Business As Usual in the Old Dominion: Gridlock, Greed and Confusion

After LaHood report, more squabbling over Metro’s future. In the wake of recommendations by former Transportation Secretary Ray LaHood, Virginia, Maryland and Washington, D.C., are edging toward compromises that would reform the ailing mass transit system’s governance system and shore up its financing. LaHood’s proposal to shrink the Metro board from six seats to five is drawing some bipartisan support, and legislation in Congress is being drafted, reports the Washington Post. But suburban jurisdictions in Virginia and Maryland, worried about losing their voice on the board, are unhappy with the plan. Also, while LaHood affirmed the need for an additional $500 million a year to work down a massive maintenance backlog, he did not propose how that massive sum might be funded — mainly because there is no consensus for a regional sales tax, the main proposal on the table. Also unaddressed is the not-insignificant matter that Metro really needs an additional $1.5 billion a year, not $500 million, to fix its problems.

Good business if you can get it. (Alternative headline: First, kill all the lawyers.) Richmond has emerged as the preferred venue for bankruptcy trials, reports the New York Times. Toys “R” Us, Gymboree, a West Virginia coal company, and a Pennsylvania fracking company all have filed in the U.S. Bankruptcy Court there. The federal district court’s so-called rocket docket resolves cases swiftly. Also, precedents in the court’s legal record make it easier for companies to walk away from union contracts. But perhaps the biggest draw is the ability of bankruptcy lawyers to charge outrageous fees — as much as $1,745 per hour. Lawyers advising troubled companies, writes the newspaper, tend to gravitate toward courts that approve higher fees.

Dazed and confused — but mostly confused. A state review of the police response to the chaotic white nationalist protest in Charlottesville in August describes a confused command structure, a breakdown in communication, and uncertainty among officers about the “rules of engagement” with protesters, reports the Richmond Times-Dispatch. The review, led by James W. Baker, a consultant with the International Association of Chiefs of Police, did not address whether or not police were ordered to “stand down” in the face of escalating violence between white supremacists and leftists. Nor did it assign responsibility for the confusion to anyone in the Charlottesville city administration.

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