The Virginian Pilot reports today on the new fines that will be imposed on drivers convicted of certain offenses. The Pilot’s article discusses who will benefit the most from these higher fines: the law firms that act as collection agencies for the local Commonwealth’s Attoneys offices.
But the hefty penalties could be a bonanza for the politically connected law firms that chase down unpaid court fines.
In all but one city in South Hampton Roads, these firms have exclusive contracts that pay them as much as 30 percent of the amount collected.
Since 1994, localities have had the option to allow the Department of Taxation to collect overdue fines and the article reports that last year, “102 of the state’s 126 localities chose” to avail themselves of the service. Suffolk is alone amongst the Hampton Roads cities to do so. Citing greater customer service, the other local CAs use local law firms, often awarding no-bid contracts.
The firms that provide these services are keeping a lot of the money for themselves. Huff, Poole & Mahoney is one such firm. (click to enlarge)
It has the collection contracts in Virginia Beach and Chesapeake, which brought in more than $1.6 million in fees in fiscal year. Additional contracts in Chesterfield and Essex counties pushed the firm’s total collection revenue to more than $2 million.
And among those listed, HP&M returns the least amount of the fees to the taxpayers. Charging fees of 29.1%, the firm only returns 70.9% of the money collected to the taxpayers. Now, if HP&M had high collection rate, this wouldn’t be so bad. But they only collect 59.3% of what is owed. Compare that to what the Department of Taxation collects: 88.8% of what is owed and fees of 17%. Why don’t all of the localities use their services instead?
The Pilot tries to make a claim that part of the reason is political contributions.
The firm [HP&M] has given $6,000 in campaign contributions to Virginia Beach Commonwealth’s Attorney Harvey Bryant since 2001.
[…]
Huff, Poole & Mahoney has also given $1,500 in contributions to Chesapeake Commonwealth’s Attorney Nancy Parr. Roland “Bucky” Dodson, the collection agent for Portsmouth, has given $980 to Commonwealth’s Attorney Earle Mobley. The Glasser and Glasser law firm, the collection agent for Norfolk, has given $250 to Commonwealth’s Attorney Jack Doyle.
Um, no. I don’t think that even $6,000 in political contributions over a six year period is sufficient to make the claim that it is a motivation. No, I think the reason the CAs continue to do business with these law firms is simply a case of inertia: that’s the way it’s always been done and there is no need to change it. Call it the good old boys looking out for the other good old boys, if you will.
In the meantime, it is the taxpayers who are being given the short end of the stick. While I appreciate the idea of local customer service, I think it presumptuous to assume that such service cannot be given from Richmond. When people speak of efficiencies in government, anything that reduces the burden on the taxpayers should be considered.
I applaud the Suffolk CA for looking out for the taxpayers and urge the other local CAs to do the same.
VIVIAN J. PAIGE | All Politics is Local 