Saturday, January 21, 2012

These are the states hemorrhaging red ink

AP

Nevada is among the states most stung by the downturn. Between 2006 and 2010, home values plummeted a staggering 44.5 percent.

By Michael B. Sauter, Charles B. Stockdale and Ashley C. Allen, 24/7 Wall St.

Balancing the budget is not just a federal problem, but a state one as well. The Great Recession resulted in some of the worst state revenues and budget shortages of all time. According to a report on state budgets by the Center for Budget Policy Priorities, dozens of states faced shortfalls of hundreds of millions ? or even billions ? of dollars.

24/7 Wall St. examined the 10 states that had budget shortfalls of 27 percent or more of their general funds for fiscal year 2011 ? the states that were short the most money before they balanced their budgets. For the most part, the states with the worst budget gaps also had among the most anemic economies. Because of their budget shortfalls, all of them have been forced to make dramatic cuts to government services.

Every state but Vermont is required by its own law to balance the budget. In order to do so, state governments have to take extreme measures, instituting deep cuts that often hurt a diversity of residents. In the 2011 fiscal year, 29 states made cuts to services benefiting the disabled and elderly, 34 reduced funds for K-12 and early education, and all but six states reduced positions, benefits or wages of government employees.

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The housing crisis was one of the primary causes for many of the largest budget deficits. The housing markets in states such as Nevada, Illinois and Arizona ? all of which are on the list ? have been hit particularly hard. Home values in Nevada declined the largest amount in the country between 2006 and 2010. Home values in Arizona decreased the fifth-largest amount over that same period. Sick housing markets weaken the economy and lower tax bases, which hurts state revenues and in turn helps create a budget gap.

Overall, weak state economies contributed to lower revenues and rising budget shortfalls. Not surprisingly, states with slower-growing economies tended to have a larger budget gaps. And although the GDP of every state in the nation grew between 2006 and 2010, seven of the 10 states on this list fell within the 15 states with the smallest increases.

While economic slowdowns and housing problems hit most of the states with the worst budget gaps, there were some exceptions. In four of the 10 states, home values actually rose between 2006 and 2010, the worst period of the recession. Similarly, other states with budget shortfalls weathered the recession relatively well and managed to maintain fairly healthy economies. In Washington state, for example, the median income rose 5.8 percent, the 16th-most in the country, while GDP increased 13.4 percent, the 12th most.

These are the states that cannot pay their bills.

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1. Nevada

  • ?2011 budget shortfall as a percentage of general fund:?54.5
  • ?2011 budget shortfall:?$1.8 billion
  • ?2012 projected budget shortfall:?37.4 percent (the largest)
  • ?GDP change (2006 - 2010):?+1.2 percent (smallest increase)
  • ?Median home value change (2006 - 2010):?-44.5 percent (the largest decline)

No state has suffered during the recession more than Nevada. Between 2006 and 2010, home values plummeted a staggering 44.5 percent, the poverty rate increased 26 percent, median income dropped 3.8 percent and GDP increased only 1.2 percent. Each was the worst in the country for that category. Last year, Nevada?s budget gap was $1.8 billion, the equivalent of 54.5 percent of available funds. This was the third year in a row the state has had one of the worst shortfalls in the country, and that trend appears ready to continue through at least 2013. In order to balance its budget last year, Nevada was forced to raise taxes significantly, cut dental and vision services from Medicaid coverage for adults, reduce financial aid funding, and cut state employee salaries.

2. Illinois

  • ?2011 budget shortfall as a percentage of general fund:?40.2
  • ?2011 budget shortfall:?$13.5 billion
  • ?2012 projected budget shortfall:?16.0 percent (11th largest)
  • ?GDP change (2006 - 2010):?+8.2 percent (13th smallest increase)
  • ?Median home value change (2006 - 2010):?-4.2 percent (11th largest decline)

Illinois has consistently had among the largest budget shortfalls in the country since 2009. It also was hit extremely hard by the recession. Between 2006 and 2010, home values decreased by 4.2 percent. GDP grew a relatively small 8.2 percent. Median household income increased less than 2 percent. The state made cuts in its budget for community mental health services for both children and adults, and it cut its school education funding by 4 percent, or $311 million. Governor Pat Quinn has announced also that he will lay off thousands of state employees.

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3. Arizona

  • ?2011 budget shortfall as a percentage of general fund:?39.0
  • ?2011 budget shortfall:?$3.3 billion
  • ?2012 projected budget shortfall:?17.0 percent (10th largest)
  • ?GDP change (2006 - 2010):?+2.7 percent (4th smallest increase)
  • ?Median home value change (2006 - 2010):?-28.6 percent (4th largest decline)

Like its neighbor Nevada, Arizona was hit particularly hard by the subprime mortgage crisis. Between 2006 and 2010, median home values plunged 28.6 percent in the state, the fourth worst price drop in the country. GDP, poverty and income levels have either stagnated or become significantly worse during this period. Since 2009, the state has had among the worst budget gaps in the country, a combined total of $12.1 billion for the three years. To balance its budget, Arizona has made dramatic budget cuts, including revoking Medicaid eligibility of more than 1 million low-income residents and cutting preschool for more than 4,000 children.

Click here for more states that cannot pay their bills

Source: http://bottomline.msnbc.msn.com/_news/2012/01/11/10126535-nevada-illinois-among-states-that-cant-pay-their-bills

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Friday, January 20, 2012

Paul McCartney hints at role in 2012 Olympics (AP)

LONDON ? Paul McCartney says he is in talks to play a role in the London 2012 Olympic celebrations.

The former Beatle says he "might be doing something" in the Olympics but is not sure what role he may play in the events.

Speaking at a promotional event for his new album on Thursday, McCartney said he will go to a meeting about the Games on Friday where he expects to learn more about "something they want me to do."

McCartney also said he might be involved in another massive British celebration this year: Queen Elizabeth II's Diamond Jubilee.

Describing himself as a "big fan of the queen," McCartney said he "could easily" participate in festivities if he is asked.

The Olympic Games take place July 27 to Aug. 12.

Source: http://us.rd.yahoo.com/dailynews/rss/britain/*http%3A//news.yahoo.com/s/ap/20120119/ap_on_re_eu/eu_britain_paul_mccartney

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Thursday, January 19, 2012

The Lone Ranger Rides Next Month

The Lone Ranger Begins Shooting in February

Jerry Bruckheimer and Gore Verbinski?s The Lone Ranger has gone through all manner of rigmarole since its inception ? not the least of which was the inclusion of mystical werewolves (or should we say ?supernatural coyotes??) and a radically ballooning budget as a result.

But those werewolves/coyotes ? among other expensive items? have since been cut from the film in order for it to be greenlit, or so they say. Now, finally, Lone Ranger will begin shooting next month in New Mexico.

Check out a portion of the press release below from New Mexico Governor Susana Martinez and the New Mexico Film Office:

January 13, 2012 SANTA FE ? Governor Susana Martinez and the New Mexico Film Office announced today that Walt Disney Pictures and Jerry Bruckheimer Films? ?The Lone Ranger,? directed by Gore Verbinski and starring Johnny Depp, will begin principal photography in New Mexico in February 2012, with production planned in and around Albuquerque, Santa Fe, Shiprock and other locations around the state through the middle of August 2012.

?The Lone Ranger is proof that New Mexico?s film industry is alive and well,? said Governor Martinez. ?This administration is committed to fostering productive relationships with film studios so we can continue to offer our talented workforce and breathtaking backdrops for major productions. As we continue to build upon our reputation as a premier film production center, we are pleased to welcome The Lone Ranger to our state.?

[?]

The Lone Ranger is directed by Gore Verbinski, produced by Jerry Bruckeimer, and features an all-star cast with Johnny Depp as Tonto and Armie Hammer as John Reid, the Lone Ranger. The Lone Ranger is a thrilling action adventure infused with action and humor, in which the famed masked hero is brought to life through new eyes. Native American spirit warrior Tonto recounts the untold tales that transformed John Reid a man of the law, into a legend of justice?taking the audience on a runaway train of epic surprises and humorous friction as the two unlikely heroes must learn to work together and fight against greed and corruption.

That last paragraph almost makes it sound like a buddy-cop movie set in the wild, wild west, which isn?t automatically a bad thing.

It?s unclear at this point how much of the mystical aspect of Gore Verbinski?s Lone Ranger will remain in the final product. One thing you can probably count on is that Tonto, as played by Johnny Depp, will likely be the protagonist to Armie Hammer?s sort-of-sidekick Lone Ranger (a la the tangentially-related Green Hornet). Other things you can expect: The rip-roaring adventure and comedy hijinks that Bruckheimer, Verbinski, and Depp made so popular in their Pirates of the Caribbean trilogy.

The Lone Ranger and his trusty steed

Alas, if Lone Ranger turn out to be a box-office failure, one thing you should not expect is another big-budget western film for a very long time ? especially after Cowboys & Aliens? lukewarm success.

Are you guys looking forward to Gore Verbinski?s fresh new take on The Lone Ranger? Let us know in the comments.

-

Follow me on Twitter?@benandrewmoore.

The Lone Ranger?is expected to hit theaters May 31st, 2013.

Source: http://www.rottentomatoes.com/m/1924325/news/1924325/

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Immigration courtrooms silent during ICE review (AP)

DENVER ? In a trial of a politically divisive program, U.S. prosecutors in Denver and Baltimore are reviewing thousands of deportation cases to determine which illegal immigrants might stay in the country ? perhaps indefinitely ? so officials can reduce an overwhelming backlog by focusing mainly on detainees with criminal backgrounds or who are deemed threats to national security.

Federal deportation hearings for non-criminal defendants released from custody were suspended Dec. 5 for the review and resume this week. Similar reviews are planned across the country to allow U.S. Immigration and Customs Enforcement to target deportations of illegal immigrants with criminal records or those who have been deported previously.

While the immigration courtrooms in Denver have fallen silent, prosecutors had time to examine case files, check residency history ? such as whether someone was brought to the country as a child ? as well as criminal history.

In Denver, 25 ICE prosecutors and three managers spent their work days during most of December and early this month poring over as many files in their case load as possible, ICE spokeswoman Barbara Gonzalez said.

"They come in on weekends," Gonzalez said. "They're looking at every case."

Officials have not released information on how many cases will be placed on low priority based on the review. When they're finished, cases of those here illegally but deemed not a threat to public safety or national security will be placed on administrative hold and the numbers will be released.

Citing tight budgets, Homeland Security Secretary Janet Napolitano announced this summer that nearly 300,000 deportation cases would be reviewed to determine which could be closed through "prosecutorial discretion." Republicans have decried the policy as a back-door way of granting amnesty to people who are living in the U.S. illegally.

"We simply cannot adjudicate all these cases that are pending," said spokeswoman Gonzalez. Some cases in Denver date to 1996, she said.

"It's a holiday for anybody in the country illegally," said Ira Mehlman, spokesman for the Washington-based Federation for American Immigration Reform, which opposes the initiative. "They're doing this with the intention of dismissing as many of them as they possibly can."

Several attempts at immigration reform have failed in recent years, including the so-called DREAM Act, which would have allowed some young illegal immigrants brought to the U.S. as children to earn legal status if they went to college or joined the military.

In June, ICE director John Morton announced that prosecutors and immigration agents would consider a defendant's length of time in the country, ties to the community, lack of criminal history and opportunity to qualify for some form of legal status in deciding whether to press for deportation.

Denver has about 7,800 deportation cases pending, while Baltimore has about 5,000. Hearings and deportations involving criminal immigrants continued in both Baltimore and Denver. The suspended hearings dealt only with non-criminal defendants.

Before expanding the program, officials will examine the effect of the review on caseloads. They are also seeking to balance hearing high priority cases with those in which a person might have a strong case but has waited years for a hearing because of the backlog, said former Immigration and Naturalization Service commissioner Dorris Meissner.

Those who offered prosecutorial discretion don't have to accept, and can insist on having their case heard by a judge.

"Everybody thinks that people just want to have their case dismissed," said Meissner. "If they accept prosecutorial discretion, it's true they don't go before a judge and they don't get deported, but their case is in limbo."

For some, word that their cases have been postponed brings relief ? but not closure. They're still in the country illegally.

Jesus Gerardo Noriega, 21, of Aurora, Colo., said he learned in December his case was being closed.

"I'm happy that I don't have to show up in court every six months so they don't deport me," Noriega said. But, he added: "I'm in limbo. I can't do anything."

Noriega's family brought him to the United States from Mexico when he was 9. His parents and three brothers live here legally, and he graduated from high school ? but only applied for a work visa last year. He faced deportation after being arrested in April 2010 for driving with no license plate light.

Deportation cases have risen sharply since 2007, when Homeland Security began using fingerprints collected from those held in local jails to identify and deport criminals and repeat immigration violators. Those cases increased from about 174,000 in 2007 to about 298,000 in 2011, according to figures compiled by the Transactional Records Access Clearinghouse, a research group affiliated with Syracuse University.

Immigrant advocates have blasted the fingerprint program, called Secure Communities, for subjecting people to deportation after minor traffic infractions or misdemeanors. Some state laws require police to notify ICE of suspected illegal immigrants.

But advocates say they welcome the federal review as a way to deal with a sluggish immigration court system where cases can linger for years.

"The courts are a mess," said Susan Barciela, Miami-based policy director for Americans for Immigration Justice. "The volume keeps getting bigger and people's rights are being violated."

During the pilot program, Denver and Baltimore immigration judges were assigned to hear detainee cases elsewhere.

"The immigration courts are empty," said Denver immigration attorney Hans Meyer of the scene in December and early this month. "It's a pretty busy place, so it's kind of strange."

Source: http://us.rd.yahoo.com/dailynews/rss/topstories/*http%3A//news.yahoo.com/s/ap/20120116/ap_on_re_us/us_deportations_suspended

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Wednesday, January 18, 2012

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Car bomb kills 8 in northern Iraq (AP)

BAGHDAD ? A car bomb killed at least eight people outside the northern city of Mosul on Monday, Iraq officials said, in the latest in a series of attacks to target the country's Shiites since the U.S. withdrawal last month.

Violence has surged across Iraq since the last American troops left the country, with a string of bombings that has left at least 150 people dead since the beginning of the year. Most of the attacks appear to be aimed at Iraq's Shiite majority, suggesting Sunni insurgents are seeking to undermine the Shiite-dominated government.

Monday's blast struck a Shiite district outside of Mosul, a predominantly Sunni city some 225 miles (360 kilometers) northwest of Baghdad, a police official said.

An official at Mosul's Al-Jomhouri hospital confirmed the death toll, and said at least six people were wounded in the attack.

Both officials spoke on condition of anonymity because they were not authorized to brief the media.

A member of the city's local council, Qusai Abbas, said the car bomb blew up near a group of houses where members of the Shebek minority have settled since being driven out of Mosul by Sunni militants during fierce sectarian fighting a few years ago.

The Shebeks are ethnic Turkomen and Shiite Muslims who mostly live in villages east of Mosul, the provincial capital of the ethnically mixed Ninevah province that is predominantly Sunni Muslim.

Mosul has been a hub for al-Qaida in Iraq in past years. Other Sunni insurgent groups have battled Kurdish militias for control over the city, Iraq's third largest, killing thousands of civilians in suicide bombings and shootings.

Hundreds of Christians, Yazeedis and members of other minority groups have been driven out Mosul in recent years as militants used violence and intimidation to tip the ethnic and religious balance into their group's favor.

Iraq is also facing a political crisis after the Shiite-dominated government charged Sunni Vice President Tareq al-Hashemi with running death squads, issuing an arrest warrant against him just as the last U.S. soldiers crossed into neighboring Kuwait.

The sectarian crisis in the government and the spike in attacks ? such as a bombing Saturday that killed more than 50 Shiite pilgrims and an assault Sunday on government buildings in western Anbar province that killed seven ? has raised concerns Iraq could return to the sort of sectarian bloodshed that killed tens of thousands of civilians after the 2003 U.S.-led invasion and brought the country to the brink of civil war in 2006 and 2007.

___

Associated Press writer Barbara Surk contributed to this report.

Source: http://us.rd.yahoo.com/dailynews/rss/iraq/*http%3A//news.yahoo.com/s/ap/20120116/ap_on_re_mi_ea/ml_iraq

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Tuesday, January 17, 2012

Recession slows growth in public prekindergarten (AP)

WASHINGTON ? The expansion in public prekindergarten programs has slowed and even been reversed in some states as school districts cope with shrinking budgets. As a result, many 3- and 4-year-olds aren't going to preschool.

Kids from low-income families who start kindergarten without first attending a quality education program enter school an estimated 18 months behind their peers. Many never catch up, and research shows they are more likely to need special education services and to drop out. Kids in families with higher incomes also can benefit from early education, research shows.

Yet, roughly a quarter of the nation's 4-year-olds and more than half of 3-year-olds attend no preschool, either public or private. Families who earn about $40,000 to $50,000 annually face the greatest difficulties because they make too much to quality for many publicly funded programs, but can't afford private ones, said Steven Barnett, director of the National Institute for Early Education Research at Rutgers University.

And as more students qualify for free or reduced lunch ? often a qualifier to get into a state-funded prekindergarten program ? many families are finding that slots simply aren't available, he said.

In Arizona, a block grant that funded prekindergarten for a small percentage of kids was cut altogether, although a separate public fund still supports some programs. In Georgia, a drop in state lottery dollars meant shaving 20 days off the prekindergarten school year. Proposed cuts in such programs have led to litigation in North Carolina and legislative battles in places like Iowa.

But even in states like New York, where state funding available for prekindergarten has remained relatively steady in recent years, fewer children have access to the programs because inflation has made them more expensive or districts can't come up with the required matching dollars, said Billy Easton, executive director of the Alliance for Quality Education in Albany, N.Y.

Today's climate contrasts with that of 2007, when then-New York Gov. Eliot Spitzer promised universal, public prekindergarten for all 4-year-olds. Other governors made similar commitments when the economy was stronger.

Far from meeting Spitzer's goal, just 40 percent of 4-year-olds attend a state-funded prekindergarten program in about two-thirds of the state's school districts, according to the advocacy group Winning Beginning NY.

"I think it's a moment in time when we have to really push harder," Easton said. "Pre-K is proven to be the most effective education strategy that we can invest in. What it means is that because we failed to live up to our commitment so far to our youngest children, more of them will end up out of work or they will make less money than they would've otherwise and more of them will end up in prison."

Barnett's institute has estimated it would cost about $70 billion annually to provide full-day prekindergarten to every 3- and 4-year old in America, including before- and after-care services.

About 40 states fund prekindergarten programs, typically either in public schools or via funds paid to private grantees, for at least some children. That's in addition to the federal Head Start program, which is designed to serve extremely poor children and offers a broader range of social services. In some places, state-funded prekindergarten and Head Start programs are combined.

Typically, state-funded prekindergarten programs have a narrower focus on education and cognitive development and serve a broader population than the federal Head Start program, which serves nearly 1 million kids.

In Wisconsin, school districts that offer prekindergarten to 4-year-olds must offer it universally, and roughly 90 percent of districts do. But budget cuts mean districts are forced to make other changes like increasing the size of pre-K classes.

"Unfortunately, as the awareness and the need (for early learning) becomes more and more evident, our money gets tighter and tighter and tighter and more programs are not instituted in those areas," said Miles Turner, executive director of the Wisconsin Association of School District Administrators.

Three states offer prekindergarten to all 4-year-olds, according to Pre-K Now, a decade-long project of the Pew Center on the States.

The District of Columbia goes a step further, with universal pre-K for 3- and 4-year-olds. The program is viewed by many as not just a way to help low-income children in the historically low-performing district, but also as a driver to keep middle- and upper-class families in the city and the school system.

At D.C.'s Powell Elementary School, 3- and 4-year-olds sit cross-legged with whiteboards and black markers in hand as teacher Laura Amling belts out, "Up, down, up, down" over classical music. The tots scribble marks similar to an "M" at her command.

This program is not child care. The schedule is filled with Spanish and other lessons, including "buddy reading," with kids describing books to one another.

The kids eat breakfast and lunch family style, so they learn proper etiquette. Songs are sung as the children move to activities to help curb behavior problems. Teachers teach children coping skills and make home visits to bond with parents and children.

While it's too early to know the long-term impact, Principal Janeece Docal says kindergarteners with a pre-K background are writing sentences and discussing books with 3rd-grade level content.

"They trust their teachers. They love their friends," Docal said. "They are invested in their education and you can see that they own that classroom."

Over the past decade, state dollars for prekindergarten more than doubled nationally to $5.1 billion, while at the same time access increased from a little more than 700,000 children to more than 1 million, according to Pre-K Now.

But cuts in state-funded programs began showing up in the 2009-10 school year, according to Barnett's group. He said he's concerned not just that fewer children will be served, but that the quality of the programs will also be affected.

Still, early childhood learning advocates say they are encouraged, in part, because of a recent federal emphasis on improving early childhood programs.

Nine states were awarded a collective $500 million in grants last month to improve access to and the quality of early childhood programs for kids from birth to age 5. A month earlier, President Barack Obama announced new rules under which lower-performing Head Start programs will have to compete for funding.

Not everyone is convinced it's worth the cost.

Chester E. Finn Jr., president of Thomas B. Fordham Institute and a senior fellow at the Hoover Institution of Stanford University, said the government should tightly target its resources on families who really need the prekindergarten programs and otherwise aren't going to get them.

Finn, who has written a book about preschool policy, said Obama's effort on Head Start is a beginning, but more needs to be done. Finn also questioned whether the government was capable of funding universal prekindergarten at a quality level.

"What the universal programs do is they provide an unnecessary windfall for a lot of families that are otherwise doing this on their own just fine, or pretty well, and not enough for kids who really need it," Finn said.

Richard M. Clifford, senior scientist at the FPG Child Development Institute at the University of North Carolina at Chapel Hill, said other developed countries ? including much of Europe ? provide prekindergarten programs.

"Kids come into the regular school better prepared to succeed in school," Clifford said. "In the long term, eventually, I think you'll see all 4-year-olds be eligible for pre-K in this country, but it will take a long time."

___

Online:

Alliance for Quality Education: http://www.aqeny.org

FPG Child Development Institute: http://www.fpg.unc.edu

Head Start: http://www.acf.hhs.gov/programs/ohs

National Institute for Early Education Research: http://nieer.org

Pre-K Now: http://www.preknow.org

Thomas B. Fordham Institute: http://www.edexcellence.net

___

Kimberly Hefling can be followed at http://twitter.com/khefling

Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/ap/20120117/ap_on_go_ot/us_prekindergarten_cuts

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