Patchwork strategies handicap region

October 06, 2012

Can we talk about "patchwork governance"? That's a phrase the Daily Press used recently to describe how one Peninsula city engaged in what the paper called "real estate speculation". Sadly, patchwork is a good descriptor for the model of governance we use today for all the cities and counties in Virginia.

My experiences suggest each Peninsula community works very hard to be successful with economic development within the confined governmental boxes Virginia has provided.

Most of the world, outside of Virginia, pursues economic strategies on a regional basis. Virginia's approach is more patchwork because its disparate public policies produce too many winners and losers for there to be true unity or consistency in the pursuit of economic gain. State, regional and local roles blur quickly. Our state is simply not prepared to efficiently and effectively face the regional and global world in which we live.

Consider these words written in 1967 by the prestigious Hahn Commission:

"Much of the State's growth during the past several decades has oc¬curred in its urban areas, a trend that will intensify in the years ahead. The metropolitan area has become the heart of Virginia's economy. If that economy is to expand as rapidly as possible, and if Virginians are to enjoy maximum opportunities for economic advance¬ment and the mast beneficial environment, then positive, constructive steps to deal more effectively with the problems of the metropolitan areas are essential. (

Again, that was 1967.

Virginia did establish regional planning district commissions. Here we call it the Hampton Roads Planning District Commission. ( However, the state did little else that was contained in the recommendations. In fact, the Virginia General Assembly gutted the proposals.

So, here we sit nearly 50 years later patch working our strategies.

Other parts of Virginia governance system add more difficulties. Consider these factors:

1. Independent city/independent county classification. Virginia is the only state in the union with this system. In Virginia you are a resident of either a city or a county. Whichever one you reside, that locality provides your total, local government. Other states provide some local services at the county scale and some at the city scale. In Hampton Roads we have 16 co-equal jurisdictions, which is more than a challenge for regional unity.

2. Taxation disparity. Virginia local governments derive significant revenue from their property taxes. When a major public/private initiative like the new Shipyard Apprentice School was conceived, its benefits affect the region, but only one of 16 localities — the host community — is motivated to financially participate. Similarly, while the location of a large retail center — like a Wal-Mart — is considered, its exact location makes little difference to the regional economy, but can generate multimillion dollar swings in the sales tax revenue of localities, forced to compete under the state's rules of the road for such investments.

3. Dillon Rule. Virginia courts have used an Iowa case law decision (1868) for more than 100 years to "strictly construe" statutory language as it effects cities and counties. In a word, if state law does not explicitly grant authority, then the courts presume localities cannot do the service or act. Cities and counties are left in a constant state of frustrating uncertainty and unpredictability. It's little more than a gotcha environment.

Yet, the state mandates that each city and county adopt and implement a Comprehensive Plan, to include an economic component for improving its tax base. The message seems to be — go forward, at your own risk, on a scale that is not realistic and hopefully succeed.

This is a tough patchwork for cities and counties to negotiate.

It is easy to predict Hampton Roads will continue to underperform if the state doesn't respond to the message that the Hahn Commission delivered. Indeed, the future looks even more problematic for Hampton Roads as it is expected to face new outside challenges.

Bob O'Neill, a Peninsula native, and current executive director of the International City-County Management Association ( makes a compelling presentation about the future. Given the enormity of the federal and state debts, and the nature of demographic shifts in our population, he says "regions are on their own".

That is a sobering thought for all regions, which have historically had partnerships with the state and federal government, but now will "be on their own". That thought is depressing in Virginia where there is no regional governance structure, where we live with independent boundary lines and where state policies, including tax policies, encourage disparity and competition.

Patchwork governance is not going to get us from here to there. We need strong citizen, media and state leadership to first understand our dilemma, and then do something about it. Choices that deserve consideration include: loosen Dillon Rule, consider revenue-sharing structures like the states of Minnesota and Georgia do and implement the 50-year old Hahn Commission Report.

Oliver is Chairman, Hampton Roads Center for Civic Engagement.

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