|Former Gov. Dan Evans|
|Former Gov. Dan Evans|
It's been five years this coming Memorial Day since the formal launch of the 50th Anniversary Vietnam War Commemoration to honor those who fought in that war but were never thanked when they returned to a divided nation. And for four of those years, Joseph L. (Joe) Galloway, one of the best-known correspondents of that war, has been on the road doing interviews with veterans of that conflict to preserve their memories.
Galloway's travels to do the interviews, mostly about two hours in length and which he told me last week now number about 350, embody his commitment to produce the "the body of material for future generations who want to know what this war was all about."
Galloway, a UPI reporter decorated for battlefield heroism at the battle of Ia Drang 50 years ago last November, spent a week doing interviews in Seattle two years ago. Now he is returning to the Seattle area next month to do another round of interviews with Vietnam veterans.
I've written several columns on Galloway and his role in the 50th Anniversary Commemoration, partly because we were UPI colleagues (he in war zones and I as a political writer and later a Pacific Coast executive for the company). But more important in a broader sense because of a fascination with his perspectives on the war in articles and speeches, and the import of the battle in the Ia Drang Valley that Galloway and the late Gen. Hal Moore, then a lieutenant colonel in command of the U.S. army forces in that battle, made famous in their book and a subsequent movie.
Ia Drang was the first clash of American troops with North Vietnamese regular army and involved heavy fighting in two main engagements that claimed casualties in the hundreds on the U.S. side and several thousand on the North Vietnam side.
Galloway later described it as "The battle that convinced North Vietnamese leader Ho Chi Minhhe could win," a conclusion that it turns out was shared by then-Defense Secretary Robert McNamara after he assessed details and the import of the Ia Drang battle. But McNamara's conclusion, shared with President Lyndon Johnson, never saw the light of day until years later.
The battle became the subject of Galloway's and Moore's book, "We Were Soldiers Once...and Young," and the resulting movie, "We Were Soldiers," as well as a second book, "We are Still Soldiers... A Journey Back to the Battlefields of Vietnam" when the two returned to the battlefield years later.
Galloway continued his correspondent role on into war in Iraq and Afghanistan and those who admired his work included the late General Gen. Norman Schwarzkopf, who referred to him as "the finest combat correspondent of our generation -- a Soldier's reporter and a Soldier's friend."
And of his time on the battlefield, particularly at Ia Drang, Galloway said: "The men I met and the time we spent together fighting for one another was a life-changing experience that transcends the bonds of friendship and brotherhood."
One of my first columns on Galloway dealt with my urging him to come to Seattle after I first learned, in October of 2014, about the commemoration and his role in it.
He told me he'd need a place to do the interviews so KCPQ-13 offered its studios for the week and Galloway became briefly a high-visibility figure in the area, including an interview at Seattle Rotary, as he helped the group of veterans who each spent an hour or more with him have the opportunity to share their memories. And also to accept the belated thank you that the attention represented.
Galloway's comments during his stay here and with the interviews themselves have also been Galloway's revisiting of his own memories of Vietnam.
During one of our interviews, Galloway said of the veterans: "They are not bitter but I am bitter in their behalf. It make me angry that those who came to hate the war came to hate the warriors who were their sons and daughters."
He's also shared his own emotions that accompanied other activities related to this trail through the commemoration events.
He told me of one occasion a couple of years ago where he and the governor of Kentucky shared the podium at an event for Vietnam veterans that was at the state capital at the Kentucky Vietnam Veterans Memorial, which he described as "one of the most spectacular in our country."
"It is in the form of a giant sundial," he said. "Incredible work was done so that when the tip of the shadow from the sundial pointer hits the memorial floor it points to that day's list of Kentucky soldiers who were killed in action on that date in Vietnam."
"It brought tears to my eyes to see the pointer land on those KIA in the Ia Drang Valley in November 1965," he said.
The recent retirement of Lt. Gen. Stephen Lanza as commanding officer of Joint Base Lewis McChord was a reminder of Galloway's last visit, and the coming one, since a commemoration Lanza put on as only the second such event at one of the nation's military bases preceded the Galloway visit by four months.
That high-visibility JBLM event in early October of 2014 was a Commemoration tribute that attracted more than 2,500 Vietnam veterans from around the Northwest onto the parade field for a salute ceremony, massing of the colors and Keynote speech by retired Gen. Barry McCaffrey.
Lanza had said he noticed that Vietnam Era veterans were among those enthusiastically welcoming soldiers home from deployment to Iraq and Afghanistan. He said he realized of the Vietnam veterans: "they had never had that" welcome-home reception so he helped create a thank you opportunity.
Galloway's visit May 22-25 for interviews with the veterans will include a Vietnam War panel discussion at Shoreline College with Bruce Crandall, the helicopter pilot and Medal of Honor recipient from the Ia Drang battle whose exploits were detailed in the book and the movie, and former POW Joe Crecca, along with Galloway himself.
My most recent column on Galloway was in mid-February, the outgrowth of an email from him about the "hard duty" he had of delivering a eulogy for General Moore, the Ia Drang commander and his friend of 50 years, who had died that week two days before his 95th birthday.
From her window in the Oregon Supreme Court Building, the state’s newest Supreme Court justice can look across State Street in Salem to the Willamette University campus where her higher-education journey began 31 years ago.
Meagan Flynn, already Judge Flynn as an Oregon appellate court judge since October of 2014, was sworn in last week by Chief Justice Thomas Balmer after being named by Gov. Kate Brown to the state’s highest court. She’ll have a new office but the surroundings will be familiar since both the supreme and appellate courts share the same courtroom.
The governor said in a statement that “Flynn has earned a reputation as a smart and thoughtful judge while serving on the Oregon Court of Appeals and is regarded as fair-minded and compassionate.”
Indeed those who know her would echo that, particularly her parents who left her standing on the sidewalk in front of Willamette waving goodbye 31 years ago. And as Betsy and I drove away then and headed back to Seattle, past the Supreme Court building, Oregon’s oldest government building, we had no way of imagining it would be where she would eventually office.
As readers of The Harp have guessed by now, this is a personal column, a reflection on our daughter, mother of two of our grandchildren, who wears the judge’s robe.
Meagan had a goal of being an attorney from early on because her role model was her cousin, Sheila McKinnon, who was then a successful Seattle attorney.
Some of the following is reflections about Meagan from an earlier column I did when she was appointed to the Court of Appeals judgeship.
I recalled that as she prepared to graduate from Holy Names Academy in Seattle, where she was salutatorian of her class, I urged her to apply to Stanford because her friend, who was valedictorian, was applying there.
"It would be cool if you could say you were accepted to Stanford," I told her, even though I knew she had already decided she wanted to attend Willamette.
To my surprise, though likely not hers, she was accepted to Stanford and I feared she would decide she wanted to go there since it would have been a financial challenge for us at that time.
But the ducks on the stream at Willamette, which were the initial attraction the day she first visited the school (although its academic reputation and its law school had roles in the final decision), had already drawn her interest to Willamette.
Good thing, since that's where she met her husband to be, Dan Keppler, who was also intent on become an attorney, though eventually Gonzaga law school won out for both of them and after graduating they built partner-role practices at separate small firms in Portland. Along the way also came two daughters.
Meagan always had a competitive bent, which she usually did a good job of hiding, except as a seventh grader in Piedmont, CA, when she found that a male student was challenging her for top student. Her jaw always locked a bit when the male student’s name came up in conversations. The two of them ran for 8th grade class president (except the title was commissioner general) in a hotly contested race that she won, expressing smug pleasure at coming out on top.
The call from Governor Brown was the second from an Oregon governor for Meagan since then-Gov. John Kitzhauber was on the line one evening when she answered the phone. The story comes from her husband, Dan, since Meagan is not one to talk much about herself.
As Dan related of the telephone conversation: “’Hi, Meagan, this is John Kitzhauber.’ ‘Hi, Governor.’ ‘So do you want to be on the appellate court?’ ‘Yes, I do.’ ‘Congratulations, Judge.’”
Of course, due diligence had preceded the call, as it did with the appointment to the highest court late last month.
When she was sworn in to her Court of Appeals post in 2014, the judge administering the oath was the same judge whom she had gone to work for as a clerk 20 years earlier, soon after he had taken his oath as a then-new appeals court judge himself. He brought to her swearing-in session a picture of that first clerk-judge meeting in 1994.
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Meagan is taking her place on the state’s highest court as its youngest, as well as newest, member.
Unaccountability on the part of a public entity, no matter how well cloaked in good intentions or alleged importance of mission, inevitably leads to arrogance when there is no requirement to answer directly to anyone for decisions.
That, not surprisingly, leads to the kind of decisions that create a demand for accountability. Thus hangs the tale of Sound Transit, in the view a growing chorus of critics.
The sense is that the transportation agency officially known as the Central Puget Sound Regional Transit Authority may suddenly be caught with its arrogance on display and feeling the pushback from a public and from lawmakers who are coming to sense a possible need to recast the organization.
The goal of legislation that has now passed the Republican-controlled state Senate and is awaiting action in House would replace the 18 Sound Transit board members, now local elected officials from one of the three Sound Transit counties with 11 directors directly elected by voters in districts that would be created by the legislature.
The first broad perception of Sound Transit arrogance surfaced with the outcry from motor vehicle owners about the leap in the cost to renew their vehicle license after the excise tax this year had climbed dramatically, due in part to the vehicle valuation chart used by Sound Transit.
Geoff Patrick, who handles media relations and public information for Sound Transit, explained that part of the reason for the large jump in MVET fees was that, in approving ST-3, the $54 billion long-term transit package in November, voters said ok to a major increase in vehicle excise tax.
The outcry would suggest that many voters weren't really aware of that.
Patrick was quoted earlier, as the MVET flap emerged, to the extent that Sound Transit could have used a vehicle depreciation schedule that would have meant a less expensive renewal fee but chose not to "for simplicity sake," to bring transportation relief quicker.
Then came the visibility surrounding Sound Transit's legal battle with Mercer Island over its effort to end the ability of solo drivers from the island to access I-90 high-occupancy-vehicle lanes when the existing HOV lanes are closed this summer for construction of light rail. That solo-driver access was part of an arrangement that amounted to a pledge from state transportation officials to Mercer Island residents in exchange for letting the state cut the trench for I90 across the island.
And finally, and perhaps defining for any battle to avoid accountability, came the flap over a political fundraiser for King County Executive Dow Constantine at the home of Sound Transit CEO Peter Rogoff for his boss and benefactor. As the flap unfolded, it became known that the planned event hosted at Rogoff's home for his boss might breach two clauses in the transit agency's own code of ethics, though it wouldn't violate any state fundraising laws, so it was moved elsewhere. But Rogoff made it clear he would still be one of the sponsors.
It might seem strange to many political observers that Constantine, who holds the most powerful position on the Sound Transit board and is seeking reelection, would stand silently in the wings, awaiting the outcome of a key fundraiser flap rather then step forward and say, "This is an inappropriate issue. I am cancelling this fundraiser."
Attendees for the party at its new location, it turns out, had to first RSVP online to learn the address.
The disappointing thing about that is I was beginning to hope some newspaper photographer or television camera team would be on hand to document how many representatives of companies with multi-million-dollar contracts with Sound Transit would be on hand to pass some of the dollars back to the leader of the team.
A focus on those companies with multi-million contracts may soon provide more negative publicity for Sound Transit when all the details of documents detailing the breadth and depth of the value of contacts Sound Transit has signed with nearly 550 companies to provide a wide array of services begins getting close media scrutiny.
The documents were received by former King County Council member Maggie Fimia from Sound Transit in 2015 and detail all payments over $100,000 made to all entities, public and private, from 2007.
When I talked with Fimia to get copies of the array of contract documents and inquired of her thoughts upon digesting them, she said of the array of contracts: "The breadth of the take was unbelievable."
Touching on only one of the contract categories, Fimia offered "why do you need to spend $37 million on marketing and advertising if you have such a tremendous product?" And that didn't include any marketing costs for ST3.
Sound Transit's Patrick told me that a rigorous competitive-bidding process is in place for contracts with the agency, other than services like legal, accounting, marketing and others where expertise and reputation come into play, since you don't low-bid legal services, but may negotiate with the selected supplier for best price.
Fimia's 2001 defeat was allegedly aided by Sound Transit officials upset at her constant questioning of the agency's manner of operating and its dealing with the communities, questioning that clearly didn't end with her departure from the council.
Charles Collins, whose impeccable credentials as a critic of Sound Transit are even grudgingly acknowledged by the agency's board, told me Sound Transit went after Fimia because "she was a continuing thorn in their side."
"They are the 500-gorilla that no one wants to mess with and she kept messing with them, so they helped oust her," he said. She lost her reelection bid in 2001.
Collins has been a constant critic of Sound Transit's focus on high-cost rail service because all statistics, including the agency's own environmental impact statement, indicate trains won't come close to attracting enough riders to relieve congestion. More like attracting maybe 2 percent of riders.
Collins once told me that he and two former governors, Republican John Spellman and a Democrat, the late Booth Gardner, went to Sound Transit in the late '90s before the first vote embarking on rail as the key transportation underpinning with a novel new plan to provide a vehicles alternative that would carry far more passengers at far less cost.
"But they didn't even want to hear our idea because they were about building a train, not focusing on easing congestion," he said, except for Rob McKenna, then King County councilman and later the two-term Republican attorney general and unsuccessful gubernatorial candidate.
McKenna, incidentally, also lost his role on the Sound Transit board, bounced by then-King County Executive Ron Sims for his routine questioning of board decisions and priorities.
Collins, Fimia and McKenna are among those, a list which now obviously includes some legislators, who have urged that spending and policy decisions in the future should relate to relieving congestion rather than focusing only on building a rail network.
"Nothing has changed," said Collins, whose credentials include having been Spellman's Chief King County Adminstrator, Director of Metro Transit and chair of the Northwest Power Planning Council, the State Higher Education Coordinating Board and the State Commission on Student Learning.
Indeed while Sound Transit operates some of the nation's most successful express bus services in addition to rail and light rail service to the region, there has been little doubt in the community that members of the board view themselves as creators of the region's light rail system.
And the fact that the mode of transportation in the region's future has unfortunately become ideological, or maybe was from the start, is the reaction of a liberal commentator on Senate passage of SB5001 and that four Democrats joined the Republican majority in passing the measure to the House.
The columnist said the four Democrats" betrayed Sound Transit and the progressive movement," and urged that "every activist and every organization who was involved in helping to pass Sound Transit 3 last year needs to pitch in to ensure that this bill gets a burial in the House of Representatives."
Rogoff is an intriguing case, having been a strong supporter of bus rapid transit and critic of the "enormous expense to build and maintain rail" while head of the Federal Transit Administration. "Busways are cheap."
Almost amusingly, now that he heads an agency dedicated to rail, he said in a speech back in 2010 that riders often want rails, "but you can entice diehard rail riders onto a 'special' bus sometimes by just painting the bus a different color than the rest of the fleet."
He hasn't yet explained at what point between then and his joining Sound Transit that he changed his position of bus over rail, which he viewed as enormously expensive to build and maintain.
If the idea of an elected board to replace the current appointed board is approved by the legislature, a new board might find it could dramatically reduce current and future expenditures by focusing on bus rapid transit and a much more zealous process of contract oversight for other than actual infrastructure expenses.
Only contracts specifically relating to construction bond covenants have been held by the court as illegal to change. That doesn't likely apply to things like contracts with law and accounting firms and advertising and marketing agencies. or construction contracts that won't have been signed when an elected board might replace the current board.
Brian Baird spent half of his 12 years in Congress in a frustrated, and futile, effort to gather support for his legislation to make it illegal for lawmakers to engage in the kind of financial transactions that those in the real world know as Insider Trading and for which they can be sent to jail. He and one or two supporters offered it each session but couldn’t even get a committee hearing.
But Baird was able to look on with satisfaction when, a year after he decided to focus on family and not run for re-election, a late-2011 program on CBS' "60 Minutes" brought national attention to his idea and coined the phrase "Honest graft," meaning it was graft but it wasn't illegal. The program exposed how members of Congress and their staff traded stocks based on nonpublic information to which they had exclusive access.
Lawmakers by the dozens scurried like frightened rats to get aboard as supporters amid the public outcry the news program sparked and so in April of 2012, the measure titled the STOCK Act (Stop Trading on Congressional Knowledge) was passed to finally bar members of Congress from doing stock transactions in areas they regulate.
Now Baird is watching with some amusement because, since Republican congressional leaders went out of their way in 2012 to quickly pass legislation extending the law to the president and vice president and those who worked for them, President-elect Donald Trump would be covered by the law. So he and his minions are seeking to exempt him from the law.
Newt Gingrich, explaining why ethics laws shouldn’t apply to Trump, even offered the view: "We've never seen this kind of wealth in the White House, and so traditional rules don't work…We're going to have to think up a whole new approach." He suggested that Congress change ethics laws so Trump can avoid any conflicts of interest that his global business empire may pose.
And Trump himself has said he is not subject to laws relating to conflict of interest.
Maybe so. But maybe not, since the Republicans who now control both houses of Congress may not wish to take early action on something that would allow critics the opportunity to point to the GOP lawmakers as being the lap dogs of the President. In other words, if they rolled over on command on the issue of ethics, what commands could they object to?
And Walter Shaub, director of the federal Office of Government Ethics (OGE), has issued a memo providing official guidance to Congress on the issue. His letter explained: “The Stock Act bars the President, the Vice President, and all executive branch employees from: using nonpublic information for private profit; engaging in insider trading; or intentionally influencing an employment decision or practice of a private entity solely on the basis of partisan political affiliation.”
But the President names the OGE director so once Trump moves into the Oval Office, it might be a good bet that Shaub will be replaced and that his successor will offer a quite different view.
Baird served six terms from Washington’s Third Congressional District before deciding in 2010 that his young family (he and his wife, Rachel Nugent’s, twin boys were 4 years old at the time), was more important than his battles in Congress. There was talk of his being targeted by the GOP if he had sought re-election, even though in his last four re-elections, none of his opponents could muster even 40 percent of the vote.
He says that while his family was the key reason he decided not to run again in 2010, other reasons included frustration over “the growing extremism and intransigence of many in the Republican party” and the “Democratic leadership showing little if any understanding of the concerns for centrist members from swing districts.”
Baird, who gained a doctorate in clinical psychology at the University of Wyoming after graduating from the University of Utah, says of the emerging focus on the STOCK Act and its relevance to Trump: “I'm just glad people are standing up for the bill now and trying to make sure it has the desired impact.”
But he finds it humorous that the growing attention to the law has brought a number of representatives and Senators who are being quoted about the brewing controversy as Trump’s inauguration nears and describing themselves as author of the law.
“As they say, success has many parents, even if they were nowhere near the conception,” Baird mused in an email to me.
The interviews by CBS reporter Steve Croft with then-House Speaker John Boehner and former Speaker Nancy Pelosi, his unexpected questions making Boehner look like someone hiding from the truth and Pelosi like someone too incompetent to even come across as thinking, should be part of every high school government class. The topic of the lecture in which the You Tube interviews were featured could be titled: “Who elects these people?”
The interviews are now difficult to find on You Tube because you have to subscribe to “60 Minutes.” Too bad.
The controversy over the STOCK Act and the soon-to-be Trump Administration isn’t currently getting a major focus from the media.
But a budding controversy could become a political brouhaha once a new president takes an action that would be illegal under the act.
There was surprisingly little fanfare or discussion over the fact that Gov. Jay Inslee’s re-election extended his party’s record hold on the governor’s mansion so that when his term ends in 2020, it will have been four decades since a Republican was elected governor in Washington.
But both John Spellman, elected to what turned out to be a single term in 1980 as the state’s last Republican chief executive, and Dan Evans, who left office in 1976 after a record three terms, are convinced it’s more than running in an increasingly blue state that has denied the GOP the statehouse for a longer period than any other state.
Inslee defeated Republican challenger Bill Bryant, 55 per cent to 45 percent, with the GOP lamenting that there wasn’t much bad that could be said about a governor who hadn’t done a lot.
And as Evans quipped, when I asked him about what it would take for Republicans to win the governorship again, ”what we need is someone with Inslee’s looks and Bryant’s brains.”
In fact, although Washington is far more blue now than it was in either Evans’ or Spellman’s time, both had as much appeal to Democrats as to Republicans and that could help indicate the challenge for a rightward drifting state GOP.
Both Evans and Spellman were strong protectors of the environment. The State Department of Ecology was created during Evans’ term, as well as legislation to protect shorelines. And Spellman became the darling of environmentalists while raising the ire of everyone in his party, from the president’s energy secretary to members of Congress and legislators, over his decision to prevent construction of the Northern Tier Pipeline project.
And neither shied away from taxes. Spellman told me, during an interview in 2011 on the 30th anniversary of his inauguration, “we passed more taxes in my four years than they have before or since. One of the challenges in seeking to get re-elected was that I said I would raise taxes only as a last resort and some people took that to mean I wouldn’t raise taxes.”
Spellman paid the price for raising taxes and defying special interests in a tumultuous term marked by a serious recession and a hard-right Republican Party, losing in 1984 to moderate Democratic businessman Booth Gardner.
I asked Spellman, who turns 90 next month, what kind of governor he had been and with a twinkle in his Irish eyes, he replied “I was a darn good governor.” And beyond the tumult of his times, including what he’d suggest may have been the worst economic period the state has experienced, there’s much to suggest in retrospect that may be an accurate assessment.
For his part, Evans, who just had his 91st birthday last month, was and remains a fan of a state income tax, as long as it’s part of “tax reform,” saying in an interview “I killed the income tax for two generation by getting a vote on it. After that, the no-tax pledge became required in campaigns.”
“If we had prevailed with tax reform and the income tax component, we would be $4.5 billion better off in this state,” Evans added.
The governing philosophies of those two may indicate how close to ideologically blue a GOP gubernatorial candidate might have to be to break the Democratic hold on the state’s chief executive job.
Of course the Republican candidates have been competitive in some recent elections, with Dino Rossi losing to Christine Gregoire in 2004 only after a recount confirmed her victory, and Rob McKenna seen as losing to Inslee four years ago primarily because of some campaign missteps.
Spellman, handsome and personable with a winning smile, was an attorney, graduate of Seattle University then Georgetown Law School, whose ever-present pipe would be lit and relit during lengthy discussion sessions.
Because one of his legal clients was the United Steelworkers Union local, he had support from a lot of labor-union members as he successfully campaigned to become the first King County Executive. In fact, my first meeting with Spellman in 1967 was when my steelworker uncle introduced me to him at a cocktail party in downtown Seattle after explaining to me what a fair and fine man this was who I was about to meet.
The passage of years has dimmed the remarkable courage Spellman evidenced in holding firm to his decision not to permit a pipeline to be constructed under Puget Sound despite pressure from a Republican administration, his own congressional delegation and the legislature.
That conviction brought him national attention in the form of a People magazine April 1982 profile of the little-known elected official who was “bucking president and party to turn an oil pipeline into a pipe dream.”
The profile went on to discuss how “one of the nation’s mightiest public-works projects, the $2.7 billion, 1,490-mile Northern Tier Pipeline designed to carry Alaskan crude oil from Puget Sound to Midwestern refineries, is being blocked by a single man, Governor John Spellman of Washington.”
And given the current political controversy about what attitude should guide this country’s view of international trade, Spellman’s thoughts on its importance would put him in the thick of any discussion on the topic today.
Spellman was an early believer in the importance of establishing relations with foreign nations and is proud of initiating relationships with Schewan Province in China and furthering relations with Japan during his term.
“Both world trade and world peace were in play then, as now, and relationships are very important in international affairs,” said Spellman in our interview. “The relationships we have are extremely important to the world in terms of peace and tranquility and trade, but trade is third among those in importance.”
I asked Spellman during our telephone interview for that 2011 column how it felt to lose his re-election bid. “It wasn’t devastating. Maybe to some of my kids it was, but not to me,” Spellman replied. “I knew I had done a lot of things that weren’t calculated to make getting re-elected easy.”
Few people had a more important role than Scott Jarvis in overseeing how Washington’s financial institutions weathered the twists and turns of the disruptions the Great Recession brought to the economy and the financial industry.
As director of the state Department of Financial Institutions (DFI) from 2005 until his retirement this week, it was the role of Jarvis and his team to closely monitor the financial health of the state’s banks and thrifts during that economic crisis. And on 20 or more occasions, they had to pull the plug when critically inadequate capital or severe loan losses threatened continued solvency.
Jarvis, appointed by Gov. Christine Gregoire to the DFI director role in 2005 and reappointed in 2013 by Gov. Jay Inslee, reflected on that crisis during an interview that amounted to a revisiting of the bumpy ride on which the financial downturn took financial institutions in this state, and the role his agency had in each of the “bumps.”
But the most high-visibility failure, the seizure of Washington Mutual in September of 2008 by the Federal Deposit Insurance Corp. and the sale of the assets of what was by then one of the nation’s largest banks to J.P. Morgan Chase, was without consultation with the state regulators.
And the closure that was perhaps the most painful for Jarvis and his staff, that of Frontier Financial Corp. in April of 2010, was unavoidable after the feds turned down what both the bank board and state regulators viewed as a satisfactory buyout plan.
“If I had to name a ‘down’ moment, it was the circumstances associated with the closing of Frontier Bank,” Jarvis said. “Willing and adequate capital was available for infusion but the Fed was unwilling to sanction the transaction.”
A key bright spot for the regulators was the successful emergence of Sterling Savings Bank from under threat of closure. The once high-flying Spokane-based institution had been placed under a cease and desist order in early October of 2009 and its chairman-founder and the CEO ousted.
Agreements Sterling secured to raise $730 million in new capital under new CEO Greg Seibly and a reconstituted board allowed both DFI and the FDIC to terminate the order and allow Sterling to proceed back on the road to healthy operation and growth, and eventual acquisition by Umpqua Bank.
In fact, Jarvis said of Sterling’s re-emergence: “Sterling’s success is proof that a cease and desist order is not a death-knell for Washington’s banks, but rather a call to action. When a financial institution’s leaders take aggressive, well-planned, corrective action, success can be found at the end in safe and sound business practices – and in strong community and employee support.”
The financial crisis had actually paved the way for Oregon-based Umpqua to move into Washington since the Bank of Clark County, closed by DFI in January of 2009 as the first closure in this state, reopened under Umpqua ownership. And a year later, when DFI took action against Seattle-based Evergreen Bank and Rainier Pacific Savings Bank, they wound under the Umpqua banner.
And Jarvis may well have had Umpqua, among others, in mind when he said: “No matter how dark the financial or investment environment might seem at any given moment, there are always individuals and organizations who see opportunities for success that benefit our economy and move us forward.”
Of the circumstances that forced DFI to close the 18 banks and at least two thrifts that the department had to act on, Jarvis observed: “as a pituitary giant will tell you, sometimes there is a problem with too much growth.”
Jarvis, a New York native who graduated from Allegheny College and got his law degree from University of Puget Sound (now Seattle University), first joined DFI in 1997 after serving as an insurance regulator for the state Insurance Commissioner and General Counsel to the State Treasurer.
In discussing the relations between state financial regulators and their big-brother counterparts at the federal level, Jarvis admitted that “overall, state regulators are concerned with the feds pre-empting powers of state regulators,” evidencing an unsaid sense that in some areas, the local regulators have a better sense of market needs.
A key area where that is important, he feels, is in failure of the feds to understand the need to right-size regulations for small institutions, where “the risk and exposure are dramatically different for small banks.”
“I think the number of small commercial banks will shrink further and small towns need these kinds of institutions,” Jarvis said.
Of the WAMU takeover by the Fed, Jarvis’ banking chief, Rick Riccobono, has been outspoken in his view that the Fed’s action and its sale of assets to J.P. Morgan Chase for what many viewed as a bargain-basement price didn’t need to have happened. Jarvis has routinely scolded Riccobono for making those statements to various groups, but intriguingly, hasn’t said he disagreed with the comments.
Under his leadership, DFI became a nationally-recognized leader in state financial regulation, which helped move the state from 17th in the nation to 10th on Washington's Corporation for Enterprise Development Scorecard Ranking in "Financial Assets & Income.” In 2012-13 he chaired the legislative committee for the Conference of State Bank Supervisors.
An area where Jarvis was obviously pleased to see the states step in when a void was being left at the federal level was in creation of local legislation to make it easier for start-up entrepreneurs to raise capital from local investors, basically a state version of the JOBS Act passed by Congress in April of 2012.
It was clear after Congress passed the legislation and told the Securities & Exchange Commission to enact rules to put the law into effect, that the SEC’s then chair, Mary Shapiro, didn’t think easing investor protections to enhance entrepreneurial opportunities was a good idea, so she foot dragged for several years.
Eventually a number of states, including Washington, decided they could do it better locally anyway, so they enacted JOBS Act-like crowd-funding legislation, strongly supported by Jarvis and his agency. He told me once that his role was to balance protection for investors with opportunity for entrepreneurial startups and that the balance wasn’t that difficult a challenge.
He was careful how the process of putting the crowd-funding into effect was carried out, with hearings, testimony and staff evalutions, though there have only been four companies that have filed to raise money under the state legislation.
In thanking Jarvis for his years of contribution, the governor named Gloria Papiez, who had served as Jarvis’ deputy for more than a decade, to replace him.
The might-have-been lament is being played again this year in the Puget Sound area, among other arguments put forth by proponents of $54 billion ST-3, a proposal that would provide a 25-year basically blank check to Sound Transit to create a system that will connect an array of communities across three counties.
Washington has been more attuned than most states to the reality that creating successful economies in rural communities results from helping them grow and nurture what they have rather than merely trying to attract businesses from elsewhere to relocate.
Recruitment and retention, generally in that order, have been the key words that guided the programs of economic development organizations in smaller communities across the country for years, usually with marginal success. But retention has been a generally amorphous patchwork.
But for a quarter century as senior manager in the Washington State Department of Commerce and head of the Office of Economic Development and Competitiveness, Forman has kept his focus on enhancing the success of rural communities by emphasizing the words nurture and growth.
Forman, who has served under five governors, a similar number of department heads and in an agency that has occasionally changed names to connote sometimes different emphasis, is retiring from the role he stepped into in 1991 and soon thereafter began crafting a rural-support image for the state.
And his vision for rural enhancement has grown over the years, coming to emphasize the importance of entrepreneurs and more recently the importance of young people to their communities.
He once shared with me the view that if programs are to enhance local economic development they "must nurture the belief that young people who grow up in rural communities can be guided to start businesses in their own community rather than moving to urban centers."
"Just as young people are looking at new ways to enter the work force other than working for someone else, so too are communities looking for ways other than recruitment of businesses from elsewhere to grow their economies," Forman told me in an interview last year.
Now Forman is turning over the role of guiding rural communities on successful economic development paths to Anne Nelson, who has started several businesses and worked as a community and economic developer before becoming an instructor at Walla Walla Community College in business, entrepreneurship and marketing.
In an example of Forman's typical sense of humor, he says "she will essentially be serving those rural areas as Executive Innovator and Enlightener of Ideas Officer (or EIEIO as we say on the farm)."
In fact, Nelson shared with me an incident in the Eastern Washington community of Dayton that she thinks may serve as a model for what she hopes will emerge as urban-rural mentoring.
Seems a much-loved bakery in Dayton was closing because the owner was retiring. Nelson heard discussion about it at a local restaurant, was aware of a young woman who was hoping to someday own a restaurant and created a contact with retired Seattle restaurant owner Paul MacKay. The founder of El Gaucho and a chain of other restaurants had retired with his wife a few years ago to Walla Walla to a 100-acre spread to grow wheat and grapes.
But once he learned of the Dayton bakery situation, MacKay soon got the young woman set up as owner manager of the bakery.
"I see the support for that young, aspiring bakery owner from Paul MacKay as a model we can see more and more of across this state," Nelson said. "The key is that rural entrepreneurs are clear about their sense that mentoring is even more important than capital."
The program, called Startup365, has been running for about a year under the management of Greater Spokane Inc., the region's chamber of commerce, aimed at connecting Spokane area business people as mentors for entrepreneurs and small businesses in Asotin and Whitman counties.
But Nelson says Startup 365, created by the legislature, is aimed at retaining the intellectual wealth and economic vitality of rural areas by focusing on entrepreneurship and small business growth. "That will help communities flourish organically and will be a priority program that I can spend more time on, functioning a large part of my time in Walla Walla."
"I do believe that urban-rural mentorship will be a key piece in building rural businesses, especially as I see the urban entrepreneurs being more in touch with the technologies and tools that help businesses be successful," said Nelson.
One of those technology tools, Skype, she hopes will be employed at least once a week in connecting rural entrepreneurs with their urban mentors. The Spokane program is being supported by Avista, the Spokane-based utility that has a long track record of supporting business development in the region.
But before Nelson gets to focus on developing the urban-rural mentorship idea, her first order of business will be overseeing in November the fifth annual Global Entrepreneurship Week activities in all 39 counties.
Although in Washington, the annual celebration of innovators and job creators involving 88 countries last year became Global Entrepreneurship Month. Nowhere is GEW, or GEM in this state, treated as a bigger deal than what Forman put in place in Washington, which is the only state with events in all counties.
Jack Schultz, whose focus on assisting rural economic growth helped him come to be known as the guru of rural economic development as keynoter at more than 400 conferences around the country and author of "Boomtown USA: The 7 ½ Keys to Big Success in Small Towns," credits entrepreneurial support as a key to rural success.
Schultz, of Effingham, IL., whose Agracel Inc. is the largest industrial development company focused on developing projects and creating jobs in rural towns, told me he had not heard of a mentorship program like Startup 365.
But Schultz, who said he has long been an admirer of Forman's, said "I think it makes a lot of sense and is something very innovative."
Referring to findings from his visits to hundreds of small towns to gather information for his book, Schultz said in an email: "Embracing entrepreneurism in communities was a key factor which differentiated great communities from also-rans. Increasingly, we are seeing those great communities taking it a step up by tying their local entrepreneurs up with their young people, educating them on both entrepreneurship and also the great things happening in the private sector of their towns."
As legislators and their paid consultants struggle with how to answer the State Supreme Court’s latest education-funding question about determining “competitive market rates” for educators, a couple of thoughts press themselves to the fore as the drama moves toward a final act.
First, there’s an unfortunate sense that, in the press by the justices to make it clear to legislators which branch of government is ultimately in charge, what’s emerged is an effort to ensure that financial support of educators becomes the answer to education quality woes. No consideration is given to support for education in a broader sense.
Second, the well-worn phrase “You can’t just throw money at a problem” is one that seems to have eluded the state high court in its on-going education-funding struggle with the legislature over how much is enough.
At issue is the court’s January 2012 ruling, in what is now known as the McCleary case, that the legislature violated the state constitution by failing to amply fund basic education. Since then the court has found the lawmakers in contempt for not providing sufficient funding and has even threatened to take over the budgeting process (presenting what would seem to an amazing cartoonists’ opportunity).
Now the court has told the lawmakers to determine “competitive market rates” in terms of teacher salaries across the state and a final report on that point is due from a legislative consultant in November.
After that, lawmakers will try to find common ground on the sum of money required for salaries and where it is going to come from. The Legislature is supposed to take votes in 2017, or in the view of lawmakers in 2018, to put those final pieces in place in what has come to be known as the McCleary case.
Comes now the observation of Donald Nielsen, whom I best describe as an education “change agent,” whose views are dramatically suspect and irritating to those who disagree with him because he has no hidden agenda. He’s merely a business executive who made his fortune and decided nearly a quarter century ago to spend his time and money in the next phase of life seeking to make basic education better.
Nielsen is not an educator. But he is someone who is passionate about public education and has focused much of his attention on it since the early ‘90s, first traveling the country in search of education ideas that are working, then serving eight years on the Seattle School Board and a final year as president. His book, “Every School,” has brought his thoughts on education reform to the fore over the past couple of years in radio talk shows and newspaper interviews around the country.
“Schools do not have a funding problem, they have a regulatory problem,” Nielsen suggests. “If school administrators could spend their existing money as they believe is needed, they would spend it quite differently, and we would get better results.”
His most in-your-face message is that “teachers are not underpaid, they are underemployed. This is not a compensation issue, it’s an employment issues.”
“The average teacher in Seattle, in 2013, was making $70,000 a year, employed for 1320 hours,” he said. “All normal jobs employ people for 2080 hours a year so If that same teacher were employed for a normal year, his or her compensation would $110,300 a year on that 2080 basis.”
“Even beginning teachers who start at $40,000 a year are being paid the equivalent of $63,000 year,” he added. “In both cases, the teacher gets a benefit package that no private employer could afford to replicate.”
Neither of these compensations is low,” Nielsen added. “They are very competitive, and in rural areas, teachers are already among the best paid people in the community.”
Discussion by the justices has never touched on suggesting the lawmakers focus on how the money is being spent, only how much is being spent, which makes another suggestion from Nielsen the kind of thing that at least might be in the discussion hopper.
“We need are variable contracts for teachers: A nine month contract, a ten month contract and an eleven month contract, meaning the latter would make the $110,000 and the former would make the $70,000,” he said. “Let the teachers decide what contract they want and let the district decide who gets each type of contract,” suggesting that approach could allow for some education options for different students.
Unfortunately, it’s still uncertain whether the final act in this drama will be played out on the judicial or legislative stages since the nine justices of the state’s highest court have pressed the lawmakers, including with a contempt funding, to spend more dollars on education. At issue is the state’s constitutional mandate for adequate funding of basic education.
The justices, as far as I can tell, have never mentioned that lawmakers should also consider how the education dollars are being spent and could better education result from more insightful use of the dollars the lawmakers appropriate.
Maybe there’s still time, as the lines for the final act are just now being written in Olympia, for the idea of quality of expenditure rather than just quantity of expenditure to be raised.
In a case replete with issues relating to powerful education forces focused only on dollars, it might be worth combatants who finally seem hopeful of averting a real constitutional crisis to be aware of an unsettling statistic that Nielsen has included in his book.
In summing up the details of the chart in his book, Nielsen notes: “We now spend three times as much per child in inflation-adjusted dollars as we did in 1970 and we also have four times as many adults in our schools with only eight percent more children. And we’ve had no measurable improvement in academic achievement.”
It was well over a year ago that my brother, a retired Spokane small-business owner, began telling me, in support of the Donald Trump phenomenon, “Mike, you don’t understand, the silent majority is roaring.” My response was always, “I hear the roar, but it’s a minority made up of those unsettled by the murky mix of terrorism and immigration policies and angered by their lack of influence, or even contact, with the establishment.”
Then came last week’s Brexit vote, where the English version of folks I described turned out to be the majority, leaving establishment leaders of both major parties in this country to ponder whether what’s at stake is a desire to throw out the system rather than merely overturn particular politicians or policies. And what that means come November.
Or for the future. Thus perhaps an appropriate time to ponder questions as Independence Day approaches
Now a week following the blow to the U.K. comes a decision by the U.S. Supreme Court almost certain to fuel anger at the established order, the court making it harder to prosecute public officials for corruption by basically saying it’s ok for “the system” to include paying elected officials to influence their decisions.
At issue was the case of former Virginia governor Bob McDonnell, who was convicted by a lower court of using his office to help a businessman who had provided McDonnell and his wife with luxury products, loans and vacations worth more than $175,000 when Mr. McDonnell was governor.
Chief Justice John G. Roberts Jr., writing for the court, narrowed the definition of what sort of conduct can serve as the basis of a corruption prosecution. He wrote that “routine political courtesies like arranging meetings or urging underlings to consider a matter generally, even when the people seeking those favors give the public officials gifts or money,” do not represent corruption.
The alternative to the new limits, Roberts wrote, would be to criminalize routine political behavior. “Conscientious public officials arrange meetings for constituents, contact other officials on their behalf and include them in events all the time,” he wrote. All the time! Isn’t that the problem?
By now readers of this column have likely concluded that the usual focus on people, companies and issues that relate the Northwest is being upstaged to Harp about some personal thoughts on an issue that impacts us in this region, but that transcends us.
Fodder for thought following Brexit, for those who care to think, is offered by The Los Angeles Times‘ Vincent Bevins: “Since the 1980s the elites in rich countries have overplayed their hand, taking all the gains for themselves and just covering their ears when anyone else talks, and now they are watching in horror as voters revolt.”
It has to be hoped that the revolt is aimed at reconstructing rather than destructing the Democratic process. But that may not be certain.
A quote from author and MSNBC commentator Chris Hayes is getting attention on social media in the wake of the Brexit vote.
“The mechanism that western citizens are expected to use to express and rectify dissatisfaction – elections – has largely ceased to serve any correction function. When Democracy is preserved only in form, structured to change little to nothing about power distribution, people naturally seek alternatives for the redress of their grievances, particularly when they suffer.”
Coincident with the post-Brexit analysis have come a couple of group emails in which I was included, both suggesting that the idea of change by the ballot isn’t being totally abandoned. Both related to a focus on the 28th amendment to the U.S. constitution and both widely popular but not yet widely promoted.
The first relates to ongoing discussion about an amendment to overturn Citizens United, the U.S. Supreme Court decision that held political expenditures by corporations could not be limited.
Polls show the efforts for a 28th Amendment to overturn Citizens United is supported by more than 75 percent of Republicans, Democrats, and Independents and sixteen states have enacted 28th Amendment resolutions.
The other idea gathering support as a proposed 28th amendment: "Congress shall make no law that applies to the citizens of the United States that does not apply equally to the Senators and/or Representatives; and, Congress shall make no law that applies to the Senators and/or Representatives that does not apply equally to the citizens of the United States."
It strikes me that this idea could generate some positive action from voters by, between now and the November General Election, insisting every member of Congress on the ballot, as well as every state legislator, commit to voting in favor of the constitutional change next year. Or bite the bullet as voters and vote for the opponent, regardless of ideological compatability.
There are examples of the manner in which a fed-up public can bring a positive focus to their anger and bring about beneficial change within the system.
One such example was actually the result of an idea of someone from inside “the system,” then-Washington congressman Brian Baird, who during the last three of his six terms as the representative from the state’s third district sought to gather support in Congress for what he called the “Stock Act.”
Baird sought to prevent members of Congress from doing stock transactions in areas they regulate, in essence, prohibiting their investing in a manner that those in the real world call Insider Trading.
I wrote about it in a November, 2011, column after a program on CBS’ “60 Minutes” brought national attention to Baird’s idea with a program titled “Honest graft.”
For ordinary citizens, reaction to Baird's proposal would be a laughable "well, of course." But in a place whose mantra is "the rules we make for you don't apply to us," seeking to force action by the lawmakers on one small, self-imposed ethical constraint could become a rallying point for a fed-up public.
The thrust of the CBS segment was that lawmakers often made stock purchases and trades in the very fields they regulate. While ordinary citizens could be jailed for engaging in the kind of investment shenanigans that those in Congress involve themselves in, there's wasn’t even an ethical concern among lawmakers.
Reporter Steve Croft questioned then-House Speaker John Boehner and former Speaker Nancy Pelosi at their respective news conferences. And the ineptitude with which both Boehner and Pelosi tried to answer Croft's questions about whether their investment practices were at least conflicts of interest, the thought that had to occur was "Who elects these people?" The answer, unfortunately, is people like us elect them. And both have continued to be elected. Shame on us. And so maybe a revolt wouldn’t be that bad.
As a result of the outcry following the program and You Tube pieces on the congressional leaders’ confused responses, the Stock Act was passed overwhelmingly in the spring of 2012 with what observers described as “vulnerable congressmen” at the forefront of supporters. So now Members of Congress and employees of Congress are prohibited from using private information derived from their official positions for personal benefit, and for other purposes.
Baird had already retired by then, having decided not to seek a seventh term, thus exemplifying one of the concerns about the future of the Democracy as currently operating: The Nancy Pelosis remain in office and the Brian Bairds decide to leave.
© 2016 Mike Flynn
|Rep. Jeff Morris|
But despite that expectation, in the 15 months since DFI enacted the rules and the law went into effect, only two businesses have filed to raise money in this state via crowdfunding. In fact, according to DFI Director Scott Jarvis, only 100 companies around the country have used intrastate crowdfunding to raise capital.
Thus there seems to be optimism that what Congress launched with the right intent, but watched while the SEC dithered for almost four years, may still produce an opportunity for entrepreneurs to create jobs rather than being jobbed by thoughtless regulations.
If Global Entrepreneurship Week, the annual worldwide celebration of innovators and job creators, had been a competition among nations, states and regions, Washington State could have laid claim to being the hands-down winner. And that would be appropriate recognition for the man who has guided much of this state's effort to advance entrepreneurship, particularly in rural areas and particularly with young people, for 25 years.
Maury Forman, senior manager for the Washington State Department of Commerce, is proud of the fact that in this state, GEW 2015 was actually Global Entrepreneurship Month and extended to every corner of the state with activities in all 39 counties. Four years ago, when Forman plugged the state into GEW activities, three counties participated.Forman says "we are changing the way communities look at economic development." That's an outgrowth of his effort, over much of his quarter century overseeing key economic-development sectors, to develop a culture of entrepreneurism in rural areas.
Global Entrepreneurship week was founded in 2008 by the Kauffman Foundation, the Kansas City-based 501c3 that is the nation's pre-eminent entrepreneur-focused organization, to create an annual celebration of innovators and job creators who launch the start-ups that drive economic growth.
Forman, who joined what was then the Department of Trade and Economic Development in 1991 in a career transition from healthcare at the age of 40, says "No other state can claim that every part of the state had at least one event that celebrated entrepreneurship."
"One of the exciting aspects of this year's celebration of entrepreneurship was the number of high school programs being held throughout the state," Forman said. "In many cases, college isn't the natural next step it was once for high school students so these programs expose them to the idea of starting their own business once they graduate. Or if they do go on to college, they can focus their education on skills that will allow them to start a business in the years to come."
Forman says he has kept his primary focus on rural economies because "they need the assistance much more than urban communities," as well as because he has become convinced that the strategies for growth of many rural areas that has been focused on recruiting companies from out of state is outdated.
"That has to change if rural communities are to survive," Forman said. "Communities have to be shingle ready and not just shovel ready."
In a recent article in Governing, a national magazine covering state and local government news, Forman wrote about Washington's three-year-old program called Startup Washington that focuses on building local economies "organically" by serving the needs of local startups and entrepreneurs.
Forman is likely among the national leaders in the conviction that programs to enhance local economic development "must nurture the belief that young people who grow up in rural communities can be guided to start businesses in their own community rather than moving to urban centers."
"Just as young people are looking at new ways to enter the work force other than working for someone else, so too are communities looking for ways other than recruitment of businesses from elsewhere to grow their economies," Forman said.
One of the ways he is seeking to do that "is by matching those students that are serious about being entrepreneurs with mentors, especially in rural communities."
Indeed matching students who hope to be entrepreneurs with mentors is becoming the model for successful communities, particularly rural ones, to pursue.
Some communities have long been employing that model, as chronicled in the oft-quoted book written by Jack Schultz, founder and CEO of Agracel, a firm based in Effingham, IL, that specializes in industrial development in small towns.
It was in pondering why some small towns succeed where others fail that Schultz set out on the backroads to rural America to find out as he became the nation's guru of rural economic development and wrote of his travels in Boomtown USA: the 7 ½ keys to Big Success in Small Towns.
I emailed Schultz about entrepreneurism's role in small town success and a possibly emerging role for mentor programs.
"Embracing entrepreneurism in communities has been a key factor that differentiated great communities from also-rans," he emailed back. "Increasingly, we are seeing those great communities taking it a step up by tying their local entrepreneurs up with their young people, educating them on both entrepreneurship and also the great things happening in the private sector of their towns."
Schultz' successes in believing in small-town entrepreneurs and small-business lending is partly responsible for the fact the Effingham-based bank he helped found and now chairs the board, has grown eight fold to $2.9 billion in assets and gone public.
"At Midland States Bank, we have very much focused on small business lending and it has been a major factor in our growth over the last several years," Schultz said.
In an unusual and innovative commitment to the dozens of communities it serves, the bank has funded a not-for-profit institute to expand an entrepreneurship class that was started in Effingham eight years ago and has now expanded to 27 other towns.
Forman seemed intrigued by the details Schultz provided: The class meets each day during the school year from 7:30 to 9 am; meets in local businesses; is totally funded by local businesses with a maximum contribution of $1,000 per business or individual. Each class has a business and each student must also start a business.
Meanwhile, Forman approaches his 25th anniversary with the department on January 1 having collected numerous regional and national awards for his work and successes. Those include last year winning the international Economic Development Leadership Award and recognitionby the Teens in Public Service Foundation with the Unsung Hero Award for his work with at risk kids.
He has authored 14 books related to economic development, and has also designed and developed creative "game show' learning tools, including Economic Development Jeopardy, Economic Development Feud and two board games for the profession.
Forman credits the directors who have guided the department over his time there for allowing him "to be intrapreneurial," meaning behaving like an entrepreneur while working in a large organization, noting "not many government agencies allow the freedom to take risks in an effort to solve a given problem."