West Virginia’s stimulus-funded router purchase

May 22, 2012 by Eric Eyre

Brad Reese, who runs a company that offers alternatives to new Cisco hardware and maintenance contracts, has put together a synopsis of the state of West Virginia’s controversial Internet router purchase in 2010. There are links to my previous stories, video of a recent U.S. congressional hearing and original source documents. Brad makes the argument that Cisco’s new sales culture led to West Virginia officials buying oversized routers.

Ohio delegate popped for DUI

April 23, 2012 by Eric Eyre

Delegate Ryan Ferns, D-Ohio, is the latest West Virginia lawmaker arrested and charged with driving under the influence. He was busted by Wheeling police, according to the Wheeling newspaper. Police did not immediately release a copy of the criminal complaint. So we don’t know Ferns’ blood-alcohol level, or whether there were any passengers in his vehicle. Ferns, 29, is running in the May 8 Democratic primary.

 

Update: Blood alcohol level was nearly three times the legal limit, yet Wheeling Police did not charge Ferns with aggravated DUI. He has pleaded guilty to the charge and agreed to pay a $500 fine.

 

Speaker Thompson ethics opinion on May 3 agenda

April 23, 2012 by Eric Eyre

I just learned that House Speaker Rick Thompson has not withdrawn his request for an Ethics Commission advisory opinion on whether he could work for the West Virginia Education Association, while keeping his speaker post.

That doesn’t mean he’s going to take a job with the WVEA, rather he wants to see the issue through to the end.

To recap: Thompson, who was negotiating with the teachers union for a job as general counsel, asked the Ethics Commission whether accepting the position would violate the state Ethics Act. Ethics agency staff wrote an opinion that gave Thompson the green light to take the job, but Ethics Commission members overwhelmingly rejected the proposal and ordered staff to write a new opinion — one that barred the speaker from becoming WVEA’s top lawyer.

Thompson could have withdrawn his request for the advisory opinion, but chose not to. So the Ethics Commission is expected to vote to approve the revised opinion at its May 3 meeting — even though the issue is technically moot.

With his dance with the teachers union behind him, we hear Thompson may be applying for a job at a prestigious Charleston law firm.

Here’s Phil Kabler’s take on the issue from today’s Gazette.

 

 

Perdue filing shows $30,100 returned to campaign donors last year

April 10, 2012 by Eric Eyre

(photo by Steven Adams)

 

State Treasurer John Perdue’s most recent campaign finance report is raising eyebrows.

According to the report — filed Friday — Perdue returned more than $30,000 in contributions to donors. The money was returned in March 2011. I called Perdue’s camp, and they explained that the treasurer — as well as Gov. Earl Ray Tomblin — returned campaign contributions after the West Virginia Attorney General’s Office issued an advisory opinion last year, saying candidates who raised money for their 2012 campaigns couldn’t use that money in the 2011 gubernatorial special election. As my colleague, Phil Kabler, previously reported, Gov. Earl Ray Tomblin and Perdue, who lost in the Democratic gubernatorial primary, were both affected by the advisory opinion.

Perdue campaign spokesman George Manahan explained yesterday that Perdue sent letters to campaign donors (who gave money for Perdue’s 2012 reelection run), asking whether he could use the money in the 2011 gubernatorial primary.

“Those who said it was fine, we moved (those contributions to the gubernatorial campaign), those who said it wasn’t or didn’t respond, we refunded,” Manahan told me.

Manahan added that he knows Tomblin’s campaign also refunded some contributions. How does he know? Manahan said he personally gave to Tomblin’s campaign, and the governor refunded his contribution.

Manahan said other politicians in the 2011 gubernatorial race did the same.

“This was all done a year ago,” Manahan said. “It’s nothing new.”

Manahan confirmed that the returned contributions have nothing to do with the federal investigation of Perdue and Charleston developer Doug Pauley. In November, FBI agents interviewed more than 40 Treasurer’s Office employees who also donated money to Perdue’s gubernatorial campaign. Federal prosecutors asked whether someone had given them money to donate to Perdue’s campaign. Still no word on what the FBI agents were told. Perdue is running unopposed in the Democratic primary.

Major announcement?

April 10, 2012 by Phil Kabler

Gov. Earl Ray Tomblin has called an impromptu press conference for 2:30 p.m. supposedly for a major jobs announcement at the South Charleston stamping plant. Stay tuned…

Beckley mayor poised to join Tomblin’s cabinet?; Not anymore

April 4, 2012 by Eric Eyre

Even weeks before former West Virginia Administration Secretary Robert Ferguson resigned, rumors swirled through the state Capitol that Gov. Earl Ray Tomblin was poised to appoint Beckley Mayor Emmett Pugh to the post. I inquired about the pending appointment with sources in Beckley, and was told Pugh had notified council members that he was considering taking the secretary of administration job. Well, in light of yesterday’s news, it’s a sure bet Mayor Pugh won’t be moving into an office at the Capitol anytime soon. He’s facing nine counts of using his office for private gain. The Ethics Commission seems to have done its homework. Considering the serious nature of the charges — and the number — I’m surprised the U.S. Attorney’s Office hasn’t taken over this investigation.

If Tomblin would have appointed Pugh as administration secretary, Pugh would have overseen the Ethics Commission, which is an agency under the Department of Administration umbrella.

Ross Taylor remains as acting administration secretary, and it appears Gov. Tomblin will have to go back to the drawing board to find a full-time replacement for Ferguson.

The text nobody wants to own

March 19, 2012 by Eric Eyre

It sure sounded like a text message that W.Va. GOP Chairman Mike Stuart would send out:

My mistake for meeting with our senators so your caucus could pretend a different discussion happened. Then no backtracking. Petition drive starts this week. I have been a target of the Gazette – a good thing for a Republican. Must mean I am right. Full steam ahead.”

Senate Republican Minority Leader Mike Hall received the text on his cell phone at 9:02 a.m. on March 11. He surmised it was sent by Mike Stuart. The text came from Mike Stuart’s phone number. But Stuart insists he never sent the text. He blames a “political opportunist” for sending out a text under his name.

A column that morning by my colleague, Phil Kabler, seemed to spark the text. In the blistering column, Kabler reported that Senate Republicans had “called [Stuart] on the carpet” during a closed-door meeting with the GOP chair at Hall’s office in the state Capitol. The Senate Republicans were upset that Stuart hadn’t consulted with them before a March 1 press conference during which Stuart announced plans for a petition drive to recall table games at the Mardi Gras Casino and Racetrack in Nitro.

Whoever wrote the text wanted to make clear there was no backtracking — “full steam ahead” — on the petition drive. The person also alleges that Senate Republicans mischaracterized what took place in the private meeting with Stuart. And, of course, there’s the swipe at the Gazette. I seem to recall Stuart once called the Gazette the worst newspaper in West Virginia.

When I called up Stuart last week to ask him about the text, his answer caught me by surprise. He denied writing or sending it. There was no hesitation, no pause, no trying to change the subject. The text wasn’t his, he said. Not mine. Not me. End of story.

So we’re left with a bunch of angry Senate Republicans and a text message that nobody wants to own. It will be interesting to see what happens next.

special session?

March 16, 2012 by Phil Kabler

A bill to give a tax credit to facilitate the restart of the Century Aluminum plant in Jackson County is expected to be the only substantive bill on a brief special session call for this afternoon — and that’s contingent on House Republicans agreeing to suspend rules to pass the bill today

Coming soon to a neighborhood near you

March 15, 2012 by Eric Eyre

For at least a decade the West Virginia Housing Development Fund required that developers of low-income housing projects get support from local elected officials– a city council or county commission — before the agency would agree to fund the projects.

In 2010, Charleston developer Douglas Pauley couldn’t get the Mason County Commission to go along with a plan for a project Pauley wanted to build on land owned by state Treasurer John Perdue. Oh, Pauley tried to sway Mason County commissioners. And when that didn’t work, Pauley filed a federal housing discrimination charge against them, hoping they would buckle. They didn’t. An investigation ensued. Nothing came of it.

Months later, the West Virginia Housing Development Fund eliminated the local support requirement. An aide to Perdue, who sits on the WVHDF board, voted for the

change. And, sure enough, Pauley wound up getting Mason County project approved for a $3.67 million federal economic stimulus grant administered by the WVHDF. (Perdue made $215,000 from the deal).

That abrupt WVHDF policy change seems to be having a ripple effect.

Last night, my colleague, Kate White, chronicled how hundreds of homeowners in the Knollwood Drive area north of Charleston came out to oppose Pauley’s plans to build a 32-unit low-income apartment complex in the neighborhood. Pauley duly noted that he didn’t need the anyone’s approval, now that the local support requirement has been eliminated. He said he was just trying to be a good neighbor. The Kanawha County Commission plans to vote against Pauley’s project. But it doesn’t seem to matter.

Now that the WVHDF has scrapped its local support requirement, developers basically can shove low-income housing projects down the throats of local communities in West Virginia — projects funded by government programs. And nobody can do anything about it.

W.Va. GOP chief’s house getting reassessed after anti-table games comments

March 5, 2012 by Eric Eyre


On the Decision Makers show last weekend, West Virginia Republican Party Chairman Mike Stuart was debating Kanawha County Commission President Kent Carper. The topic: the GOP’s proposed petition drive and recall referendum on table games at the Mardi Gras Casino and Resort in Nitro. Near the end of the segment, Stuart pulled out a property tax reassessment notice that someone put on the door of his South Charleston home Thursday night. The notice came hours after Stuart blasted the casino for challenging its property tax assessment.

Stuart implied that maybe, just maybe, there was some retaliation afoot — that his house was being reassessed because he had the ruffled feathers of Mardi Gras and its supporters. “I understand there’s a price to be paid for asking for accountability against such powerful interests,” Stuart said on Decision Makers, a WOWK-TV news show hosted by West Virginia Media CEO Bray Cary.

Well, I asked Stuart to clarify his comments today. He said he now believes the property tax notice on his house was just a coincidence.

Stuart also put out a press release, praising the Charlestown casino for living up to its promises. It appears the GOP wants its constituents to know it’s not the AGP — Anti-Gambling Party.

Here are Stuart’s latest press releases:

 

CHARLESTON, W.V. – In 2007 after the local-option for table games

passed, a vote to add table games to Charlestown’s racetrack was defeated.

Two year’s later, a similar proposal succeeded.  During the course of the

campaign, the owners of Charles Town’s racetrack promised 500 new jobs.

Less than two years later, more than 600 new jobs had been created.

“Accountability matters,” said Mike Stuart, Chairman of the West Virginia

Republican Party.  “A central theme of the 2012 election for the WV

Republican Party will be the issue of accountability.  It is time that we

finally begin to hold those in power and those that make big promises

accountable.  We have come to expect and accept a trail of broken promises
and a lack of accountability and, of course, politicians never want to talk

about accountability.  The people of West Virginia deserve better.”

And this came out today:

 

CHARLESTON, W.V. – *    In April 2007 during the election for table games

in Ohio County Wheeling Island Hotel-Casino-Racetrack, Bob Marshall,
president of Wheeling Island Racetrack and Gaming Center, told the voters

that table gaming would create about 400 new jobs. After passage of the

referendum, by the time of its ribbon-cutting on December 20, 2007, Wheeling

Island had added 500 new employees, bringing their property-wide total to

1,250 employees.

“We will be talking a great deal about accountability this year.

Accountability matters,” said Mike Stuart, Chairman of the West Virginia

Republican Party.  “When big promises are made during an election, the

voters deserve to rely that the promises will be kept.  Sadly, we have come

to expect promises to be broken and we no longer hold the politicians

accountable after the fact.”

“Mardi Gras made huge promises during the 2007 election,” said Stuart.

“They promised 1,000 *new* employees and $250 million in investment.  We

got a little more than 200 new jobs and $14 million in investment. That was

five years ago and those are broken promises you could drive the Grand

Canyon through without extra room for the family.  They did not break their

promises by a little.  They did so by a lot.”

“Wheeling Island’s and Charles Town’s owners made big promises too,” said

Stuart.  “The difference between them and Mardi Gras is they delivered and

exceeded their promises from their elections while Mardi Gras fell far

short and now falls back on apologists, good ol’ boys, and excuses.  During

the campaign for table games in Ohio County, Wheeling Island

Hotel-Casino-Racetrack promised 400 new jobs.  By the end of that same

year, Wheeling Island had 500 new jobs.  They kept their promise and

exceeded it.”

Stuart added, “While Mardi Gras complains and makes excuses why they could

not meet their obligations, Charles Town and Wheeling Island got the job

done.  Maybe the owners of Mardi Gras should call up the owners of Charles

Town and Wheeling Island to find out how they were so remarkably able to

exceed in delivering on their promises.”

“The voters must hold accountable those that grossly misrepresent and

intentionally mislead the public in exchange for passage of a referendum,”

concluded Stuart.  “While they want to misrepresent that this issue is

about gambling, it is about accountability pure and simple.”

“When we pointed out the tremendous broken promises of the owners of Mardi

Gras Casino, the power brokers, good ol’ boys, and apologists came running

to defend the broken promises with excuse after excuse after excuse and,

since they did not like the message, they took to the age old effort of

‘shoot the messenger’,” said Stuart. “Charleston Town has a casino and it

doesn’t need to make excuses.  It has not only met its promises.  It has

exceeded them.  Charles Town’s owners promised 500 new jobs.  They
delivered more than 600.  Whether gambling is good or bad is not the issue.”

“When government picks winners and losers, the winners must be held

accountable for their promises,” said Stuart.  “If we fail to hold those

making big promises accountable, then why should any promise ever be kept?

Well, Charles Town made big promises.  They delivered without excuse.  If

Mardi Gras can’t deliver, then maybe the owners of Charles Town or Jim

Justice could deliver for them.  Those folks know how to deliver on

promises.”

Stuart concluded, “The question of today is “Shouldn’t promises made be

promises kept?  The Republican Party stands united is our belief that the

nation and our state would be far better if we once again demanded

accountability at every level.  That is our calling.  That is our cause.”