Category Archives: Education (higher ed)

Fatherless Households and SOLs

Source: Cranky’s Blog

We know that the percentage of “economically disadvantaged” students in a school district is correlated significantly with Standards of Learning failure rates. But is poverty the driver behind low test scores, or is it just correlated with a third factor that is the real driver? Over on Cranky’s Blog, John Butcher ran an interesting analysis: He correlated English reading pass rates in a Virginia school district with the percentage of no-husband households in the jurisdiction. The results can be seen in the graph above. The percentage of no-husband households accounts for roughly 40% of the variability in SOL pass-rate performance.

John was addressing a different issue from the one I am interested in. He was making the argument that school districts should not be judged on raw SOL pass rates. Given the fact that SOL pass rates are strongly correlated with poverty, and even more strongly correlated with the percentage of fatherless children, schools should not be held accountable for their district’s demographics. They should be held accountable for under-performing on a demographically adjusted basis. (Even by that standard, he notes, the City of Richmond schools underperform “atrociously.”)

While I totally agree with the point Butcher is making — schools should be judged on their educational value added, not the demographics of their student bodies — my interest in this post is different. To what extent is the sociological background of Virginia’s students responsible for poor educational outcomes? Continue reading

Enjoy the Basketball Game — and Thank a Student

As a basketball fan, I’m delighted that five Virginia teams — UVa, Virginia Tech, VCU, ODU and Liberty — will participate in the NCAA tournament this month. That’s more than basketball powerhouse North Carolina (heh! heh!), and it may be more teams than from any other state. After UVa chokes early in the tournament, I’ll still have up to four other teams to root for!

I’m less enthralled, however, by the fact that the teams’ success has been funded in part by an increase in student fees, thus contributing to the higher-ed affordability crisis.

According to Richmond BizSense, revenue from the Virginia Commonwealth University athletics program has more than doubled in the past eight years, zooming from $16.3 million in FY 2010 to $34.2 million in FY 2017. The largest source of athletics revenue was student fees. Continue reading

Passing Class No Guarantee of Certificate In New State Workforce Program

Average earnings three years before and one after completing the VCCS FastForward workforce certificate program. Source: SCHEV. Click for larger view.

Virginia’s FastForward workforce credential program now in its third year is showing good success in getting students through training, but a high number of people in some programs do not earn the matching certificate.  Those who achieve both usually show the highest wage growth.

For those who went into the program earning under $20,000 a year, the subsequent increase in earnings is dramatic, almost 140 percent year over year.  “We are serving a very high need population, even compared to the traditional community college population,” said Lori Dwyer, assistant vice chancellor for programs for the Virginia Community College System.   Continue reading

More Public Input Coming for College Tuition Hikes

VCU students protest tuition hikes and adjunct pay last year. Photo credit; WCVE.

Before voting on tuition increases, board members of Virginia universities will have to listen to public input from students and families, if Governor Ralph Northam signs a bill passed by the General Assembly.

SB 1118 sponsored by Sen. Chap Petersen, D-Fairfax, with a companion bill sponsored by Del. Jason Miyares, R-Virginia Beach, would “require governing board[s] of each public institution of higher education, prior to a vote on an increase in undergraduate tuition or mandatory fees, to permit public comment on the proposed increase at a meeting of the governing board.”

The prevailing practice is for tuition proposals to work their way through financial committees and then get voted on by the full board of trustees with relatively little discussion. Board of visitors members are wined and dined by university presidents, and they rarely rock the boat. Administrators spoon-feed them information, and conflicting views are rarely heard. Unlike corporate board members who own stock in the company they govern, university board members have no financial skin in the game. Many are alumni whose main concern is enhancing the prestige of the alma mater they love. Continue reading

Re-Examining the Role of Elite Higher Ed in American Society

Princeton. Ivied walls or moss-backed walls?

by Reed Fawell III

“Going to Yale Could Make You Rich, or Lonely,” by Lyman Stone, published in The Federalist on Dec. 19, 2018, exposed some surprising findings regarding the costs and benefits of college attendance. Stone is worth quoting at length:

There’s a long-standing economic consensus that, for high schoolers smart enough to get admitted into the University of Kentucky (average SAT score of about 1000-1100) and Yale (average SAT score of about 1400-1600), it really doesn’t matter which college they attend … [Researchers have identified] how much money students earn 10 or 20 years later. It turns out going to Yale doesn’t add one penny to how much money a Yale admit earns.”

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Bacon Bits: Rider U Screws U Know Who

Now that the State Corporation Commission has finally approved Dominion Energy Virginia’s Rider U, mandated by the General Assembly to force us all to pay for underground lines serving just a few customers, let me explain how perfectly this scheme put the company ahead of its customers.  (For case details, the Richmond Times-Dispatch has this good story, picking up some themes from an earlier Bacon’s Rebellion post.)

Set aside discussions of the “Strategic Underground Program” because the merits do not matter for this illustration.  Start with the information that Rider U is a stand-alone line item on your bill, a financial silo on Dominion’s books, with a guarantee that the utility will recover in full the cost of construction with a profit margin over time.  No risk to the shareholders.

Any benefit to the customers, and there will be some certainly, shows up as reduced maintenance and repair costs and fewer interruptions.  Those maintenance and repair costs are covered by the main portion of your bill, the base rates, outside the Rider U silo.   Say it’s a one-to-one ratio, and the $70 million spent putting lines underground saves $70 million over five years in repair costs.  The fewer interruptions also add base rate revenue outside the silo.

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Read All About It: The Virginia Way

Former Lieutenant Governor Bill Bolling

In his defense, you must realize that Bill Bolling is not a lawyer, so he couldn’t do what some lawyer-legislators do at the end of their careers and become a judge.  With the Virginia Retirement System’s pensions based on the highest salary period, you must top out as governor or attorney general or a cabinet member or judge, something with a real salary if you want that monthly thank-you-for-life from the taxpayers to have any zeroes on it.

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UVa Doubles Down on Its Obsession with Race

Flaming assholes. Torch-wielding white supremacists marching at UVa last year — a useful distraction from what really ails American society.

This news is almost a month old, but I hadn’t seen anyone else pick it up, so here goes… The University of Virginia will create 20 new research professorships in “Democracy and Equity” to examine “underlying causes” of the white supremacist demonstrations in Charlottesville last year.

Each of the 20 professorships will be funded by $1 million in donor commitments matched one-for-one by UVA’s Strategic Investment Fund. The Board of Visitors approved the group’s recommendation to set aside $20 million in matching funds to support faculty research and teaching around “related social, cultural and political issues.” Continue reading

Bacon Bits: Higher-Ed Edition

Modest UVa tuition increase. The University of Virginia’s Board of Visitors has approved a 2.9% increase in-state tuition increase for undergraduate College of Arts & Sciences students next academic year, although other schools in the university may differ. The university’s financial aid program, Access UVa, will keep pace with tuition increases, reports the Daily Progress.

The board’s Finance Committee said it had exhausted other options before considering slight increases to undergraduate tuition but believed 2.9- to 3.5-percent increases in most schools are necessary. The increases represent only a modest premium over the 2.3% increase in the Consumer Price Index between September 2017 and September 2018. The modest price hikes (modest by comparison to past years) coincides with a $2.2 million increase in state support in Fiscal 2020.

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Fralin Donates $50 Million for Roanoke Research Center

Heywood Fralin

Heywood Fralin, his wife Cynthia, and the Horace Fralin Charitable Trust have announced a $50 million gift to Virginia Tech to attract top-ranked scientists to the university’s Roanoke medical research center. The gift is twice the size of the university’s previous single largest donation.

“I came up with the size based on what I felt I could do. I wanted to make a maximum gift that was a challenge to me and to the trust because I thought it was important to the community. And I thought it could benefit everyone, and it would have a lasting impact that would help to change the future of the Roanoke Valley and the surrounding area,” Fralin said in a Wednesday interview with the Roanoke Times. Continue reading

State Colleges Face New Financial Stress Test

Source: Auditor of Public Accounts

The Virginia Auditor of Public Accounts has applied a nationally-recognized strategic financial analysis tool to Virginia’s fourteen public colleges and universities, revealing that only one – the University of Virginia – has a strong financial foundation and several are vulnerable to stress.

The work done by Eric Sandridge, Director of Higher Education Programs at the APA, was published in a full report in late October and was summarized in a presentation to the House Appropriations Committee on November 13.  It is the first of what are planned to be annual reports tracking the results over time, focused on the same kind of risk created for the state by stressed local governments.

The key composite financial index (CFI) he used has a ten-point scale. “A score close to one indicates that the institution may be very light on expendable resources and have difficulty meeting operating demands in the current environment,” Sandridge wrote in his main report. Longwood University, Christopher Newport University, Norfolk State University and the University of Mary Washington have all had recent years with a composite score of one or below.

A CFI score of three is considered healthy and of one is concerning. And then there is UVa. Source: APA

The College of William and Mary’s scores have only barely exceeded a one on this scale in recent years, but look far better when the financial resources held in its foundation are factored in. Several of the schools see better scores with their foundations included in the measurement. But not all have substantial endowments.

A score of three “generally indicates that an institution is financially healthy,” Sandridge wrote in his report. Even with their foundations included, eight of the fourteen schools miss that mark, although Radford University is close.

The University of Virginia is everybody’s rich uncle, to the point Sandridge pulls it out of some averages. VMI’s endowment is also off the charts for public schools of that size thanks to its loyal alums.

CFI Test with foundation resources included, improving the position of several schools. Source: APA

“The Composite Financial Index or CFI combines four core ratios by assigning various weights to generate an aggregate score for financial strength and stability. These ratios: Primary Reserve ratio, Viability ratio, Net Operating Revenues ratio, and Return on Net Position ratio provide for an understanding of the institutions’ available resources and results of current operations,” is how Sandridge summarized the method, devised by the accounting firm of Prager, Sealy & Co., LLC.

The various financial tests, similar to those a business analyst might use, look at the schools’ debt, the comparison between their operating revenue and expenses and available reserves. Their auxiliary enterprises are measured, along with their endowment and the investment success on that endowment. The age of facilities is factored in. Enrollment trends count. The haves and have nots comparison that results is stark, but it is not clear just what if anything the state might do about it.

One possible conclusion:  Virginia is the only school well-positioned to fully end its status as a state school.

Sandridge was the APA expert called in when the University of Virginia’s Strategic Investment Fund was making headlines, and the legislative attention on that issue might have sent the state looking for a deeper analysis tool.

One of the slides he used with the House broke down endowment divided by student head count, and the disparity there really underlies much of the rest of the report. The per capita amount at the University of Virginia exceeds $260,000 and the per capita amount at George Mason is just one percent of that, about $2,600.

You don’t get more have and have not than that.

Where Will 30,000 More Tech Degrees Come From?

There are many moving parts to the Amazon, Inc., deal to invest $2.5 billion and hire 25,000 employees in Northern Virginia. In one of the most important deliverables, the Commonwealth has committed to increase the number of bachelor’s and master’s degrees in computer science and related fields by 25,000 to 35,000 over and above the already-ambitious baseline forecast over the next two decades.

Peter Blake, executive director of the State Council of Higher Education for Virginia (SCHEV), says the goal is achievable but it won’t be easy. The number of students graduating from Virginia high schools is not forecast to increase substantially in the near future. If the baseline student population isn’t increasing, where will the IT degree seekers come from?

He sees four places to find the students to earn those degrees.

  • More college-ready high school graduates. On average about 72% of Virginia high school graduates continue their education at college-level institutions. One way to increase the number of tech-degree seekers is to boost the percentage of high school graduates who pursue higher education.
  • Improved college retention. Only 70% of the students who enter college manage to earn a degree within six years. Virginia can bolster the talent pipeline by reducing the college dropout rate, thereby increasing the retention rate.
  • Improved “recovery” of college dropouts. Tens of thousands of Virginians have earned college credits but failed to earn degrees or credentials. Potentially, the higher-ed system can coax some of these college dropouts back into school to complete their degrees.
  • More out-of-state students. If all else fails, Virginia can increase admittance of out-of-state students into Virginia higher-ed institutions.

“We have to step up in each of those areas,” Blake says. “Business as usual won’t get us there.”

The deal makers negotiating the Amazon package anticipated some of these issues. The Governor’s website explains how it expects to build Virginia’s talent pipeline.

  • Bachelor’s degrees. To expand the number of bachelor’s degrees, the Commonwealth will establish a performance-based tech talent investment fund, with General Assembly approval. This fund will enable higher education institutions across Virginia to receive startup funds for faculty recruitment, state capital investment (where required), and enrollment funding to expand the number of bachelor’s degrees the institutions confer annually in computer science and closely related fields (e.g., computer engineering).
  • Master’s degrees. To expand the number of master’s degrees, the Commonwealth plans investments of up to $375 million for academic space and operational support over the next 20 years. These performance-based, master’s degree investments will be provided to George Mason University for its Arlington campus and Virginia Tech for a new campus expected to be located in Alexandria.  Those institutions must match the state commitment dollar-for-dollar.
  • K-12. Virginia will invest $25 million in the K-12 STEM and computer science experience for students and teachers over the next 20 years.

Blake offers no comment on whether those resources will be adequate. Legislators will have to decide whether they will be adequate. Here’s my concern: The General Assembly can set aside money to increase the institutional capacity to provide ~30,000 more advanced degrees, but that’s no guarantee that the so-called “talent pipeline” starting with K-12 schools can increase the supply of students with the aptitude and desire to earn those demanding technical degrees.

If Virginia can’t develop enough home-grown talent to fulfill the demand, Blake suggests, colleges and universities may have to consider recruiting out-of-state students more aggressively. In that case, legislators may have to re-consider the out-of-state enrollment caps it has placed on some institutions.

The good news, says Blake, is that SCHEV reports key metrics — number of degrees granted, college dropout rates, out-of-state students enrolled, and the like. Legislators will be able to see if Virginia stays on track to meet its 20-year targets, and they should have time to make any needed mid-course adjustments.

How Walkable Urbanism and the Talent Pipeline Won the Amazon Deal

Conceptual rendering of Virginia Tech’s proposed $1 billion campus in Alexandria near the proposed Amazon campus.

More information is coming out about the wheeling and dealing behind Virginia’s incentive package that coaxed Amazon, Inc., to locate a $2.5 billion campus in Northern Virginia. It turns out that many of the key pieces in Virginia’s incentive package were initiatives that had been in the works for years. Virginia is putting resources into projects that, most likely, it would have funded eventually anyway.

Amazon wanted an urban location and it selected the Crystal City-Potomac Yard area of Arlington and Alexandria, currently being rebranded by the largest property owner, JBG Smith, as National Landing. A decade ago JBG Smith had commenced the yeoman’s work, with no immediate prospect of reward, of winning the local planning and regulatory approvals to re-develop the aging edge city into a walkable, high-density, mixed-use area — just the kind of urbanism Amazon was looking for.

Meanwhile, Virginia Tech had engaged in preliminary planning to build a major academic campus in Northern Virginia. The idea was mainly conceptual when Amazon announced his national HQ2 competition, but Tech had a scaffold upon which to build when the state began scrambling to put a deal together.

It helped that Commonwealth’s point man for selling Amazon, Stephen Moret, was not a conventional economic developer. The Virginia Economic Development Partnership president takes a broad, integrative approach to the profession that transcends the assembly of real estate deals. Having recently earned a Ph.D. from the University of Pennsylvania in higher education management and serving as a member of the State Council of Higher Education for Virginia, Moret is well versed in the critical need to build the talent pipeline. He is also conversant about the connections between land use, workforce, innovation districts and economic development.

I haven’t talked to Moret since the Amazon deal was closed. But I recall a conversation a year-and-a-half ago in which he casually blue-skyed an idea for promoting corporate investment in Southwest Virginia by creating a New Urbanism-style development zone around the campus of the University of Virginia-Wise. In that vision, the real estate was almost incidental. Moret’s idea was to create a knowledge-based community with access to UVa-Wise students and graduates that a corporate investor would find attractive.

It’s not a stretch to say that the Amazon project is the same idea writ large — very large. The $550 million in direct employment subsidies constitutes only a modest piece of the deal. What really sold Amazon on Northern Virginia was the prospect of setting its corporate facility (a) in a walkable urban community, (b) in close proximity to a technology-oriented university campus, (c) in order to create a dynamic innovation ecosystem with Amazon at the center, (d) in a metro area with one of the largest tech-savvy labor pools in the country.

Building the talent pipeline. Both the Roanoke Times and the Washington Post have published articles highlighting how the educational piece of the incentives package came together.

As the Roanoke Times writes, Virginia Tech’s proposal to build a $1 billion, one-million-square-foot campus near the Amazon facility was the cornerstone of the talent-recruitment piece of Virginia’s bid.

Virginia Tech had been planning some sort of campus near the nation’s capital since President Tim Sands arrived at the university four years ago. Tech didn’t have a location in mind or much more than a general sense of what the Innovation Campus could be.

“If the first time we had thought about it had been 14 months ago, this probably wouldn’t be what it is,” Sands said during the gauntlet of interviews after Tuesday’s announcement. “We were ready and the timing was perfect.”

Moret was unaware of Sands’ Northern Virginia ambitions when he first reached out to schedule a conference call with college and university leaders around the state last year.

He discussed the HQ2 bid with everyone and laid out early plans to roughly double the number of computer science graduates the state produced each year as part of the HQ2 bid.

He also asked if anyone was interested in the possibility of opening a campus near Amazon in the Washington, D.C., area.

“Virginia Tech reached out right away and said, ‘Hey, we’ve actually been working on this idea for a few years. And we’re prepared to put in a very large investment to make this happen,’” Moret recalled.

George Mason University also stepped up in a big way with plans to expand its Arlington campus. But the GMU campus will not be tightly integrated geographically with Amazon’s like Tech’s will be.

Crystal City rendering by Torti Gallas + Partners

Investing in walkable urbanism. Writing for the Congress for the New Urbanism’s Public Square Journal,  Robert Steuteville provides background on the urban planning piece of the deal.

Crystal City can be thought of as a large suburban retrofit—guided by a plan and form-based code that won a 2009 CNU Charter Award for Torti Gallas + Partners and Kimley-Horn and Associates. That plan and code, adopted by the county in 2010, entitled the new, higher-density development and put in place a framework to create a more walkable urban neighborhood over time.  …

The area was originally built without a master plan, and that changed with the recent master plan. “It’s high-rise suburban. It wants to be higher density, with a more urban mentality— away from cars and with retail on the street that is accessible to people,” says John Torti of Torti Gallas. “It has the potential of becoming a wonderful place.”

Steuteville’s article provides the following graphic comparing a mile-long segment of Rt. 1 as it looks now with the plan transform it into a more walkable, urban boulevard:

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The Closing of the American Mind: Mary Baldwin Edition

I have lost all respect for Mary Baldwin University. The Staunton-based liberal arts institution is training its students to be emotionally fragile, intellectually incurious and totally unprepared for dealing with the world outside of their little higher-ed bubble.

Three years ago, the university scheduled a project in its Hunt gallery entitled, “Relevant/Scrap.” The art exhibit, which opened Nov. 7, included silhouetted depictions of Richmond’s Confederate statues. The artists’ intention, as explained in a Richmond Times-Dispatch editorial today, was to “use art-making processes to create an aesthetic experience of the problematic challenge of re-imagining the spaces where the monuments to the Confederacy currently reside in Richmond.”

An Instagram account titled “Y’all racist at Mary Baldwin” was launched to call attention to the exhibit, and students took their concerns to a weekly meeting of the Student Senate on November 6, reports WHSV. The following day, the exhibit had been removed. Although the artists said they had been misinterpreted, they acceded to the removal.

In a statement explaining the decision, the university said:

“In accordance with our values as an inclusive, student-centered campus community, we take seriously the concerns about an art exhibition by two Richmond-based artists installed earlier this week… As a result of student concerns and discussions with the artists, the installation has been removed as of last night.

Not only did the university remove the exhibit, it committed to holding a series of “listening sessions” giving students “an opportunity to share their feelings in response to the exhibit and their hopes for inclusive community.”

In its editorial today, the Times-Dispatch wrote, “We’d argue that they should instead hold ‘learning sessions’ and use the moment to teach students that free speech isn’t always pretty or comfortable, but it is one of the main pillars of our society and it’s the thing — singular — that makes the United States the most open, accepting nation in the history of the world. … Suppressing speech is the prelude to ignorance, and ignorance, willful or not, is the prelude to the decline of our great society.”

I agree whole-heartedly with that sentiment, but I would say more. First, the cancellation of the exhibit was an act of craven cowardice. University administrators are so terrified of anyone branding them “racist” that they’re willing to abandon all other values. Just pathetic.

What is racist about showing silhouetted images of the Confederate statues in an exhibit about the debate about… Confederate statues? Exposure to a mere image has become an emotionally triggering event, regardless of the context in which that image is shown?

If the images in the aborted exhibit are racist, then the term “racist” has absolutely no meaning and is simply used as a cudgel to bludgeon the weak-minded into submission. At some point the term will be so overused, misused and discredited that it will cease to have any effect.

But more importantly is the effect of the Mary Baldwin capitulation has on the students themselves. The action reinforces their emotional fragility. But emotional fragility is not a trait that will be rewarded in the real world. The action reinforces intolerance of other views. But intolerance of other views is not a recipe for success in the workplace (except in partisan party politics, and perhaps at Google).

I seek out different views. I make it a practice, for example, to tune into “Morning Joe” on MSNBC every morning even thought I find many of the views expressed there to be not only wrong-headed but highly offensive. I do so for a multiple reasons. First, I want to know what liberals and progressives are thinking and saying. Second, want to hear facts and arguments that are neglected by conservative media outlets — I want to avoid having blind spots. Third, every once in blue moon, I hear something that gives me pause and makes me think, wow, they might have a point there.

How ironic it is that an academic institution, presumably dedicated to expanding intellectual horizons and teaching young minds to think critically and analytically, would shut out objectionable symbols and viewpoints while elevating “feelings” over intellect. Sheltering students from the real world — what an educational value proposition!

I can’t imagine why any parents would want that kind of education for their child. But apparently, there’s a market for that kind of education. Mary Baldwin’s freshman enrollment of 400 this year set a record for the institution. I wonder if parents have a clue what’s happening.

Updates: VCCS Transfers and Dominion Taxes

A Good Idea Which Is Spreading

A recent announcement from the Virginia Community College System provides a nice enhancement to an earlier Bacon’s Rebellion story about the smooth transition VCCS students can make to certain Virginia public universities.  A new articulation agreement has been signed with private Randolph-Macon College in Ashland.

The new agreement covers transfers from any of the state’s community colleges and “expands on an existing transfer program between R-MC and (J. Sargeant) Reynolds Community College, which already has facilitated transfers for more than 200 students over the past two years,” to quote the news release.

Not long ago there was a major cost difference between private schools such as Randolph-Macon and public universities.  Public-school price hikes have narrowed any gap and the private schools often have far more scholarship funds or work-study opportunities available.  Spending your first two years at a community college is still a substantial cost savings wherever you choose to finish.

“R-MC academic scholarships range from $14,000 to $21, 000, depending on the student’s GPA. All students are automatically considered for academic scholarships once they are granted admission to R-MC, and no separate scholarship application is required. In addition, (Guaranteed Admission Agreement) students who earned their Associate Degrees at a VCCS school will be eligible for a two-year College Transfer Grant from a program administered by the State Council of Higher Education for Virginia.”

This is a testament to the recognition throughout the higher education establishment that affordability is everybody’s problem, which of course requires recognition there is a problem at all.  It also indicates community colleges are providing a good educational outcome for students willing to do the work, which is always the essential ingredient.

Taxing Any Layman’s Ability to Understand

The State Corporation Commission is being asked to rule on yet another argument over recent federal corporation income tax reductions and how they should be reflected on utility bills.  Effective January 1, 2018, the tax rate dropped from 35 to 21 percent and the SCC quickly issued a directive to all public service companies that the benefits should pass directly to customers as soon as possible.

In a ruling earlier this year the SCC denied a Dominion Energy Virginia request to continue using the old, higher tax rate in calculating future bills for transmission costs.

The accounting behind that transmission issue was easier to explain than this latest issue, which centers on another of those specific rate riders which show up on your bill to pay for a specific purpose.  In this case the argument involves Rider W, for the Warren County gas combined-cycle generator, but the same question will crop up in all the other riders in effect during the change in the tax rates.  The decision on Rider W will be the precedent for all.

That charge on your bill is intended to collect the total lifetime cost of those individual projects, construction cost, operating cost, profit on capital, depreciation and taxes.  As the plant opened, a projection was made for how much to charge customers annually to cover all that, and it adjusted annually.  The adjustment looks back and includes an element of true-up, adding or subtracting a bit based on the actual experience of the prior year.

The argument at hand involves how to look at taxes which were accrued but deferred during the higher-rate period and paid later at the lower rate.  When I hit a phrase like “amortization of the deferral balance related excess deferred income taxes (“EDIT”) over the Projected Factor Rate Year” in written testimony, I’m going to step back and let the experts have it out.  For Rider W the dispute involves less than $3 million of the tax bill, and the total amount across all the various riders is not reported.  Forward-looking charges will reflect the lower 21 percent tax rate.

Two points, however:

  • Those folks down at the utility will not walk past one nickel on the sidewalk if they can help it.  They may have found a creative way to earn excess profits in a rider, which is supposed to be immune to excess profits. We need the SCC to be just as vigilant over small sums as large.
  • Should the General Assembly drop the ball on state tax policy adjustments to the new federal taxing regime, this process is going to work in the opposite direction at the state level. Dominion’s Virginia corporation income tax will grow, substantially, and every dollar will pass on to customers, not stockholders. Every dollar.