Sunday, April 29, 2012
Saturday, April 28, 2012
New Jersey politicians urge toll hikes suspension
DAVID PORTERNEW JERSEY -- A group of New Jersey congressmen called Thursday for the Port Authority of New York and New Jersey to suspend a second round of toll hikes scheduled for later this year until the agency can demonstrate that its finances are in order. The letter sent to Authority chairman David Samson came on the day of the agency's annual meeting, in which it received passing marks for efficiency and ethics from two internal reviews.
The developments highlighted the continuing tension between the bi-state authority and New Jersey's Democratic politicians. Those tensions surfaced publicly last week when Sen. Frank Lautenberg and Port Authority deputy executive director William Baroni engaged in a heated exchange during a Senate subcommittee hearing on toll hikes.
Lautenberg signed Thursday's letter along with Reps. William Pascrell, Albio Sires and Steve Rothman. The letter was released after the end of the Port Authority's annual meeting, and Samson declined to comment late Thursday afternoon.Tolls were raised by 50 percent for cash customers last fall in the first of five scheduled annual hikes. The increases were initially said to have been instituted to help pay for the redevelopment of the former World Trade Center site, but in subsequent court filings the agency said the additional money would be used for bridges, bus terminals and other transportation buildings.
Gov. Chris Christie and Gov. Andrew Cuomo, who appoint commissioners to the Port Authority board, asked for an outside audit as part of the agreement to raise tolls, and the first phase of the audit released in January called the Port Authority "a challenged and dysfunctional organization" and cited a lack of leadership and cost controls, the letter pointed out.
"However, future toll hikes were not dependent on the Port Authority addressing any of the deficiencies identified in the audit," the letter continued.
In summaries presented at Thursday's meeting, the Port Authority's audit committee concluded that "there is a reasonable basis for the Board to have a high level of confidence in the professional and ethical conduct of Port Authority personnel"; and a governance and ethics committee reported that it is "confident that the Board and its Committees are operating in an efficient and independent manner and that the Executive Director is effectively managing the operations of the Port Authority."
Board Vice Chairman Scott Rechler noted that the internal audit focused specifically on operational controls and systems, while the independent audit released in January took a more all-encompassing approach in looking at the entire agency.
In other matters, the board directed the Port Authority to create, as soon as possible, a stand-alone security department that will centralize all safety and security functions across the agency's different departments. Baroni and executive director Patrick Foye will conduct a nationwide search to select a chief security officer to head the new department.
Foye on Thursday announced an agreement with The Durst Organization to build a state-of-the-art broadcasting facility atop One World Trade Center.
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(Copyright ©2012 by The Associated Press. All Rights Reserved.) Get more Politics & Elections »new jersey politics, politics & elections
New case of mad cow disease found in California
Eyewitness NewsLOS ANGELES -- The first new case of mad cow disease in the U.S. since 2006 has been discovered in a dairy cow in California, but health authorities said Tuesday the animal never was a threat to the nation's food supply. The infected cow, the fourth ever discovered in the U.S., was found as part of an Agriculture Department surveillance program that tests about 40,000 cows a year for the fatal brain disease.
No meat from the cow was bound for the food supply, said John Clifford, the department's chief veterinary officer.
"There is really no cause for alarm here with regard to this animal," Clifford told reporters at a hastily convened news conference.Mad cow disease, or bovine spongiform encephalopathy (BSE), is fatal to cows and can cause a fatal human brain disease in people who eat tainted beef. The World Health Organization has said that tests show that humans cannot be infected by drinking milk from BSE-infected animals.
In the wake of a massive outbreak in Britain that peaked in 1993, the U.S. intensified precautions to keep BSE out of U.S. cattle and the food supply. In other countries, the infection's spread was blamed on farmers adding recycled meat and bone meal from infected cows into cattle feed, so a key U.S. step has been to ban feed containing such material.
Clifford said the California cow is what scientists call an atypical case of BSE, meaning that it didn't get the disease from eating infected cattle feed, which is important.
That means it's "just a random mutation that can happen every once in a great while in an animal," said Bruce Akey, director of the New York State Veterinary Diagnostic Laboratory at Cornell University. "Random mutations go on in nature all the time."
The atypical form of BSE that is caused by protein mutation also occurs in humans. Called classic Creutzfeldt-Jakob disease, it is found at a rate of one case per 1 million people worldwide, according to the Centers for Disease Control and Prevention.
"It's not unreasonable to think that something similar could occur in cattle," said Terry Lehenbauer, director of the School of Veterinary Medicine Research Centers at the University of California, Davis. "We just don't know all the science about how this disease develops and is transmitted."
Questions remain about whether the incident will prompt the USDA to change how it tests for the disease. But Mike Doyle, director of the University of Georgia's Center for Food Safety, said the testing system worked because it caught what is a really rare event.
"It's good news because they caught it," Doyle said.
Clifford did not say when the disease was discovered or exactly where the cow was raised. He said the cow was at a rendering plant in central California when the case was discovered through regular USDA sample testing.
Rendering plants process animal parts for products not going into the human food chain, such as animal food, soap, chemicals or other household products.
Dennis Luckey, executive vice president of Baker Commodities, told The Associated Press that the disease was discovered at its Hanford, Calif., transfer station when the company selected the cow for random sampling.
Luckey said the cow died at a dairy and was randomly tagged for the surveillance program.
Michael Marsh, chief executive of Western United Dairymen, said it was an adult cow over 30 months old, not a downed or sick animal, and it appeared normal when it was last observed. He said the cow was first tested April 18.
The disease is not transmitted through casual contact like a virus, but Marsh said government investigators are testing other members of the dead cow's feeding herd, as well as cows born at the same time as the dead cow.
It wasn't known how the cow died, and the name of the dairy where the cow died has not been released. Officials also haven't said where it was born.
"It's appropriate to be cautious, it's appropriate to pay attention and it's appropriate to ask questions, but now let's watch and see what the researchers find out in the next couple of days," said James Culler, director of the UC Davis Dairy food Safety Laboratory.
Culler, an authority on BSE, said the California cow's form of the disease so rarely occurs that consumers should not be alarmed.
"Are you worried about all of the meteors that passed the earth last night while you were sleeping? Of course not," Culler said. "Would you pay 90 percent of your salaries to set up all of the observatories on earth to watch for them? Of course not. It's the same thing."
There have been three confirmed cases of BSE in cows in the United States - in a Canadian-born cow in 2003 in Washington state, in 2005 in Texas and in 2006 in Alabama.
Both the 2005 and 2006 cases were also atypical varieties of the disease, USDA officials said.
The Agriculture Department is sharing its lab results with international animal health officials in Canada and England who will review the test results, Clifford said. Federal and California officials will further investigate the case. He said he did not expect the latest discovery to affect beef exports.
The National Cattlemen's Beef Association said in a statement that "U.S. regulatory controls are effective, and that U.S fresh beef and beef products from cattle of all ages are safe and can be safely traded due to our interlocking safeguards."
Clifford said the finding shows that safeguards the U.S. government and other nations have put into place in recent years are working. In 2011 there were only 29 worldwide cases of BSE, a dramatic decline since the peak of 37,311 cases in 1992. He credited the decline to effect of feed bans as a primary means of controlling the disease.
Past scares about mad cow disease have affected beef exports to Japan and other countries. Japan banned all U.S. beef imports in 2003 after the first case of mad cow disease was discovered in the United States. Japan resumed buying American beef in 2006 after the bilateral trade agreement setting new safety standards.
The Canadian Food Inspection Agency said Tuesday that the latest finding would not affect trade between the US and Canada.
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(Copyright ©2012 by The Associated Press. All Rights Reserved.) Get more U.S. & World News »u.s. & world news
Barclays Center bringing 2,000 new jobs to Brooklyn
Currently under construction, the Barclays Center will be the new home of the Brooklyn Nets. NEW YORK (WABC) -- The Barclays Center will give a big economic boost to Brooklyn when it opens in September. The new home of the Nets is looking to fill thousands of jobs in the next few months. The city provided a preview of the Barclays Center on Thursday, and it was full of digs at New Jersey, as the Nets get ready to move.
"Jersey's Net loss is Brooklyn's Net gain," said Brooklyn Borough President Marty Markowitz.
But the announcement was mostly about what the arena means for Brooklyn: 2,000 new jobs, 90 percent of them part-time."I've really been looking forward to this day honestly for eight years," said developer and Nets owner Bruce Ratner.
"I really have been, 2,000 local jobs. So I know you have too. You've been very patient everybody."
And Broooklyn residents get priority, especially those who live in public housing nearby.
"They're going to have to be qualified," said Mayor Michael Bloomberg.
"They're going to have to be the best. But we're going to reach out to local residents first."
The city invested $200 mlliion in the project, and even though most of the new jobs are low-paying and part-time, Tyree Stanback isn't complaining.
He lives in public housing and welcomes the opportunity.
"I think in today's economy you have to think differently," said Stanback.
"The old school job of having one job until you retire and get a gold watch are long gone. It went out with my parents."
Thursday was also our first look inside the arena.
Surprisingly construction is on schedule.
One of the most unique features about the new arena is how close the floor is to the seats.
There's also a huge glass atrium that's the entry, and a subway stop that will serve 11 lines.
The developer strongly hinted the Islanders might someday move to the new arena.
Reason perhaps to hire even more workers.
Job openings are posted online at www.BarclaysCenter.com.
(Copyright ©2012 WABC-TV/DT. All Rights Reserved.) Get more New York News »new york city, brooklyn, new jersey nets, new york news, dave evans
City to look at making East River Ferry permanent
Eyewitness NewsNEW YORK (WABC) -- The New York City Council is looking at the East River Ferry program Wednesday. The service could not only become permanent, but also could expand.
The only problem with the ferries sailing along the Manhattan, Brooklyn and Queens waterfront has been too many riders.
Operators claim their fleet has carried 600,000 passengers since June, 200,000 more than anticipated.The ferry company is floating the idea of renegotiating its $9.3-million subsidy.
Right now, the ferries are in the first year of a three-year pilot program.
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(Copyright ©2012 WABC-TV/DT. All Rights Reserved.) Get more New York News »new york city, east river, east river ferry, new york news
New York City looking at lower rent hikes
Eyewitness NewsNEW YORK (WABC) -- The annual rent increase for rent-stabilized apartments could be lower this year. The Rent Guidelines Board usually bases its decisions on landlords' operating costs.
Those rose just under 3 percent over the last year.
If the board follows form, this year's increases could be lower.---
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(Copyright ©2012 WABC-TV/DT. All Rights Reserved.) Get more New York News »new york city, new york news
Dating service helps pretty people travel for free
There's a new website that connects beautiful people who want to travel with the rich people who can pay their way.
The new online dating site is called MissTravel.com, and it matches up "attractive members" with "generous members" who plan and then go on a trip together. The "generous member" picks up the bill.
MissTravel launched less than two weeks ago, and more than 20,000 people looking for adventure have already signed up. Twitter is a buzz, suggesting MissTravel is a misstep, and that it's nothing more than a high flying escort service.One guy wrote "Is this prostitution? I think it is." Someone else tweeted "If this weren't creepy and hookerish, I'd be all about it."
It is far from the first sugar daddy-type website, where men of means are matched with beautiful women. Still, some experts call sites like these prostitution.
"I don't think people would be willing to call it prostitution, but any type of jewelry, any type of bartering, it's essentially sex, sex for money," relationship expert Dr. Bridgette Lang said.
The safety page on the MissTravel website clearly states "no escorts." Still, a woman we found on the site under the name "sassycurve" puts her relationship status as "married but looking" and describes herself as "a very sensual lady who is very sexual."
There's no money exchanged specifically between the guy and the woman.
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(Copyright ©2012 WABC-TV/DT. All Rights Reserved.) Get more Business »business, kemberly richardson
Consumer Reports grades breakfast sandwiches
Breakfast on the go is easier than ever. But can you make healthy choices without sacrificing taste?
Consumer Reports graded the nutrition of 106 egg sandwiches sold by fast-food restaurants like Burger King, Dunkin' Donuts, McDonald's, Starbuck's and Subway.
"As far as nutrition goes, just six out of the 106 sandwiches rated very good," Consumer Reports Erin Gudeux said.
What about taste? Consumer Reports' trained taste testers went undercover to at least three different locations of each chain, tasting some of the more nutritious sandwiches.
Of the seven sandwiches tasted, Starbucks Turkey Bacon and White Cheddar Classic Breakfast Sandwich was just so-so.
"I found the egg a little low flavor, and the bacon is salty and smoky," taster Maxine Siegel said. "I'm not getting, really, any meat flavor."
Equally marginal was Dunkin' Donuts Egg White Turkey Sausage Wake-Up Wrap. Testers described it as teeny-tiny - with eggs that were not flavorful.
So which morning pit stop will get you a tasty, nutritious egg sandwich?
Subway! Its Egg White and Cheese on Flatbread is the only sandwich Consumer Reports rated very good for taste. Testers found the egg whites flavorful and the toasted flatbread tender.
"It's worth noting that, with all the sandwiches, the quality varied from location to location," Gudeux said.
And Consumer Reports says don't let your egg sandwich sit for long because as the sandwich cools, so does the taste.
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(Copyright ©2012 WABC-TV/DT. All Rights Reserved.) Get more Consumer News »consumer reports, consumer news, ken rosato
Economic growth slows in the first quarter
by CHRISTOPHER S. RUGABERWASHINGTON -- The U.S. economy grew more slowly in the first three months of this year. Governments spent less, and businesses cut back on investment. But consumers spent at the fastest pace in more than a year. The result suggests that the economy will continue to expand, slowly but steadily.
The Commerce Department estimated Friday that the economy grew at an annual rate of 2.2 percent in the January-March quarter, compared with a 3 percent rate in the final quarter of 2011. But growth is expected to rebound to around 3 percent for all of 2012 as stronger job growth spurs more consumer spending.
Consumer spending accelerated to an annual rate of 2.9 percent in the first quarter. The strength came from a second robust quarter of growth in auto purchases.Here's what The Associated Press' reporters are finding:
A GLASS HALF-FULL
Is the weaker first-quarter growth worth worrying about?
Not according to Sung Won Sohn, an economics professor at the Smith School of Business at California State University. He thinks the economy will be boosted this year by a more confident consumer as hiring grows and business investment strengthens.
Sohn expects growth this year of 2.5 percent, better than last year's 1.7 percent.
"The economy is firmly on a growth trajectory," Sohn says. "The first-quarter slowdown will be temporary."
SPENDING WARMS UP...
A warm winter probably pulled some consumer spending into the January-March quarter that would normally have occurred this quarter. Auto sales, for example, accounted for nearly 30 percent of growth last quarter. Many car buyers probably came out earlier than usual.
Without autos, growth would have been about 1.5 percent.
"The second quarter won't have the advantage of unseasonably warm weather that likely goosed auto sales," says Beata Caranci, deputy chief economist at TD Economics.
... ON THE OTHER HAND
The warmer weather also sapped strength from the economy: Americans spent less on utilities from January through March for a second straight quarter.
That reduced growth.
Perhaps a hot summer will add to growth later this year as Americans crank up their air conditioners.
WEAK GROWTH, WEAK HIRING
How weak was the economy's 2.2 percent growth rate from January through March? It depends.
A growth rate of 2.5 percent or higher is good when the economy is healthy. But not at a time of high unemployment.
With 12.7 million people unemployed, today's economy needs much faster growth to boost hiring. Growth would have to be roughly 4 percent for a full year to lower the unemployment rate, now 8.2 percent, by 1 percentage point.
U.S. ECONOMY STILL TOPS
Even when growth is tepid, as it was last quarter, the dollar figure for the U.S. economy exceeds that of any other country's.
Adjusted for inflation and seasonal factors, first-quarter output weighed in at an annual rate of $13.5 trillion.
At its lowest point during the Great Recession, the figure was $12.6 trillion.
The size of the world's second-largest economy, China's, is roughly $11.3 trillion.
A DIFFERENT GAUGE OF GROWTH
The drop from a 3 percent growth rate in the October-December quarter to 2.2 percent last quarter partly reflected a slower pace of restocking by businesses.
Such inventory building had contributed more than half the growth in the final three months of 2011. But last quarter, it contributed less than one-third.
Many economists exclude inventories to better gauge the economy's underlying strength. By that measure, the output of goods and services grew at an annual rate of 1.6 percent last quarter - up from a 1.1 percent increase in the fourth quarter.
PRESSURE ON CONGRESS
There may be a bright side to the weaker-than-expected growth in the January-March quarter: It could push Congress to reach a budget deal before the end of the year.
Otherwise, automatic tax increases and spending cuts scheduled to start Jan. 1 would send the nation over a "fiscal cliff" and drastically weaken economic growth, according to Bank of America.
"Lawmakers need a reminder that they must reduce the fiscal drag," says Ryan Sweet, senior economist at Moody's Analytics.
SAVING LESS OF WHAT WE EARN
The increase in consumer spending comes with a caveat: People spent more in part because they socked away less.
After-tax income grew at an annual rate of 2.8 percent from January through March. That was about the same pace as in the final three months of last year.
But over the same period, the savings rate fell to 3.9 percent of after-tax income, down from 4.5 percent.
Economists worry that people won't keep spending more unless their income grows.
HOUSING PERKING UP
One surprising bright spot in the first quarter's data: housing.
Spending on home construction and renovations rose by the most in nearly two years. Some of that gain was likely fueled by the warm winter. Many construction projects are usually put on hold when building sites are covered with snow and ice. That didn't happen so much this winter.
Housing is expected to contribute to growth this year for the first time since 2005.
FIRST DRAFT OF HISTORY
Friday's GDP report is just the initial estimate for first-quarter economic output. As is customary, the government will update its estimate in May and June.
And then in July, the first-quarter numbers will be tweaked yet again. That's when the government will revise its estimates of growth from 2009 through the first quarter of this year.
Last year, figures on incomes and saving were revised to show that Americans earned and saved more than previously estimated. Some economists think the current numbers on savings and income will also be revised higher later this year.
BETTER THAN OVERSEAS
As disappointing as the first-quarter numbers were, the U.S. economy still looks a lot stronger than most of the rest of the developed world. It's expected to grow at least 2.5 percent for the full year.
By contrast, Britain's economy will only grow 0.8 percent and Japan's about 2 percent, according to forecasts from the International Monetary Fund. Things are even worse in Europe. The 17 countries that use the euro as their currency are expected to see growth shrink 0.3 percent.
"Growth is an increasingly rare commodity in the global economy, but the US has got it," says Jason Conibear of Cambridge Mercantile, which specializes in trading currencies.
NOT FAST ENOUGH
This was the 11th quarter since the Great Recession officially ended in June 2009. The fastest rate of economic growth has been 3.9 percent in the first quarter of 2010. Normally, a much bigger bounce would follow a deep recession like the one the United States sank into in December 2007.
When the economy emerged from the recession of 1981-1982, for instance, growth hit an 8 percent annual pace for four straight quarters in 1983 and 1984.
THE WEIGHT OF GOVERNMENT
Government spending cuts are weighing on the U.S. economy in a way that hasn't been seen in generations. Those cuts have reduced growth for six straight quarters - the longest stretch since 1955.
Reduced government spending subtracted 0.6 percentage point from the first quarter's growth.
That drag may ease the rest of this year. Defense spending fell sharply in the past two quarters, which isn't likely to continue. And state tax revenue is recovering, closing budget gaps.
"It's hard for the economy to accelerate when the government has its foot on the brake," said Joel Naroff, president of Naroff Economic Advisors.
WILL FED INTERVENE?
The Federal Reserve might have to rethink its forecasts and its policies, economists say. One economist thinks the Fed is now more likely to pursue a third round of bond purchases to try to push down long-term interest rates to stimulate the economy.
It's "back on the table," says Bernard Baumohl of the Economic Outlook Group.
WHY IT MATTERS
The U.S. gross domestic product is the bedrock of the economy. It measures the output of all goods and services produced in the United States, from cars to electricity to manicures. GDP growth drives job creation, pay, corporate profits and stock prices.
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AP Economics Writer Martin Crutsinger contributed to this report.
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(Copyright ©2012 by The Associated Press. All Rights Reserved.) Get more Business »business
Jobless claims near 3-month high
In the U.S. job economy. by CHRISTOPHER S. RUGABERWASHINGTON -- The number of people seeking U.S. unemployment benefits remained stuck near a three-month high last week, a sign that job gains will likely remain modest. The report disappointed economists, who had forecast a decline in unemployment applications. Even so, most analysts think employers will add about 175,000 jobs this month. That would be more than in March but less than the robust job growth achieved during the winter.
Last week, applications for unemployment aid dipped to a seasonally adjusted 388,000, the Labor Department said Thursday. That was little changed from the previous week's figure, the highest since Jan. 7.
The four-week average, a less volatile figure, rose to 381,750, also the highest in three months. When applications fall below 375,000, it generally suggests that hiring will be strong enough to lower the unemployment rate.The figures "aren't bad; they're just not as good as they have been," said Jonathan Basile, an economist at Credit Suisse.
Applications jumped sharply three weeks ago, a sign that employers had stepped up layoffs and added fewer jobs. Economists said the increase might have been inflated by temporary layoffs during the spring holidays, when many school employees are laid off.
But applications haven't dropped back since then. And the consensus estimate that the economy will have added about 175,000 jobs in April is well below the average of 250,000 jobs added each month from December through February.
The rise in applications follows a report this month that hiring slowed in March, when employers added only 120,000 jobs.
Still, many economists suggested that weather distorted the March jobs report. A warmer winter likely pulled some hiring that normally would have occurred last month into January and February.
Federal Reserve Chairman Ben Bernanke agreed Wednesday that weather has likely disrupted recent data.
The warm winter "made perhaps January and February artificially strong and March perhaps artificially a little bit weak," he said at a news conference. "I wouldn't draw too much conclusion from the March report."
Despite the slowing improvements, the job market appears healthier than it did last year. The unemployment rate has fallen to 8.2 percent from 9.1 percent in August.
Part of the drop was related to people gave up looking for work. People who are out of work but not looking for jobs aren't counted among the unemployed.
Economists note that unemployment benefit applications remain lower than they were last year. The government's report next week on April employment should help clarify the jobs picture.
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(Copyright ©2012 by The Associated Press. All Rights Reserved.) Get more Business »job, jobless claim, unemployment, economy, business
Escalating bank overdraft fees
Sharon Drapeau signed up for overdraft protection on her checking account, thinking it would protect her from penalty fees if she overdrew. Instead, something else happened.
"I got hit with the bank charge for the transfer and the bank charge for the overdraft, and because I had written a check I got charged the returned check fee," Drapeau said Consumer Reports' Greg Daugherty says government rules that went into effect in 2010 were supposed to help curb abusive bank fees, but it hasn't worked out that way.
"Now your bank must get you to sign up for overdraft protection. Then it will cover you if you spend more money than you have in your account," Daugherty says. For instance, if your account is overdrawn, you're still able to use your debit card to buy a cup of coffee, a magazine, or a pack of gum. But for each transaction you can be charged as much as 35 dollars a pop.
Banks are raking in more than 31billion dollars a year in overdraft fees. Sharon says overdraft protection is a sham.
"Don't say that I'm protecting myself by signing up for the program when there's still going to be this Charge," said Drapeau.
Consumer Reports says there are ways to get some real protection.
First, decline your bank's offer to opt in for overdraft protection. If you're already signed up, opt out.
"You won't be able to use your debit card if you don't have enough money in your account. But be aware, you can still be charged overdraft fees for things like a bounced check and automatic withdrawals if there isn't the money to cover them," warns Daugherty.
"We filed alerts. We have alerts that e-mail us or they'll text us when our account is under a certain amount that we set," said Drapeau.
Now Sharon is not getting hit with charges she doesn't expect.
Consumer Reports says another move to minimize fees is to link your savings and checking accounts so you'll have that much more money to draw upon when your balance gets low. You might get charged a transfer fee, but those are generally much lower than overdraft fees.
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(Copyright ©2012 WABC-TV/DT. All Rights Reserved.) Get more Consumer News »consumer reports, consumer news, sade baderinwa
FASTRACK repairs to shut down A, C and E lines
A train arrives to the Astor Place station early Friday, Dec. 16, 2005 in New York. (AP Photo/ Dima Gavrysh)
Eyewitness NewsNEW YORK (WABC) -- The MTA's FASTRACK program will shut down the A, C and E lines overnight this week. There will be no service from 10 p.m. until 5 a.m. between 59th Street-Columbus Circle to Jay Street-Metrotech.
Workers will be repairing, cleaning and doing other maintenance on the tracks through Friday.
The MTA says the complete shutdowns allow them to work faster, safer and cheaper.---
ONLINE: mta.info
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(Copyright ©2012 WABC-TV/DT. All Rights Reserved.)Get more ABC7 Traffic Center »
mta, mass transit, new york city transit, subway, bus, abc7 traffic center
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GOP ignores veto threat, passes student loan bill
ALAN FRAMWASHINGTON -- Republicans ignored a veto threat and overcame a rebellion by party conservatives to push a bill through the House Friday keeping interest rates on millions of federal student loans from doubling this summer.
Lawmakers voted 215-195 to approve a bill that has become an election-year battle between the two parties over helping families in a persistently ailing economy. The measure sparked debate over women's health issues, too.
The White House and most Democrats opposed the $5.9 billion bill because of how Republicans covered the costs: eliminating a preventive health care fund in President Barack Obama's health care law. They say the program mostly benefits women, while Republicans call it a loosely controlled slush fund.
"This is a politically motivated proposal and not the serious response that the problem facing America's college students deserves," the White House wrote in a veto message shortly before the House vote.Democrats accused Republicans of supporting the effort to keep student loan interest rates low only because of political pressure from Obama.
The House measure is destined to die in the Senate, where majority Democrats have written a version of the bill paid for by raising Social Security and Medicare payroll taxes on high-income owners of some privately owned companies, which GOP senators oppose.
GOP lawmakers were pressured by conservative groups like the Club for Growth to oppose the legislation because, they said, the government should not subsidize student loans. In the end, 30 Republicans voted no, while 202 voted yes.
House Speaker John Boehner, R-Ohio, said Democrats had invented a Republican war on women for political gain.
"To pick this big political fight where there is no fight is just silly. Give me a break," he said, winning a raucous standing ovation from GOP lawmakers.
On the Democratic side, party leaders pressured rank-and-file lawmakers to oppose the Republican measure. Some Democrats wanted to vote to keep student loan rates low, though it meant accepting GOP health care cuts.
In the end, 165 Democrats opposed the bill, and 13 voted for it.
The House bill would keep interest rates for subsidized Stafford loans at 3.4 percent for another year. Without congressional action, they would rise automatically to 6.8 percent on July 1, a condition set in a law Democrats pushed through Congress five years ago.
Republicans noted that many Democrats had voted earlier this year to take money from the preventive health fund to help keep doctors' Medicare reimbursements from dropping. Obama's own budget in February proposed cutting $4 billion from the same fund to pay for some of his priorities.
Friday's vote came with congressional Republicans and Democrats, as well as Obama and his near-certain GOP opponent this fall, Mitt Romney, competing at every turn over who has the best prescription to wring new jobs out of the still-struggling economy. The student loan battle fits nicely into that theme, with 7.4 million low- and middle-income students and their parents reliant on Stafford loans and a college education symbolizing the ticket to economic success.
The vote also followed days of campaign-style road trips that Obama used to get in front of the issue and portray Republicans as foot-draggers on it. The week began with Romney saying he favored keeping loan rates low, remarks he hoped would prevent Obama from making the matter a campaign fight but which may have helped prod congressional Republicans into action.
Democrats noted that Republicans previously had questioned the wisdom of keeping students' interest rates low. They also accused Republicans of reversing themselves, after voting earlier this month for a 2013 federal budget that let Stafford loan rates double as scheduled.
For House Minority Leader Nancy Pelosi, D-Calif., the emphasis was the GOP's cuts in the preventive health program, whose initiatives she said include breast cancer screening and children's immunizations. She contrasted that with a Democratic bill extending the low student rates by cutting subsidies to oil and natural gas companies, which is opposed by the GOP.
Pelosi characterized the Republican view as, "'We prefer tax subsidies for big oil rather than the health of America's women.'" The higher interest rates, if triggered, would affect the 7.4 million undergraduates expected to borrow new Stafford loans beginning July 1. This year, 8 million students took out such loans, averaging $3,568, according to the Education Department.
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Associate Press writers Donna Cassata and Jim Kuhnhenn contributed to this report.
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Senate expected to vote on Postal Service reform
Eyewitness NewsWASHINGTON -- The Senate could vote today on a measure to temporarily prop up the ailing U.S. Postal Service, though Republicans may try to block the measure. The mail agency, teetering on the brink of bankruptcy, says it needs to begin a billion-dollar cost-cutting effort to become profitable again by 2015. But local communities are fretting about the economic impact and tens of thousands of layoffs.
Late last year, Postmaster General Patrick Donahoe agreed to delay closings until May 15 to give Congress time to act.
The bill would give the Postal Service roughly $11 billion, basically a refund of overpayments to a federal retirement fund. Republicans say that would violate budget control agreements.The mail agency has been rocked by steadily declining mail volume, is $12 billion in debt and says it could run out of money for day-to-day operations as soon as this fallSenate could vote on Postal Service help WASHINGTON (AP) - The Senate could vote today on a measure to temporarily prop up the ailing U.S. Postal Service, though Republicans may try to block the measure.
The mail agency, teetering on the brink of bankruptcy, says it needs to begin a billion-dollar cost-cutting effort to become profitable again by 2015. But local communities are fretting about the economic impact and tens of thousands of layoffs.
Late last year, Postmaster General Patrick Donahoe agreed to delay closings until May 15 to give Congress time to act.
The bill would give the Postal Service roughly $11 billion, basically a refund of overpayments to a federal retirement fund. Republicans say that would violate budget control agreements.
The mail agency has been rocked by steadily declining mail volume, is $12 billion in debt and says it could run out of money for day-to-day operations as soon as this fall.
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MacArthur Airport in search of more passengers
Eyewitness NewsISLIP, N.Y. -- Officials are looking for ways to revitalize Long Island's MacArthur Airport, which has seen a dramatic decline in passengers.
Islip Town Supervisor Tom Croci told Newsday that ideas being explored include a light rail between the LIRR train station in Ronkonkoma and the airport's east side and runway upgrades.
According to the airport's figures, total passengers in 2011 were off 9.44 percent from the year before. And last year was the fourth straight year of declining numbers since the recession hit in 2008.
Sen. Charles Schumer says in the short term MacArthur needs to lure airlines.Although it has a market of 1.8 million potential passengers on Long Island, the airport captures only a small percentage of their travel. Many opt for nearby LaGuardia and Kennedy airports, which offer more airlines.
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Powerball jackpot up to $173 million
Eyewitness NewsNEW YORK -- All you need is $2 and a dream for your chance to win $171 million Wednesday.
No one won the jackpot on Saturday night, rolling the jackpot over to the hefty amount.
Just match all five numbers plus the Powerball, and you could be the next multi-millionaire.
You can see the winning numbers on 7online or by watching Eyewitness News at 11 p.m.---
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Multi-State Lottery Association: http://www.powerball.com
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Betsey Johnson stores go bankrupt
Eyewitness NewsNEW YORK (WABC) -- Fashion designer Betsey Johnson is looking at more than a wardrobe change.
The chain of stores named after her is bankrupt, and most of her 63 boutiques will close.
Johnson, however, still has a lower price line of clothing at Macy's and other stores.
She and her daughter also plan to star in a reality TV show.---
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Searching for a summer job
NEW YORK (WABC) -- Summer will be here before you know it, so time is running out to land that summer job.
Summer jobs can serve two purposes, a make little money and are a way to make a few dollars or set yourself up for your career
There are jobs out there. Smoothie chain Jamba Juice has pledged to hire at least 25-hundred employees over the summer, targeting young people, 18 to 24. Company officials say the positions will provide experience in working as a team and interacting with customers.
UPS will be hiring roughly 15-hundred summer youth to do packaging, sorting and loading in UPS hubs.AT&T plans to hire 600 young workers, half of which will be for internships that could lead to entry level full time jobs.
Even if the summer job is not in your field of study, you can gain other valuable experience.
Three dozen companies have partnered with the U.S. Department of Labor to create 180-thousand summer jobs. You can get information on summer jobs plus beginning in early may at http://www.dol.gov/summerjobs/. The program focuses on low income youth, but any student can use the online jobs bank.
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ONLINE: http://www.dol.gov/summerjobs/
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LIRR riders brace for service cuts coming in July
A train arrives to the Astor Place station early Friday, Dec. 16, 2005 in New York. (AP Photo/ Dima Gavrysh)
Eyewitness NewsNEW YORK (WABC) -- Coming this July, the Long Island Rail Road will be making some service cuts due to construction. There's work to do at a Queens rail yard that ultimately will allow LIRR trains to go to Grand Central Terminal.
Three outbound afternoon trains will be canceled and seven will be rescheduled.
The changes are expected to last a month.---
ONLINE: mta.info
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David Paterson nominated for MTA board
Eyewitness NewsNEW YORK (WABC) -- Former New York Governor David Paterson has been nominated for the board of the MTA. Governor Andrew Cuomo tapped his predecessor to take the seat given up in January by Paul McCartney's new wife, Nancy Shevell.
Cuomo said Monday that Paterson's energy and expertise will help the state reform the MTA and improve service for New Yorkers.
"Governor Paterson has dedicated his life to working for the people of this state and I am excited that he will continue his public service at the MTA," Cuomo said.MTA Chairman Joseph Lhota said he applauds the nomination.
"I look forward to former Governor Paterson bringing to our board deliberations the charm, wit and compassion he has shown throughout his public life," Lhota said in a statement.
New York City Council member James Vaca, chair of the transportation committee, said Pater's sensitivity to issues affecting the disabled community will add a "welcomed perspective" to MTA deliberations.
Paterson is legally blind. Last week, he was present at City Hall for an announcement that city taxis are getting technology to help visually impaired riders make sure they're not being cheated.
Since leaving office, Paterson has taught college and hosted a radio talk show.
Paterson was the 55th Governor of New York State. Prior to becoming governor, he served in the New York State Senate for over twenty years, becoming Senate Minority Leader in 2003, and served as Lieutenant Governor.
Governor Paterson's nomination is subject to confirmation by the New York State Senate.
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ONLINE: mta.info
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Study links Tide ingredient to cancer in lab rats
Eyewitness NewsNEW YORK (WABC) -- Tide detergent may do more than just clean your clothes. It may also expose you to a cancer-causing chemical.
According to The New York Times, the detergent contains trace amounts of dioxane.
The Environmental Protection Agency finds that dioxane may cause cancer in lab rats.
Environmental and health advocacy groups have asked Procter and Gamble to change the formula.Procter and Gamble says the amount of the chemical in Tide is well below the safety risk level.
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Vendors fight to get non-health fines lowered
NEW YORK (WABC) -- There is an important hearing Tuesday for New York street vendors.
The Department of Consumer Affairs committee will listen to two bills aimed at reducing fines levied against the vendors.
The fines are for non-health or safety-related violations, which run as high as $1,000. Advocates for the vendors say it's enough to run some of them out of business.
Each day, vendors cook food and sell coffee to hungry New Yorkers in need of a quick bite. But the heavy fines are stifling their ability to make a living.Currently, it is $50 for the first violation. Then, it jumps to $1,000 after five violations. Back in 2006, the fines began at $25 and only went as high as $250.
"Way too high," vendor Catalin Manmanole said. "You know, some people, they get fined $1,000. I've been lucky. I didn't have any fines so far. But they're too high. We're going to go out of business."
The fines are related to violations, like parking too close to a curb, parking too close to the entrance of a business or failing to display a license or menu prices. The Street Vendor Project has been rallying against the higher fines, and wants to see them reduced to the 2006 levels.
"The majority of vendors don't make that much, and they're usually the sole bread winners from from their families," the project's Matthew Shapiro said. "And a $1,000 fine really takes a huge chunk out of their business."
The first piece of legislation asks for the maximum fine to be put back down to $250. The second bill calls for a change in the multiple offense schedule, meaning a vendor should only be subjected to a graduated penalty when they commit the same violation over and over again.
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LIRR to ban booze on weekend overnight trips
Eyewitness NewsGARDEN CITY, N.Y. (WABC) -- The Long Island Rail Road is putting the cork in weekend late-night drinking. The railroad is banning alcohol on overnight weekend trains out of Penn Station.
According to published reports, railroad officials say that the effort is aimed at curbing unruly activity by drunken passengers.
The pilot program begins May 14.Trains operating on Friday and Saturday nights between midnight and 5 a.m. will be affected.
The railroad says signs will be posted throughout Penn Station notifying customers of the ban.
MTA police officers will be stationed at platforms to inform riders to get rid of their drinks.
Officials cite a number of recent assaults on train crew members as one reason for the ban.
Union officials back the plan.
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