The Daily Cut for April 3, 2009

Local: Republicans pitch plan for Ore. stimulus
SALEM, Ore. (AP) — A Republican proposal to stimulate the economy by giving home and business owners tax credits for improvement projects got a hearing Thursday even as Democrats insisted there were better ways to spend state funds.

Under the plan proposed by House Republican leadership, home and business owners could use tax refunds to finance up to 50 percent of high-dollar property improvements—100 percent for “green” projects.

Republicans estimate that while the program could ultimately cost the state more than $200 million in lost revenues, it would also create more than 6,000 jobs and increase property values.

Specifically, homeowners could receive the credit for projects ranging between $5,000 and $50,000 while businesses could apply it to projects costing between $25,000 and $500,000. The projects, as of now, would have to begin before Sept. 1, and the credit would be returned to them over a period of five years.

“I don’t think there’s been a single bill introduced in the Legislature this session with the potential job creation that the main street incentive program has,” said House Republican Leader Bruce Hanna. “We certainly are not the only ones who believe that.”

County commissioners, contractors and others from across the state also spoke in favor of the proposal at Thursday’s Sustainability and Economic Development Committee.

“This bill offers hope to home builder in my own county,” said Joe Laurance, a Douglas County commissioner. “It takes us past a difficult, short-term economic period.”

Still, Democrats remained skeptical of the plan’s actual stimulative effect.

Rep. Jules Bailey, a Democrat from Portland who sits on the committee, asked economist Robert Whelan to weigh in on the issue.

“It’s very complicated,” Whelan told the committee. “It’s not as simple as ‘Let’s induce people to do more spending.'”
—Ryan Kost

Nation: Blagojevich indicted on federal corruption charges
CHICAGO (AP) — Ousted Illinois Gov. Rod Blagojevich’s plan to auction off President Barack Obama’s vacant U.S. Senate seat marked the culmination of years of scheming for personal gain that included trying to extort a congressman and pressuring businesses to hire his wife, prosecutors alleged Thursday.

A sweeping 19-count federal indictment alleges that Blagojevich discussed with aides the possibility of getting a Cabinet post in the new president’s administration, substantial fundraising assistance or a high-paying job in exchange for the Senate seat.

Obama’s deputy press secretary, Josh Earnest, said the White House would not comment. The indictment does not allege any wrongdoing by Obama or his top aides.

Prosecutors also accused Blagojevich and members of his inner circle of plotting to line their pockets with millions of dollars in ill-gotten gains. They are accused of squeezing contractors, hospital owners and others seeking state business for kickbacks they planned to split after the governor left office.
“I’m saddened and hurt but I am not surprised by the indictment,” Blagojevich, who was in Walt Disney World with his family, said in a statement. “I am innocent. I now will fight in the courts to clear my name.”

The indictment alleges that Blagojevich:
—Told an aide he wanted to stall a $2 million state grant to a school supported by a congressman until the lawmaker’s brother held a fundraiser for the governor. The congressman’s identity wasn’t released.
—Was involved in a corrupt scheme to get a massive kickback in exchange for the refinancing of billions of dollars in state pension funds.
—Told an aide he didn’t want executives with two financial institutions getting further state business after he concluded they were not helping his wife get a high-paying job.
—Withheld state aid sought by the Tribune Co. unless the company fired unfriendly editorial writers at the Chicago Tribune.
—Mike Robinson

World: Obama’s scorecard: Some setbacks but a good summit
LONDON (AP) — At his summit debut, President Barack Obama failed to persuade foreign counterparts to commit to fresh and lavish spending to boost economic revival. And the success he did achieve in finding common ground was as much the result of modified goals as swaying other countries to bend to U.S. priorities.

Still, he emerged with much of what he wanted from allies on the flailing global economy. And he helped thwart a French-backed attempt to set up an international financial regulator.

Closing out the 20-nation gathering here, Obama—aware of the risks of over-promising to a hurting public back home—hailed the agreement hammered out among wealthy and developing countries while stopping well short of claiming it would reverse dismal conditions or even prevent a deeper recession.

“This is not a panacea,” Obama said at a news conference where he straddled nearly every issue.
The president called the meeting a “turning point in our pursuit of global economic recovery” and heralded steps agreed to by the Group of 20 leaders as both “critical” and “necessary.”

But, he cautioned: “Whether they’re sufficient, we’ve got to wait and see.”

The new U.S. president also has met privately with other heads of state, from Russia, China, Great Britain and India on the sidelines of the summit.

How has he done? “I think we did OK,” he said, summing up his performance so far.

Thursday’s daylong gathering of the G-20 nations pledged $1.1 trillion in loans and guarantees to struggling countries, agreed to crack down on tax havens, large hedge funds and other risky financial products, rejected protectionism that hampers foreign trade and committed to upgrading an existing financial forum to flag problems early in the global financial system. Those were all elements Obama was seeking.
—Jennifer Loven