Tag Archives: VTDigger

A bad session for Shumlin, but all was not lost

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The media postmortems on Legislature ’16 are rolling in, and they’re not kind to Governor Shumlin.

The Burlington Free Press’ Sunday front page has a big ol’ photo of the Guv looking nonplussed, the bright lights showcasing the furrows on his brow, with a headline reading “BIG REQUESTS FALL SHORT.” The story emphasizes his pushes for legalized marijuana and divestment from some fossil fuel stocks, which both fell short.

Over at VTDigger, the headline slyly referred to Shumlin’s legislative accomplishments as “nothing burgers,” a phrase destined for his headstone. The story, by ol’ buddy Mark Johnson, was just shy of devastating.

While the governor touted numerous accomplishments in his final late-night adjournment address — and some lawmakers did too — many who serve in the Legislature saw something different this session: a once powerful chief executive weakened by a close election, who lost support on the left when he dropped plans for a single-payer health care system, was hurt by ongoing problems with the health care exchange and then saw any remaining leverage dissipate when he announced last year that he would not seek re-election.

Indeed, Shumlin’s 2016 agenda was largely jettisoned by lawmakers. But there is another way to look at the just-concluded session. It accomplished quite a few things that went almost unnoticed in Vermont, but would have been big news almost anywhere else.

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Dept. of Unwarranted Hubris, EB-5 Division

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I don’t know what it would take for Patricia Moulton to realize that the jig is up, that business as usual in the EB-5 program simply won’t cut it anymore. But clearly, a major scandal isn’t enough.

The chief of the Agency of Commerce and Community Development put in an eppearance Tuesday before the Senate Finance Committee, where she steadfastly refused to acknowledge that there was anything wrong with Vermont’s EB-5 program. According to VTDigger, one lawmaker characterized her testimony as “unrepentant.” And Sen. Kevin Mullin, not exactly an outside-the-box thinker, said Moulton “kind of scared me today because she was so much of a cheerleader.”

Okay, let’s look at the record. Moulton, following in the footsteps of her predecessor Lawrence Miller and his predecessors in the Douglas Administration, allowed horribly lax oversight of EB-5 projects, thus enabling the (cough, allegedly) fraudulent Jay Peak scheme to proceed for most of a decade. The last two people in charge of overseeing EB-5 left the agency to take jobs with EB-5 developers. The Shumlin administration, belatedly, realized that ACCD was failing to do the job and transferred regulatory oversight to the Department of Financial Regulation.

After all that, the feds raid Jay Peak, haul off the records and computers and change the locks, and issue a massive indictment of Bill Stenger, Ariel Quiros and company, which is a tacit indictment of Vermont’s dereliction of duty.

And now comes Patricia Moulton saying “as secretary of ACCD, my job, absolutely, is to be a cheerleader for the [EB-5] regional center.”

Amazing. How tone-deaf can you be?

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Shoot the Messenger

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As its final months drag onward, the Shumlin administration is remaining true to one of its core principles: Shoot the messenger. We have two prime examples of this time-tested strategery today: a top state official slams a respected media outlet, a move that has backfired big-time in the past; and the administration puts a big fat price tag on transparency.

First, Lawrence Miller, Vermont Health Connect czar, has beef with VTDigger.

[Miller] testified Wednesday in the House and challenged the veracity of a VTDigger story that said the state has been unhappy with its current Vermont Health Connect contractor and is negotiating with another company.

… [Miller said] that any frustration he expressed in emails was a normal part of negotiations.

Digger’s earlier story had quoted emails from a state official expressing dissatisfaction with VHC contractor Optum. Which would be noteworthy, since Optum was supposedly the savior of Vermont Health Connect. Miller pooh-poohed the story’s assertion, saying that a certain amount of “friction” is a normal part of the process.

Maybe that’s true, but here’s the problem. This is the same “Lawrence Miller” who was in charge of the Agency for Commerce and Community Development when it was happily attempting to both promote and regulate the ill-fated EB-5 program. He headed ACCD from 2011 to 2014, when he was tasked with cleaning up the Vermont Health Connect mess.

In other words, Miller has been hip-deep in two of the Shumlin administration’s signature disasters. Is it possible he negotiated Shumlin’s original land deal with jerry Dodge?

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Siting bill: a good deal that nobody will like

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It was a heck of a last act by Tony Klein, retiring chair of the House Natural Resources and Energy Committee. This week, he shepherded an energy siting bill through the House and on to a conference committee. His reward: the bill’s drawing fire from both sides. It even sparked astoundingly different takes from VTDigger (emphasizing the dissatisfaction of opponents) and Seven Days (reporting a “surprising change in direction” by the House).

The key provision in the bill would give “substantial deference” in siting decisions to local governments — if they have adopted a state-approved energy plan. It’s not enough for supporters of local control.

“You get substantial deference … if you do what they want you to do,” said Rep. Cynthia Browning, D-Arlington. “That’s not substantial deference in my definition of the word. It doesn’t seem like substantial deference or any greater decision-making power for localities to me.”

On the other hand, some renewable-energy proponents worry that the bill would make it harder for Vermont to reach its energy goals. Anthony Iarrapino, a lawyer who represents renewable developers, told Seven Days “We’re not going to get to the targets with solar in parking lots and a single wind turbine in backyards.”

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Were the Newport projects just a bait-and-switch?

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Over the weekend, VTDigger’s Anne Galloway posted a detailed history of the Stenger/Quiros scandal entitled “Jay Peak’s Path to Fraud.” It’s a must-read for those wanting to get a good summary of the affair; the reporting is backed up by Digger’s two-plus-year investigation of the story.

And it raises a huge question in my mind: Did Stenger and Quiros ever seriously intend to build the megaprojects in Newport, or were they nothing more than flashy promises designed to dazzle the politicians and the public, and pave the way for what they really wanted — the transformation of their ski resorts?

In September 2012, Stenger and Quiros announced a bold initiative including major improvements at the resorts, a new terminal at Newport’s airport, and a suite of ambitious projects in Newport itself, including a window-manufacturing plant, a five-story office building, a hotel and conference center, and a marina, as well as a biotech facility in the works since 2009.

The numbers were mind-boggling: over half a billion dollars invested in the perennially impoverished Northeast Kingdom, and a rebirth for the city of Newport. Up to 10,000 new jobs.

Today, many of the ski resort improvements are complete or largely so, while nothing much has happened in Newport except for the demolition of some historic downtown buildings, leaving a hole in the cityscape. And now it looks like nothing will ever happen.

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Our sclerotic Constitution

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In the past, I’ve tossed around the notion that Vermont’s Founding Fathers were drunk when they wrote our Constitution. Partly, that’s a matter of historic record. In those days, everyone drank to what we’d consider wretched excess; and it was common practice for men to gather in taverns to talk politics. As a simple matter of probability, those guys were hammered when they drafted our founding document.

But there’s also the matter of content. This has come up in the context of our current ethics debate, in which many lawmakers have asserted that the Constitution gives the Legislature sole authority over the ethics of its members. That seems like a terrible idea on its face.

And kind of undemocratic as well. And it’s far from the only undemocratic thread in our Constitution. At the risk of being overly cynical, you might even conclude that the Constitution was written by political elites to provide themselves a measure of protection from those pesky voters.

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Vermont, wellspring of twee liberalism

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Disclaimers first. Ben Hewitt is a terrific writer who’s accomplished more at a young age than I ever will. His book about the food scene in Hardwick is marvelous. He’s also got to be a better farmer than I, because our garden is friendly only to the hardiest of plants. (Garlic, green beans, potatoes, and tomatillos. Boy oh boy, do we get tomatillos.)

But I have to take issue with a commentary he wrote for VTDigger, entitled “The Northeast Kingdom’s True Prosperity.” It’s the kind of thing that makes millions of working-class Americans vote Republican.

Hewitt argues that the collapse of the Stenger venture is actually a good thing, because if it had been fully built, it would have radically transformed the Northeast Kingdom and its precious essence would have been lost.

The people of the Northeast Kingdom already have everything we need to truly prosper, and not merely in a material way. Indeed, with its abundance of unspoiled natural places, and its population of people who understand that a vital connection to the land and to one another is a type of affluence no silk-tongued developer can ever match, the Kingdom is already a region of true prosperity.

Not to put too fine a point on it, but holy f*cking crap.

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Serenade for Tiny Violins

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MouseTinyViolinPoor, poor Ariel Quiros. The alleged fraudster has had his assets frozen by the big bad federal government, to the point where he can’t “feed his family” or “purchase… a cup of coffee, let alone defend against the SEC’s allegations.”

So says Quiros attorney Charles Litchman, who is asking for the freeze to be lifted.

The people of the Northeast Kingdom weep for him.

But Vermonters are a resourceful breed. Maybe we can suggest some ways Ariel could generate a little cash, even as his millions remain sequestered.

For starters, perhaps he could sublet that $2.2 million Trump Tower condo, allegedly paid for with money looted from Quiros’ EB-5 development project.

I’m sure he has other properties that could be rented out or even sold; these guys always own a fistful of homes in the garden spots of the world. I hear he owns a 42-foot oceangoing sailboat; maybe he could hire it out.

I hear tell of a thing called “Groupon.” It’s how the kids are getting all kinds of great deals on the Interwebs. He should check into it.

There’s always the local food pantry. I’m sure they would welcome him with open arms, since a man of his means must have donated liberally to worthy causes in his community. Right?

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Same song, new verse

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Here’s a story ripped, as they say, from the headlines.

It’s about a business venture with an ambitious plan to bring new possibilities to an underserved area of Vermont, with large quantities of money obtained through a federal program.

The venture’s head is a prominent, well-connected Vermont businessman. At one point, he hired a top Shumlin administration official to fill a high-profile executive position. The hire raised some concerns about Montpelier’s “revolving door” between public and private sectors. (The hiree was a woman, and is no longer with the company.)

The venture poured lots of outside money into its project. Eventually, people started noticing that the results were far short of what was promised. Inconvenient questions were raised. But through it all, the head of the venture insisted that nothing was wrong. Indeed, he publicly criticized VTDigger for “unfair” reporting.

Okay, I must be talking about Bill Stenger and Jay Peak, right?

Wrong. 

Vermont’s congressional delegation is seeking information from the federal government on the $116 million broadband project that VTel Wireless started in 2010.

Sen. Bernie Sanders, I-Vt., Sen. Patrick Leahy, D-Vt., and Rep. Peter Welch, D-Vt., have signed a letter asking whether the U.S. Department of Agriculture’s Rural Utilities Service has been holding VTel accountable.

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You’re unbelievable

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Astounding Coincidences in Vermont Politics, EB-5 Scandal Edition…

a. Five days before the Bill Stenger/EB-5 scandal broke wide open, the Shumlin administration requests the deletion of archived emails from five former staffers in Shumlin’s office. One of the five is Alex MacLean, who left state government to take a job with Stenger’s massive development project.

b. On the day before the scandal broke, Senator Pat Leahy — until then a staunch supporter of EB-5 and Stenger — adopted a much more skeptical tone toward EB-5, saying that the program needed a major overhaul if it’s going to stay in business. Leahy insists he knew nothing about the imminent collapse of Stenger’s (alleged) pyramid scheme.

You know, call me a cynic, but I don’t believe any of it.

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