Virginia Faces More Borrowing to Cover Unemployment Tab

RICHMOND — Virginia may have finished the last fiscal year with a $545 million surplus, but the state will likely have to borrow an additional $251 million between September and April 2013 to pay back the federal government for loans to its unemployment insurance trust fund — which remains underwater for the second consecutive year.

The status of the trust fund was among the subjects of a meeting Friday of the Virginia General Assembly's Commission on Unemployment Compensation.

The state has borrowed about $568 million from the federal government after the fund, which comes from employer taxes, ran out of money in 2009 due largely to a spike in initial unemployment claims during the nationwide economic recession.

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Maryland Has Lowest Costs for Weight-Loss Surgery

Weight-loss surgery in the land of ham and peanuts turns out to be a reasonable deal compared with other states.

The average charge in Virginia for stomach-stapling and gastric bypass was $32,603 - below the mean for 19 states recently studied by HealthGrades, a national health care ratings organization.

Not surprisingly, the surgery was most expensive in California, where health care providers charged an average of $65,251. In Maryland, the state with the lowest prices, $16,390 could buy a bariatric procedure.

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Virginia’s Jobless Rate Up Slightly in July

Virginia lost 47,800 jobs last month, underscoring the slow and uncertain economy in the state and across the nation.

Seven of 11 major industry sectors lost jobs, pushing up the state unemployment rate to 6.1 percent in July from 6.0 percent in June, according to a report released Friday by the Virginia Employment Commission.

"Overall, the report depicts an economy that continues to struggle," said Christine Chmura of Chmura Economics & Analytics in Richmond. "This is a slow recovery. Most major sectors contracted in July."

The slight bump in the seasonally adjusted rate is the first increase in Virginia since the peak rate of 7.2 percent in February 2010.

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McDonnell, O’Malley to Face Off Sunday on CNN

Virginia governor, and Republican Governors Association chair, Bob McDonnell will face off against Maryland governor, and Democratic Governors Association chair, Martin O’Malley on CNN’s State of the Union program on Sunday.

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Moody’s Puts Maryland, Virginia Localities on Credit Watch

Moody's Investor Services is threatening to downgrade the credit ratings for dozens of local governments in Maryland, Virginia and 29 other states, based on how the federal government's negotiations concerning the U.S. debt ceiling affects financial markets.

The ratings agency placed more than two dozen counties and cities in Virginia and at least seven local governments in Maryland on its credit rating "watch list" on Thursday, citing concerns over the federal government's presence in those areas.

Affected governments include Fairfax, Arlington and Prince William counties in Virginia, as well as Rockville, Prince George's County and Montgomery County in Maryland, as well as smaller incorporated cities and towns in the Washington area.

"The ratings of these local governments, particularly those with a high economic dependence on federal activity, would be vulnerable to a downgrade of the U.S. government," said Moody's Senior Vice President Matt Jones.

The action comes after Moody's placed Maryland, Virginia and three other state governments that have AAA ratings on its "watch list" last week, pending a possible downgrade to the federal government's credit rating as a result of congressional budget action.

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Another Poll Shows Allen-Kaine as Tight Race

A new poll shows Democrat Timothy M. Kaine about even with Republican opponent and fellow former Gov. George Allen in Virginia's 2012 U.S. Senate race.

The survey of Virginia voters from left-leaning Public Policy Polling shows Kaine edging Allen 46 to 43 percent, within the poll's 4.4 percentage point margin of error.

While the two have nearly identical support among party loyalists, Kaine has a 44 to 33 percent edge among independents, according to the poll.

It also shows Kaine with a higher favorability rating than Allen (42-34) and a lower disapproval rating (40-44). Tea-party Republican candidate Jamie Radtke's challenge was obvious, with 79 percent of those polled having no opinion.

"It's obviously a poor sign when even a liberal polling firm with a history of donating to national Democrats shows former Democratic National Committee Chairman Tim Kaine's approval rating under 50 percent," responded Jahan Wilcox, a spokesman for the National Republican Senatorial Committee.

The poll also looked at the possibility of Radtke knocking off Allen in the primary, in which case Kaine's lead grows to 16 points (47-31). Additional GOP primary numbers will be available today.

"Even as (President) Barack Obama's numbers in the state have worsened over the last three months, the state of the Senate race has remained the same," said Dean Debnam, president of Public Policy Polling. "This is a contest that seems likely to stay tight all the way to Election Day, regardless of changes in the political winds."

from Wesley Hester @ the Richmond Times-Dispatch

Prosecutors Want Former Legislator to Serve 12 Years

Prosecutors today asked that former Del. Phillip A. Hamilton be given a sentence of more than 12-and-a-half years in prison for bribery and extortion.

The ex-legislator from Newport News was convicted in May for arranging funding for the Center for Teacher Quality and Educational Leadership at Old Dominion University in 2007 in exchange for a job as its director.

He is to be sentenced Aug. 12 by U.S. District Judge Henry E. Hudson, who is free to impose a term under or over the 151 to 188 months called for under U.S. sentencing guidelines.

“This is a case without precedent in annals of the history of this commonwealth and its state legislative officials,” the U.S. Attorney’s office wrote in its sentencing brief to Hudson.

The government is seeking a term within the guidelines, complaining: “Essentially, the defendant sold his position of public trust, violating his oath of office to the citizens of Virginia, in exchange for the extraction of a personal benefit to which he was not entitled.”

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Webb Urges Tea Party Not to Risk Economy in Debt Debate

U.S. Sen. Jim Webb (D-VA) on Wednesday put his support behind Senate Majority Leader Harry Reid's debt-ceiling plan, offering a lecture to tea-party Republicans on the dangers of just saying no.

"There are, in the other party, some individuals who view themselves as revolutionaries in the best sense of the word," Webb said in a floor speech.

While offering praise for the type of reform the tea party advocates, Webb said it need not come at the cost of another recession, which many predict would be the result of failing to raise the debt ceiling by Tuesday's deadline.

"The first rule of good governance is to do no harm," Webb said. "That doesn't mean we shouldn't make cuts … but it means be careful when you're dealing with the fragility of national policy at a time like this."

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Virginia Unemployment Holds Steady at 6%

The slowdown in the economic recovery showed up in Virginia's unemployment figures for June.

The state's jobless rate held steady at 6 percent from May to June. Yet the number of unemployed people increased by 1,534 and the state's overall labor force declined by 2,848 after nine months of expansion, the Virginia Employment Commission reported Friday.

"We have had a deceleration the last couple of months," said Ann Lang, senior economist for the commission. "The recovery is just slow."

The 6 percent jobless rate is an adjusted figure accounting for seasonal fluctuations.

When not adjusted for seasonal factors, the state's jobless rate rose from a revised 5.9 percent in May to 6.3 percent in June. The commission attributed the increase to students and new graduates looking for work, which helped swell the number of unemployed by 17,674.

The seasonally unadjusted figures also showed nonfarm payroll employment gains of about 11,100 in the state. Yet June's job gains were the weakest in five months, and the number of jobs added in the state in May was revised downward from 18,800 to 14,200.

The leisure and hospitality industry led the hiring in June by ramping up its employment by 16,600 for the summer travel season. Other industry sectors adding jobs in June, according to the unadjusted figures, included manufacturing, construction, and professional and business services.

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On Friday we reported that Maryland’s unemployment rate had risen to 7% and that MD was tied with Kansas for the highest rate of job loss.

Ft. Monroe Residential Units to Be Up For Grabs

For almost 200 years, occupancy of these stately homes - shaded by live oak trees, with sweeping views of the Chesapeake Bay - has been limited to an august circle of Army brass and their families.

You needed at least a couple of stars on your Army uniform and a prestigious assignment to Fort Monroe to live on what's known as Generals' Row.

Not anymore. With the Army about to pull up stakes and move to Fort Eustis in Newport News, scores of homes previously occupied by soldiers and their families are now available to the public.

"We've got great product available, and we're open for business," Jerry Moore, real estate director for the Fort Monroe Authority, said Thursday after a board meeting.

The authority, which will manage the 570-acre property when the Army departs in September, has been leasing more than 100 of the fort's 272 residential units to military members and civilian defense workers. The bulk of them are in crumbling buildings from the 1950s.

As of Aug. 1, the coveted residences inside the stone fort, on Generals' Row and in a Victorian-era village are available for lease to the general public. Most of them are brick, some date to the 1830s, and one was occupied by Robert E. Lee as a young Army officer.

Rents will range from $1,350 to $4,500 a month, plus utilities.

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Virginia AG Probing Richmond Medicaid Fraud Sting Video

Virginia's attorney general and Richmond city authorities are investigating a video showing a government worker advising a man posing as a wealthy Russian drug dealer not to note his criminal activities on a Medicaid application.

The undercover video, shot July 1, appeared Thursday on conservative activist James O'Keefe's Project Veritas website. Earlier this week, the group posted similar undercover videos made at Medicaid offices in Ohio, New York and South Carolina.

The most recent covert video shows a social-services worker in Richmond's Medicaid office counseling a man speaking in a Russian accent to omit what he had told her about his fictional drug-trafficking and prostitution activities.

"No, you just leave that off your application," she says, laughing nervously. "Don't put that on there."

"And would I just put, like self-employed," the impostor asks.

"Yes," she responds.

The man, using a Russian-sounding alias, had told the worker he drives a car worth more than $800,000 with a gold-plated engine, owns a yacht and has a helipad. He tells the employee he is seeking Medicaid enrollment for his father and that his family's enterprises are "off the books."

Neither the video nor the Project Veritas website says whether the employee reported the incident to her supervisors or to law enforcement. There was no response to a telephone message left Thursday afternoon for Richmond Social Services Director Doris Moseley.

Attorney General Ken Cuccinelli watched the video, found it "troubling" and ordered his Medicaid fraud unit to investigate, said Brian Gottstein, Cuccinelli's press secretary.

Gov. Bob McDonnell asked the state police to review it, administration spokesman J. Tucker Martin said.

Michael Wallace, a spokesman for Richmond Mayor Dwight C. Jones, said the city is "investigating this matter to determine the validity of the tape and the information. We will handle this matter as needed through the established disciplinary channels."

from the Richmond Times-Dispatch

Commemoration of Battle of Manassas Gets Under Way

MANASSAS -- The 150th anniversary of Civil War battles began not with shots but with speeches and portrayals of the men who made history at Manassas National Battlefield Park on July 21, 1861.

Some had an earthier connection than others.

On the ground where soldiers slept 150 years ago before the first major battle of the Civil War, Jimmy Orr of Frederick, Md., slept overnight in a tent.

Like some of his Civil War counterparts on the night before battle, sleep didn't come easily to the re-enactor in the 11th Mississippi. It wasn't fear that kept him awake but excitement at commemorating the soldiers who inaugurated a terrible four years of war on this ground.

"It's always a special feeling" to be on the battlefield, he said. "We have fun, but we are very serious about what happened here."

The commemoration of the battle combined serious speech-making with activities for kids and living-history demonstrations detailed enough to teach something new about Civil War medicine to a surgeon.

Other events continue on the battlefield and in the city of Manassas through Sunday. A massive re-enactment of the battle will be held Saturday and Sunday on a farm adjacent to the battlefield.

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Ruling: Virginia Voter Applications Must Be Public

A federal judge has ruled that Virginia must make its voter registration applications available for public inspection.

The opinion, issued Wednesday by U.S. District Judge Rebecca Beach Smith, stems from a lawsuit filed by the national voting rights group, Project Vote, which sought access to voter applications of Norfolk State University students in the 2008 presidential election.

The state Attorney General's Office said Thursday it will ask the judge to stay the ruling while it prepares an appeal.

Project Vote was seeking to investigate what it believed was an unusually high number of application rejections. It sued the head of Norfolk's Office of Elections and the state Board of Elections.

"It's a victory not just for Project Vote, but it's a victory for openness," Project Vote attorney Ryan Malone said. "We from the beginning thought the federal law required disclosure of these records."

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BREAKING NEWS: O’Malley Accuses GOP of Trying to Destroy the Economy

Maryland Gov. Martin O’Malley (D) said that House Majority Leader Eric Cantor (R-Va.) and the “dinosaur wing of the Republican Party” are actively trying to ruin the economy by undermining debt-ceiling negotiations.

Speaking to reporters at a Capitol Hill news conference Thursday, O’Malley said certain elements of the GOP are trying to undermine the economy to harm President Obama politically. O’Malley claimed that these Republicans are trying to either push the country into default or hurt the economy by cutting government jobs.

“I believe that there are some members – some members – of the Republican Party who, in order to defeat President Obama in the next election, would like to kill the jobs recovery now, either by default or by massive sudden cuts to public sector jobs,” O’Malley said.

When asked by CNSNews.com after the press conference which Republicans he was talking about, Gov. O’Malley fingered the House Majority Leader and a “dinosaur wing” of the GOP.

“I’m talking about Eric Cantor and the dinosaur wing of the Republican Party,” O’Malley said.

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Cuccinelli Approves Exemption for Disabled Vets

Injured veterans who meet an expanded definition of "100 percent disabled" are eligible under a new law for a tax exemption for their homes, according to a legal opinion issued by Virginia Attorney General Ken Cuccinelli.

The opinion addresses the refusal by some localities to offer the tax break to veterans who are not initially rated 100 percent disabled by the Veterans Administration's "service-connected" rating schedule but are later judged to be fully disabled by the VA because their ailments prevent them from maintaining gainful employment.

Virginia voters last November approved an amendment to the state constitution, effective Jan. 1, 2011, that provided the real estate tax exemption to disabled veterans or a surviving spouse.

Cuccinelli determined that the exemption applies to veterans rated as 100 percent disabled, regardless of how the VA arrived at that rating.

The attorney general also determined that a spouse of a veteran who died before the law took effect Jan. 1 would not qualify under the law, nor would property held in a public trust on behalf of a veteran.

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Cash for Clunkers – for Trucks

With more than a million miles on the road, Armand Patella's 19-year-old Ford 9000 truck has seen better days.

But he's hung onto it, because new trucks aren't cheap. Patella, the head of Picorp trucking service on East Lombard Street, still uses the 1992 vehicle to move empty or lightly loaded containers around the Port of Baltimore. 

"It's had a new engine or two," Patella said last week, "but it's paid for."
Now, though, a program aimed at making the community's air healthier to breathe is encouraging Patella and other short-haul truck operators serving the port to trade in their soot-belching clunkers for newer, cleaner vehicles.

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McDonnell Urges Retirement System Change

On CNBC Wednesday, Gov. Bob McDonnell made his pitch for taking another crack at changes to the Virginia Retirement System.

"We have a very rich and generous defined benefit program, and that's almost a dinosaur now in the public and private sector," he said when asked about the health of the state workers pension program.

The state doesn't "have enough people paying in at reasonable rates to fund the outflows from the people who are retiring now."

Changes, he said, are "a top priority for the next session," he said. "And I've already told the General Assembly it's coming."

The General Assembly this year required state employees to pay 5 percent into the Virginia Retirement System, and reimbursed them for the entire amount with 5 percent pay raises.

from Olympia Meola @ the Richmond Times-Dispatch

Allen Raises $1.1 Million in Q2

In his bid to reclaim the U.S. Senate seat he lost in 2006, Republican George Allen raised $1.1 million in the second quarter, bringing his fundraising total to $2.6 million from more than 5,000 donors.

Democrat Timothy M. Kaine, Allen's most prominent opponent and a fellow former governor, announced last week that he had raised $2.25 million in the second quarter, double Allen's figure.

But Kaine, a former Democratic National Committee chairman, still trails Allen overall. He entered the race in late April, missing the first quarter in which Allen brought in $1.5 million.

Allen's campaign reports $1.65 million in cash on hand at quarter's end and Kaine's campaign roughly $1.8 million.

"Susan (Allen) and I appreciate so many people for their generosity and caring support for our campaign to bring Virginian voices and values to Washington," Allen said.

Katie Wright, a spokeswoman for Allen's campaign, said that 82 percent of Allen's contributions came from Virginians.

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Serial Wife?

A Gloucester woman has been sentenced for embezzling money from her 10th husband.

Shirley Smith-Smart pleaded guilty in June to taking more than $11,000 from Kenneth Smart's bank account.

The Daily Press reports that Visiting Judge Joseph E. Spruill sentenced Smith-Smart to five years in prison on Tuesday in Gloucester County Circuit Court. If she pays restitution, she will only serve one year.

Smith-Smart is already serving a year in Western Tidewater Regional Jail on a bigamy conviction. In January, she entered an Alford plea to a bigamy charge in Isle of Wight. The charge stemmed from the eighth of her 10 marriages. Prosecutors say she was already married when she wed again.

from the Virginian-Pilot / AP

I know, this may not seem particularly newsworthy. But c’mon – TEN husbands and bigamy to boot! – Ed.

Kaine Predicts He Will Need to Raise $15 Million

Former Gov. Timothy M. Kaine predicts he will need to raise between $15 million and $20 million for his 2012U.S. Senate race, saying Virginia's contest will be among the costliest in the country.

He said that does not include what opponents will raise. Kaine could face off against another former governor, Republican George Allen, in a marquee match-up.

Kaine appeared on C-SPAN's 'American Morning" program from the Arlington County campus of George Mason University.

"I don't have personal money to put into a campaign," Kaine said, so fundraising is a significant aspect of running for the Senate.

Kaine said the costly Washington media market adds to the costs of campaigns.

Allen raised $1.1 million in the second quarter, bringing his fundraising total to $2.6 million from more than 5,000 donors. Kaine announced last week that he had raised $2.25 million in the second quarter, double Allen's figure.

But Kaine still trails Allen overall. He entered the race in late April, missing the first quarter, in which Allenbrought in $1.5 million.

from the Richmond Times-Dispatch