-of-pocket medical insurance costs for Virginia employees (employee contribution to premiums + deductible) amounted to $8,143 — 10.2% more than the national average.

That’s on top of what employers pay. According to the latest data compiled by the Commonwealth Fund, employers on average contribute $6,635 for single coverage and $19, 512 for family coverage. Add up the employer and employee share, and the cost of family coverage is equivalent to about $13.30 per hour in earnings for a full-time employee.

These costs have rapidly outpaced the general cost of living. As a percentage of median income, out-of-pocket costs have increased from 6.9% of median income to 10.7%.

Out-of-control medical insurance costs constitute a crisis for Virginia’s middle class. While the public policy debate in Richmond has focused almost exclusively on how to extend insurance coverage to the poor and working poor in the form of Medicaid expansion and Obamacare, nothing more than lip service has been given to the crisis for people who pay their own way. Continue reading

Virginia Likely to Impose Excessive Minimum Wage

Beneficiaries… or victims… of a $15 minimum wage?

by Hans Bader

It doesn’t make sense to ban jobs that pay a living wage, just because an employer can’t afford to pay a still higher wage. But that is what a $15 minimum wage does in regions where living costs and wages are low. There are cheap regions to live in where $11 an hour supports a decent lifestyle. If someone can afford decent food, clothing, and housing on $11 an hour, and their employer can’t afford to pay them more than $12 an hour, it is pointless and cruel to ban their job just because it pays less than $15 per hour.

But that is what a $15 minimum wage does. It bans jobs that pay less than $15 per hour, regardless of whether an individual employer and worker have a good reason for a lower hourly wage.

Virginia is now poised to join seven other left-leaning states, such as New Jersey, in imposing a $15 minimum wage. The incoming majority leader of the state senate, Richard Saslaw, D-Springfield, has introduced a bill to increase the state’s minimum wage to $15 by 2025, and then adjust it for inflation in future years. Every Democrat in the state senate has already voted for a similar bill in the past, and Democrats took control of Virginia’s legislature this November. Continue reading

The Rank Hypocrisy of Rural Gun Sanctuaries

by Peter Galuszka

When Donald Trump ran for president on a platform of virulent xenophobia, one of the rallying cries he favored was the idea that liberal-minded localities were forming “sanctuary cities” and would not cooperate with federal immigration officials on the prowl for undocumented aliens.

Right-wing Virginia politicians, notably Corey A. Stewart, who led anti-foreign hate raids when he was Chairman of the Board of Supervisors of Prince William County, locked onto the idea with a vengeance. Listed as “sanctuary” cities were places like Virginia Beach and Richmond.

The problem was that they were no such cities or counties. True, short-funded police departments tended to stick to their real work – enforcing local and state laws as they should – but there were no formal pronouncements of “sanctuary cities.”

So, it is indeed ironic that the anti-control mob is creating a series of so-called “sanctuary” cities and counties where authorities will refuse to enforce gun control laws. So far, the counties of Appomattox, Campbell, Carroll, Charlotte, Patrick and Pittsylvania have declared themselves ‘Second Amendment Sanctuaries,” reports the Washington Post. Continue reading

Metro in the Age of Crazy

by James A. Bacon

The chronic problems of the Washington metro system can’t be blamed entirely upon its dysfunctional, multi-state governance system or even the poor choices of its governing board. Any realistic appraisal of the Metro must take into account the fact that the country is increasingly populated by friggin’ lunatics!

The Metro board came up with the idea of selling off the naming rights to Metro stations. Most recently, the board waived its existing naming rules in order to finalize a deal with a “Fortune Global 500 company” to rename the soon-to-open Innovation Center station (near the Center for Innovative Technology building) to a name selected by the unnamed corporation. Now members of the Fairfax County Board of Supervisors are in a snit that the county wasn’t consulted.

People, get a grip. As WTOP states succinctly, “Metro hopes station naming rights deals could help offset losses from ridership declines to help keep the budget in line without more significant fare increases.”

Speaking of significant fare increases… fare jumping in the Washington Metro is already a significant problem, accounting for $29 million in losses.  That could well get worse, depending on whether local riders heed calls for an international transit fare strike. Proclaims the “It’s Going Down” website: Continue reading

Appalachia’s Job Growth Challenge


by James A. Bacon

Employment growth in Virginia’s Appalachian region since 2002 has been the weakest of all five states in the Central Appalachian region, according to data contained in a recent Appalachian Regional Commission (ARC) report, “Industrial Make-up of the Appalachian Region: Employment and Earnings, 2002-2017.”.

Making matters worse, job growth in Central Appalachia was the worst in all of Appalachia, which was half that of the United States as a whole.

The growth gap between Virginia on the one hand and Tennessee and North Carolina on the other has been particularly marked, the gap between Virginia on the one hand and West Virginia and Kentucky not quite as bad.

Earnings growth in Appalachia also has severely lagged that of the United States as a whole — 17.5% compared to 27.3%. Continue reading

Virginia Judges, 1; Artificial Intelligence, 0

by James A. Bacon

It sounded like such a good idea: Develop a criminal-sentencing algorithm to help judges identify felons least likely to reoffend and either give them shorter jail sentences or divert them to probation or substance-abuse treatment programs. Virginia created just such an algorithm in 2001. Minimizing the subjective element in sentencing, it was thought, might even reduce sentencing disparities between the races.

The results didn’t turn out entirely like people hoped. In a deep dive into the data, Megan T. Stevenson, a George Mason University professor,  and Jennifer L. Doleac, of Texas A&M, authors of, “Algorithmic Risk Assessment in the Hands of Humans,” found that the Virginia algorithm does influence outcomes: Defendants with higher risk scores got longer sentences and defendants with lower risk scores got shorter sentences. However, they found “no robust evidence that this reshuffling led to a decline in recidivism.”

While they found no evidence of an increase in racial disparities statewide, the authors did find that among the judges most likely to factor the risk scores into their sentencing decisions, there was a “relative increase in sentences.” Continue reading

Go West, Young Man, and Get a Concealed Carry Permit

Percentage of the population with a concealed carry permit in 2019. Source: Virginia Public Access Project

The farther west in Virginia you go, the more likely it is that the guy standing next to you carries a concealed-carry permit. What would really be interesting is to see the correlation between the percentage of concealed permits and number of crimes committed with firearms.

— JAB

Chesapeake Bay Foundation Embraces Social Justice Advocacy


I have long respected the Chesapeake Bay Foundation for its role as an advocate for the Chesapeake Bay. It has always stuck close to its nonpartisan, non-ideological mission, and it has enjoyed a high degree of credibility across the political spectrum. Until now.

Last week, the CFB issued a statement supporting the Environmental Justice for All Act, sponsored by Rep. Donald McEachin, D-Virginia, and Rep. Raul Grijalva, D-Arizona, which would “protect minority and low-income communities that disproportionately suffer health risks from pollution.”

Said Chesapeake Bay Foundation Federal Executive Director Jason Rano:

Everyone has a right to clean water and air, no matter who you are or where you live. Congressmen McEachin and Grijalva are taking important steps towards meaningful action on environmental justice. This will protect our most vulnerable communities from pollution and ensure healthier local rivers and the Chesapeake Bay.

The CFB has taken a huge step from science-driven environmental advocacy to ideologically-driven social-justice advocacy. Huge mistake. Disastrous mistake.  McEachin’s proposed legislation is riddled with questionable leftist suppositions. With this endorsement, the CFB has squandered its credibility with half the population. What a shame.

— JAB

Getting Serious about Flooding

Click image to enlarge. Source: Governor’s Office

by James A. Bacon

Everybody talks about the weather, as the old saying goes, but nobody does anything about it. Well, here in Virginia, people are getting serious about one aspect of the weather — flooding.

Last week Governor Ralph Northam issued an executive order, the Virginia Flood Risk Management Standard, to encourage the “smart and resilient construction of state buildings.” Based on sea-level rise projections developed by the National Oceanic and Atmospheric Administration, the new standard requires state-owned buildings constructed after 2021 to be built at elevations that will protect them from flooding.

“Flooding remains the most common and costliest natural disaster in Virginia and in the United States, and our state government is getting prepared. These standards will protect taxpayers by establishing critical protections for new state-owned property,” Northam said in a press release.

Meanwhile, the City of Virginia Beach is grappling with the reality that it needs an extra $20 million a year to improve its stormwater infrastructure. Continue reading

Bringing Addicted Babies into the World Should Be a Crime

by James A. Bacon

When social breakdown, a drug epidemic and failed government institutions converge, this is what you get: babies like Charlee Ford (seen at left) born with opioids and marijuana in her system and diagnosed with cerebral palsy. After birth, her lungs failed for nine minutes before doctors revived her. In her short, tortured lifetime, she suffered from severe seizures. She died at an age of four months.

Graphic credit: Roanoke Times

The surging use and abuse of opioids and other illegal drugs such as methamphetamines is associated with a horrifying increase in the number of Virginia babies born addicted to drugs. Worse, these babies are usually born into totally dysfunctional families. Mothers and fathers are themselves are likely to be substance abusers, which puts the babies at high risk of abuse and neglect. Meanwhile, child protective services in Virginia are uneven in quality — some local programs, one might say, are as bureaucratically dysfunctional as the families they serve.

The Roanoke Times tells the tragic story here.  The focus is on Rockbridge County in the Shenandoah Valley. But similar stories can be found all around the state. It’s a long story but worth the investment in time.

Bacon’s bottom line: Maybe the Roanoke Times article hit me harder today than it would have previously because this weekend I visited my month-old grandson for the first time and cradled the tiny, helpless little creature in my arms. He is a lucky one, blessed by two loving, hyper-conscientious parents who will take very good care of him. Many babies are not so fortunate. Charlee’s story prompts several thoughts…. Continue reading

How to Eliminate Regulatory Barriers to Battery Storage

by James A. Bacon

Virginia’s move to an energy future dominated by solar and wind power will necessarily be accompanied by battery storage. Vast arrays of batteries will be needed to store and release electricity to offset the intermittent generation of solar and wind farms. Battery storage is exceedingly expensive now, but the price is expected to decline significantly in the decade ahead. While the speed with which batteries become economical to deploy on a large scale is highly uncertain, there can be little doubt that batteries eventually will become an integral part of Virginia’s electric grid.

A recent state-commissioned report, “Commonwealth of Virginia Energy Storage Study,” suggests that the near-term potential for energy storage in Virginia (over and above the Bath and Smith Mountain Lake pumped-storage facilities) could reach 24 to 113 megawatts of capacity, while the potential grows to between 239 and 1,123 megawatts over the next decade. The study, written by the Strategen consulting firm, recommends establishing a goal of 1,000 megawatts by 2030. (That would be two-thirds as much capacity of the state-of-the-art, natural gas-powered Greensville County Power Station.)

A number of things must happen to achieve this potential. The Commonwealth of Virginia has no control over the pace of technology advance, the global supply of critical raw materials (particularly cobalt and manganese), or the evolution of wholesale electric markets. But it can do a few things. Foremost is to address safety, permitting and environmental issues before they create bottlenecks to large-scale battery deployment. Continue reading

Bacon Bits: $$$$$ Edition

They didn’t ask this question until now? Will the wave of Amazon-inspired development in the Pentagon City area of Arlington County overwhelm the region’s transportation network? “Arlington planners, and nervous neighbors, want to know,” reports the Washington Business Journal. Some neighborhood groups are wary that the point of the planning review is to clear the way for a major up-zoning in the area. “They fear the county could determine that the neighborhood has the transportation infrastructure to handle more residents and allow for density increases — even though they believe the opposite is true.”

Meanwhile, JBG Smith Properties and other developers are pitching massive new projects around the new Amazon HQ. Not coincidentally, the WBJ reports, “JBG Smith ramped up its political giving in Virginia with control of the General Assembly on the line.” JBG Smith’s Virginia campaign contributions this electoral cycle: $34,206.

Glad to hear that “Black Enterprise” is still a thing. The Mount Olive Baptist Church in Culpeper wants to create a network of support, mentorship and information for African-American small business owners. Black business ownership is increasing, but black entrepreneurs face big challenges. The goal of the network is to help them gain knowledge about finances, start-up capital and the industrial/managerial skills it takes to grow successful enterprises, reports the Star-Exponent. As the politics of grievance and victimhood have taken hold nationally, we don’t hear much about black enterprise these days. I cannot help but note that this initiative comes from a black church, not a foundation-funded think tank staffed by white intellectuals.

Can you say “overreach”? Virginia Tech will spend $5 million to $10 million to launch a biomedical research facility in Washington, D.C. by early 2021, the university announced yesterday. On a campus of a new Children’s National Hospital campus, four or five Virginia Tech research teams will conduct research on cancers of the brain and nervous system. Virginia Tech President Timothy D. Sands said in a statement the partnership fits Tech’s ambition “to solve big problems and create new opportunities in Virginia and D.C. through education, technology and research.” Continue reading

Bacon Bits: Government Programs that Actually Work

Brace yourselves for an unfamiliar sensation — a round-up of state/local government initiatives that show promise of yielding positive results!

Good for the taxpayer, good for the environment. The Roanoke School Board has approved a $16.8 million plan that will generate $1.3 million in annual energy savings by replacing HVAC units, retrofitting lighting with LED fixtures and implementing other energy-efficiency measures. If the projected savings don’t materialize, energy-services contractor Trane will pay the difference, reports the Roanoke Times. The savings of $2.7 million over 15 years is modest, but it is extremely low risk.

Frankly, this is the type of project that schools, local government, state agencies, and universities across the state should be looking at. Upgrading HVAC and lighting systems is extremely common among commercial real estate companies because it makes economic and financial sense. I suggested years ago that the Commonwealth should issue bonds to fund in projects just like this, billing it as an efficiency and environmental initiative. What’s holding us back from rehabbing government buildings everywhere?

Speedy tickets for speeding tickets. Virginia State Police have inaugurated a two-year trial run in Northern Virginia of an electronic summons system that digitizes the ticket-writing process. Since June, troopers have seen average traffic-stop times drop from 26 minutes using the old paper-form system to 10 minutes per ticket, reports the Virginia Mercury. Rolling out the system statewide could require a new $5 fee for all state-police traffic and criminal cases. But digitization could save money by getting troopers back on the road quicker and reduce congestion caused by rubbernecking drivers. Assuming he values his time at more than $20 an hour, even the guy getting the ticket is better off. What’s not to like? Continue reading

More Craziness: Now “Second Amendment Sanctuaries” Are a Thing

Second amendment sanctuaries across the U.S. Source: Wikipedia

by James A. Bacon

The Campbell County Board of Supervisors has voted to declare the county a “second amendment sanctuary.” It’s not clear from this WDBJ article exactly what that entails, but Wikipedia defines a second-amendment sanctuary as a jurisdiction that does not expend resources to enforce gun control measures perceived to violate the Second Amendment. The movement, which is particularly widespread in the West, is analogous to the “sanctuary city” movement in which local law enforcement refuses to cooperate with federal authorities in detaining illegal immigrants.

“We’re saying you have to defend our second amendment rights,” says James Borland, a member of the board of supervisors, which voted unanimously to pass the measure. WDBJ reports that the “resolution” will be conveyed to the General Assembly, “imploring lawmakers not to back laws that county leaders say target law-abiding gun owners.”

If declaring one’s county a “second amendment sanctuary” consists no more than forwarding a resolution to the state legislature, it’s harmless. If it means that local police and sheriffs cease enforcing locally unpopular gun laws, it is pernicious — just as sanctuary cities are pernicious. The trend of local politicians picking and choosing the laws they will support is extremely unhealthy. Continue reading

The Bureaucratic Nightmare of Hospital Billing

by James A. Bacon

It’s not easy going through life with Parkinson’s Disease, afflicted by tremors, stiffness, fumbling hands, and difficulty walking. Carrying on becomes a real challenge when you add debilitating rounds of chemotherapy. That’s the predicament my old friend Lisbeth finds herself in these days: fighting off two terrible diseases at once.

As you can imagine, the last thing Lisbeth needs as she’s trying to keep it all together is to get into a billing quarrel with her hospital. Most people in her condition would be too exhausted to study their hospital bills and spot the errors, much less to contend with an unresponsive hospital bureaucracy to get her money back. Most people would just let it slide. But Lisbeth isn’t like most people. She’s a crusader at heart, and her maladies have not conquered her spirit.

Lisbeth knows I blog about health care from time to time, and she approached me to tell her story. She laid copies of bills, correspondence and her  contemporaneous notes before me and walked me through her healthcare hell. Compared to tales of medical malpractice like amputating the wrong foot or contracting fatal infections in the hospital, this was tame stuff. What struck me, however, was that her complaints, though banal, are likely endemic in the healthcare system. Continue reading