Black Bear Burritos Bashed By Feds

Morgantown's Black Bear Burritos must pay over a hundred former employees nearly a quarter of a million in back pay, says the US Department of Labor.

According to the State Journal, the business, which only has two locations, concocted an illegal tip sharing scheme that divided all tips evenly amongst all employees on the shift, including managers and kitchen staff. Black Bear owners used Facebook to apologize to employees and customers, pleading that they made a mistake.

They also explained that the policy was made clear to every employee upon hiring.

While the policy itself was likely not productive (what incentive do servers have if they know they will not get their full tips?) why is a tip distribution plan agreed to by all employees any business of the federal government?

If one does not like the plan and it is fairly explained from the beginning, go work somewhere else.

Black Bear is known for supporting local live music while offering deliciously prepared food and spirits in a relaxed setting.

Cold Winter Forces Soon To Be Closed Coal Fired Plants to Operate At Full Capacity

The State Journal reports that the winter cold forced many plants marked for EPA mandated closure to operate at high, sometimes full capacity.  Officials say, however, that the law remains unchanged and that they will still close as scheduled.

Melissa McHenry, speaking for American Electric Power to the State Journal noted that 89 percent of the plants scheduled for closure had to run during the cold weather.

She went on to say that AEP is making investments in generation capacity to try and make up for what will be lost.  McHenry also said that Washington regulators would need to help all power companies ensure that they could provide consistent power to customers during peak times.

After all, loss of power during very cold or very hot weather could harm their most vulnerable customers.

Added to the loss of jobs will come the higher cost of electricity.  The Washington Examiner reports that an Obama Administration official predicts an 80 percent hike in the average electric bill to pay for EPA mandates.  Although rates may eventually plateau, they are never expected to drop to current levels.

Bad news for those on fixed incomes and families already struggling in this economy.

American Electric Power plans to retire power generation plants in Mason and Kanawha County.

Growth in West Virginia's Eastern Panhandle Comes From Virginia Prosperity and Maryland Folly

Despite the economic slowdown, despite the persistent problems of state tax and regulation policy, West Virginia's Eastern Panhandle continues to see strong growth.

Two factors contribute to the growth. One is spillover from Virginia's business friendly system. Multiple outlets consistently rank Virginia as the friendliest state for business growth.  The cluster of Northern Virginia counties within 90 minutes of Washington DC saw the most spectacular development. According to the State Journal Winchester, mere miles from Hampshire County, rocketed from 134 to 41 on the best performing cities list.

Winchester, population of near 30,000, and other growing cities along the Interstate 81 corridor, are technically suburbs of Washington.  Those who can afford to do so are streaming through the gaps and over the mountains into West Virginia, colonizing exurbs.  

Eastern Panhandle and Potomac Highlands counties are benefiting from Virginia's prosperity.

Other counties reap from the folly of their northern neighbor, Maryland.

Maryland's anti-business policies and crackdown on personal liberty drive people south of the Potomac.   According to US Census Bureau statistics, West Virginia counties bordering Maryland tend to have population and jobs growth.  The Maryland counties have either losses or growth that lags behind their cross river brethren in the Mountain State.  

Either way, Eastern Panhandle representatives need to keep pushing Charleston to reform regulatory and tax laws to continue the growth.  Jefferson, Berkeley, Morgan, Hampshire, Hardy, Pendleton, Mineral, and Grant counties are poised to reap the benefits.

West Virginia Keeps Doing It Right

Good news, West Virginia!  State leaders continue to make strides to make the area more attractive to investors and residents.

The State Journal reported that a recent Tax Foundation study rated West Virginia as having the 23rd friendliest tax climate.  This places it slightly ahead of Virginia, Pennsylvania, and Kentucky yet far ahead of Ohio and Maryland who ranked a dismal 41.

The Mountain State scored best in corporate taxation at 20.  Property taxes scored at 27.  Individual income and sales taxes rated between the two.

This makes West Virginia an average state, but also shows improvement.  Under Governors Manchin and Tomblin, the state has looked at gradually reducing tax burdens anticipating a payoff in better economic growth.

In other words, counting on a Laffer Curve type of result.  Laffer was one of President Reagan's chief economic advisers early on, arguing that lower taxes brought better economic returns.

One must give credit to Democratic governors who don't shy away from an idea because it came from Reagan.

The State Journal also noted that recent administrations have focused on making the overall tax climate more friendly to all levels of business growth, instead of offering drastic temporary tax breaks to lure investment.  This results in a more evenly developed economy with more opportunities for in state entrepreneurs.

Governor Tomblin, however, warned that the state's expected expenditures next year would outstrip revenues.  He said that either taxes would have to rise or spending be cut.  With Republicans pushing hard at taking over at least one house of the Legislature next year, most likely spending will drop.

Certainly increased federal demands of states under Obama have pushed many states to have to stretch their budgets.  West Virginia is no exception.  Just last week a state official warned that the state expansion of Medicaid would likely force a funding cut to higher education.

West Virginia has done very well in making the tax regime more entrepreneur friendly.  If it makes equal strides in reducing regulation and establishing a state court of automatic appeal, the Mountain State could grow into a serious competitor for attracting business from anywhere.

Hydra-Headed Obamacare Threat Spelled Out In State Journal Piece

The State Journal released a moderate sized article packed with Obamacare spawned problems.

It quotes David Ransey, CEO of Charleston Area Medical Center extensively.  Ramsey is frankly fearful of Obamacare's impact.

First. he details the threat to state hospitals.  Hospitals already face financial pressures.  In West Virginia, 18 have closed in the past 40 years.  The uncertain climate introduced by Obamacare threatens many of the rest.

Ramsey slammed public health care programs, both those for low income individuals and public employees.  They pay late and do not cover the full cost of services.  Hospitals must shift almost a third of a billion dollars per year onto private insurance to make up the shortfall.

Under Obamacare, this will only get worse.  Since many doctors will refuse to take Obamacare, this shifts more burden onto emergency rooms.  Costs rise for everyone.

The end of the piece adds in an interesting nugget.  Mark Muchow, from the state Department of Revenue, claims that Obamacare's increased cost burden on state taxpayers will require cuts in the budget somewhere.  He speculated these would come from higher education.

Obamacare is a nightmare for states, taxpayers, health care providers, private insurance, and, eventually state colleges and universities.

Good thing we didn't read it first.