President Barack Obama signs a Presidential Memorandum on updating the overtime pay system, in the East Room of the White House, March 13, 2014. (Official White House Photo by Lawrence Jackson)
This afternoon, in the East Room of the White House, President Obama signed a Presidential Memorandum directing Secretary of Labor Tom Perez to update and modernize America’s overtime pay system, so that millions of our nation's salaried workers will have the protections of overtime pay.
hide captionStates are taking an out provided by Congress to avoid cutting food stamp benefits to families, many of whom already depend on food banks like the Alameda County Community Food Bank in Oakland, Calif.
States are taking an out provided by Congress to avoid cutting food stamp benefits to families, many of whom already depend on food banks like the Alameda County Community Food Bank in Oakland, Calif.
When Congress passed a farm bill earlier this year, it expected to save $8.6 billion over 10 years by closing what many say is a loophole in the food stamp, or SNAP, program. But it's not going to happen.
You see, Congress left states an opening to avoid the cuts. And so far, nearly half of the states participating have decided to take that option – a move that could erase the promised savings.
So many states are rebelling against the cuts that House Speaker John Boehner is urging his fellow congressmen to act.
"Since the passage of the farm bill, states have found ways to cheat, once again, on signing up people for food stamps," Boehner, an Ohio Republican, told reporters Thursday. "And so I would hope that the House would act to try to stop this cheating and this fraud from continuing."
The cuts were related to a program known as "heat and eat." In the past, it had allowed the participating states to give low-income residents as little as $1 a year in home heating aid so they'd qualify for more food stamps.
States said it made the program easier to administer and got help to those who needed it. But the maneuver was called a loophole by both Republicans and Democrats. So last month, Congress agreed to raise the amount of utility assistance states would have to pay to trigger the provision — to more than $20 a year.
The idea was that many of the states that use "heat and eat" would decide it wasn't worth their while. The expected result? Some 850,000 food stamp recipients would have their benefits cut an average $90 a month, which is where the savings would come in.
Turns out, Congress was wrong.
The "heat and eat" program covers 16 states, plus the District of Columbia. Six states — Pennsylvania, New York, Connecticut, Rhode Island, Oregon, Montana — have already declared that they will boost home energy benefits to avoid the food stamp cuts. Two other participants — Vermont and D.C. — are actively working to do the same thing.
Last week, Pennsylvania's Republican governor, Tom Corbett, announced he would spend an additional $8 million in heating assistance this year to prevent $300 million cut in food stamp benefits for state residents.
"Gov. Corbett took the appropriate steps to make sure that Pennsylvania's children are fed, and that families in need are not impacted by what is one of the most substantial federal cuts to food benefits," said Kait Gillis, a spokeswoman for Pennsylvania's Department of Public Welfare.
Gillis says it's kind of a win-win for the state, because the "$300 million that individuals receive in SNAP assistance is then spent in Pennsylvania."
A spokeswoman for Washington, D.C.'s Department of Human Services told NPR that the agency is planning to do the same.
And the head of Vermont's Department of Children and Families, Dave Yacovone, told Vermont Public Radio this week that the state also wants to avoid hurting food stamp recipients who already had their benefits cut by Congress last November.
"This is real important," Yacavone told VPR, "because if we don't make this change, that's on top of an actual $10 million reduction."
Michigan Democrat Debbie Stabenow — who shepherded the farm bill through the Senate — told NPR Wednesday that she and her fellow lawmakers will have to evaluate what states are doing and whether it will indeed eliminate the expected savings.
"I don't know yet what that all means," Stabenow said.
Rachel Sheffield of the conservative Heritage Foundation says she's not completely surprised.
"I mean, this is, you know, a way that states can draw down greater federal dollars, and they're not accountable for those dollars, so why not?" Sheffield says.
Needless to say, anti-hunger advocacy groups are thrilled. Jim Weill, president of the Food Research and Action Center, says the whole debate over whether heat and eat is a loophole just missed the point.
"Food stamps are not enough to get the vast majority of recipients through the month," Weill notes. "The farm bill should have had a debate about how to improve benefits, not how to cut benefits."
He's hoping even more states will now use the "heat and eat' option to boost benefits even higher than they are today.
NATCHEZ, Miss. -- A state report finds visitors to Natchez spent an estimated $106.7 million from June 2012 to July 2013.
The Natchez Democrat reports (http://bit.ly/1gcKbKz ) the Mississippi Development Authority released its annual report last week on the economic contribution of the travel and tourism industry for the state fiscal year 2013, which ran from July 1, 2012 to June 30, 2013.
The report shows Natchez visitors spent 13.2 percent more in the 2013 fiscal year than the $94.2 million spent in the 2012 fiscal year.
Room and restaurant tax revenues totaled $1.59 million, up 12.6 percent over the $1.41 collected in the 2012 fiscal year. The tax revenues include the 3 percent lodging, $2 hotel and bed-and-breakfast occupancy and 1.5 percent restaurant taxes.
Increasing worries about China's economy and rising tensions over Ukraine rattled the stock market Thursday.
Investors sold stocks and shifted to safer assets like bonds. The Dow Jones industrial average fell more than 200 points and Treasury prices rose.
It was the worst day for the market in six weeks and the fourth loss in a row for the Dow. The plunge was a sharp contrast to the relatively quiet trading Monday through Wednesday following a record-setting run last week.
"The data out of China has been weak. The retail sector in America seems to be a total disaster. It's enough, combined with what's going on in Ukraine, to get people a little bit nervous and sell," said Ian Winer, director of trading at Wedbush Securities.
The Dow Jones industrial average slid 231.19 points, or 1.4 percent, to 16,108.89. The S&P 500 index fell 21.86 points, or 1.2 percent, to close at 1,846.34. The Nasdaq composite dropped 62.91 points, or 1.5 percent, to 4,260.42.
The last time the market had a bigger decline was Feb. 3, when the Dow sank 326 points, or 2.1 percent.
Thursday's slide erased the S&P 500 index's gains for the year and extended the Dow's year-to-date loss to 2.8 percent. The Nasdaq is still up 2 percent so far this year.
Nine of the 10 sectors in the S&P 500 index fell. The technology sector lost the most. Utilities bucked the trend, rising 0.9 percent. Investors tend to buy those stocks when they want to reduce risk and hold stable companies that pay steady dividends.
Bond prices rose as traders sought safety. The yield on the 10-year Treasury note declined to 2.65 percent from 2.73 percent a day earlier as bond prices rose.
Concerns over China worsened Thursday after government figures there showed industrial production rose in the first two months of the year at a rate that was lower than analysts were expecting. Retail sales growth also fell short of estimates.
"At this stage, investors are linking these negative data points coming out of China and they don't like what they see," said Lawrence Creatura, a portfolio manager at Federated Investors. "Even small hiccups there can have large implications for investors."
Stocks rose slightly in the early going, then turned lower in late morning trading after President Barack Obama issued remarks after meeting with Ukraine's new prime minister at the White House. Obama said that if Russia continues an aggressive path in Ukraine, the United States and other countries will be "forced to apply costs" to Moscow.
Citizens in the Ukrainian region of Crimea are set to vote on joining Russia on Sunday. The U.S. and European Union say the referendum violates Ukraine's constitution and international law. Russia has said it will respect the results.
Secretary of State John Kerry told a Senate committee on Thursday that Moscow should expect the U.S. and Europe to take measures against it should Russia act on a vote by Crimea to join Russia.
"The hardening of the rhetoric in these communications is a change," Creatura said.
Winer said that investors weren't panicked.
"The selling is pretty complacent," he said. "This is more about how people are positioned in the market."
In corporate news, Dollar General fell $1.63, or 3 percent, to $57.66 after the company reported that its fourth-quarter earnings took a hit from harsh winter storms. It also issued a poor outlook for the year. Other retailers have also reported weaker sales because of the extreme winter weather.
Several companies that provide oil and gas offshore drilling services fell.
Diamond Offshore Drilling fell $1.99, or 4.3 percent, to $44.39, while Noble Corp. shed $1.38, or 4.5 percent, to $28.98. Transocean lost $1.25, or 3.1 percent, to $39.54, and National Oilwell Varco slid $2.13, or 2.8 percent, to $75.18.
Investors received some encouraging news on the U.S. employment picture. The government reported that applications for unemployment benefits dropped 9,000 last week to 315,000. Applications are a rough proxy for layoffs. The declines indicate companies are confident enough about the economy to keep their staffs.
NEW YORK -- The Social Security numbers and other personal information of about 15,000 New York City transit workers has been found on a CD inside a refurbished computer sold by a retailer, according to a letter obtained by The Associated Press.
"While we do not suspect nor have seen any evidence of misuse of the data, every precaution is being taken to ensure that this is the case," the March 6 letter from Metropolitan Transportation Authority Chief Information Officer Sidney Gellineau said.
The MTA said an investigation is underway "to determine the cause of this security breach." A complaint also has been filed with the New York Police Department; an NYPD spokesman did not immediately comment.
A spokesman for the MTA, which runs the city transit system and suburban commuter railroads, referred a reporter to the content of the letter for comment.
The Transit Authority said a customer of an unnamed major retailer purchased a refurbished CD drive for her personal use. That customer discovered the drive contained a CD that had a list of about 15,000 active, retired, deceased and former New York City Transit employees, along with certain personal information — including Social Security numbers, dates of birth, earnings information and other data.
The list includes employees holding positions in various titles, and levels throughout the organization, Gellineau said.
No hourly employees were on the list, the MTA said.
Coincidentally, the customer who bought the computer turned out to be an employee of a vendor that works with the Transit Authority. That person reported the discovery to her employer, who returned it to the Transit Authority's attorney. Gellineau said in the letter that the vendor returned the CD without making a copy.
While thefts of personal information committed by hackers have grabbed headlines lately, experts say it's also not uncommon for personal data to be exposed accidentally.
Beth Diamond, a global claims leader at the insurance company Beazley, said it's entirely possible that the exposure of the personal information resulted from an act of carelessness. She noted that companies and other entities often donate old equipment to nonprofits, who then may in turn sell the equipment to retailers if they don't have a use for it. The disc could have accidentally been left inside when that happened.
Employees also will sometimes look for old equipment at their workplaces that they can steal and resell. And it's possible that a MTA employee copied some data for work-at-home purposes, forgot about the CD and then sold the drive with it inside.
But even in cases where the data is lost and not stolen, disaster can occur. Diamond said there have been cases where businesses such as real estate offices closed down and didn't properly dispose of their clients' personal information, which was then found by criminals.
"If the wrong individuals stumble upon it, they can realize that it can be a gold mine," she said.
In order to prevent accidental breaches, Diamond said many companies put restrictions on employee computers that prevent them from copying files to take home. But no matter how many precautions are taken, breaches caused by human error are inevitable, she said.
The MTA letter noted that the placement of unencrypted personal information on a CD was a violation of its policy. "We are not aware of any other such violation of the policy."
Eltman reported from Mineola, N.Y. Associated Press writers Jake Pearson and Ken Sweet contributed to this report.
WASHINGTON -- The oil company behind the largest offshore oil spill in U.S. history can once again perform work for the federal government.
Under an agreement announced Thursday, more than two dozen BP entities and its Houston-based oil production and exploration arm can secure new government contracts. The company had been suspended from performing any new government work since November 2012. That's when BP agreed to plead guilty to criminal charges involving the death of 11 workers and lying to Congress about how much oil was spilling into the Gulf of Mexico.
For five years, BP will have to abide by a series of ethics, safety and other requirements. An independent auditor will also verify its compliance with the deal.
The company also agreed Thursday to drop its lawsuit challenging the suspension.
PRO FOOTBALL
Pass rusher DeMarcus Ware got a $30 million, three-year contract from the Denver Broncos on Wednesday, less than 24 hours after being released by the Dallas Cowboys.
Not quite keeping pace with the nonstop nature of Day 1 of free agency, Day 2 did include the Buccaneers releasing cornerback Darrelle Revis after failing to trade him; wide receiver Eric Decker bolting Denver to sign with the New York Jets; receiver Golden Tate leaving the Super Bowl champion Seahawks to play alongside All-Pro Calvin Johnson with the Lions; and the Browns cutting two quarterbacks, Brandon Weeden and Jason Campbell.
The Revis move saved the Bucs a $1.5 million bonus that would have been due if he remained on the roster with his $16 million salary. It also freed up room under the cap for a continuing roster overhaul under new coach Lovie Smith and general manager Jason Licht.
In other news, the Oakland Raiders rebuilding plans were dealt a setback when offensive lineman Rodger Saffold failed a physical one day after agreeing to a $42.5 million, five-year contract; Jonathan Martin is getting a fresh start with former college coach Jim Harbaugh after the Dolphins traded him to the San Francisco 49ers; and the agent for Steve Smith says the wide receiver "is not going to play for the Panthers next season."
LOS ANGELES (AP) — Former NFL All-Pro safety Darren Sharper returns to court Thursday for a hearing that will determine whether he's released on bail amid new charges that he drugged and sexually assaulted two women last year in Arizona.
The athlete has been in a Los Angeles jail since Feb. 27, when he turned himself in on an arrest warrant issued by Louisiana authorities on similar charges. Los Angeles Superior Court Judge Renee Korn said last week that she could not hold Sharper indefinitely unless he was charged in New Orleans, which has not yet happened.
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PRO BASKETBALL
EL SEGUNDO, Calif. (AP) — Kobe Bryant won't be back on the court for the Los Angeles Lakers this season.
Bryant expressed only mild frustration Wednesday after the official announcement of the long-expected decision to shut him down for the year. Bryant's broken bone in his left knee still hasn't healed enough for weight-bearing exercise.
With just five weeks left in their miserable season, the Lakers elected to preserve their superstar guard for next year, when he'll be 36.
The Lakers' ruthlessly competitive scorer can't take much more incompetence from his 16-time NBA champion franchise.
"I feel like killing everybody every time I go to the arena," Bryant said. "I'm just on edge all the time. Yeah, I still feel it, probably more than anybody in the organization does. I probably feel it more, and it drives me absolutely crazy."
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Carmelo Anthony said that he has heard Phil Jackson will be "coming on board" with the New York Knicks, the strongest indication yet that the 11-time NBA champion coach will soon be taking over the team's basketball operations.
Anthony went as far as to suggest that it's no longer a question of if Jackson will rejoin the Knicks, but when.
"Everything's in his hands now," Anthony told reporters in Boston at the Knicks' gameday shootaround practice.
SALT LAKE CITY (AP) — Dirk Nowitzki scored 31 points and moved into sole possession of the No. 12 spot on the all-time NBA scoring list in the Dallas Mavericks' 108-101 win over the Utah Jazz.
BOSTON (AP) — NBA commissioner Adam Silver says he doesn't see tanking going on in the league.
Silver said at a Boston College event that he thinks of tanking as players and coaches trying to lose on purpose. But he believes players and coaches are trying to win. Instead, teams are trying to rebuild through the draft, and that's OK.
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PRO HOCKEY
DALLAS (AP) — Rich Peverley will not play again this season after collapsing on the bench during a game.
Whether the Dallas Stars' forward resumes his career won't be known until after a more extensive evaluation of his irregular heartbeat.
Peverley appeared briefly at a news conference, reading nervously from a statement that thanked "the number of people that saved my life" after he went down in the first period of a game against Columbus, stunning players, coaches and fans.
The 31-year-old left the questions to doctors who said his season was over and he would undergo a procedure that he decided to put off when his condition was first discovered during a physical before training camp in September.
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BASEBALL
Brewers outfielder Ryan Braun agreed to an endorsement deal with baseball footwear and apparel company 3n2 LLC — his first since his suspension last year for violating Major League Baseball's anti-drug agreement.
Terms of the deal with the company based in Orlando, Fla., were not disclosed. ESPN.com first reported the agreement.
Company president Marty Graham said the agreement wasn't about the past, but focused on the future. He said the firm has done its research and strongly believes in Braun as an athlete.
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SOCCER
BARCELONA, Spain (AP) — Barcelona eased into the Champions League quarterfinals for the seventh straight year, shaking off a slump that has dropped it to third place in the La Liga standings.
Lionel Messi and Dani Alves scored second-half goals in a 2-1 win over Manchester City that completed a 4-1 aggregate victory.
In the night's other game, Paris Saint-Germain gave up an early goal and rallied past visiting Bayer Leverkusen 2-1 for a 6-1 aggregate win.
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TENNIS
INDIAN WELLS, Calif. (AP) — Novak Djokovic rallied to beat Marin Cilic 1-6, 6-2, 6-3 in the fourth round of the BNP Paribas Open, avoiding the upsets that knocked out two other top-10 players.
Djokovic didn't face a break point on his serve after the first set in the baseline slugfest that ended after midnight PDT. He advanced to the quarterfinals against Julien Benneteau, a 6-3, 7-6 (4) winner over Feliciano Lopez.
Kevin Anderson upset Australian Open champion Stan Wawrinka 7-6 (1), 4-6, 6-1, and sixth-ranked Andy Murray joined Wawrinka on the sidelines, losing to big-serving Milos Raonic, 4-6, 7-5, 6-3.
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CYCLING
BELLEVILLE, France (AP) — Tom Jelte Slagter of the Netherlands won the fourth stage of the Paris-Nice cycling race, with British rider Geraint Thomas taking the overall lead after finishing second in a sprint to the line.
SAN VINCENZO, Italy (AP) — British sprinter Mark Cavendish leads the Tirreno-Adriatico after his Omega Pharma-Quick Step team won a time trial to open the weeklong cycling race.
Stocks are opening higher as traders were encouraged by a pickup in retail sales and more signs of health in the U.S. job market.
The Standard & Poor's 500 index rose three points, or 0.2 percent, to 1,871 in the first few minutes of trading Thursday.
The Dow Jones industrial average rose 45 points, or 0.3 percent, to 16,384. The Nasdaq composite increased seven points, or 0.2 percent, to 4,330.
General Electric rose 1 percent after the company said it would spin off its North American consumer lending unit.
The Commerce Department said Thursday that retail sales rose 0.3 percent in February as Americans spent more on autos, clothing and furniture.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.75 percent from 2.73 percent late Wednesday.
The price of oil rose above $98 per barrel on Thursday after plunging the day before on concern China's economic slowdown is deepening.
Benchmark U.S. crude for April delivery was up 11 cents to $98.19 per barrel at 0830 GMT in electronic trading on the New York Mercantile Exchange. A day earlier, the contract fell $2.04 to close at $97.99, its first close below $100 in a month.
Brent crude, used to set prices for international varieties of crude, was down 2 cents to $107.33 on the ICE exchange in London.
A decline in Chinese exports in February has fueled worries the world's second-largest economy is weakening further. Growth in factory output, investment and retail sales, reported Thursday, was unusually weak.
Oil prices had been falling after spiking last week on fears Russia's military incursion into the Crimean Peninsula might lead to U.S. and European sanctions on one of the world's largest energy suppliers.
Providing some support to prices, the Organization of Petroleum Exporting Countries, which accounts for around a third of the world's oil production, raised slightly its forecast for global crude demand in 2014.
In its monthly oil market report released Wednesday, OPEC estimated the world will consume 91.1 million barrels a day this year, 1.14 million barrels more than in 2013 and 50,000 barrels above the group's previous forecast released in February.
In other energy futures trading on Nymex:
— Wholesale gasoline shed 0.3 cent to $2.952 a gallon.
— Heating oil declined 0.5 cent to $2.921 a gallon.
— Natural gas lost 2.7 cents to $4.463 per 1,000 cubic feet.
WASHINGTON -- U.S. businesses continued to restock their shelves and warehouses in January, but sales plunged during the snowstorm-plagued month.
The Commerce Department says inventories rose 0.4 percent after a 0.5 percent increase in December. But sales dropped 0.9 percent in January after a 0.1 percent decrease the previous month, putting sales back near September 2013 levels.
The report suggests that winter weather kept shoppers at home. But businesses anticipate a rebound because they expanded their inventories to meet expected demand in the months ahead.
Still, there is a possible danger to economic growth: When companies build their stockpiles as their sales fall, they may end up stuck with more goods than they need.
That potentially forces them to slash prices and sell at discounts in order to clear the extra inventory.
WASHINGTON -- The U.S. government is running a deficit that is 23.6 percent lower than in the same period a year ago through the first five months of this budget year, another sign of improvement in the nation's finances.
In its monthly budget report, the Treasury Department said Thursday that the deficit for February totaled $193.5 billion, the largest monthly imbalance in a year. The government traditionally runs large deficits in February, a month when it is sending out tax refund payments.
For the period from October through February, the deficit totals $377.4 billion, down from $493.95 billion a year ago.
Last week, President Barack Obama sent Congress a new budget which projects the deficit will fall to $649 billion this year, down from a $680 billion deficit last year.
The Congressional Budget Office is forecasting an even lower deficit this year of $514 billion. Both the administration and the CBO expect the deficit to improve as an improving economy boosts tax revenues and lowers spending on such government support programs as unemployment benefits.
The deficit is also being trimmed by tighter spending restraints imposed in response to four straight years in which the deficit soared above $1 trillion annually.
Through the first five months of this budget year, which begins on Oct. 1, government receipts totaled $1.1 trillion, 9.3 percent higher than the same period a year ago. Outlays totaled $1.48 trillion, 1.5 percent lower than a year ago.
The CBO is forecasting that the deficit will fall further to $478 billion in 2015. But it sees deficits rising after that, climbing above $1 trillion again in 2022 and 2023. The deficits will be pushed higher by rising spending on the government's big benefit programs including Social Security and Medicare, as baby boomers retire.
Republicans attacked Obama for failing in his new budget to put forth significant changes to deal with the soaring entitlement costs. Obama did offer a major proposal last year, reducing the cost-of-living increases paid to Social Security recipients, but he made that offer on condition that Republicans agree to increase taxes on the wealthy.
In his new budget, Obama did not include a proposal to trim cost-of-living increases, saying he would not offer that again until Republicans showed flexibility on higher taxes for the wealthy.
Obama's budget, which proposes spending $3.9 trillion in the budget year that begins Oct. 1, included many spending and tax proposals he has put forward before. It was met with heavy Republican criticism for spending too much and failing to do enough to tackle the country's long-term deficit problems.
However, the expectation is that the budget wars of the past three years may subside this year following an agreement reached last December on the broad outlines for spending for the next two years.
That will allow Washington to avoid the contentious showdowns that culminated in a 16-day partial government shutdown last October.
The cease-fire in the budget wars also includes legislation Obama signed into law last month that will suspend the government's borrowing limit through March 15 of next year, putting off another battle over raising the debt limit until a new Congress is elected next November and takes office next January.
WASHINGTON -- A Malaysia Airlines plane was sending signals to a satellite for four hours after the aircraft went missing, an indication that it was still flying, said a U.S. official briefed on the search for the plane.
The Boeing 777-200 wasn't transmitting data to the satellite, but was instead sending out a signal to establish contact, said the official, who spoke on condition of anonymity because he wasn't authorized to discuss the situation by name.
Boeing offers a satellite service that can receive a stream of data during flight on how the aircraft is functioning. Malaysia Airlines didn't subscribe to that service, but the plane still had the capability of connecting with the satellite and was automatically sending pings, the official said.
The continuing pings led searchers to believe the plane could have flown more than 1,000 miles beyond its last confirmed sighting on radar, the official said. The plane had enough fuel to fly about four more hours, he said.
Messages involving a different data service also were received from the airliner for a short time after the plane's transponder — a device used to identify the plane to radar — went silent, the official said.
NASHVILLE, Tenn. -- Pritchard's Distillery has struck a deal with Aveniu Brands to market and distribute its spirits.
Kelso-based Pritchard's became the first legal distillery in Tennessee since Prohibition when it opened in 1997. The company is building a second distillery in Nashville that is expected to begin production by May.
Terry Marshall, the chief operating officer at Pritchard's, said the deal will allow the company to focus on making spirits while handing off the logistics of promoting and delivering its whiskeys and rum to customers.
Andrew Mansinne, the president of Aveniu Brands, said Pritchard's was founded long before the concept of "craft distilling" became widely known.
Aveniu is a subsidiary of Spanish wine maker Grupo Codorniu.
LOS ANGELES -- Dogs and cats have become part of the American family's inner circle over the past 20 years, sleeping in their own beds or yours, eating food bought specially to help their digestive tracts, drinking purified water and cuddling up in chairs on heated pads made to fend off arthritis.
In addition to veterinarians, some pets have their own groomers, trainers, sitters and occasional walkers.
All this suggests a bright future for an industry that has grown alongside the popularity of pets, expanding at a steady 4 percent to 6 percent a year since the American Pet Products Association started record-keeping in 1996.
Americans spent an all-time high $55.7 billion on their pets last year, and spending will creep close to $60 billion this year, association president and CEO Bob Vetere told buyers and exhibitors at the Global Pet Expo in Orlando, Fla., on Thursday.
The biggest chunk of 2013 spending, $21.6 billion, went for food — a lot of it more expensive, healthier grub. In 1996, total pet spending was just $21 billion. Adjusted for inflation, that's $31.3 billion.
The humanization of our pets started about 20 years ago, Vetere said in a telephone interview. As pets accepted their new perch in the family, manufacturers introduced products that helped animals move from the backyard to the front room.
"What is feeding a large part of the growth now are the baby boomers who have become empty-nesters and are looking for some other ways to find the love and affection they used to get from their kids," Vetere said.
"In the past, children were a reflection of us, and people are now extending that to their pets," said Dr. Jessica Vogelsang, a San Diego veterinarian who owns the website pawcurious.com.
People don't bring their pets in just for health reasons anymore — they also want them to look good and smell good, she said. "From my perspective, it's a good thing. It's nice to see people care as deeply as they do."
People have always spent more on food than any other pet spending category, and pet food trends follow human food and diet trends, according to Vetere.
That means if you are on a health kick, chances are your pet is too.
"Food choices are extraordinarily confusing," Vogelsang said. "I think people spend more time in the dog food aisle than they do in the rest of the store."
Sales numbers show owners are buying more age-specific, breed-specific, vitamin-infused or additive-enhanced foods, Vetere said.
Dave Bolen is president and CEO of Pet Supplies Plus, a chain of 294 specialty stores in 24 eastern states. His 25-years-old business has expanded every year — it opened eight stores in 2013 and plans to open 30 this year.
"We are bullish about pet ownership," he said.
It can only get better, Bolen added, as people discover all the healthy benefits of owning pets.
Other spending last year included $14.4 billion for veterinary care; $13.1 billion for supplies and over-the-counter medicines; $2.2 billion for live animal purchases; and $4.4 billion for other services.
How much did Americans spend on other popular industries? They spent just under $44 billion on carbonated soft drinks in 2012, based on the latest year of data available, the Mintel Group said. In 2013, Americans spent $83 billion on beer, Mintel said, although Beer Marketer's Insights set sales at just over $100 billion.
Other pet industry spending last year included $14.4 billion for veterinary care; $13.1 billion for supplies and over-the-counter medicines; $2.2 billion for live animal purchases; and $4.4 billion for other services.
Those services include grooming, boarding, training and pet-sitting and grew by the largest percentage last year — 6.1 percent.
Health and wellness products, supplies and over-the-counter medications — which grew by 7.4 percent in 2012 — grew only 3.9 percent in 2013, Vetere said.
Sales of live animals — everything except dogs and cats — has fallen off in the past few years, Vetere said. He expects it to drop off another 2 percent this year.
American pets include an estimated 95.6 million cats and 83.3 million dogs, the APPA said. There are also 20.6 million birds, 8.3 million horses, 145 million freshwater fish, 13.6 million saltwater fish, 11.6 million reptiles and 18.1 million small animals.
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Online:
American Pet Products Association, http://bit.ly/1cY14ZF
hide captionDemocrats may have lost the battle in a Florida special election, which Republican Rep. David Jolly (right) won and in which the Affordable Care Act figured prominently. But they don't think they have lost the health-law messaging war.
Democrats may have lost the battle in a Florida special election, which Republican Rep. David Jolly (right) won and in which the Affordable Care Act figured prominently. But they don't think they have lost the health-law messaging war.
Congressional Democrats' messaging on the Affordable Care Act obviously didn't work as they had hoped in the Florida special election for a vacant House seat, since Republican David Jolly won the Tuesday vote.
But does that mean Democrats should abandon the "fix it, don't nix" it message delivered by Democrat Alex Sink, who narrowly lost a race that Republicans sought to nationalize and turn into a referendum on the health law?
Rep. Nancy Pelosi, D-Calif., certainly isn't saying so.
"I think that our candidate Alex Sink — she's so excellent, so superb — and she said it just right. There are many good things about the Affordable Care Act that are good for the health and well-being of the American people," Pelosi told journalists Thursday. "There are some things that need to be fixed. Let's do that. And that is the message of our members."
There's new polling evidence to suggest that Pelosi isn't just being blindly optimistic. A Bloomberg News poll indicates that 64 percent of Americans support the law as is, or favor minor changes.
The problem for Democrats is that's a national poll. The numbers would likely look far different in the Republican-leaning districts that Democrats would need to pick up to have any chance to win back the House in November — something which seems nearly impossible at this stage.
The same holds true for the four vulnerable Democratic senators who represent red states Obama lost; antipathy to the law overall runs higher in those states.
Indeed, the poll found 72 percent of Republicans favoring repeal of the law. That kind of number has Republicans confident that they can only benefit as Democrats rally around the health law.
"It's clear that she's in denial," Andrea Rozbek, press secretary for the National Republican Congressional Committee, says of Pelosi. "Look, Alex Sink followed Nancy Pelosi and the [Democratic Congressional Campaign Committee's] playbook and she couldn't escape the weight of Obamacare in an Obama district. So my question for Democrats is, how are they going to win the Mitt Romney districts? What's their playbook going forward because clearly what they did in the special didn't work."
While Obama won the district twice, Florida's 13th congressional district is barely an "Obama district." The president won it narrowly in 2008 (4.2 percent) and 2012 (1.5 percent). Legislative redistricting after the 2010 census made the district more favorable to Republicans. It has higher percentages of white voters and those age 65-years-plus than the typical district the president won.
Rozbek said the Republican playbook is to continue the overwhelming anti-Obamacare messaging, using incumbent Democrats' votes for the health law against them — as well as pledges like the one Obama made suggesting people could keep their health insurance if they chose to do so. That was something they couldn't do with Sink, a non-incumbent. Also, people who Republicans say were harmed by the law will appear often in Republican ads, Rozbek said.
The Bloomberg poll does seem to offer some hope for congressional Democrats. Large majorities of Republicans actually want to keep some of the law's most popular features, to the poll indicates.
Sixty two percent of Republicans like that insurance companies are banned from discriminating against those with preexisting conditions, while 57 percent of Republicans like that the law extends insurance coverage to adult children until age 26. So campaign messaging that plays up the parts of the law that with bipartisan popularity could neutralize Republican attacks.
That's what Democratic pollster Geoff Garin said in a memo made the Florida special election so close. Jolly beat Sink by about two percentage points in a district where Republicans had an 11-percentage-points advantage in likely voters over Democrats.
When Garin tested Sink's pro-ACA message against Jolly's, the Democrat did better than the Republican by seven percentage points. It's something for Democrats to hold onto — and they will.
As they remind voters of the parts of the health law they like, Democrats will also remind them of Republican attacks on the law.
"Republicans' obsessive repeal attempts, more than 50 votes to repeal the Affordable Care Act, will come back to haunt them in November because they would go back to the days when people could be denied care for having preexisting conditions and and women could be charged more than men," says Emily Bittner, press secretary for the Democratic Congressional Campaign Committee. She adds the same reminder many Democrats are making: that special elections aren't generally predictive of what will happen during mid-terms.
BEIRUT: The Future parliamentary bloc Thursday rejected Hezbollah's demand for recognition of the party's resistance in the government policy statement, insisting that the document outlines the right to resistance against Israel within the confines of the Lebanese state.
The bloc also stood firm on the Baabda Declaration, which calls for distancing Lebanon from regional conflicts, particularly the Syrian war, and renewed calls for Hezbollah to withdraw from the neighboring country.
Hezbollah has admitted to fighting alongside Syrian regime forces.
“The ministerial statement should not ignore the Baabda Declaration ... not should it ignore the importance of Lebanon's [right] to a resistance against Israel, its aggression and its occupation of Lebanese territory,” said a statement at the end of the Future bloc’s weekly meeting.
It stressed that “resistance” should be restricted to the Lebanese state, which represents all Lebanese.
The Hezbollah-led March 8 alliance insists that the policy statement stipulate that Lebanon and the Lebanese have the right to resist Israeli occupation and defend the country against any Israeli attacks, effectively legitimizing Hezbollah’s arsenal.
Meanwhile, President Michel Sleiman discussed the 30-day constitutional deadline for submitting the policy statement, which expires Monday, March 17, with former Prime Minister Hussein Husseini and legal experts.
For his part, Maronite Cardinal Beshara Rai discussed the policy statement deadlock in separate telephone calls with Berri and Prime Minister Tammam Salam.
Rai urged both leaders to increase efforts to resolve the standoff over the policy statement “and save the state.”
The Future bloc, during its meeting under former Prime Minister Fouad Siniora, recalled the “Cedar Revolution,” a chain of demonstrations triggered by the Feb. 14, 2005 assassination of former Prime Minister Rafik Hariri.
It renewed its commitment to a “free, Arab, independent and democratic Lebanon in the face of hegemony and domination.”
The bloc also pledged to continue fighting Israeli occupation forces, racial discrimination and the waves of extremism, terrorism and takfiri ideology.
Lebanon has been hit by a spate of deadly bomb attacks linked to the nearly three-year-old Syrian conflict.
“March 14 will not abandon its commitment to the Lebanese cause and will continue to strive to achieve the goals of the Lebanese people who created the [Cedar] Revolution,” the Future bloc said.
In an upcoming referendum, Crimean voters will decide whether to declare independence from Ukraine. Jonathan Paquin has studied U.S. stances on breakaway groups, and he explains what to watch for.
hide captionAttorney General Eric Holder addressed what he characterized as harsh mandatory minimum prison sentences for drug crimes during 2013 remarks to the American Bar Association. (AP Photo/Eric Risberg)
Attorney General Eric Holder addressed what he characterized as harsh mandatory minimum prison sentences for drug crimes during 2013 remarks to the American Bar Association. (AP Photo/Eric Risberg)
The nation's highest law enforcement official Thursday endorsed the "All Drugs Minus Two" proposal — as it's known by prison sentencing reformers — to change the way drug crime sentences are handed down.
Attorney General Eric Holder backed the concept, which has garnered support from across the political spectrum, in testimony before a commission examining federal prison sentencing guidelines. The proposed changes would lower by two levels current mandatory ranges that judges are obligated to use when sentencing defendants convicted of drug crimes.
"This straightforward adjustment to sentencing ranges – while measured in scope – would nonetheless send a strong message about the fairness of our criminal justice system," Holder testified. "And it would help to rein in federal prison spending while focusing limited resources on the most serious threats to public safety."
The sentencing commission is expected to make its recommendations next month and, if Congress doesn't object, they will be the new standard used by judges as of November.
Under the "drugs minus two" proposal, a defendant convicted of an offense involving one kilogram of heroin, for example, would be sentenced under "Level 30" mandatory guidelines, which allow a judge to impose a sentence of between 97 and 121 months.
Current guidelines require that judges impose on such a defendant a sentence under "Level 32" guidelines, requiring a 121 to 151 month incarceration.
"It's still a very long sentence," says Julie Stewart, co-founder of Families Against Mandatory Minimums and longtime advocate for changes in mandatory minimum sentencing. "But it is significant."
Thursday, before delivering her own testimony to the sentencing committee, Stewart said that Holder's support, coupled with congressional activity on sentencing reform, and President Obama's actions on the issue, has her feeling like she's "living in an alternate universe – but one I'm happy in."
The issue of drug sentencing reform has been getting historic traction in recent months, as strained federal prison budgets and persistent questions about fairness in sentencing have merged into a movement that has crossed ideological lines. The once third-rail issue, say advocates like Stewart, has gone mainstream.
Prison reform was even on the agenda at last week's Conservative Political Action Conference, where Texas Gov. Rick Perry was among those making the case for reforms. Also at CPAC was The Texas Public Policy Foundation, a Libertarian organization that has advocated prison reforms ranging from diverting juvenile and non-violent offenders from incarceration.
Vikrant Reddy of the foundation's Right on Crime initiative, which focuses on bipartisan efforts to reform state criminal justice policy, testified before the sentencing commission Thursday .
Reddy noted that the federal U.S. prison population has grown by 700 percent since 1980, and now exceeds 215,000. (Data also show that half of those in federal prisons have been convicted of drug-related crimes.)
"Many activists, policy-makers, judges, victims' groups, and informed citizens not only welcome the "All Drugs Minus Two" amendment," he said, "they feel it is long overdue."
"Some will likely say that the amendment is only a first step, and it ought to be the beginning, not the end, of a rethinking of federal sentencing priorities," he said.
Congress, which approved mandatory minimum prison sentences in 1986 when crack-fueled crime besieged big American cities, is currently working on legislative reforms that have the support of Tea Party Republicans like Rand Paul of Kentucky and liberal Democrats like Richard Durbin of Illinois.
Changes could retroactively apply 2010 crack cocaine sentencing reforms to prisoners convicted under previous standards, and give judges more sentencing discretion.
For the man who developed mandatory minimum sentences, the changes can't come soon enough.
"I've become infamous for my role," says Eric Sterling, who devised the mandatory minimums as counsel to the House Judiciary Committee in the 1980s. "I did a very poor job, and it's a shameful period for me that I was not more effective or skilled, or better informed."
The idea behind the mandatory minimums back then was to give the Justice Department guidance on the kind of criminals Congress wanted it to go after – big traffickers. But that's not how it turned out, Sterling says.
In the years since, he has become an advocate for drug policy and sentencing reform through his role as president of the Criminal Justice Policy Foundation, and as a spokesman for Law Enforcement Against Prohibition, a pro-drug legalization and regulation organization.
The developments in recent years, and Holder's testimony Thursday, make an "important step forward, legally, politically, culturally."
Flanked by a cadre of salaried workers, President Obama signed a memo directing his labor secretary to rewrite the rules governing overtime in the country.
"Americans have spent too much time working more and making less," Obama said during comments preceding the signing ceremony.
Obama's proposal would rewrite a commonly used exemption in which a salaried worker designated as "executive, administrative and professional" is denied overtime if he or she is making more than $455 a week.
NPR's Marilyn Geewax reported earlier today:
"As a result, a 'supervisor' could earn as little as $24,000 a year, while working well beyond 40 hours. In some cases, such a worker might put in enough hours to end up getting paid — in effect — less than the minimum wage.
"The administration points out that the $455 level set in 2004 would be worth $553 today, after adjusting for inflation.
"Supporters say an update of that $455 pay level and a rewrite of the exemption rules could have a fairly large stimulative effect by giving workers more money to spend."
During his remarks at the White House on Thursday, Obama did not make the economic case. Instead, he said the rules as they are written are "not fair."
"If you have to work more, you should get paid more," Obama said.
He said Labor Secretary Tom Perez will consult with employers and employees to rewrite the overtime rules.
As Mark reported on Wednesday, "critics, including many who represent business groups, say such an action would increase businesses' costs and discourage them from adding workers."
BEIRUT: The Future parliamentary bloc Thursday rejected Hezbollah's demand for recognition of the party's resistance in the government policy statement, insisting that the document outlines the right to resistance against Israel within the confines of the Lebanese state.
The bloc also stood firm on the Baabda Declaration, which calls for distancing Lebanon from regional conflicts, particularly the Syrian war, and renewed calls for Hezbollah to withdraw from the neighboring country.
Hezbollah has admitted to fighting alongside Syrian regime forces.
“The ministerial statement should not ignore the Baabda Declaration ... not should it ignore the importance of Lebanon's [right] to a resistance against Israel, its aggression and its occupation of Lebanese territory,” said a statement at the end of the Future bloc’s weekly meeting.
It stressed that “resistance” should be restricted to the Lebanese state, which represents all Lebanese.
The Hezbollah-led March 8 alliance insists that the policy statement stipulate that Lebanon and the Lebanese have the right to resist Israeli occupation and defend the country against any Israeli attacks, effectively legitimizing Hezbollah’s arsenal.
Meanwhile, President Michel Sleiman discussed the 30-day constitutional deadline for submitting the policy statement, which expires Monday, March 17, with former Prime Minister Hussein Husseini and legal experts.
For his part, Maronite Cardinal Beshara Rai discussed the policy statement deadlock in separate telephone calls with Berri and Prime Minister Tammam Salam.
Rai urged both leaders to increase efforts to resolve the standoff over the policy statement “and save the state.”
The Future bloc, during its meeting under former Prime Minister Fouad Siniora, recalled the “Cedar Revolution,” a chain of demonstrations triggered by the Feb. 14, 2005 assassination of former Prime Minister Rafik Hariri.
It renewed its commitment to a “free, Arab, independent and democratic Lebanon in the face of hegemony and domination.”
The bloc also pledged to continue fighting Israeli occupation forces, racial discrimination and the waves of extremism, terrorism and takfiri ideology.
Lebanon has been hit by a spate of deadly bomb attacks linked to the nearly three-year-old Syrian conflict.
“March 14 will not abandon its commitment to the Lebanese cause and will continue to strive to achieve the goals of the Lebanese people who created the [Cedar] Revolution,” the Future bloc said.
hide captionEconomists are divided about the White House plan to boost overtime pay for workers.
Economists are divided about the White House plan to boost overtime pay for workers.
On Thursday, President Obama will roll out his plan for strengthening overtime pay protections for millions of workers. In his view, if more workers got fatter paychecks, they could spend more and stimulate the economy.
But if his critics are right, then employers would end up laying off workers to make up for the higher wage costs. And that would hurt the already painfully slow recovery.
Which scenario is right?
Economists are divided. Some say the proposed changes would give the economy just what it needs: more consumer demand. Others say it would lead to exactly what the economy doesn't need: fewer jobs.
Sound familiar? This is very similar to the intense debate over the president's other proposal. He wants to raise the federal minimum wage from $7.25 to $10.10 an hour. That matter is stalled in Congress, but the White House does have the power to rewrite the wording of the overtime rules.
As Obama lays out his case for changes, the two sides are squaring off — each accusing the other of not understanding how today's economy really works.
Let's consider the arguments one at a time. The president gets the floor first.
Why More Overtime Pay Would Help
Obama is asking the Labor Department to revise overtime pay rules to cover many more salaried workers, such as shift supervisors at fast-food restaurants and convenience stores.
The most commonly used exemption to avoid overtime pay involves designating people as "executive, administrative and professional" employees. Under existing rules, these exempt employees can be denied overtime if they are paid more than $455 a week.
As a result, a "supervisor" could earn as little as $24,000 a year, while working well beyond 40 hours. In some cases, such a worker might put in enough hours to end up getting paid — in effect — less than the minimum wage.
The administration points out that the $455 level set in 2004 would be worth $553 today, after adjusting for inflation.
Supporters say an update of that $455 pay level and a rewrite of the exemption rules could have a fairly large stimulative effect by giving workers more money to spend.
A change in overtime rules "could raise the pay of several million workers who may currently be misclassified as managers," Jeff Grabelsky, associate director of The Worker Institute at Cornell University, wrote in a statement. "Growing income inequality is a persistent problem in the United States and contributes to anemic economic growth."
Why More Overtime Pay Would Hurt
Now House Speaker John Boehner, R-Ohio, gets the microphone.
On Wednesday, he told reporters that if companies must pay more for supervisors, then they will eliminate other positions. Resulting layoffs would ripple out and slow the economy, he says.
"If you don't have a job, you don't qualify for overtime. So what do you get out of it? You get nothing," Boehner said. "The president's policies are making it difficult for employers to expand employment."
Jonathan Meer, an economist at Texas A&M University, agreed that the White House proposal would increase labor costs, and therefore result in layoffs. "It is likely to slow job growth since, when costs of any kind go up, businesses will adjust" and cut jobs, he said.
Meer said it's not yet clear exactly which businesses would be most affected, but fast-food restaurants likely would be among those that may have to pay more. "The owner of that restaurant is likely to be a franchisee with a razor-thin profit margin who can ill-afford increases in labor costs," he said.
But Richard DeKaser, corporate economist for Wells Fargo, said how one assesses the broad economic impact "depends on what you believe is happening in the economy" during this slow recovery.
"If you think the problem is insufficient demand, then increasing pay for workers is helpful," DeKaser said. "I would argue that that is where we are. At this particular time, programs that increase income will stimulate growth."
LISBON, Portugal -- A 24-hour strike by workers at Portugal's state-owned rail companies is causing only minor disruption for passengers, with most train services running normally.
Train operator Comboios de Portugal said it provided 95 percent of its scheduled services during the Thursday morning rush hour.
Staff at rail freight company CP-Carga and network management company Refer were also expected to strike.
The National Rail Workers' Union called the walkout to protest wage cuts and the loss of labor entitlements since a 78 billion euro ($108.8 billion) bailout in 2011 forced Portugal to slash public spending, including at loss-making state companies in the transport sector. The union also opposes government plans to privatize some services.
Union officials could not immediately be reached for comment.
Gov. Chris Christie will announce that the average property tax increase in New Jersey last year was a relatively modest 1.7 percent, a fact he will use to claim sustained progress on one of the state's perpetual political issues, a state government official told The Associated Press.
Christie will announce the preliminary income tax data during a town hall meeting in Mount Laurel on Thursday morning, the official said. The official was not authorized to disclose details before the governor's remarks and spoke to the AP on the condition of anonymity.
According to the administration's data, more than 80 local governments and school boards out of more than 1,100 decreased taxes last year and 160 had increases of less than 1 percent.
The bill for a home assessed at the state average of about $300,000 was around $8,200 — the highest in the nation.
Christie signed a law in his first term capping property tax increases at 2 percent but allowed governments to exceed that limit for a handful of reasons, including paying debt service.
In 2011, the average bill went up 2.4 percent, and in 2012, the increase was 1.6 percent — a contrast with a 2004 through 2006, when the bills went up at least 7 percent each year.
Bills under Christie have risen more slowly than in the past, but many homeowners have seen their liability increase significantly because Christie has not fully restored a rebate program that was gutted by his predecessor during the Great Recession and made available to fewer people.
An AP analysis last year found that the average property tax burden, when taking rebate and other relief programs into account, rose by 13 percent in Christie's first three years in office. That compared with a 15 percent increase during Jon Corzine's first three years in office. Corzine emphasized rebates more, while Christie has focused largely on controlling spending by local governments.
Controlling property taxes has been a major theme for Christie since he first ran for governor back in 2009. But talking it up now gives him a way to change the subject from scandals that have dogged his administration for the past two months.
A legislative committee and federal prosecutors are separately probing apparently politically motivated lane closures near the George Washington Bridge last year that were ordered by Christie aides and associates as well as claims that members of Christie's cabinet tried to tie Superstorm Sandy relief funds in one town to a mayor's support for a real estate development project.
LOS ANGELES -- More than two years after the San Onofre nuclear power plant stopped production, California is looking to fill the gap left in its energy grid by the plant that provided enough electricity for 1.4 million homes.
On Thursday state regulators planned to make a major decision toward filling the hole left by San Onofre and its 2,000-megawatt capacity as they consider a proposal that would allow the plant's co-owners — Southern California Edison and San Diego Gas & Electric — to find replacement power.
The plan calls primarily for the use of clean energy, but one environmental group says it could leave too much leeway for dirtier energy to leak in.
Under the proposal to the California Public Utilities Commission, the two utilities combined would be allowed to generate 1,500 megawatts of additional energy, so long as 60 percent of it came from sources like solar or wind, added efficiency, or voluntary conservation.
Evan Gillespie of the Sierra Club says that the plan "ups the odds that we'll see even more polluting power plants in Southern California."
The plan would require Edison to procure some 400 megawatts of electricity but would allow up to 700 megawatts via renewable resources or power storage. It would require SDG&E to procure at least 400 megawatts but would allow for up to 200 via cleaner power or conservation.
Production at the nuclear plant was stopped in January, 2012 when a small radiation leak led to the discovery of unusual damage to hundreds of new tubes that carry radioactive water. Last year operators chose to close it rather than fix the damaged equipment.
It was a key supplier to California's electric grid, not just for its but for its strategic location between the state's two largest cities, San Diego and Los Angeles.
PHOENIX -- A former longtime Fiesta Bowl chief executive who acknowledged participating in an illegal campaign contribution scheme faces sentencing Thursday in federal court.
John Junker pleaded guilty two years ago to a federal conspiracy charge after being accused of being involved in the scheme in which bowl employees made illegal campaign contributions to politicians and were reimbursed by the nonprofit bowl.
Bowl employees were reimbursed at least $46,000 for campaign contributions.
Prosecutors want a one-year prison sentence, while Junker has asked for probation from U.S. District Judge David Campbell. The conspiracy charge carries a punishment of up to five years in prison.
The scandal jeopardized the bowl's NCAA license and its status as one of four bowls in the national college football championship rotation.
The Arizona bowl retained its Bowl Championship Series status at the time. The NCAA placed it on probation for a year, and the BCS fined it $1 million.
Four other bowl employees were convicted of a state misdemeanor of making a prohibited campaign contribution, and the bowl's former chief operating officer pleaded guilty to a federal felony conspiracy charge. All five were sentenced to probation.
Junker, whose 20-year tenure as the bowl's chief executive ended with his firing in March 2011, also faces a March 20 sentencing in state court, where he pleaded guilty in 2012 to a felony charge of solicitation to commit a fraudulent scheme.
In his plea agreement in both federal and state court, Junker said he knew it was illegal to use other people's names to mask the political contributions and that he made the decision to have the bowl reimburse contributors.
Prosecutors say Junker should be granted some leniency for cooperating with the investigation but should serve time behind bars because he abused his position of power by soliciting his employees to commit crimes.
"He has demonstrated that he is a person who is willing to bend the will of his subordinates to execute a criminal scheme of his own device," federal prosecutor Frank Galati said in court records.
Junker attorney Stephen Dichter said his client has acknowledged his guilt, cooperated with authorities and is genuinely remorseful. Dichter said the leader of the scheme was a lobbyist, not Junker, and that the bowl CEO wasn't deeply involved in the day-to-day operation of the scheme.
"The loss of his job, reputation and ridicule he has received as a result of these proceedings is a deterrent that will ensure Mr. Junker never makes the same mistake again," Dichter said in a court filing.
Junker now works for St. Vincent de Paul's.
The Associated Press
WASHINGTON -- The number of people seeking U.S. unemployment benefits dropped 9,000 last week to a seasonally adjusted 315,000, a sign the job market is picking up after a winter slump.
The Labor Department said Thursday that the four-week average of applications, a less volatile figure, decreased 6,250 to 330,500, the lowest since early December.
Applications are a rough proxy for layoffs. The declines indicate companies are confident enough about the economy to keep their staffs.
Employers are also hiring more after harsh winter weather lowered job gains in January and December, the government said last week. The economy gained 175,000 jobs last month, up from just 129,000 in January and only 84,000 in December.
The report "supports the idea that the labor market is still improving," said Dan Greenhaus, chief strategist at brokerage firm BTIG. "This is another unquestionable positive."
About 3.45 million people received unemployment benefits as of Feb. 22, the latest figures available. That's 13,000 more than the previous week.
In a separate report Thursday, the Commerce Department said that sales at retail stores and restaurants rose 0.3 percent last month. The rebound suggests consumers are spending a bit more after sales fell a sharp 0.6 percent in January.
The unemployment applications and retail sales suggest the economy is recovering after harsh winter weather caused auto sales to dip, factory orders to fall, and sales of existing homes to plummet.
The unemployment rate ticked up last month to 6.7 percent from 6.6 percent, but the increase occurred partly for a good reason: more people started looking for jobs. Most weren't immediately hired, boosting the unemployment rate. But the fact that they started job hunting suggests they were optimistic about their prospects.
The weather did force about 6 million people with full-time jobs to work part-time in February. Many of their paychecks will shrink, likely weighing on spending.
That's one reason economists forecast growth will slow to an annual rate of 2 percent or less in the first three months of this year, down from 2.4 percent in the final three months of last year. But as the weather improves, most analysts expect growth to rebound to an annual rate near 3 percent.
BEIRUT: Heightened security measures have succeeded in curbing the number of car bombings in Lebanon, the Army said in a statement Thursday.
The statement went on to suggest that the issue of car bombs and their causes should not be exploited for political ends by warring factions.
"Effective security efforts to monitor rigged cars and those connected to bombings ... are ongoing," the statement said.
"These efforts have resulted in the detention of one of the most wanted suspects; the discovery of a number of rigged cars; in terrorist groups feeling the noose around their necks; and have made the targeting of civilian areas more difficult, as evidenced by these groups resorting to firing rockets at some villages in the Bekaa Valley."
The statement went on to praise the Army's crackdown on kidnapping for ransom, claiming that kidnappers now feel exposed.
The Army enumerated a number of recent successes, including securing the releases of Antoine Daher Kaadi and the child Michel Sakr.
The statement also said the Army was able to prevent several attempted kidnappings, including a plan to abduct the son of a notary in Mount Lebanon.
In Tripoli, the Army's presence has decreased the number of clashes between the rival neighborhoods of Jabal Mohsen and Bab al-Tabbaneh, "despite the persistence of sectarian and political provocation," the statement also said.
The Army arrested 870 people and impounded 226 cars and 35 motorcycles in the month of February alone, the military said.
DETROIT -- Graco Children's Products has added 403,222 child seats to last month's recall of 3.8 million to replace faulty harness buckles.
But the added seats won't end a dispute with the U.S. government's road safety watchdog. The National Highway Traffic Safety Administration still wants Graco to add 1.8 million infant seats to the recall because they have the same buckles.
Buckles can get gummed up by food and drinks, making it difficult to remove children. In some cases parents have had to cut harnesses to get their children out. The agency says the problem increases the injury risk in emergencies.
Graco says in a letter to the agency that it found additional toddler and harnessed booster seats that should be recalled. The company still believes the infant seats should be excluded.
KENNER, La. -- The number of passengers traveling through Louis Armstrong New Orleans International Airport increased in 2013 for the fourth year in a row, with more than 9.2 million passengers using the airport.
The airport says the number of passengers represents a 7.1 percent increase from 2012 and an 18 percent increase since 2009, according to the airport.
The New Orleans Advocate reports (http://bit.ly/1i7UTXo) Southwest Airlines carried the most traffic to and from New Orleans, with its passengers making up a third of the total.
New service already announced for next year includes nonstop flights to Seattle and charter flights to Jamaica.
The new terminal is scheduled to be completed by 2018 to coincide with New Orleans' 300th anniversary.
Stanley Fischer, President Obama's choice to be the Federal Reserve's vice chairman, is on Capitol Hill Thursday for a confirmation hearing .
PHOENIX -- A former longtime Fiesta Bowl chief executive who acknowledged participating in an illegal campaign contribution scheme faces sentencing Thursday in federal court.
John Junker pleaded guilty two years ago to a federal conspiracy charge after being accused of being involved in the scheme in which bowl employees made illegal campaign contributions to politicians and were reimbursed by the nonprofit bowl.
Bowl employees were reimbursed at least $46,000 for campaign contributions.
Prosecutors want a one-year prison sentence, while Junker has asked for probation from U.S. District Judge David Campbell. The conspiracy charge carries a punishment of up to five years in prison.
The scandal jeopardized the bowl's NCAA license and its status as one of four bowls in the national college football championship rotation.
The Arizona bowl retained its Bowl Championship Series status at the time. The NCAA placed it on probation for a year, and the BCS fined it $1 million.
Four other bowl employees were convicted of a state misdemeanor of making a prohibited campaign contribution, and the bowl's former chief operating officer pleaded guilty to a federal felony conspiracy charge. All five were sentenced to probation.
Junker, whose 20-year tenure as the bowl's chief executive ended with his firing in March 2011, also faces a March 20 sentencing in state court, where he pleaded guilty in 2012 to a felony charge of solicitation to commit a fraudulent scheme.
In his plea agreement in both federal and state court, Junker said he knew it was illegal to use other people's names to mask the political contributions and that he made the decision to have the bowl reimburse contributors.
Prosecutors say Junker should be granted some leniency for cooperating with the investigation but should serve time behind bars because he abused his position of power by soliciting his employees to commit crimes.
"He has demonstrated that he is a person who is willing to bend the will of his subordinates to execute a criminal scheme of his own device," federal prosecutor Frank Galati said in court records.
Junker attorney Stephen Dichter said his client has acknowledged his guilt, cooperated with authorities and is genuinely remorseful. Dichter said the leader of the scheme was a lobbyist, not Junker, and that the bowl CEO wasn't deeply involved in the day-to-day operation of the scheme.
"The loss of his job, reputation and ridicule he has received as a result of these proceedings is a deterrent that will ensure Mr. Junker never makes the same mistake again," Dichter said in a court filing.
Junker now works for St. Vincent de Paul's.
PRO FOOTBALL
Pass rusher DeMarcus Ware got a $30 million, three-year contract from the Denver Broncos on Wednesday, less than 24 hours after being released by the Dallas Cowboys.
Not quite keeping pace with the nonstop nature of Day 1 of free agency, Day 2 did include the Buccaneers releasing cornerback Darrelle Revis after failing to trade him; wide receiver Eric Decker bolting Denver to sign with the New York Jets; receiver Golden Tate leaving the Super Bowl champion Seahawks to play alongside All-Pro Calvin Johnson with the Lions; and the Browns cutting two quarterbacks, Brandon Weeden and Jason Campbell.
The Revis move saved the Bucs a $1.5 million bonus that would have been due if he remained on the roster with his $16 million salary. It also freed up room under the cap for a continuing roster overhaul under new coach Lovie Smith and general manager Jason Licht.
In other news, the Oakland Raiders rebuilding plans were dealt a setback when offensive lineman Rodger Saffold failed a physical one day after agreeing to a $42.5 million, five-year contract; Jonathan Martin is getting a fresh start with former college coach Jim Harbaugh after the Dolphins traded him to the San Francisco 49ers; and the agent for Steve Smith says the wide receiver "is not going to play for the Panthers next season."
LOS ANGELES (AP) — Former NFL All-Pro safety Darren Sharper returns to court Thursday for a hearing that will determine whether he's released on bail amid new charges that he drugged and sexually assaulted two women last year in Arizona.
The athlete has been in a Los Angeles jail since Feb. 27, when he turned himself in on an arrest warrant issued by Louisiana authorities on similar charges. Los Angeles Superior Court Judge Renee Korn said last week that she could not hold Sharper indefinitely unless he was charged in New Orleans, which has not yet happened.
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PRO BASKETBALL
EL SEGUNDO, Calif. (AP) — Kobe Bryant won't be back on the court for the Los Angeles Lakers this season.
Bryant expressed only mild frustration Wednesday after the official announcement of the long-expected decision to shut him down for the year. Bryant's broken bone in his left knee still hasn't healed enough for weight-bearing exercise.
With just five weeks left in their miserable season, the Lakers elected to preserve their superstar guard for next year, when he'll be 36.
The Lakers' ruthlessly competitive scorer can't take much more incompetence from his 16-time NBA champion franchise.
"I feel like killing everybody every time I go to the arena," Bryant said. "I'm just on edge all the time. Yeah, I still feel it, probably more than anybody in the organization does. I probably feel it more, and it drives me absolutely crazy."
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Carmelo Anthony said that he has heard Phil Jackson will be "coming on board" with the New York Knicks, the strongest indication yet that the 11-time NBA champion coach will soon be taking over the team's basketball operations.
Anthony went as far as to suggest that it's no longer a question of if Jackson will rejoin the Knicks, but when.
"Everything's in his hands now," Anthony told reporters in Boston at the Knicks' gameday shootaround practice.
SALT LAKE CITY (AP) — Dirk Nowitzki scored 31 points and moved into sole possession of the No. 12 spot on the all-time NBA scoring list in the Dallas Mavericks' 108-101 win over the Utah Jazz.
BOSTON (AP) — NBA commissioner Adam Silver says he doesn't see tanking going on in the league.
Silver said at a Boston College event that he thinks of tanking as players and coaches trying to lose on purpose. But he believes players and coaches are trying to win. Instead, teams are trying to rebuild through the draft, and that's OK.
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PRO HOCKEY
DALLAS (AP) — Rich Peverley will not play again this season after collapsing on the bench during a game.
Whether the Dallas Stars' forward resumes his career won't be known until after a more extensive evaluation of his irregular heartbeat.
Peverley appeared briefly at a news conference, reading nervously from a statement that thanked "the number of people that saved my life" after he went down in the first period of a game against Columbus, stunning players, coaches and fans.
The 31-year-old left the questions to doctors who said his season was over and he would undergo a procedure that he decided to put off when his condition was first discovered during a physical before training camp in September.
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BASEBALL
Brewers outfielder Ryan Braun agreed to an endorsement deal with baseball footwear and apparel company 3n2 LLC — his first since his suspension last year for violating Major League Baseball's anti-drug agreement.
Terms of the deal with the company based in Orlando, Fla., were not disclosed. ESPN.com first reported the agreement.
Company president Marty Graham said the agreement wasn't about the past, but focused on the future. He said the firm has done its research and strongly believes in Braun as an athlete.
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SOCCER
BARCELONA, Spain (AP) — Barcelona eased into the Champions League quarterfinals for the seventh straight year, shaking off a slump that has dropped it to third place in the La Liga standings.
Lionel Messi and Dani Alves scored second-half goals in a 2-1 win over Manchester City that completed a 4-1 aggregate victory.
In the night's other game, Paris Saint-Germain gave up an early goal and rallied past visiting Bayer Leverkusen 2-1 for a 6-1 aggregate win.
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TENNIS
INDIAN WELLS, Calif. (AP) — Novak Djokovic rallied to beat Marin Cilic 1-6, 6-2, 6-3 in the fourth round of the BNP Paribas Open, avoiding the upsets that knocked out two other top-10 players.
Djokovic didn't face a break point on his serve after the first set in the baseline slugfest that ended after midnight PDT. He advanced to the quarterfinals against Julien Benneteau, a 6-3, 7-6 (4) winner over Feliciano Lopez.
Kevin Anderson upset Australian Open champion Stan Wawrinka 7-6 (1), 4-6, 6-1, and sixth-ranked Andy Murray joined Wawrinka on the sidelines, losing to big-serving Milos Raonic, 4-6, 7-5, 6-3.
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CYCLING
BELLEVILLE, France (AP) — Tom Jelte Slagter of the Netherlands won the fourth stage of the Paris-Nice cycling race, with British rider Geraint Thomas taking the overall lead after finishing second in a sprint to the line.
SAN VINCENZO, Italy (AP) — British sprinter Mark Cavendish leads the Tirreno-Adriatico after his Omega Pharma-Quick Step team won a time trial to open the weeklong cycling race.
