Hypocrites at the Chamber

On a recent road trip to the southwest, I caught lots of campaign ads along the route and occasionally saw some of the more vicious ads on TV. It is nasty out there. Everywhere! One constant thread is the nastiness and blatant hypocrisy of the Chamber of Commerce.

CCC has commented on growing hypocrisy and partisanship of the Chamber of Commerce in earlier posts. It is an organization with a reputation in many communities of being business-oriented and conservative but not openly partisan. The chamber could be fair, it could host local candidate forums in a nonpartisan manner, and its information (although conservative) was generally factual and could be trusted. But, as far as the U.S. Chamber of Commerce is concerned, those days are apparently a thing of the past. Various groups and even the national media are finally picking up on and commenting on recent trends in the chamber's new status as an international trade association that pits nation against nation in an attempt to get its laissez-faire way.

The chamber's hidden sources of funds supporting their attack ads are the focus of much of that attention. Are they using foreign funds to influence American elections? We don't know because the chamber won't say, but the probable answer is yes... just as they use funds raised in the U.S. to influence politics in other nations.

But if we pay close attention, the chamber's hypocrisy is shoved right in voters' faces. Take the recent ad attacking Tom Perriello. The ad doesn't mention Perriello's opponent or even the election (but if you are running an ad in this season the intent is obvious) and is clearly designed to damage the Democrat. Regardless of its veracity (not much), the ad strikes this bird as blatantly hypocritical when it says: "Government run health care. Medicare cuts. Have you had enough? Tell Congressman Perriello, stop hurting Virginia families."

So the U.S. Chamber of Commerce is upset with health care reform and upset with cost savings in Medicare? The chamber defending Medicare? In all likelihood the chamber would dramatically gut or dismantle Medicare if it were not so popular. Hypocrisy!

Health care reform helps many small businesses which the chamber purports to represent at the local level. But, the U.S. Chamber of Commerce, with its international business mindset, isn't really looking out for the little guys any more. Maybe it is time for those folks to wonder why they pay dues to a trade association that is increasingly removed from Main Street realities.

Collision Course... maybe, maybe not

As Governor Tim Kaine enters his final months in office and Bob McDonnell prepares to take office, the Virginia budget situation continues to deteriorate because of the nationwide economic downturn that started in 2008. The Commonwealth will cut $250 million, or more, from the current budget to balance the books. Bad enough, but the really bad news is the expected $3 billion shortfall in the next two-year budget. The president of the Federal Reserve Bank of Richmond delivered the bad news - this recession, like the last two, will see lagging job creation. Jobs = income taxes + retail sales which are cornerstones of state revenues. A tiny bright spot is NOVA, which generates a big chunk of tax revenues, seems to be rebounding a little quicker. Governor Kaine will have a strong hand in drafting the budget, but the new Governor will influence priorities and ultimately the General Assembly will have to deal with the tough times.

I guess there is a little comfort in comparing ourselves to our neighbors. Although joblessness across Virginia is bad enough, it is far worse in many other states. So while the Virginia budget is hurting, the situation in many other states is horrendous.

Coming at the same time as the budget woes, a coalition of "school choice" groups says Virginians want more nonpublic school options and are willing for tax dollars to go in that direction. Among the poll's findings is that 62% of Virginians see their public schools as good or excellent, 35% want to send their children to private schools, 10% prefer charter schools (a public school freed from most regulations affecting regular public schools), and 9% want to homeschool. The groups that sponsored the poll are pushing tax credit scholarships and/or school vouchers - both schemes where tax dollars go to private schools but not through direct government payments to the schools.

First, it is important to understand - there is school choice in Virginia. Any parent can choose to home school or to send their child to a private school. Oversight by the Commonwealth and local school boards is generally quite lax and there is little or no accountability such as public schools face with the Standards of Learning.

The issue is really about money, tax money to be exact. Should the Commonwealth give tax vouchers to parents or tax credits individuals and corporations who donate to special scholarships for private school tuition. Either way fewer tax dollars are collected and private schools receive support but without much public accountability. School funding in Virginia is complicated and beyond this post, but if less tax money is collected the General Fund is impacted - which will mean less funding not only for public education but perhaps for other core services.

With a state budget gasping for air, now might seem like a bad time for these school choice groups to be asking for a slice of the state tax pie. But, several dynamics have changed and new political leverage may favor this initiative:

• Although he rebranded himself as a moderate, Bob McDonnell owes much of his victory to the religious right. Groups like the Family Foundation, who support these school choice schemes, have an inside line to the Governor-elect and they expect for him to deliver, if not in 2010, certainly over the next four years.
• With the economic downturn, many private schools have experienced enrollment declines. Parents who formerly sent their kids to a private school now see the apple of their eye in an increasingly crowded (because of lack of funding) public school classroom. Hence, both parents and private schools are more motivated to join the fight.
• An anti-union resurgence has emboldened conservative groups who want to destroy all employee groups, including the Virginia Education Association. Can you really be a union without collective bargaining or power to strike? Groups like the Chamber of Commerce which may not join the fray on school choice grounds may chime in simply for the union bashing.

Over the past five years the House of Delegates passed legislation for scholarship funds but the Virginia Senate killed it each time. There will soon be two Senate special elections to replace Republicans Ken Cuccinelli who was elected Attorney General and Ken Stolle who was elected Sheriff of Virginia Beach. Even if the GOP wins both, it is difficult to imagine the head counting on these school choice issues is changed much - unless a few current Senators have a change of heart.

More likely, the advocates of school choice funding schemes see it as something, not to be achieved next year, but rather in the next two to four years. They've had their "preseason" over the past five years in the House of Delegates. Now it is game on - in the first quarter the House will again pass school choice funding legislation where it may well die again in the Senate for both philosophical and budget reasons. Afterwards, the school choice funding advocates will have field position and in the second half they expect complete victory. By 2012 the budget situation will have improved along with the national economy. Governor McDonnell's pen will set priorities and he'll be expected to pay the religious right back for their important role in getting him elected. In 2011, the General Assembly, including all 40 Senators, will be up for election and some Republicans who haven't been on the school choice side will be under extreme pressure to conform or be pushed out. School choice funding folks believe that trio of changes - an improved economy, owning the Governor, controlling the Senate - will converge to carry them to victory.

Global Warming Is Good

The U.S. Chamber of Commerce, including its local chapters here in the Valley, has a long history poo pooing the solid scientific proof on global warming. Now the Chamber seems to have changed its mind and even thinks climate change and warmer temperatures are a good thing. Cluck?

So, the good news is one of the largest business groups has acknowledged the fact fact of global warming (next up... the world is a globe), in part because a number of their member businesses have already reached that conclusion.

But, the bad news is the Chamber seems to think it is a good thing. Back in June the EPA found that high levels of carbon dioxide presents a danger to human health. In a response, the Chamber made some downright crazy assertions:

• "Humans have become less susceptible to the effects of heat due to a combination of adaptations, particularly air conditioning. The availability of air conditioning is expected to continue to increase." Hey, this bird doesn't have AC... oh, it will be good for business of cooling contractors and electric companies.
• "Reduced exposure to cold days is a significant factor in the increased life expectancy experienced in the U.S. over the past 30 years. This benefit from reduced exposure to cold can be further attributed to people migrating to warmer climates." Florida is coming to me so I don't have to migrate.
• "[T]he scientific evidence is clear that cold is a more potent hazard than heat." Is that why poultry houses have heaters but no air conditioning?

Read more about the Chamber of Horrors... I mean Commerce, at Mother Jones.