Tuesday, May 24, 2011

Democrat Wins G.O.P. Seat; Rebuke Seen to Medicare Plan

Democrat Wins G.O.P. Seat; Rebuke Seen to Medicare Plan


Brendan Bannon for The New York Times
The Democratic candidate, Kathy Hochul, talked to the media during an early morning campaign stop on the election day.
Democrats scored an upset in one of New York’s most conservative Congressional districts on Tuesday, dealing a blow to the national Republican Party in a race that largely turned on the party’s plan to overhaul Medicare.

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The results set off elation among Democrats and soul-searching among Republicans, who questioned whether the party should rethink its commitment to the Medicare plan, which appears to have become a liability as 2012 elections loom.
Two months ago, the Democrat, Kathy Hochul, was considered an all-but-certain loser in the race against Jane Corwin. But Ms. Hochul seized on her Republican rival’s embrace of the proposal from Representative Paul D. Ryan, Republican of Wisconsin, to overhaul Medicare, and she never let up.
Voters, who turned out in strikingly large numbers for a special election, said they trusted Ms. Hochul, the county clerk of Erie County, to protect Medicare.
“I have almost always voted the party line,” said Gloria Bolender, a Republican from Clarence who is caring for her 80-year-old mother. “This is the second time in my life I’ve voted against my party.”
Pat Gillick, a Republican from East Amherst, who also cast a ballot for Ms. Hochul, said, “The privatization of Medicare scares me.”
The district, which stretches from Buffalo to Rochester, has been in Republican hands for four decades, producing influential Republican figures like Representative Jack Kemp. The campaign drew intense interest, with both major parties in Washington and their allies flooding the district with radio and television advertising. Total spending exceeded $6 million.
On Tuesday, Republicans were already debating the factors that shaped the outcome of the race. The mood inside a meeting of the House Republican caucus in the Capitol was anxious, and some members suggested that it would be oversimplifying to attribute the results to one cause.
Some said Ms. Corwin proved a less nimble and ultimately less appealing candidate than Ms. Hochul, who was an energetic campaigner and seemed to connect with audiences on the trail.
So, when Medicare erupted as a driving issue in the race, Ms. Corwin, a wealthy former Wall Street analyst, was knocked off balance and struggled to respond.
In the closing hours of the race, Ms. Corwin admitted as much, saying about her rival’s attacks: “When she started making these comments, I thought, ‘This is so outrageous no one would ever believe it.’ Apparently some people did.”
Others cited the presence of a third candidate, Jack Davis, who ran on the Tea Party line after failing to win the Republican nomination. Mr. Davis not only drew conservative support away from Ms. Corwin, but also turned his aggressive attacks on her in the end, contributing to her negative numbers.
And Ms. Hochul seemed genuinely well-liked by the public. As the clerk of Erie County, she oversees the autos bureaus, which issue driver’s licenses; she became more prominent in 2008 when she challenged former Gov. Eliot Spitzer’s plan to issue licenses to illegal immigrants.
“I remember when she was in the auto bureau in Buffalo, she did a lot with the license plates,” said Jim Van Wagner, a Republican and former auto worker from Albion, adding: She’s a good one.”
Still, given the makeup of the district, one of four in the state that John McCain carried in 2008, Republicans said they needed to understand if they had misread the public.
“It’s a Republican district with a solid Republican candidate,” said Representative Peter T. King, a Republican from Long Island. “What went wrong? We definitely have to determine the extent to which the Medicare issue hurt us.”
The seat became vacant in February when Representative Christopher Lee, a Republican, abruptly resigned after he e-mailed a shirtless photo of himself to a woman and it was published on the Internet.
Top Republicans, including House Speaker John A. Boehner of Ohio and the majority leader, Eric Cantor of Virginia, traveled to the district to provide support to Ms. Corwin. At the same time, the national party and its allies, including the U.S. Chamber of Commerce and a group tied to the Republican strategist Karl Rove, jumped in, spending at least $1.1 million on radio and television ads supporting Ms. Corwin.
Democrats brought out their heavy hitters too, including Bill Clinton, who recorded a phone message that reached homes throughout district; and Representative Nancy Pelosi of California, the House Democratic leader, who sent out fund-raising solicitations casting the race as an opportunity for Democrats to win in the backyard of Republicans.
The race also marked the debut of House Majority PAC, a group recently established by Democratic strategists as a counterbalance to the conservative organizations that helped Republicans make significant gains in the 2010 elections. House Majority PAC spent nearly $400,000 on advertising in the race.

House to Hold Straight Debt Ceiling Vote Next Week

House to Hold Straight Debt Ceiling Vote Next Week

by Chad Pergram | May 24, 2011


The office of House Majority Leader Eric Cantor, R-Va., confirms that the House will hold a "straight" vote on increasing the debt ceiling next week by $2.4 trillion.

This ceiling is not expected to pass as there are almost no Republicans who would vote for this, without requisite cuts. So in a way, this is a moot vote to show a group of 100 Democrats who keep calling for a "clean" debt ceiling increase that there aren't the votes to do so.

House Minority Whip Steny Hoyer, D-Md., is unhappy with the Republican tactic.

"I will not vote for a clean debt limit extension if no Republicans vote for it and instead use it just to demagogue," Hoyer responded Tuesday. "We need to pursue a responsible course to pay our bills and set forward a plan to reduce our deficits. I hope Republicans will work with us toward those goals, rather than making this a partisan issue used for political gain."

The vote is expected to hit next Tuesday or Wednesday. In addition, while campaigning last fall for Rep. Robert Hurt, R-Va., Cantor said he "would advocate" a clean, up or down vote on the debt ceiling.

This year, Republicans have said repeatedly that they would only vote for hiking the debt ceiling if there is a framework for substantial cuts.

Over the past decade, Congress has used a variety of parliamentary gambits and "chicanery" to approve debt ceiling increases. Voting to increase the debt ceiling is toxic in Congress, which is why this issue is so big now.

In the past, both Democratic and Republican Congresses have upped the debt limit by hooking the increase to another "must pass" bill (usually something defense oriented) or have made the debt ceiling hike conditional. In other words, once Congress passes something else (often completely unrelated), they have simultaneously increased the debt ceiling -- all without the fingerprints of increasing the debt ceiling.

Fox has obtained talking points and "suggested responses" offered up the House Republican Conference to its rank and file members, giving them guidance on how to explain next week's "clean" debt ceiling vote. The list highlights arguments like the increase would burden the country's children, the country is in this position because Democrats went on a spending spree, and it's bad for the market. The GOP also notes there have been nine clean debt ceiling votes in the House and Senate that have failed since the mid-1970s.

In an effort to tamp down criticism that Republicans are playing "chicken" with the debt ceiling, the GOP notes that this vote (which no one fully expects to pass) is taking place two months before the August 2 deadline set by Treasury Secretary Tim Geithner. That way, if there is no agreement, the GOP can say they voted well in advance of the deadline.

In addition, note some parliamentary gimmickry of sorts by the GOP. Republicans are bringing this bill up under the procedure called "suspension of the rules. This requires a two-thirds threshold to approve the bill. In other words, with 432 members now in the House, 288 would have to vote yes. That is a high bar. That pretty much assures the GOP that it won't pass. If they left it to a simple majority (meaning 217, under these circumstances, there's a chance) it could pass.



Read more: http://politics.blogs.foxnews.com/2011/05/24/house-hold-straight-debt-ceiling-vote-next-week#ixzz1NJxEDx9D

House Majority Leader Eric Cantor (R-VA) says no aid for Joplin without cuts

House Majority Leader Eric Cantor (R-VA) says no aid for Joplin without cuts

May 24th, 2011 12:28 pm ET

Ryan Witt

The horrific tornado that struck Joplin, Missouri may have also created a political battle in Washington D.C. The death toll from the tornado now stands at 119, making it the single deadliest tornado since modern record-keeping began 60 years ago. The financial toll is also expected to be high, with initial estimates putting damages at around $3 billion. Without significant aid from somewhere Joplin will simply not be able to recover from a tornado that literally ripped the town in half. Today House Majority Leader Eric Cantor signaled that the Congress may not be willing to provide aid without accompanying spending cuts to other programs.

[SLIDESHOW: Images of destruction from the Joplin tornado]

Today President Obama pledged to provide "every ounce" of federal resources to helping the victims in Joplin. Thus far FEMA has been on the scene to help with rescue operations. However, in the long-term the President would likely need congressional approval in order to provide a package of financial aid. Any aid package would have to pass through the Republican-controlled House of Representatives, where Cantor serves in a powerful leadership position. As the Washington Times reports, Cantor said any aid would need to be offset by other spending cuts, "If there is support for a supplemental, it would be accompanied by support for having pay-fors to that supplemental." The term "pay-fors" means either spending cuts or tax increases, and the Republicans have firmly stated that they would not pass any tax increases this year. The Washington Times also points out that six years then-House Majority Leader Tom Delay approved Hurricane Katrina aid without offsetting spending cuts. At the time Delay said it was acceptable to just add the Katrina aid on to the deficit.

Finding offsetting spending cuts for the aid to Joplin may be hard in the current political climate.  The Democrats and Republicans just got done passing a very tough set of spending cuts which upset both sides.  Currently the Congress and White House is busy trying to negotiate a deal on the debt ceiling.  Finding cuts to offset aid to Joplin may take weeks if not months, and in the meantime the people of Joplin will be left waiting.
Some might also argue that the money for Joplin should come from private individuals or the state.  Charitable groups and individuals certainly are helping the people of Joplin with supplies including water bottles, first aid kits, and tarps.  However, no group or individual has come forward to pledge the $3 billion needed to rebuild Joplin.  On the state level, Missouri was already struggling to meet budgetary demands before the Joplin disaster, and tax increases are limited by a provision in the Missouri Constitution called the Hancock Amendment.


Continue reading on Examiner.com House Majority Leader Eric Cantor (R-VA) says no aid for Joplin without cuts - National Political Buzz | Examiner.com http://www.examiner.com/political-buzz-in-national/house-majority-leader-eric-cantor-r-va-says-no-aid-for-joplin-without-cuts#ixzz1NJtqqkoO

Monday, May 23, 2011

Ruling Raises Stakes in California’s Fiscal Crisis

May 23, 2011

Ruling Raises Stakes in California’s Fiscal Crisis

LOS ANGELES — The Supreme Court’s order to California to ease overcrowding in the state’s prisons, by releasing tens of thousands of inmates if no other solution can be found, will probably aid Gov. Jerry Brown’s plan to move more inmates from state prisons to county jails.
But it is also sure to set off a fresh round of budget battling in the financially distressed state as the governor and local officials insist on ensuring state financing before changing the system.
The ruling has also already inspired a fresh round of political recriminations, with some law-enforcement officials and Republicans echoing the Supreme Court’s dissenters by saying the release will result in more violence as released inmates, unable to find jobs, return to their former way of life.
“We’re bracing for the worst and hoping for the best,” said Mark Pazin, the Merced County sheriff and chairman of the state’s sheriffs’ association. “This potential tsunami of inmates being released would have such an impact on local communities. Each of those who would be released have really earned their pedigree as a criminal. It could create real havoc.”
And since the court requires that the state reduce the population one way or another, California’s residents were greeting the decision with a mix of nervousness and fatalism. That anxiety is unlikely to be eased by the news that some 200 prisoners took part in a fight on Sunday in the dining hall at San Quentin State Prison in which four men were stabbed or slashed. The cause of the melee was under investigation.
Matthew Cate, the secretary of the California Department of Corrections and Rehabilitation, called the court ruling disappointing because it did not recognize improvements the state had made over the last several years. But Mr. Cate said state officials would push even harder for the Legislature to approve the governor’s plan, which he said would save money over time.
“Our goal is to not release inmates at all,” Mr. Cate said, adding that the governor’s plan would mostly address the overcrowding problem, although it would take three to four years to do so, longer than the two-year timeline laid out by the court. He said the state could apply for an extension and added, “I don’t think we can guarantee anything at this point.”
With the state facing a $10 billion deficit, Republicans have refused to sign on to the governor’s plan to ask voters to approve tax extensions. Under Mr. Brown’s proposal, some of that money would go to the counties, which would have responsibility for housing and rehabilitating the inmates.
According to Mr. Brown’s plan, no inmate convicted of violent, sex-related or otherwise serious crimes would be sent to the county jail systems. And while many counties have said that they can cope with the inmates, they say it would be impossible without extra money from the state.
“The only logical way to deal with the court order in a manner that continues to protect the public is to send some people to the counties,” said Paul McIntosh, the executive director of the California State Association of Counties. “A one-time release would be a terrible decision, and we need a fundamental change in the way we deal with criminals. The state really needs to step up quickly to give us the ability to deal with this.”
Lee Baca, the Los Angeles County sheriff, said the state, with the help of local officials, should immediately begin devising a plan, particularly to assure the public that hardened criminals would not soon be roaming the streets.
“The public does not want to see a violent predator slip through the cracks on this,” Sheriff Baca said. “We have to assure them that the department of corrections will not make a mistake on who gets released.”
Los Angeles County is expected to have some 11,000 prisoners come into its system under the plan. Sheriff Baca said he was confident that the county had programs to deal with the additional inmates and could do even more with programs to reduce recidivism.
“But you can’t just foist the problem on us without any more money,” he said.
Donald Specter, who argued for the prisoners before the Supreme Court, called the landmark ruling “fantastic” and said it would force the state to deal with problems it had long tried to avoid.
“The state has a lot of options,” Mr. Specter said. “It can reduce sentences for parole violations or change sentencing law or go along with the governor’s plan, but it has to do something.”
In Sacramento, Sheriff Scott Jones was less enthusiastic. He said the ruling could have “horrific consequences” in his jails, which are nearly filled to capacity each day.
“Whatever money they don’t give us, we have to make up with letting go a commensurate number of parolees or people who should be behind bars,” Sheriff Jones said. “There has to be a better way, but I don’t think we are going to get it here.”

Analysis: Insurers face big losses from weather disasters

Analysis: Insurers face big losses from weather disasters

An entire neighborhood lay in ruin after a devastating tornado hit Joplin, Missouri May 23, 2011. REUTERS/Mike Stone
CHARLOTTE, North Carolina | Mon May 23, 2011 5:59pm EDT
(Reuters) - Devastating tornadoes, floods, earthquakes overseas and a busier-than-usual hurricane season have U.S. insurance companies bracing for record losses in 2011.
Insurers could suffer as much as $10 billion from weather-related losses in the United States in 2011, which is up from the average of $2 billion to $4 billion, according to EQECAT Inc, which provides disaster and risk models to insurance companies.
On top of the potential U.S. losses, insurers are also reeling from disasters overseas, including large earthquakes across the Pacific Rim. And as if that was not enough, analysts now expect an above-average Atlantic hurricane season.
"This is not a black swan year that is an absolute worst case, but it is significant and it is close to that," said Jose Miranda, director of client advocacy at EQECAT Inc, which provides disaster and risk models to insurance companies.
Globally -- including the major earthquakes in New Zealand and Japan -- U.S. and overseas insurers could post up to $55 billion in losses, EQECAT projects.
Some insurers have already posted large losses due to the Japan and New Zealand quakes.
Berkshire Hathaway Inc (BRKa.N)(BRKb.N) lost $1.07 billion from the Japan earthquake and $412 million from the quake in New Zealand.
During the annual meeting in Omaha, Nebraska on April 30, CEO Warren Buffet said the company would likely post its first full-year loss in insurance underwriting in nine years.
And insurance stocks have lagged the broader market because of investor worries about catastrophic losses.
The S&P Insurance Index .IUX is flat since the beginning of the year, lagging the broader S&P 500 Index .SPX, which has risen 4.7 percent.
ROUGH WEATHER
In the United States, spring storms -- and the billions of dollars in damage left behind -- were the result of a rare confluence of more violent weather hitting densely populated areas, said James Aman, a senior meteorologist with Earth Networks Inc - Weatherbug.
"It has been a particularly devastating year," said Aman.
Over a six-week period this spring, tornadoes ripped through Southeastern and Midwestern states flattening neighborhoods in large Southern cities such as Raleigh, North Carolina and Tuscaloosa, Alabama.
So far, tornadoes have killed 365 people in the United States, a figure nearly six times higher than the three-year average of 64 deaths, according to the National Weather Service.
Already, 1,151 tornadoes have occurred in the United States this year, nearing the 1,282 reported in all of 2010, but below the all-time high of 1,820 in 2004.
The increase in Spring storms has insurers preparing for the worst.
In a recent interview with Reuters, Hartford Financial Services Group Inc (HIG.N) Chief Executive Liam McGee said the company expected second quarter catastrophic losses to rise.
"I don't think there's any question that there will be a bit more to handle," McGee said on May 2 after Hartford reported first quarter results.
Others are increasing the disclosure of their losses. The nation's largest home insurer, Allstate Corp (ALL.N), said last week it would take the unusual step of disclosing any monthly catastrophic loss estimates that exceed $150 million. The company projected the April storms would cost $1.4 billion and totaled more than 100,000 claims.
As tornado season slows this summer, insurers will have to contend with a busy hurricane season, although less active than last year.
The National Weather Service projects as many as 18 named storms this year, compared with the long-term historical average of about 11.
Miranda said insurers avoided large losses last year, despite a record number of hurricanes, because none made landfall in the United States, a lucky break that is unlikely to be repeated.
"Chances of that happening again are definitely slim," he added.
(Reporting by Joe Rauch; editing by Andre Grenon)

Students Locked Out of School After Rent Dispute

Students Locked Out of School After Rent Dispute


Lou Danztler Preparatory Charter Middle School in South Los Angeles. (KTLA-TV)
Lou Danztler Preparatory Charter Middle School in South Los Angeles. (KTLA-TV)
SOUTH LOS ANGELES (KTLA) -- Teachers, parents and students arrived at a South L.A. charter school Monday morning to find its doors were locked and would not be opening.

Lou Dantzler Preparatory Charter School was shut down without notice Monday, leaving 400 students out of class three weeks before the school year ends.

The Charters Boys and Girls Club, which rents the land to the organization that runs the school, says that the Inner City Education Foundation has not paid rent for six months.


"We got a letter from them that they were under financial constraints and that going forward that they would promise to pay on time," club president Corey Dantzler told KTLA.

"I don't think it's right," parent Darren Jordan said. "Don't punish my babies for something they didn't do."

The club tells KTLA they have reached an agreement with ICEF and the school will be reopened Tuesday.

ICEF, which is run by former Mayor Richard Riordan, has not released a statement.

Tornado response update- restricted zones on the North Side

Tornado response update- restricted zones on the North Side

This morning the Minneapolis Police Department in cooperation with other City departments has developed an exclusion zone in the hardest hit areas of North Minneapolis into which only residents will be allowed once the areas are considered to be safe.
Currently crews are in the area repairing gas leaks, clearing roads, locating and neutralizing downed power lines and assessing the damage to buildings.  This work will continue through the day until it is complete.  As such it is necessary to prohibit all access to a block until that block is considered safe.  Once a block is considered safe residents of that block can enter the area through one of the designated checkpoints. 
Checkpoints are located at the following intersections:
  • 42 Avenue North and Lyndale Avenue North
  • Dowling Avenue North and Lyndale Avenue North
  • Lowry Avenue North and Lyndale Avenue North
  • 26th Avenue North and Fremont Avenue North
  • West Broadway and Fremont Avenue North
  • Penn Avenue North and Golden Valley Road
  • Oak Park/ Thomas Avenue North
  • Golden Valley Road and Xerxes Avenue South
  • Penn Avenue North and 12th Avenue North
  • Penn Avenue North and 26th Avenue North
  • Penn Avenue North and Lowry Avenue North
  • Penn Avenue North and Dowling Avenue North
  • 42nd Avenue North and Humboldt Avenue North
Non-residents will not be permitted into the exclusion zone until such time as City services can support such traffic.  Persons who attempt to enter the exclusionary zone prior to areas being opened, attempt entry without going through an authorized checkpoint or who are non-residents can be charged with a misdemeanor under Minnesota State Statute 12.45.  These restrictions are in place to ensure the safety of everyone. 
Only residents will be allowed to enter after the areas have been cleared of major hazards.  Anyone in the North Minneapolis area should be aware that emergency responders have found quantities of small debris that have damaged numerous vehicle tires. There are barricades outside of the exclusion zone.  These are in place to exclude traffic from areas in which roads are impassable or hazards exist.
Minneapolis schools in the exclusion zone
The Minneapolis Public School District has informed the Minneapolis Police Department that the following schools in the exclusion zone will be closed Monday, May 23:
  • Lucy Laney
  • City View
  • Nellie Stone Johnson
  • Hmong International Academy
  • Northstar
  • Plymouth Youth Center
No school buses will be able to enter the exclusion zone as many roadways are still impassable. 
I-94 exit ramps on Northside to remain closed until further notice
As many main thoroughfares on the Northside are impassable the following exits from northbound I-94 will be closed starting at 5 a.m.:
  • Broadway/Washington Avenue
  • Dowling Avenue
  • 49th  Avenue North /53rd Avenue North
It is unknown when these off ramps will re-open.  All on ramps onto I-94 are unaffected.
Some Metro Transit bus service will also be affected.  Please consult Metro Transit for those changes.
May 23, 2011 9:45 a.m. update