Saturday, 2 August 2014

USDA announces 1st update to poultry inspection rules since 1957


The U.S. Department of Agriculture announced on Thursday the first new regulations for poultry inspection since 1957.


The rules, which were finalized Thursday, require plants to conduct their own testing and sampling of birds for the first time for food-borne pathogens such as campylobacter and salmonella, at least twice during the production process. The USDA will continue to conduct its own tests as well.


Agriculture Secretary Tom Vilsack said the changes would result in 5,000 fewer food-borne illnesses connected to poultry products every year.


“Bottom line, this is a significant opportunity to bring the inspection system for poultry into the 21st century,” Vilsack said.


He said the agency had taken into account concerns about worker safety and wouldn’t increase processing-line speeds as initially proposed and which the poultry industry had wanted. The speed will be capped at 140 birds per minute, rather than 175.


But under the new rules, fewer federal inspectors will be required to eyeball chicken carcasses at plants as they fly by on hooks in the slaughter line, a change that’s drawn criticism from food safety groups.


Wenonah Hauter, the executive director of the nonprofit Food & Water Watch, said the USDA’s concession on line speeds wasn’t a meaningful victory.


The “one USDA inspector left on the slaughter line under this new rule will still have to inspect 2.33 birds every second, an impossible task that leaves consumers at risk,” Hauter said in a statement.


She added that the new regulations effectively privatize the poultry inspection process by allowing companies to police themselves.


“With the poultry industry standing to gain financially due to increased production and fewer regulatory requirements, the plan is a gift from the Obama administration to the industry, one that will undermine consumer and worker safety, as well as animal welfare,” Hauter said.


The industry welcomed the news that the USDA would implement the regulations at last after a years-long bureaucratic process. But it had lobbied hard to increase line speeds, and the National Chicken Council, a trade group, expressed disappointment Thursday that speed limits would stay the same.


“It is extremely unfortunate and disappointing that politics have trumped sound science, 15 years of food and worker safety data and a successful pilot program with plants operating at 175 birds per minute,” National Chicken Council President Mike Brown said in a statement.


Brown said the cap of 140 birds per minute also went against global precedent.


“Broiler plants in Brazil, Argentina, Canada, Belgium and Germany, among others, all operate at line speeds of 200 or more birds per minute,” he said.


Workplace safety groups spent two years advocating against the USDA’s proposal to increase line speeds, arguing that it could endanger the workers who must sort and trim inedible carcasses. Minorities, immigrants and women make up most of the low-wage workforce at poultry plants.


In 2008, The Charlotte Observer, a McClatchy newspaper, published a series of articles about dangerous working conditions at House of Raeford, a North Carolina poultry processor. The series highlighted the failure of federal regulators to crack down on plants that violated workplace safety rules.


The cap on line speeds the USDA announced Thursday is a testament to the power of workers’ voices in Washington, said Catherine Singley Harvey, the manager of the economic policy project for the National Council of La Raza, a Hispanic civil rights and advocacy group.


“The fact that the administration prevented a bad situation from becoming worse was a result of collective advocacy, so we’re pleased to see that USDA and the Department of Labor recognized the human costs of chicken production, and we look forward to working with both agencies in continuing to improve worker safety,” Singley Harvey said.


Vilsack said the agency “took very seriously” the feedback it had received over the last several years about the proposal. He said he was confident that reducing the number of inspectors on the slaughter line would free them to perform more important tasks elsewhere in plants, such as random pathogen testing and monitoring for cleanliness.


Federal inspectors shouldn’t be doing quality control, and the new regulations will give that responsibility to the plant’s workers, where it belongs, he said.


“We know a lot more about what makes food unsafe today than we did in 1957,” he said.


“The theory was that if there was a bruise or some indication that the bird was damaged in some way that that necessarily indicated that it would be a food safety risk,” Vilsack said. “The fact that a bird is bruised does not mean that it poses a food safety risk. . . . The reality is those birds may be equally safe in terms of consumption if cooked properly.”



Argentina is declared in selective debt default after talks fail


Standard & Poor’s declared Argentina in selective default Wednesday afternoon after it failed to reach an agreement with American holdout creditors in the final hours of negotiations. It marked Argentina’s second default in 13 years.


Despite the passing of a midnight deadline, both sides were expected to continue talking to resolve the default. Some last-minute maneuvers on Tuesday and Wednesday by Argentina and others outside the lawsuit to avoid default fell through. Many economists expect the default to produce dire financial consequences for Argentina, which is already in a recession.


“Unfortunately, no agreement was reached and the Republic of Argentina will imminently be in default,” the court-appointed mediator, Daniel Pollack, said in a statement. “The ordinary Argentine citizen will be the real and ultimate victim.”


A lengthy legal battle and a month of negotiations through Pollack had produced no resolution to the demand by the holdout creditors, led by billionaire Paul Singer and his hedge fund NML Capital, that they be paid in full for the $1.5 billion in Argentine bonds they purchased in 2001.


Although talks on Tuesday night had offered some prospect of an agreement as the two sides spoke face-to-face for the first time, all efforts proved fruitless Wednesday, according to Pollack’s statement.


Argentine Economy Minister Axel Kicillof remained defiant at a news conference after the negotiations ended Wednesday.


“We aren’t going to sign any agreement that would jeopardize the future of Argentines,” Kicillof said, speaking at Argentina’s consulate in New York.


NML put the onus on Argentina for the failure in a statement. “During this process, the Special Master proposed numerous creative solutions, many of which were acceptable to us. Argentina refused to seriously consider any of them, and instead chose to default,” it said.


The Association of Argentine Banks, a group of private banks, voted to offer the holdout creditors $250 million on behalf of the government in exchange for a stay, according to several news reports. A representative of Banco Macro, a member of the association, didn’t reply to an email seeking confirmation. A representative of the association attended the negotiations Wednesday.


Separately, a group that owns euro-denominated Argentine bonds had requested Tuesday that the judge in the case, Thomas Griesa, suspend talks. Griesa denied the motion.


It was Griesa who triggered the possibility of a default when he ruled that Argentina had to pay the holdout creditors in full, then blocked the country’s plan to make a payment June 30 to other creditors who’d agreed to accept a 70 percent discount on the debt they held. Griesa said Argentina had to pay all the creditors at the same time. When Argentina missed the June 30 payment, that started the clock running on a 30-day grace period that ended at midnight Wednesday.


Some outside the lawsuit have disagreed with Griesa’s order. Preet Bharara, the U.S. attorney general in New York, filed a brief in an appeals court in 2012 supporting Argentina, arguing that Griesa misinterpreted the requirement that all bondholders be treated equally.


“He probably did not foresee the full ramifications of his decision,” Anna Gelpern, senior fellow at the Peterson Institute for International Economics and a Georgetown University professor, said of Griesa. “It is possible that in his desire to put pressure on Argentina, he has created consequences that he did not expect, both for his own court room and for Argentina and other market participants.”


The International Monetary Fund also expressed concern over the lawsuit’s consequences.


“One of the implications of this Argentina episode is that there is much more uncertainty as to how we’ll be able to restructure debt for other countries in the future,” Olivier Blanchard, the director of the IMF’s research department, told a new conference last week in Mexico City, according to an IMF transcript.


The battle has been good politically for Argentina President Cristina Fernandez de Kirchner, at least in the short term, said Eugenio Aleman, an Argentine and senior economist at Wells Fargo Securities in Charlotte, N.C.


“A default, in the Argentine nationalistic scheme of things, will be seen as standing up to the vultures,” said Aleman, referring to the term Kirchner calls the holdouts. But, he added, “The benefits will probably be very short-lived because people will then figure out that things are getting worse, and the government will not be able to finance itself.”


The case has ramifications for other countries to resolve restructured debt cases, said Eric LeCompte, the executive director of Jubilee USA Network, a religious financial-restructuring group in Washington that lobbies for poor nations.


For example, Grenada and a Taiwanese bank are in a similar debt lawsuit in New York, and Griesa’s ruling on Argentina will likely affect that outcome, LeCompte said.


“Argentina decided it was better to default than to settle,” said LeCompte Wednesday evening. “Because of the precedent this case sets there are a lot of losers and few winners.”



Texas market numbers inch up 6.6 pct from 2013


The number of farmers markets in Texas has grown slightly in the past year, an uptick that still ranks the state third for the most growth.


A statement from the U.S. Department of Agriculture marketing service Saturday shows Texas has 195 farmers markets this year, up from 183 in 2013.


That's a 6.6 percent increase, trailing only Louisiana's 12.1 percent increase and Tennessee's 20.2 percent increase for biggest percentage growth in the past year.


California leads the country with 764 farmers markets, and New York is second with 638.


Ten years ago, Texas had 101 farmers markets.


Nationwide there are 8,268 markets, an increase of 76 percent since 2008. The USDA statement says that reflects continued growth and demand in every region of the country.



Economy, hiring up in July, but flat wage growth dampens cheer

McClatchy Newspapers



Employers added 209,000 jobs in July and the unemployment rate ticked up a notch to 6.2 percent , the government said Friday in a jobs report that did not surprise.


The report. a bit softer than recent months, marked the sixth straight month that non-farm payroll hiring exceeded 200,000, something not seen since 1997.


The numbers don’t change the view of a recovery gaining stream, especially when taken together with Wednesday’s report that the economy grew at at annual rate of 4 percent from April to June.


Government statisticians revised earlier estimates of May and June hiring, adding a combined 15,000 for the prior two months.


Email: khall@mcclatchydc.com; Twitter: @KevinGHall.



Argentina is declared in selective debt default after talks fail


Standard & Poor’s declared Argentina in selective default Wednesday afternoon after it failed to reach an agreement with American holdout creditors in the final hours of negotiations. It marked Argentina’s second default in 13 years.


Despite the passing of a midnight deadline, both sides were expected to continue talking to resolve the default. Some last-minute maneuvers on Tuesday and Wednesday by Argentina and others outside the lawsuit to avoid default fell through. Many economists expect the default to produce dire financial consequences for Argentina, which is already in a recession.


“Unfortunately, no agreement was reached and the Republic of Argentina will imminently be in default,” the court-appointed mediator, Daniel Pollack, said in a statement. “The ordinary Argentine citizen will be the real and ultimate victim.”


A lengthy legal battle and a month of negotiations through Pollack had produced no resolution to the demand by the holdout creditors, led by billionaire Paul Singer and his hedge fund NML Capital, that they be paid in full for the $1.5 billion in Argentine bonds they purchased in 2001.


Although talks on Tuesday night had offered some prospect of an agreement as the two sides spoke face-to-face for the first time, all efforts proved fruitless Wednesday, according to Pollack’s statement.


Argentine Economy Minister Axel Kicillof remained defiant at a news conference after the negotiations ended Wednesday.


“We aren’t going to sign any agreement that would jeopardize the future of Argentines,” Kicillof said, speaking at Argentina’s consulate in New York.


NML put the onus on Argentina for the failure in a statement. “During this process, the Special Master proposed numerous creative solutions, many of which were acceptable to us. Argentina refused to seriously consider any of them, and instead chose to default,” it said.


The Association of Argentine Banks, a group of private banks, voted to offer the holdout creditors $250 million on behalf of the government in exchange for a stay, according to several news reports. A representative of Banco Macro, a member of the association, didn’t reply to an email seeking confirmation. A representative of the association attended the negotiations Wednesday.


Separately, a group that owns euro-denominated Argentine bonds had requested Tuesday that the judge in the case, Thomas Griesa, suspend talks. Griesa denied the motion.


It was Griesa who triggered the possibility of a default when he ruled that Argentina had to pay the holdout creditors in full, then blocked the country’s plan to make a payment June 30 to other creditors who’d agreed to accept a 70 percent discount on the debt they held. Griesa said Argentina had to pay all the creditors at the same time. When Argentina missed the June 30 payment, that started the clock running on a 30-day grace period that ended at midnight Wednesday.


Some outside the lawsuit have disagreed with Griesa’s order. Preet Bharara, the U.S. attorney general in New York, filed a brief in an appeals court in 2012 supporting Argentina, arguing that Griesa misinterpreted the requirement that all bondholders be treated equally.


“He probably did not foresee the full ramifications of his decision,” Anna Gelpern, senior fellow at the Peterson Institute for International Economics and a Georgetown University professor, said of Griesa. “It is possible that in his desire to put pressure on Argentina, he has created consequences that he did not expect, both for his own court room and for Argentina and other market participants.”


The International Monetary Fund also expressed concern over the lawsuit’s consequences.


“One of the implications of this Argentina episode is that there is much more uncertainty as to how we’ll be able to restructure debt for other countries in the future,” Olivier Blanchard, the director of the IMF’s research department, told a new conference last week in Mexico City, according to an IMF transcript.


The battle has been good politically for Argentina President Cristina Fernandez de Kirchner, at least in the short term, said Eugenio Aleman, an Argentine and senior economist at Wells Fargo Securities in Charlotte, N.C.


“A default, in the Argentine nationalistic scheme of things, will be seen as standing up to the vultures,” said Aleman, referring to the term Kirchner calls the holdouts. But, he added, “The benefits will probably be very short-lived because people will then figure out that things are getting worse, and the government will not be able to finance itself.”


The case has ramifications for other countries to resolve restructured debt cases, said Eric LeCompte, the executive director of Jubilee USA Network, a religious financial-restructuring group in Washington that lobbies for poor nations.


For example, Grenada and a Taiwanese bank are in a similar debt lawsuit in New York, and Griesa’s ruling on Argentina will likely affect that outcome, LeCompte said.


“Argentina decided it was better to default than to settle,” said LeCompte Wednesday evening. “Because of the precedent this case sets there are a lot of losers and few winners.”



Congress approves highway funding fix at last minute, but the problem isn’t solved


Hours before the federal government was set to begin reducing payments to states for road and bridge projects, Congress seemed likely to approve a temporary fix Thursday that would maintain funding through the middle of next year.


But in some ways, the damage already had been done.


States were bracing for a drop in payments during the height of construction season. And Congress’ inability to agree on a long-term funding solution has wreaked havoc on state transportation departments, which plan their projects years, not months, in advance.


“We’ve got a short-term fix,” said David Parkhurst, staff director and general counsel for the National Governors Association’s Office of Federal Relations, “but the long-term challenges remain.”


And given the broader paralysis in Washington on a whole range of issues, many observers worry that Congress will just run out the clock again.


“My fear is it will still be a politically intractable issue next year,” said James Burnley, transportation secretary during the Reagan administration. “That’s incredibly disruptive to states.”


Lawmakers in the Senate and the House of Representatives had plenty of warnings. They’d known for two years that the current transportation bill, MAP-21, would expire at the end of September. They’d known for months that the federal highway trust fund would go broke by summer’s end.


They’d known for a month that the Department of Transportation was prepared to ration payments to states beginning Friday.


Yet state transportation departments, business groups and construction and engineering companies watched for weeks as the House and Senate dueled over whether the highway fund patch would end in December or next May, or what budgetary offsets it would include or not include.


“That’s not a good sign for coming together on long-term comprehensive legislation,” said Joshua Schank, president and CEO of the Eno Center for Transportation, a Washington policy group.


Schank that lawmakers are avoiding the elephant in the room.


“They might as well fight over a gas tax,” he said.


The federal taxes that support the highway trust fund _ 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel _ have not been raised since 1993, nor were they indexed to inflation. The crisis began six years ago, when Congress began tapping general revenues to maintain the program. It’s taken more than $50 billion to keep the fund solvent, and the hole gets deeper every year.


Business groups, including the U.S. Chamber of Commerce and the American Trucking Associations, have pushed for a gax tax increase. Sens. Chris Murphy, D-Conn., and Bob Corker, R-Tenn., proposed raising it by 12 cents to restore its purchasing power.


But lawmakers in both parties are reluctant to raise taxes, especially during an election year. President Barack Obama has not endorsed that approach, either. He has pitched a plan to close corporate tax loopholes to supplement the highway fund, but that’s only a one-time source of revenue, not a permanent cure.


“You could scotch tape, year after year, various sources of revenue and accounting games,” Burnley said. “But that’s no way to manage your infrastructure.”


Meanwhile, states already have begun cutting back because of the uncertainty. Missouri, for example, used to add 400 to 500 new highway projects a year, according to the National Conference of State Legislatures. Today, it’s comfortable only adding 25.


The uncertainty at the federal level has forced states to get creative. Many have raised their own gas or sales taxes to pay for transportation projects. Others have turned to tolls or issued bonds.


Some argue that the federal program should be scrapped and the gas tax money returned to the states for them to spend as they see fit. But states have their limits, and governors are among the strongest supporters of maintaining a federal role in transportation.


“They can only do so much,” Parkhurst of the governors association said of the states. “They can’t foot the bill for everything.”



Lawmakers: U.S. restrictions on Venezuelan officials too little


The U.S. State Department rolled out travel and visa restrictions on Venezuelan officials accused of human rights violations. But South Florida lawmakers say the sanctions don’t go far enough.


Read more at the Herald: http://hrld.us/1uUwVYJ



Meridian plans crackdown on blight


City officials say they are taking steps to crack down on blight in Meridian.


The Meridian Star reported (http://bit.ly/UBS9tN) tightened code enforcement efforts will target owners of decaying buildings, overgrown lots and debris-strewn properties.


City Councilman Randy Hammon said plans are being developed to hire a code enforcement manager and another officer, bringing the city's code enforcement staff to four.


"Basically, we had one and a half employees," Hammon said. "We don't have enough enforcement. We put money in the budget and then we didn't have the officers to carry out the mission."


Hammon has been a vocal proponent of strict enforcement of the city's code enforcement laws.


"Litter is a big thing here," Hammon said. "It is the lot clearing, cars put on jacks. It's people who just have trash; it's hoarders. Every city has this."


Community Development Director John McClure said the city will soon begin issuing tickets for violations of code enforcement ordinances.


"We are going to do this aggressively and work through the folks with the City Court," McClure said.


The City Council is expected to vote on a proposal soon to update Meridian's building codes.


Will Simmons, an attorney with the city's law firm of Glover, Young, Hammack, Walton and Simmons, said new training sessions for code enforcement officers will begin in August.


Earlier this year, council members suggested raising fines for unclean properties from $25 to $75 for the first offense and from $50 to $200 for the second offense. For a third offense, a fine of $500 and up to 30 days in jail was proposed.


The council is expected to consider new fines as part of the process of revising its codes.



Nuclear plant looks to end emergency planning role


The soon-to-close Vermont Yankee nuclear plant wants to stop paying for emergency services in the region, but a watchdog group opposes that, saying nuclear waste on-site will create continuing risks.


Plant officials have told the Nuclear Regulatory Commission that the radioactive spent fuel will have cooled enough by mid-2016 that they can then stop paying to maintain the 10-mile emergency evacuation zone around the plant.


The plant is closing at the end of this year.


The zone extends out from the reactor in Vernon in Vermont's southeast corner to six Vermont towns and parts of neighboring New Hampshire and Massachusetts.


There's concern that a breach of the plant's spent fuel pool could create a fire and large release of radioactivity.



NDSU program aims to limit road dust in oil patch


North Dakota State University researchers are working on ways to reduce road dust caused by the rapid development of the state's oil patch.


The school said it will spend $350,000 on projects that will range from studying health impacts on crops and livestock to creating technologies to control road dust emissions.


NDSU President Dean Bresciani said the impact of the increased oil traffic and associated road dust is not fully known.


"As a land-grant institution, we strive to engage in activities such as this one to benefit the state and its citizens," Bresciani said. "Such research programs also present opportunities for students who can see the impact that they can make by being involved in research, using their skills in real world applications that can ultimately benefit communities."


Oil production in North Dakota surpassed 1 million barrels per day in June, ranking the state second only to Texas. There are more than 10,600 wells in production with the potential for thousands of additional wells to be developed.


The Williston Herald reported (http://bit.ly/1tGHlcZ ) that NDSU will begin awarding grants on Sept. 1. The amounts will range from up to $15,000 for individual research projects and up to $60,000 for teams of researchers.


"Research can measure the amount of dust emitted from road traffic, quantify the types of road dust emitted, evaluate the impacts dust has on agriculture, humans, and the ecosystem, and develop strategies that help mitigate road dust emissions," said Kelly A. Rusch, vice president for research and creative activity at NDSU.



Tower of London Is Being Flooded With 886,246 Poppies


In honor of British and Colonial military lives lost during World War I, the Tower of London's long-dry moat is being filled with ceramic poppies. 8,86,246 of them, to be exact. Volunteers began planting the flowers, created by artist Paul Cummins, a few weeks back, with the first poppy being put in the ground by Crawford Butler, the longest serving Yeoman Warden. The last flower will be installed on November 11th, in salute to Armistice Day.












Photos courtesy of Massimo Mousai and via AP Images.

Obama hosts Africa summit with an eye on legacy


President Barack Obama is gathering nearly 50 African heads of state in Washington for an unprecedented summit aimed in part at building his legacy on a continent where his commitment has been questioned.


But the backdrop for the conference that begins Monday underscores what has been a constant challenge to that effort. Even as Obama immerses himself in talks on regional security, democracy building and business investment in Africa, the world's attention — and much of his own — will be on an extraordinary array of urgent overseas crises.


Among them: Gaza clashes, Russia's provocations in Ukraine and mounting extremism in Iraq, to name just a few. An outbreak of the deadly Ebola virus in West Africa also threatens to cast a shadow over the summit, with leaders from at least two affected countries canceling plans to travel to Washington and the U.S. setting up medical screenings for other officials arriving from those nations.


"It's the nature of the world we live in today where there are multiple crises at any time," said Witney Schneidman, the former deputy assistant secretary of state for African affairs. "But that should not paralyze us from moving forward on key areas to advance our interests."


White House officials say the American interests in Africa are immense. The continent is home to some of the world's fastest growing economies and a rapidly expanding middle class. The U.S. is also competing for those consumers with China, which surpassed the United States in 2009 as Africa's largest trading partner.


"The importance of this for America needs to be understood," Obama said Friday. "Africa is growing, and you've got thriving markets and you've got entrepreneurs and extraordinary talent among the people there."


He added: "Africa also happens to be one of the continents where America is most popular, and people feel a real affinity for our way of life."


From the start of his presidency, Obama has faced sky-high expectations from African leaders and U.S. policymakers who hoped the son of a Kenyan would bump Africa up the White House list of foreign policy priorities.


Obama's first trip to sub-Saharan Africa as president — an overnight stop in Ghana in 2009 — also suggested that he could be an American president able to tell hard truths to the continent's leaders. During a speech to parliament in Accra, he declared that Africa "doesn't need strongmen, it needs strong institutions."


But it would be four years before Obama returned to Africa again, a yawning gap that raised questions about the extent of his commitment to continent. Unlike his predecessor George W. Bush, who launched a $15 billion program to address HIV and AIDS, Obama seemed to be lacking a signature Africa initiative. And his administration's focus turned instead to the Arab Spring movement sweeping through the Middle East, a heavily promoted rebalance toward Asia and a slew of pressing security concerns.


Analysts say Obama's second term has brought about a more robust focus on Africa. The president made a three-country trip to the continent last summer and aides say he's likely to travel there again before the end of his second term. He's also launched a new "Power Africa" initiative that aims to leverage billions in private sector commitments to bring electricity to 20 million households in sub-Saharan Africa. And he's launched a fellowship program for young African leaders that received more than 50,000 applications for 500 slots this year.


Carl LeVan, a professor at American University's School of International Service, said those efforts, along with the Washington summit, suggest an administration undertaking "a concerted and calculated effort to construct its legacy, and its legacy toward Africa in particular, since expectations were so high."


Also factoring into the U.S. focus on Africa: China, which has ramped up its investment in the natural resource-rich continent and whose leaders make frequent trips to the continent.


U.S. officials try to draw a distinction between Chinese and American investment in Africa. While Beijing may spend more money, they argue that the Chinese focus more on extracting resources from Africa for their own purposes rather than boosting African capacity and building long-term economic relationships.


"We do believe we bring something unique to the table," said Ben Rhodes, Obama's deputy national security adviser. "We are less focused on resources from Africa and more focused on deepening trade and investment relationships."



State cautious in approach to revenue software


The Indiana Department of Revenue is moving forward cautiously as it looks to replace outdated tax software that was partly to blame for accounting errors that led to the discovery of more than $500 million in revenue that had gone undetected.


But while the department takes small steps toward replacing the software, it's moved forward aggressively with other measures to ensure taxpayers' information is protected and revenue is properly recorded, the Indianapolis Business Journal reported (http://bit.ly/UL6mV3 ).


Revenue Commissioner Mike Alley said the state has spent two years focused on people and processes before testing a Massachusetts company's software to handle three specialty taxes. He said the state chose the gradual approach because it's too risky to move more than $17 billion in tax collections to a single system in one leap.


"If something goes awry, all (of a) sudden you've lost the capability of collecting revenue for the state of Indiana," Alley said.


The outdated software contributed to the departmental errors that led $320 million in corporate income taxes to accumulate in a holding account that no one noticed, and another $206 million in local income-tax revenue to not be properly reported or distributed.


But a 2012 audit by Deloitte & Touche found a lack of internal controls was the root problem and needed to be fixed first.


Alley said the department has reinstated a number of controls that had been dropped and has overhauled the staff of about 650 to add more financial and IT professionals. New staffers include a chief information security officer, who is charged with keeping taxpayer data safe.


The Deloitte audit found that Social Security numbers and taxpayer IDs were used in the help-desk ticketing system in violation of state policy and that multiple people were logging into the system under the same user IDs. It also found there was no policy for handling personal information, a violation of IRS rules, and noted that there were no safeguards in place to prevent employees from accessing the accounts of high-profile people.


The department "seemed much more focused on efficiency of tax processing than they were on ensuring a strong system of control and accountability over taxpayer funds," the audit found.


Alley said the bulk of the problems detailed in the Deloitte report will have been fixed by the end of the year. The rest will have to wait until the department can acquire an integrated system, he said.


The department already has fixed or retired many stand-alone databases and spreadsheets that created opportunities for error. It will start using Massachusetts-based Revenue Sources Inc. software to process cigarette, alcohol and other tobacco taxes.


If the product works well, the department might choose to buy it or another off-the-shelf software to handle everything. Or it could seek a customized product.


The whole process is expected to take another five to seven years.



Pennington names business development executive


David Winwood has been named chief business development officer for LSU's Pennington Biomedical Research Center.


The Advocate reported (http://bit.ly/1AtIIgO) his job will be to commercialize research and technology developed at Pennington.


Pennington has a 234-acre LSU campus and a staff of more than 500, focused clinical and population research on causes of obesity, diabetes, cardiovascular disease, cancer and dementia. It has 50 laboratories.


Winwood will be charged with identifying research institutions and private companies that would turn Pennington research into commercial ventures.


"With this investment in Dr. Winwood and the team and resources he will assemble, we are growing our business model to meet today's research challenges," said Pennington executive director William Cefalu.


Grant support for creation of Pennington's business development effort was provided by the Baton Rouge Area Foundation and the Irene W. and C.B. Pennington Foundation, center officials said.


The practice of partnering research institutions with outside entities to help turn revolutionary discoveries into commercial ventures is not new.


The Johnson Space Center near Houston, for example, has a technology transfer and commercialization office. Commercial products such miniature antennas and new treatments for atherosclerosis have emerged through the effort.


Winwood has more than 20 years of experience in this field.


He comes to Pennington from the University of Alabama at Birmingham, where he was senior associate vice president for economic development and innovation alliances, as well as chief executive officer of that school's research foundation. Winwood also worked on commercialization ventures at North Carolina State University and Ohio State University.



Lawmakers struggle to reach drought relief deal


Prospects for a drought relief bill to help California farmers appear as likely as the state being deluged by three straight days of rain.


Key federal lawmakers and staff are working behind the scenes to settle differences in two bills that separately passed the House and Senate earlier this year.


The lawmakers won't say where progress has occurred or what roadblocks remain, but time is running out for the current congressional session. Congress will be out for the rest of August and for virtually all of October. In all, House members are scheduled to be in Washington for votes for only about 25 more days this year.


California has experienced three consecutive dry years and most of the state is suffering from extreme drought.



Nuclear plant looks to end emergency planning role


The soon-to-close Vermont Yankee nuclear plant wants to stop paying for emergency services in the region, but a watchdog group opposes that, saying nuclear waste on-site will create continuing risks.


Plant officials have told the Nuclear Regulatory Commission that the radioactive spent fuel will have cooled enough by mid-2016 that they can then stop paying to maintain the 10-mile emergency evacuation zone around the plant.


The plant is closing at the end of this year.


The zone extends out from the reactor in Vernon in Vermont's southeast corner to six Vermont towns and parts of neighboring New Hampshire and Massachusetts.


There's concern that a breach of the plant's spent fuel pool could create a fire and large release of radioactivity.



As Congress Breaks, Inaction Remains Most Notable Action



Members of the House of Representatives leave after a procedural vote on Capitol Hill in Washington on Friday, as Republicans reshaped legislation to deal with the border crisis, a day after Congress was supposed to go into its August recess.i i


hide captionMembers of the House of Representatives leave after a procedural vote on Capitol Hill in Washington on Friday, as Republicans reshaped legislation to deal with the border crisis, a day after Congress was supposed to go into its August recess.



J. Scott Applewhite/AP

Members of the House of Representatives leave after a procedural vote on Capitol Hill in Washington on Friday, as Republicans reshaped legislation to deal with the border crisis, a day after Congress was supposed to go into its August recess.



Members of the House of Representatives leave after a procedural vote on Capitol Hill in Washington on Friday, as Republicans reshaped legislation to deal with the border crisis, a day after Congress was supposed to go into its August recess.


J. Scott Applewhite/AP


Congress begins a five-week summer recess Saturday after a somewhat tumultuous exit.


The Republican-led House stuck around an extra day trying to overcome conservative opposition to an emergency spending bill dealing with the surge of under-age immigrants from Central America. While that chamber finally eked out a bill last night, it's likely going nowhere. The Senate had already left town after Republicans there blocked a similar funding effort.


Out on the House floor on Friday, Massachusetts Democrat Jim McGovern offered his sympathies to those who try to follow Congress' antics.


"In case any, Americans are still watching, they can be forgiven for being a little confused about what happened this week," McGovern said.


What happened was a Republican bill providing far less money for border control and refugee processing than what President Obama requested got yanked from the House floor on Thursday right before it was to be voted on.


Instead, House Speaker John Boehner hastily issued a statement saying there were steps Obama could take to secure the border that would not require Congressional action. Speaking at the White House on Friday, Obama sounded baffled.


"Just a few days earlier, they voted to sue me for acting on my own," Obama said. "And then when they couldn't pass a bill yesterday, they put out a statement suggesting I should act on my own."


And the reason they couldn't get that bill passed, Obama said, was House GOP leaders could not get their own troops in line. "So that's not a disagreement between me and the House Republicans, that's a disagreement between the House Republicans and the House Republicans."


University of Maryland congressional expert Frances Lee says this is not the first time this has happened. "This is actually sort of a pattern in recent years," Lee says.


Boehner's ongoing problem, she says, is that with an already slim majority, he keeps trying to push through partisan bills that are not conservative enough to win over his entire caucus.


"The 20 to 30 thereabout members who consistently hold out against the leadership are enough, when Democrats refuse to participate, to keep the leadership from being able to act," she says.


Steny Hoyer, the number two Democrat in the House, said it's no wonder he and his fellow party members refuse to vote for the GOP's bills.


"I will tell the American people, Mr. Speaker, none of the leaders of the Republican Party have reached across to say, 'how can we do this in a bipartisan way?'" Hoyer said on the House floor.


As a result, little gets done in this Congress. Oklahoma House Republican Tom Cole says next fall's midterm elections are causing a risk aversion that's on full view in the Democratic-led Senate.


"You've got Sen. Reid with his majority at risk, he's trying to keep his side from casting any tough votes at all," Cole says. "So you know, we don't have a broken Congress, we have a broken Senate, in my view."


But Charlie Dent, a moderate House Republican from Pennsylvania, says there's plenty of blame to go around.


"The Republican conference can't stand up and complain every day about the Senate doing nothing and then on the other hand use as an excuse not to govern that we're afraid the Senate will do something," Dent says.


Senate Majority leader Harry Reid, for his part, puts the blame for inaction squarely on the GOP.


"Republicans are spending their time talking about impeachment and suing the president," Reid says. "This is a degree higher than absurdity, and I don't know what that is. I don't have a word for it."


Some Republicans actually seem proud of how little Congress has done this session.


"When we don't act, we act. That is an act," said Sen. Jeff Sessions of Alabama. "It's a decision, as sure as if we'd passed a law."


And yet that inaction is what Obama says forces him to use his executive powers, including with the border crisis.


"I'm gonna have to act alone, because we don't have have enough resources. We've already been very clear, we've run out of money," he said.


And apparently patience, as well.



M. Caldwell Butler, A True Bipartisan Politician



Rep. M. Caldwell Butler (right) listens to debate over the Nixon impeachment proceedings in the House Judiciary Committee in July 1974.i i


hide captionRep. M. Caldwell Butler (right) listens to debate over the Nixon impeachment proceedings in the House Judiciary Committee in July 1974.



AP

Rep. M. Caldwell Butler (right) listens to debate over the Nixon impeachment proceedings in the House Judiciary Committee in July 1974.



Rep. M. Caldwell Butler (right) listens to debate over the Nixon impeachment proceedings in the House Judiciary Committee in July 1974.


AP


M. Caldwell Butler died this week, at the age of 89, just a few days short of another anniversary of the event that etched his name into history.


Butler was a first-term representative from Virginia in 1974, serving on the House Judiciary Committee, which was spending a steamy summer under scorching TV lights to consider the impeachment of President Richard Nixon.


Butler was from a proud old Virginia family. He admired Chief Justice John Marshall, of whom he was a descendant, Robert E. Lee, and Richard M. Nixon.


But testimony mounted against Nixon during the summer of 1974, often called Watergate Summer: talk of burglars, bribes and bags of cash, dirty tricks and secret tapes.


Butler was part of a group of seven Republican and three conservative Southern Democrats on the committee who began to meet behind closed doors. Butler felt he owed his election to Nixon's landslide victory in 1972, and admired the opening of relations with China. But he was aghast at the Richard Nixon he heard, scheming and swearing, on the White House tapes.


Under the hot lights of the hearing room, Butler declared, "For years, we Republicans have campaigned against corruption and misconduct ... by the other party. But Watergate is our shame."


Two days later, and 40 years ago this week, members of both parties on the House Judiciary Committee voted 27 to 11 to impeach the president, who resigned a couple of weeks later.


Butler got nasty mail and a few threats, but said his harshest scolding came from his mother. "You are probably right," he wrote back to her. "However, I feel that my loyalty to the Republican Party does not relieve me of the obligation which I have."


This week we reached Tom Railsback, a retired Illinois Republican congressman who was part of Butler's bipartisan band that reached across the aisle.


"I thought Richard Nixon was a fine president," Railsback told us. "Did great things. And I think some Democratic presidents have done the same kind of bad things. But we had evidence on Nixon and couldn't ignore it."


Railsback says he's puzzled about the scarcity of bipartisanship today. He believes American politics has rarely been more essential or admired than during the Watergate scandal, when a group of people from both parties put partisanship aside.


"Watergate showed us politics can work," Railsback told us. "The answers are in the Constitution. We did the right thing, and the system worked."



Weekly Address: It's Time for Congress to Help the Middle Class


President Barack Obama tapes the Weekly Address in the Map Room of the White House, Aug. 1, 2014.

President Barack Obama tapes the Weekly Address in the Map Room of the White House, Aug. 1, 2014. (Official White House Photo by Lawrence Jackson)




In this week’s address, the President discussed the new monthly jobs report and the fact that our economy created over 200,000 new jobs in July for the sixth straight month – the longest streak since 1997. To ensure this momentum can be sustained, the President is pressing Congress to act to create jobs and expand opportunity from raising the minimum wage, to helping people pay back their student loans, to fair pay and paid leave. These are steps that would continue to make things better for the middle class, which has always been his priority. But Republicans in Congress have repeatedly blocked these important measures.


As Congress is about to go on vacation, the President encouraged Americans to reach out to their elected officials and let them know that they must pass these measures when Congress returns to session. And in their absence, the President will continue to do everything he can, working with all stakeholders who are willing, to create jobs, strengthen our economy, and expand opportunity for all Americans.


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