By Lewis Loflin
In 2008, Bristol Virginia Utilities (BVU), a city-owned utility in Bristol, VA, faced scrutiny over its scholarship program, launched in 2003 to support students at Virginia High, John Battle High, and Tri-Cities Christian Schools. Funded by BVU’s operating budget at ~$24,000 annually, the program offered up to $12,000 per student over four years, paid by ratepayers. The selection process, managed by a committee of BVU officers, local school officials, and a citizen representative, aimed to reward students likely to stay in the community, prioritizing “ties” over academic merit or financial need. Bristol Herald Courier, February 8, 2008
The committee included BVU CEO Wes Rosenbalm, Marketing Director Sandy Crusenberry, CFO Stacey Bright, Mayor Jim Rector (former BVU board chair), Councilman Harold Leonard, school officials Gary Catron and Mike Amstein, Dr. Jim Geiger, and an unnamed citizen. Critics questioned the criteria, which favored applicants with local connections, particularly children of city employees.
A Bristol Herald Courier Freedom of Information Act (FOIA) request for five years of scholarship applications (2003–2007) prompted BVU to return the records, citing privacy concerns over minors’ data, including financial statements and transcripts. BVU claimed it retained no copies and planned to revise policies to limit public access, arguing disclosure deterred applicants. The lack of records raised questions about accountability, though no illegal withholding was proven. Bristol Herald Courier, February 8, 2008
From 2005 to 2007, five applicants with city employee ties reached final interviews; four won scholarships. The selection “rubric” gave points for community connections, not necessarily grades or need, fueling perceptions of favoritism. BVU defended the process as fair, emphasizing local retention goals.
Wes Rosenbalm, BVU’s highest-paid official ($120,536, 2008), led the scholarship committee while serving as TVA board member, Bristol Chamber of Commerce chairman-elect, and Tri-Cities Christian Schools board chair. His roles, including BVU’s 2007 TVA switch, drew scrutiny for potential conflicts, especially with Tri-Cities Christian students eligible for funds. Rosenbalm denied impropriety, stating privacy protected applicants. TVA Archives, 2008
Rosenbalm resigned in 2013 amid unrelated issues, convicted in 2015 for fraud-related charges involving vendor gifts, paying $200,000 in penalties. The scholarship controversy added to public distrust in BVU’s governance, though no direct misconduct was linked to awards.
In 2008, Bristol, VA’s economy relied on retail and low-wage jobs, with a per-capita income of ~$17,000. Nearly 30% of residents lacked high school diplomas, and ~35,000 college graduates had left Tri-Cities since 1988, driven by limited opportunities. BVU’s OptiNet broadband venture, costing ~$50 million, aimed to attract high-tech jobs but delivered few by 2008. The scholarship program’s ratepayer funding—$24,000 yearly—stirred debate, as many residents struggled with rising utility bills tied to OptiNet’s debt and TVA rate hikes (17.9% and 15%, 2007–2008).
Public frustration centered on fairness, with ratepayers questioning why funds supported select students, including those at private schools, over broader community needs.
BVU sold OptiNet to Sunset Digital in 2016 for $50 million, becoming a city utility (electric, water, sewer) serving ~16,300 customers. The scholarship program likely ended ~2016, with no public data since. Bristol, VA’s job market remains retail- and service-driven ($12–$15/hour), with high-tech jobs under 1%. Population has declined 2–4% since 2010, and ~25% of adults lack high school diplomas. Graduate retention remains low. WJHL, 2024
Virginia’s $1.48 billion broadband investment (2024) improved access but not job diversity. Transparency in public programs has tightened, yet small-town networks continue to shape opportunities, echoing 2008 concerns.
BVU’s 2008 scholarship program aimed to retain talent but raised fairness questions due to opaque criteria and ratepayer funding. While legal, the process underscored tensions in small communities where local ties influence outcomes. Bristol’s economic and educational challenges persist, highlighting the need for equitable, transparent public initiatives.
Originally posted February 2008. Updated April 15, 2025.
A LENOWISCO study foresaw non-unionized call centers’ collapse, warning of offshoring risks (Asia’s $1–$5/hour wages), low-skill reliance (~30% no high school diploma, 2003), and firms exploiting subsidies, like VCEDA’s $5.6 million for Sykes. Non-unionized sites lost ~2 million U.S. jobs by 2015, unlike AT&T’s protected workforce. Education gaps—~50% no diploma in Dickenson County (2008)—worsened vulnerabilities. LENOWISCO Study, sullivan-county.com
Acknowledgment: I’d like to thank Grok, an AI by xAI, for assisting with drafting and refining this article. The final content reflects my own analysis and edits.
