THURSDAY, DECEMBER 15, 2011 Analyst: Full TN job recovery could take 5 years (Associated Press)

A University of Tennessee analyst says it could take up to five years before the state completely recovers all the jobs lost since the beginning of the recession. Bill Fox, director of UT's Center for Business and Economic Research, told the State Funding Board in Nashville on Wednesday that the state has gained back about 60,000 jobs, or about a quarter of the 220,000 lost since 2007. Fox told the panel that the number of jobs created in Tennessee is a better measure of the state's economic health than the unemployment rate, which he said reflects a larger number of people seeking work amid improving job prospects. The State Funding Board is scheduled to deliver its revenue estimates for the upcoming budget year on Monday. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=38148493.story

Revenue growth predicted for state (Chattanooga Times Free-Press/Sher)

Tennessee tax revenues are projected finally to return to their 2008 levels in 2013, but inflation will have eroded the state's effective buying power by about 10 percent, a University of Tennessee economist says. "Tax revenues will be higher in 2013 than in 2008 for the first time in five years," William Fox, director of UT's Center for Business and Economic Research, told reporters Wednesday. But while "we're back to the number of dollars we got in 2008, if you realize the effect of inflation on those dollars, we're still 10 percent lower. We're far from being back to the same fiscal situation we were in 2008 despite the fact we have as many dollars," he said. As a result, Fox said, "it remains a very tight fiscal environment." Fox's comments came after a meeting of the State Funding Board in which he and other officials presented their forecasts for revenue growth in the remainder of this year, as well as during the 2012-13 budget that Gov. Bill Haslam will present to lawmakers in 2012. http://www.timesfreepress.com/news/2011/dec/15/b1-revenue-growth-predicted-for-state/?local

Drought relief sought for farmers in 14 counties (Associated Press)

Gov. Bill Haslam has asked federal officials for a natural disaster designation for 14 counties due to excessive heat and drought during the summer and fall. The counties are Blount, Cumberland, Fayette, Fentress, Haywood, Loudon, McMinn, Macon, Meigs, Monroe, Morgan, Roane, Scott and Wilson. Haslam announced Wednesday that he made the request to U.S. Secretary of Agriculture Tom Vilsack. A designation would make farmers eligible to apply for lost income recovery, low-interest loans and other disaster assistance through the USDA Farm Service Agency. After experiencing heavy rains and flooding early in the growing season, many areas saw record high average temperatures and drought from July to October. Farmers reported crop losses ranging from 30 to 50 percent for corn, soybeans, tobacco, pastures and hay and some commercial vegetable crops. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=38148323.story

Haslam requests aid for Tenn. farmers (Jackson Sun)

Gov. Bill Haslam announced Wednesday a request for a secretarial designation of natural disaster for 14 counties due to excessive heat and drought during the summer and fall. The counties include Fayette, Haywood, Blount, Cumberland, Fentress, Loudon, McMinn, Macon, Meigs, Monroe, Morgan, Roane, Scott and Wilson. "This has been another year of weather extremes for Tennessee farmers," Haslam said in a news release. "Assistance would bring some relief to producers who saw heavy rains turn to record heat and drought during the same growing season." Haslam made the request in a letter to U.S. Secretary of Agriculture Tom Vilsack. A secretarial designation would make farmers in these areas eligible to apply for lost income recovery, low-interest loans and other disaster assistance through the USDA Farm Service Agency. http://www.jacksonsun.com/article/20111215/NEWS01/112150309/Local-news-briefs-Eldridge-appointedworkforce-board-Haslam-requests-aid-Tenn-farmers-what-s-your-favorite-Christmas-TV-special-

Industry Expansion Announced (WNSW-Radio)

Tennessee Gov. Bill Haslam and ECD Commissioner Bill Hagerty along with local officials and Jackson Die Casting, LLC representatives announced today the companys decision to expand its Jackson manufacturing facility. The expansion of the high-pressure aluminum die casting company represents an investment of almost $4.5 million and will create 58 new jobs in the area over the next three years. I am encouraged to see Tennessee businesses and Jackson Die Casting continue to grow in spite of a difficult economy, Haslam said. I believe our economic development efforts are focused on the right targets, and this expansion by Jackson Die Casting is progress towards our goal of becoming the No. 1 location in the Southeast for high quality jobs. This announcement underscores the fact that our strategy to help Tennessee businesses expand, as laid out in Gov. Haslams Jobs4TN plan, is paying off, Hagerty said. http://www.wnws.com/news/16323-industry-expansion-announced

Jackson plant to create 58 jobs (Jackson Sun)

Jackson Die Casting announced on W ednesday that it will expand its operations and create 58 jobs over the next three years. Hiring is scheduled to begin next year. The expansion represents an investment of almost $4.5 million. "I am encouraged to see Tennessee businesses and Jackson Die Casting continue to grow in spite of a difficult economy," Gov. Bill Haslam said in a news release. "I believe our economic development efforts are focused on the right targets, and this expansion by Jackson Die Casting is progress toward our goal of becoming the No. 1 location in the Southeast for high-quality jobs." Jackson Mayor Jerry Gist said the city successfully competed for the expansion opportunity. "Jackson Die Casting LLC is a strong company, and we have developed a positive relationship with its corporate representatives," Gist said in the news release. http://www.jacksonsun.com/article/20111215/NEWS01/112150313/Jackson-plant-create-58-jobs-Die-castingcompany-will-invest-nearly-4-5-million

Dunlap Plant Plans Move Forward (WTVC-TV Chattanooga)

Economic growth is on its way to small-town Tennessee We told you last month about an international company moving to Sequatchie County. Wednesday, Governor Bill Haslam and representatives from the new company, MANN+HUMMEL, spilled new details about the project international auto-parts manufacturer set up The will shop at the old Seymore Tubing building in Dunlap. It will focus on building car air-intake systems, like filters. MANN+HUMMEL will create over 150 jobs and the company will invest $15 million Getting the international company to Dunalp wasn't easy, and that's why Gov. Haslam came to celebrate and shed some light on how Dunalp got the deal done. "It was a lot of the personal touches," Haslam said. "Local folks that came and said, 'We really want you here,' and I think they became really impressed with the work ethic. That work ethic seems to extend to Dunalp Mayor Dwain Land who along with other local leaders helped bring Mann+Hummel to Tennessee. http://www.newschannel9.com/news/company-1007322-international-haslam.html

Haslam reflects on first year (Associated Press)

Gov. Bill Haslam took on teachers and lawyers to win battles to toughen tenure and cap lawsuit damages since his January inauguration, but he didnt have as much success uprooting Occupy protesters. Haslam said he isnt worried that the standoff with Occupy Nashville has tarnished his freshman year in office. Not one bit, the Republican governor told The Associated Press in a recent interview. He pointed to the removal of protesters in other cities from New York to Los Angeles as vindicating his view that the protesters presented sanitation and security problems. Since state troopers raided the encampment on the plaza across the street from the Capitol on Oct. 28 and 29 and made 55 arrests, the state has had to back down. Haslam ordered the charges dropped when Nashville courts refused to jail the protesters, and the state isnt fighting a federal court order that found the raids had violated the First Amendment rights of the protesters. http://www.columbiadailyherald.com/sections/news/state/haslam-reflects-first-year.html

Franklin Deputy DA named judge by Haslam (Nashville Post)

Deputy District Attorney Derek K. Smith of Williamson County has been appointed to the Tennessee Circuit Court for the 21st Judicial District by Gov. Bill Haslam. Smith will fill a vacancy created by the appointment of Judge Jeff Bivins to the Tennessee Court of Appeals, Middle Section. The 21st Judicial District includes Hickman, Lewis, Perry, and Williamson counties. Derek has developed valuable experience in his career with the district attorney generals office, and he is well respected and recognized in each of the four counties, Haslam said. I am thankful for his willingness to serve. For the past 19 years, Smith has served in the Office of 2

the District Attorney General, 21st Judicial District, beginning as an assistant district attorney before being promoted to deputy district attorney in 1999. http://nashvillepost.com/news/2011/12/14/franklin_deputy_da_named_judge_by_haslam

Eldridge appointed to workforce board (Jackson Sun)

Gov. Bill Haslam announced he has selected state Rep. Jimmy Eldridge, R-Jackson, to serve as a member of the Tennessee Workforce Development Board. The appointment shows that Eldridge, who chairs the House Consumer and Employee Affairs Committee, "is seen as a reliable voice for small businesses and job creators on Capitol Hill," according to a news release from the state legislature's Republican majority. Nominations for membership on the board are solicited from various sources including labor organizations, business organizations, community-based organizations and elected officials. "I am grateful to Governor Haslam for appointing me to this position," Eldridge said. "I will use this platform as an opportunity to articulate and advance some common sense proposals to get Tennesseans back to work." http://www.jacksonsun.com/article/20111215/NEWS01/112150309/Local-news-briefs-Eldridge-appointedworkforce-board-Haslam-requests-aid-Tenn-farmers-what-s-your-favorite-Christmas-TV-special-

Report: Tenn. ranks 10th best for its economic development efforts (CA/Locker)
A Washington advocacy group that tracks corporate subsidies issued a report Wednesday that ranks Tennessee 10th best among the states in linking state economic development subsidies to quality jobs, but also gives the state a score of only 54 out of 100 on the issue. "Good Jobs First," a nonprofit group, says Tennessee could have received a much higher score "but lacks consistency in job quality standards" because only three of five incentive and subsidy programs that it examined "require good wages tied to market levels." It said the other two Tennessee programs have no wage rules at all and none of the five requires the employees of state-subsidized companies be offered health insurance coverage. The group issued its report "Money for Something: Job Creation and Job Quality Standards in State Economic Development Subsidy Programs" on Wednesday. http://www.commercialappeal.com/news/2011/dec/14/report-tennessee-ranks-10th-best-its-economic-deve/

Rhea woman faces TennCare fraud charges (WRCB-TV Chattanooga)

A Rhea County woman is looking at a two years behind bars for TennCare fraud. Heidi Connell, 32, is accused of selling prescription drugs that were paid for by TennCare. Investigators say she obtained a prescription for Adderall, with plans to sell some of the pills. Connell is charged with one count of TennCare fraud. "Local police have been indispensable in helping us identify local drug trafficking that could involve the use of TennCare to finance inventory for the illegal activity," Inspector General Deborah Y. Faulker said. "We are working with municipal and county police officers across the state, as they are clearly committed to eliminating prescription drug abuse, and we're doing our part to stop abusers who are supporting this lifestyle with TennCare." TennCare fraud is a "Class E" felony, which carries a sentence of up to two years in prison. http://www.wrcbtv.com/story/16323845/rhea-woman-faces-tenncare-fraud-charges

State Revenue Growth a Pleasant Surprise, Expected to Slow (WPLN-Radio)

The last few months have been good for state tax revenues, but Tennessees finance commissioner isnt sure why. Economists are doubting the state will bring in tax dollars so fast in 2012. Finance Commissioner Mark Emkes says lately Tennessees tax coffers have done unexpectedly well. Since summer Emkes says theyve brought in more money than the state budgeted.W hen you hear about all the things going on in Europe and the world economy which is fragile right now and to see this type of growth in Tennessee, especially on the sales-tax revenue of over 6 percent year-to-date thats been a surprise. Emkes says hes not entirely sure whats driven the surge. For one thing, he says some people may finally be buying things they were putting off. For another, Emkes says folks arent saving as much of their paycheck, meaning theyre spending more. http://wpln.org/?p=32297

TN grants to help Amazon build in 2 counties, GM train in Spring Hill (TN/Sisk)

The State Funding Board approved $20 million in economic development funding for seven companies, including grants for projects in Murfreesboro, Lebanon, Spring Hill and Nashville. The board, made up of Tennessees top financial officers, agreed W ednesday to a pair of $3.5 million FastTrack infrastructure grants for Amazons new distribution facilities in Rutherford and Wilson counties. The money will be used to build water, sewage and drainage improvements at the two sites. Amazon says it will spend a total of $145 million on construction of the 3

two facilities, which will employ more than 1,400 people. The board also signed off on a $1.8 million FastTrack job training grant for Carlex Glass Americas $96.5 million expansion of its Nashville plant, which the company says will allow it to create 45 new jobs and retain 400 current jobs, and a $1.56 million FastTrack job training grant for General Motors $450 million expansion of powertrain production line in Spring Hill, which GM says will add 390 jobs. http://www.tennessean.com/article/20111215/NEWS21/312150017/TN-grants-help-Amazon-build2-counties-GM-train-Spring-Hill?odyssey=tab|topnews|text|News

Fox: Inflation Undercuts Slow Recovery (WPLN-Radio Nashville)

The states budget is far smaller than before the recession hit a few years ago. A state economist says one factor setting back Tennessees recovery is inflation. University of Tennessee economist Bill Fox says there are fewer state dollars overall. And the $10 billion the state does bring in arent going as far as they used to. Fox thinks a couple years from now Tennessee will finally have more tax dollars than in 2008, before the recession hit. But that amount will be worth less by then. If you realize the effect of inflation on those dollars, were still 10 percent lower. In other words, even after the state budget has dug out of the crater left by the recession, itll have a lot of catching up to do. What were looking at is 1.5 to 2 percent inflation over this next year. So as we think about tax revenue growth of 3.5 to 4 percent, in line with what Im talking about, then 1.5 to 2 percent is just normal inflation. And only 1.5 percent or so is actual growth in real tax revenues. http://wpln.org/?p=32310

State mental health chief: Closing Lakeshore won't cost county (N-S/Donila)
Tennessee Department of Mental Health Commissioner Douglas Varney told county leaders Wednesday if the state closes Lakeshore Mental Health Institute, it would reinvest $20 million in the region and patients would not be dumped onto the streets. In an hour-long meeting with the administration and the Knox County Commission, Varney detailed his proposal to close the Lyons View Pike Center. The idea, he said, would be to help more people with the money the state currently spends on the 2,200 who pass through Lakeshore's doors. Under the plan, which would need the General Assembly's approval, Lakeshore would close by the end of June. Officials would give the facility's 350 employees each a $3,200 severance package and two years support for college. Varney said he expects most doctors and nurses to find positions at area mental health providers, and the state would help others find jobs at local agencies and state-run facilities. http://www.knoxnews.com/news/2011/dec/15/state-mental-health-chief-closing-lakeshore-wont/

4,000 Tennesseans losing help from program (Associated Press)

A state program that helped 4,000 Tennesseans faced with sudden disabilities and life-threatening illnesses is being eliminated next July. The $7.2 million Family Support Grant will be dropped after three years in existence because of state budget cuts. According to WSMV-TV, every county in Tennessee has shared in grant assistance from the program (http://bit.ly/vZwkCK). The money is distributed by local nonprofit groups. Tennessee is trying to look for federal dollars to help replace the money lost. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=38148047.story

TBI charges store owners with possessing, selling illegal synthetic drugs (CP)
The Tennessee Bureau of Investigation took another step in the states crackdown on synthetic drugs serving 89 misdemeanor complaints on 40 individuals in Rutherford County. The complaints were served primarily on store owners on charges ranging from possession to possession with intent to sell. Some of the stores sold the drugs under various brand names such as K2, Diablo, Exotica or Spice. The entire operation, known as Operation Synful Smoke, began with undercover purchases made at various stores from June to August. Then on Sept. 7, TBI agents, along with federal and local law enforcement officials, seized 23,000 units of the synthetic drugs along with $44,500 in cash. That day, members of Metros Specialized Investigations Division raided two locations in Nashville FAB Wholesale at 609 Lafayette St. and the Smoke for Less at 1105 North Gallatin Pike. Those charged in Rutherford County will be cited in General Sessions Court in Murfreesboro on Dec. 20 to answer the charges. http://nashvillecitypaper.com/content/city-news/tbi-charges-dozens-store-ownerspossessing-selling-illegal-synthetic-drugs

SmartWay transportation center opens officially (Times Free-Press/Hightower)

Workers sit behind huge computer monitors that display interstate traffic cameras and maps of Southeast Tennessee. Almost one-quarter of a control room wall is covered by a large high-definition television screen, showing images from every interstate traffic camera in Chattanooga. "It's kind of like going somewhere hightech," said Tennessee Department of Transportation Commissioner John Schroer. "Like the FBI." On Tuesday, 4

TDOT officially opened the Transportation Center on Volkswagen Drive. The $2.5 million state-of-the-art facility is 16,000 square feet and will serve as an interstate transportation hub for the region. The idea is for workers in the center constantly to monitor traffic flows and be able to divert traffic quickly when conditions make roads unsafe, TDOT officials said. "We're attempting to clear our highways quicker," Schroer said. http://www.timesfreepress.com/news/2011/dec/15/b5-smartway-transportation-center-opens-officially/?local

TDOT to review highway where pileup killed 2 south of Clarksville (AP)

The Tennessee Department of Transportation will study a section of a limited-access highway north of Nashville where a 50-car pileup this month left two people dead. A review of the Dec. 1 crash in Sumner County and the response concluded emergency workers' handling of it was as good as could be expected, according to The Tennessean (http://bit.ly/vJUZrw ). Officials went over the review in a meeting on Tuesday. "Bottom line is, we're at the mercy of the weather," said Ken Weidner, director of the Sumner County Emergency Management Agency. "With conditions as bad as they were that morning, I don't know how you can see signs in fog that heavy" Freezing fog sharply reduced the visibility that morning on Vietnam Veterans Boulevard and caused slick patches on an elevated section of the highway near Hendersonville. Traffic started piling up in the eastbound lanes of the highway. Ultimately, more than four dozen vehicles smashed into each other. Paul Warren, 28, of Hendersonville died when his car went under the rear of a tractor-trailer truck that was caught in the crash. James Zeigler, 62, of Old Hickory drove himself to a hospital after the crash, but later died there. http://www.theleafchronicle.com/article/20111215/NEWS01/112150316/TDOT-review-highway-where-pileupkilled-2-south-Clarksville

Former death row inmate wins new trial (Associated Press/Loller)

A former death row inmate may get a new trial after a state appeals court overturned his murder conviction 10 years after his death sentence was thrown out. A panel of the Tennessee Court of Criminal Appeals, at Jackson, ruled on Friday that Erskine Johnson deserved a new trial after he presented new evidence that cast doubt on testimony of a key witness against him. Shelby County District Attorney Amy Weirich has asked the state attorney general's office to appeal the ruling. That office still is reviewing the opinion. Johnson was convicted in 1985 of killing Memphis grocery store manager Joe Belenchia during a robbery. At trial, Johnson and several witnesses testified that he was in St. Louis attending a birthday party for his mother on the night of Oct. 1, 1983, and the morning of Oct. 2, when the shooting occurred. In his appeal, Johnson presented evidence that his cousin, Elizabeth Starks, may have had reason to lie when she placed him at the crime scene in testimony. That is because Starks had strong connections to people who at one time were considered suspects in the case. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=38146709.story

Ray Bell Construction loses $3M appeal to Tennessee Supreme Court (NP/Nannie)
A local and prominent highway road construction firm has lost an appeal to the states highest court resulting in a loss to the company of nearly $3 million all due to poorly written and ambiguous contract fee provisions governing amounts due if completion dates remained unmet. The Dec. 12 decision, rendered by the Tennessee Supreme Court in Knoxville, relieved the Tennessee Department of Transportation of the obligation to pay $2,948,696.77 to Nashville-based Ray Bell Construction Co. for the building of a highway interstate exchange in Memphis. Calls to Bells attorneys, Greg Cashion and Donald Capparella, were not returned immediately late Wednesday. Cashion is one of the founding partners of the Nashville-based law firm Smith Cashion & Orr. Capparella is a named partner in the Dodson Parker Behm & Capparella firm, also based here. Both lawyers represented Bell at the State Supreme Court. However, representation at the appeals court and claims commission levels was handled by Stites & Harbison partner Matthew DeVries who prior to the conclusion of this matter, had switched law firms from Smith, Cashion & Orr to Stites, the reason for his absence at the supreme court. http://nashvillepost.com/news/2011/12/14/ray_bell_construction_loses_3m_appeal_to_tennessee_supreme_cour t

Shipley, Ford TBI probe under review (Times-News)

Theres still no outcome from a nearly six-month Tennessee Bureau of Investigation probe into actions by state Reps. Tony Shipley of Kingsport and Dale Ford of Jonesborough. The TBI looked into whether Shipley and Ford committed legislative misconduct advocating for three nurses who had their licenses suspended and then reinstated by the state nursing board. The two Republican lawmakers, state nursing board and state health 5

department were investigated by the TBI at the request of Davidson County District Attorney General Torry Johnson. Johnson has the TBIs report, but it has not been disclosed whether he took the matter to a Davidson County grand jury for action. The grand jurys term expired for the year on Tuesday. Johnsons spokeswoman, Susan Niland, said W ednesday in an e-mail the TBI report is still under review. I expect the review, though, will be completed shortly, and at that time we will let the media know more details, she said. We are not able to disclose information related to direct presentments to a grand jury. Information presented in a sealed indictment is not part of a public record until/unless an arrest is made. ... The next grand jury convenes on January 9. http://www.timesnews.net/article/9039520/shipley-ford-tbi-probe-under-review

Among peers, Maury County's drop in pay leads nation (Nashville Biz Journal)
Pay in Maury County dropped more in 2010 than in any other medium-sized U.S. county, according to new federal data According to the U.S. Bureau of Economic Analysis, total compensation fell by more than 11 percent in Maury County, which was ranked against 682 similarly sized localities Pay in those counties, defined by those with total compensation between $1 billion and $10 billion, represented 22 percent of all U.S. counties. Overall, compensation increased in 2,480 counties and declined in 633 counties in the U.S. The average annual compensation per job increased 2.7 percent overall, to $58,451 Much of the change in Maury County can be attributed to a 2009 blow to Spring Hill. GM spent $690 million overhauling a plant there, where its 2,950 workers were building the Chevrolet Traverse sport-utility vehicle. But during its bankruptcy, GM announced that it was moving Traverse production to Michigan, idling the plant and leaving thousands without work. http://www.bizjournals.com/nashville/news/2011/12/14/maury-sees-biggest-drop-in-pay-among.html

Commissioners Fail to Approve Redistricting Plan (Memphis Daily News)

Shelby County Commissioners will try again Monday, Dec. 19, to give final approval to a new set of district lines for the 13-member body. At a special meeting Wednesday, Dec. 14, a new set of district lines that would keep but tweak the current five-district setup won approval on the second of three readings. But it did not appear to have the two-thirds majority or nine votes needed to pass next week. However, during a day of shifting positions on the commission, the county attorneys office is rethinking whether Tennessee law requires nine votes to approve the plan on its final reading. Because the plan was amended on second reading, there are effectively two third readings of the plan. The commission met in special session because it is working under a legal deadline of approving a redistricting plan by the end of the year or risk giving citizens some grounds for challenging the plan in Shelby County Chancery Court. Commissioner Justin Ford pushed the set of four multimember districts, represented by three commissioners each, plus a fifth single-member district. http://www.memphisdailynews.com/news/2011/dec/15/commissioners-fail-to-approve-redistricting-plan/

Occupy Nashville protest sustained by donations (Tennessean/Brooks)

Two months in, supplies continue to flow More than two months into Occupy Nashvilles occupation, the donations keep coming. Cash. Canned goods. Computers. Toilets. Restaurants donate hot meals. Lawyers donate free legal advice. Doctors donate medical aid and 50 free doses of the flu vaccine to the protesters encamped in the deepening winter chill. Day after day, vehicles pull up to the curb of War Memorial Plaza and drop off donations of bottled water, food, clothing, blankets. Most of the 60 or so tents dotting the plaza were donated. If we run out of water, we put out the word (on Facebook, or Twitter or the Occupy Nashville website) and within minutes, people are driving up, shouting out that they need help unloading stacks of bottled water, said Jason Steen, an Occupy Nashville member whose days and nights on the plaza are made more comfortable by the steady stream of supplies. One week, Occupy Nashville accepted more than $900 in cash donations slightly higher than the $700 a week the group has been averaging. Right now, the group has a $4,400 donation surplus, said Johanne Greenwood, one of the volunteers who monitors the groups finances. http://www.tennessean.com/article/20111215/NEWS01/312150052/Occupy-Nashville-protest-sustained-bydonations?odyssey=tab|topnews|text|News

Local trio supports payroll tax cut (Chattanooga Times Free-Press/Carroll)

The latest political battle in Washington, which involves payroll taxes and oil pipelines, found local Republican lawmakers siding with House leadership Tuesday evening. U.S. Reps. Scott DesJarlais, Chuck Fleischmann and Tom Graves voted to extend a cut in payroll taxes for 160 million middle-class Americans. But it has almost no chance of becoming law. Passed 234-193 mostly along party lines, the bill would prevent a scheduled increase in payroll taxes, but it cleared the GOP-controlled House because it was packaged with unrelated provisions, including one that could accelerate construction of the controversial Keystone XL pipeline. The proposal also 6

would reduce the 99-week-cap on jobless benefits to 59 weeks. President Barack Obama has said he would veto any attempt to pair the oil pipeline with an extension of the payroll tax holiday, a key part of his jobs plan. Senate Majority Leader Harry Reid, D-Nev., called the latest proposal a "partisan charade," adding that Tuesday's House action would be "dead on arrival" in his chamber. Payroll taxes will increase for the middle class at the beginning of the year if the House and Senate can't agree. Obama has said a payroll tax hike would add more than $1,000 to the average American's expenses. http://www.timesfreepress.com/news/2011/dec/15/local-trio-supports-payroll-tax-cut/?local

Fleischmann, DesJarlais praise passage of bill to extend payroll tax cuts (Nooga)
Despite being considered dead on arrival in the Senate and doomed for a veto in the White House, Tennessee representatives praised the efforts of their House colleagues to pass a measure on Monday that would extend payroll tax cuts. The bill, called "The Middle Class Tax Relief and Job Creation Act," passed in a 234-193 vote. Along with prolonging the payroll tax holiday, it would prompt President Barack Obama to make a decision regarding the Keystone XL oil pipeline, scale back an air pollution rule, reform Obama's health law, and reduce the length of unemployment benefits. The legislation came less than a week after Senate Republicans shot down a proposal that would have paid for the extension by increasing taxes on American singles and couples earning more than $1 million a year. In a report from Politico, the bill was called "largely a message vote." Following the vote, Rep. Chuck Fleischmann sent out a news release calling the bill's passage a "win for the economy." http://www.nooga.com/26424_fleischmann-desjarlais-praise-passage-of-bill-to-extend-payroll-tax-cuts/

Bhalla enters GOP contest in 3rd District (Chattanooga Times Free-Press/Carroll)

On June 29, 2009, in the early days of U.S. Rep. Chuck Fleischmann's run for Congress, local businessman Ron Bhalla donated $500 to the cause. Two and a half years later, Bhalla has become the latest Republican challenger to Fleischmann, a man he groups with "lobbyists, party influence, Washington politics and selfinterest." "These people are controlling all 435 representatives. Chuck Fleischmann is no exception," Bhalla said during a 30-minute interview Tuesday. "You cannot buy me." In at least one sense, he means it. Acknowledging that he must fight big money that's backing Fleischmann and at least one of his fellow challengers, Weston Wamp, Bhalla said he'll accept individual contributions, but promised to decline money from industry-backed political action committees, better known as PACs. Fleischmann, who accepts individual contributions and PAC money, declined to comment Tuesday. If elected, Bhalla said, he won't push his own political views, but those of his constituents. His plan includes using Twitter, a phone line and mass emails to gather opinions from constituents on every vote. http://www.timesfreepress.com/news/2011/dec/15/b1-bhalla-enters-gop-contest-in-3rd-district/?local

Duncan, Corker, Roe agree: Time for Postal Service to get creative (NS/Collins)
U.S. Rep. John J. Duncan Jr. thinks there may come a day when mail trucks drive around town with advertisements plastered on their sides. Shoppers one day may be able to buy stamps or mail packages at kiosks in big-box stores like Wal-Mart. Those are the kind of money-making ventures the U.S. Postal Service may have to consider if the cash-strapped agency is going to stay in business, the Knoxville Republican said. "They're sure hemorrhaging money, and they're going to have to take some pretty drastic or unusual steps to stop that because it obviously just can't keep going on," the Knoxville Republican said. Duncan and other East Tennesseans in Congress say the Postal Service's announcement last week that it intends to eliminate more than 250 processing centers and lay off nearly 30,000 workers to avert bankruptcy are yet another sign the agency needs congressional authority to operate more like a private business. Though the Postal Service is an independent agency that doesn't receive tax money, Congress controls much of its operations. Lawmakers need to give the agency more flexibility to change its business model so it can compete with private companies, such as United Parcel Service and FedEx, said U.S. Rep. Phil Roe, R-Johnson City. http://www.knoxnews.com/news/2011/dec/15/duncan-corker-roe-agree-time-for-postal-service/

Postal Service to delay closings (Memphis Business Journal)

The U.S. Postal Service, which earlier this month announced plans to close more than half of its 461 mailprocessing plants, now says it won't move forward on the closings until next May. In response to a request made by multiple U.S. Senators, [the Postal Service] has agreed to delay the closing or consolidation of any post office or mail processing facility until May 15, 2012, the agency said in a statement. It did not identify any of the 7

senators. The Postal Service will continue its review process, including public input meetings but said it hopes the delay will provide time to get comprehensive postal legislation passed. The Postal Service needs congressional approval to defer retiree benefits payments and to end Saturday delivery. Closing postal facilities also requires approval from the agency's regulator. Closing processing facilities would lower delivery standards for first-class mail, shifting delivery, in most cases, to two to three days instead of one. The Memphis mail processing facility is not on the closure list but the Bluff City could end up processing mail from closed facilities in the region. For example, in Tennessee, the Jackson facility is on the potential closure list which would mean that mail would be processed in Memphis. http://www.bizjournals.com/memphis/news/2011/12/14/postal-service-to-delayclosings.html

Thousands of households face cuts in energy aid (Tennessean/Bewley)

Judith Anderson knows how to stretch a fixed income. She lives in a small apartment, doesnt own a computer or television, and uses heat sparingly. But in an old building without energy-efficient central heat, utility bills still add up. Thats why shes grateful for the $300 in home energy assistance shes received each year since the mid1990s, when a divorce left her with an income of about $450 a month. She earns more now that she gets Social Security checks but still relies on food stamps and energy aid to make ends meet. Not having to pay that $45 in electricity each month allows me to then purchase food, said Anderson, 65, of Clarksville. Im just trying to be as frugal as I can and trying to be a good steward of the money God has given me. Agencies that provide home energy assistance to Anderson and nearly 170,000 other low-income Tennessee households are bracing for budget cuts this winter, even as temperatures drop and energy prices and unemployment remain high. http://www.tennessean.com/article/20111215/NEWS02/312150047/Thousands-households-face-cuts-energyaid?odyssey=tab|topnews|text|News

Poll: Most Americans want payroll tax extension (Associated Press/Kellman)

Most Americans want Congress to vote to continue the payroll tax reduction, according to a new Associated Press-GfK poll that comes as Democrats and Republicans wrestle over whether to extend the cut through 2012. It's the latest instance in which lawmakers on Capitol Hill have allowed partisan sniping to hold up a measure to put in place a policy that most Americans support, like ending the Bush tax cuts, cap and trade, and a surcharge on millionaires. The dragged-out debate over whether to extend an expiring payroll tax reduction is one of many developments that have kept voters furious with their leaders all year. On the brink of the 2012 presidential and congressional elections, virtually all Americans are disappointed and frustrated with the political scene and nearly 6 in 10 say they are angry, the AP-GfK survey showed. "It seems like there are parties that only want to get their agenda done," said liquor store owner James Jacobsen, 47, of East Hartford, Conn. "They're catering to special interests and not Americans. They are not representing the individual American." http://www.knoxnews.com/news/2011/dec/15/poll-most-americans-want-payroll-tax-extension/

Ryan Revises Medicare Plan (W all Street Journal)

Republican Rep. Paul Ryan plans to unveil a new Medicare proposal Thursday that would give future seniors the choice of purchasing private insurance coverage or staying in the traditional federal plan. The concept, which is backed by Democratic Sen. Ron Wyden of Oregon, steps back from the House budget chairman's previous plan to end the traditional fee-for-service Medicare program for future retirees and replace it with subsidies starting at $8,000 that seniors would use to purchase private health plans. That subsidy wasn't guaranteed to keep pace with the rate of health-care inflation, leaving beneficiaries potentially to face higher out-of-pocket costs. Ryan's first plan had been attacked by Democrats, who were preparing to portray Republicans in 2012 elections as trying to do away with the popular program. Messrs. Ryan and Wyden would allow private plans to compete alongside the traditional Medicare plan. Seniors could sign up for any of the plans offered through a Medicare exchange, which would have specific requirements for what the plans must cover. http://online.wsj.com/article/SB10001424052970204844504577099000881132064.html?mod=ITP_pageone_1 (SUBSCRIPTION)

Under-26 Gain Insurance Under Health-Care Overhaul (W all Street Journal)

About 2.5 million young adults have gained health-insurance coverage since the health-overhaul law let people stay on their parents' plan until they turn 26, according to government figures released W ednesday. The results 8

could help President Barack Obama's re-election campaign boost support among young voters, whose turnout figures to be crucial to his winning a second term. While the 2010 overhaul law remains unpopular with voters overall, the young-adult insurance extension has emerged as a rare selling point liked even by opponents of the law. Under the law, most insurance plans had to allow parents to start adding their adult children in September 2010. Many insurance plans made the change in spring 2010 to accommodate children near college-graduation time. The percentage of those aged 19 to 25 with insurance rose to 73% this past June from 64% in September 2010, the National Center for Health Statistics found in its latest survey of insurance coverage. That translates to about 21.5 million young adults, up from 19 million. The administration previously estimated that one million additional young adults had gained coverage by the end of March 2011 under the law. http://online.wsj.com/article/SB10001424052970203893404577098711020155588.html?mod=ITP_pageone_1 (SUBSCRIPTION)

NRC flags Sequoyah plant over shutdowns (Chattanooga Times Free-Press/Sohn)

Federal regulators have given Sequoyah Nuclear Plant a "white" safety finding -- the first level of safety concerns that triggers stepped up federal inspections. Sequoyah, near Soddy-Daisy and 20 miles from downtown Chattanooga, received notice of the finding in a November letter from the Nuclear Regulatory Commission after the plant's Unit 1 reactor had its fourth unplanned "scram" -- or shutdown -- in less than a year. "This was due to two trips [unplanned automatic shutdowns] in the fourth quarter of 2010, one trip in the second quarter of 2011 and one trip in the third quarter of 2011," wrote Richard P. Croteau, NRC's director of the division of reactor projects. A fifth shutdown occurred in the reactor after the plant had moved into the white rating, TVA spokesman Ray Golden acknowledged. White signifies the lowest level of safety concerns, NRC spokesman Joey Ledford said. Red is the highest and in between is yellow. Neither NRC nor TVA notified the public about Sequoyah's white rating, officials said, but the letter is on file in NRC's online documents database. http://www.timesfreepress.com/news/2011/dec/15/nrc-flags-sequoyah-plant-over-shutdowns/?local

Government seeks bids on Y-12/Panext contracts (News-Sentinel/Munger)

Potential bidders on the government contract to manage the Y-12 and Pantex nuclear weapons plants will probably be working overtime during the holidays. The National Nuclear Security Administration on Wednesday released the final Request for Proposals for the new multi-billion-dollar contract, which for the first time will combine management of the two plants that perform national security missions in different states 1,000 miles apart. In addition to Y-12 in Oak Ridge and the Pantex Plant near Amarillo, Texas, there is an option to include the tritium work done at the Savannah River nuclear site in South Carolina. The contract proposals, which are expected to cost millions of dollars to prepare, are due March 13, 2012. Bidding teams are likely to include multiple companies in partnerships. Babcock & W ilcox Technical Services currently has a management role at both Y-12 and Pantex. B&W Y-12, a partnership of B&W and Bechtel National, has managed Y-12 since 2000. http://www.knoxnews.com/news/2011/dec/15/government-seeks-bids-on-y-12panext-contracts/

Valero plans $298 million investment in Memphis refinery (C. Appeal/Bailey)

One of two firms seeking tax break Valero Energy Corp. plans a $298 million upgrade of its Memphis refinery over the next four years. The nation's largest oil refiner will build a new hydrogen plant, make cooling tower additions and improve tanks and other facilities at the 70-year-old facility at 543 W. Mallory. The plans were outlined in an application for tax breaks made public Wednesday. Valero is one of two companies seeking retention payments in lieu of taxes. AB Mauri Fleischmann's, which manufactures bakers' yeast, said it intends to invest $16.5 million to make its facility more competitive with a rival brand. Valero, which is seeking a 15-year tax break, has 305 employees in Memphis whose average salary is $95,844, not counting benefits, and has another 252 contract workers. The PILOT would save the company $25.7 million in property taxes, but Valero would still generate $54 million in tax revenue for the local government, according to an EDGE board staff analysis. http://www.commercialappeal.com/news/2011/dec/14/valero-plans-298m-investment-its-memphis-refinery/

Valero Planning $298M Investment in Memphis (Memphis Daily News)

Two Memphis companies will ask for tax breaks at next weeks meeting of the Memphis-Shelby County EDGE Board to help them keep and make new investments in their local operations. The board meets W ed., Dec. 21, at the Crescent Center, 6075 Poplar, at 3:00 p.m. Valero Energy is seeking a 15-year payment-in-lieu-of-taxes (PILOT) for its Memphis refinery at 543 West Mallory Ave. to go along with planned investments and upgrades at the facility totaling more than $298 million over the next 5 years. The tax freeze, which would enable Valero to 9

retain 305 jobs here, would save the company almost $26 million in local taxes. But during the PILOT period, the company would still generate $54 million in revenue for the city and county, according to Valeros PILOT application. Since Valero acquired the Memphis refinery from Premcor in 2005, Valero has invested more than $254 million in it already. The company says it has to continually reinvest in new personal property and equipment because of the technology-intensive nature of its business and the age of the Memphis plant. http://www.memphisdailynews.com/news/2011/dec/15/valero-planning-298m-investment-in-memphis/

City Schools reflect high scores in state report card (State Gazette)
The state of Tennessee released school system report cards for the 2010-2011 school year on Friday, Dec. 2 and Dyersburg City Schools found itself performing well in comparison to the rest of the state and especially northwest Tennessee. The Dyersburg City School System continues to perform well despite being the 10th most economically disadvantaged school system in northwest Tennessee "Studies show that there is a direct correlation between economically disadvantaged school systems and student success," said City Schools Superintendent Neel Durbin. "The richer the school system the better you should perform." If studies hold true, Dyersburg City Schools should be achieving 10th among the 15 school systems in northwest Tennessee. However the city schools continue to defy expectations and outperform many of their counterparts in the area and are ahead of the state average. Dyersburg High School ACT scores are currently the best scores in northwest Tennessee and are the eighth best scores in Tennessee. "We have good teachers that are working hard," said Durbin. http://www.stategazette.com/story/1794465.html

Rouse Construction submits low bid for new Knox elementary school (N-S)
Rouse Construction has submitted the low bid of $14.399 million to build Southwest Elementary School near Northshore Drive and Pellissippi Parkway. Bids were opened W ednesday afternoon. The Knox County Purchasing Department received seven bids for the school. Under the bid, Rouse said it could build the school in 575 days. The other bids: Merit Construction, $14,448,000; Hickory Construction, $14,599,000; Johnson & Galyon Inc, $14,720,000; Mid-State Construction, $14,840,000; Messer Construction, $15,397,000; and Rentenbach Constructors for $16.1 million. Matt Myers, deputy director for the county's purchasing department, said the next step is to verify bids and review the companies. Then comes the process of awarding the contract. That could happen as early as next week, he said, but then Knox County Commission and the Knox County school board must approve a winner. Southwest Elementary School is expected to open in August 2013 and will house kindergartners through fifth- graders. http://www.knoxnews.com/news/2011/dec/15/rouse-construction-submits-low-bid-for-new-knox/

Money spent on pre-k a good investment, Memphis group says (CA/Roberts)

Business executives in every sector of this city's economy know times are tough. But they also say Memphis can't afford status quo investment in early childhood education. Armed with statistics, Memphis Tomorrow and the city and county mayor are pressing the legislature to ramp up investments in prekindergarten, with the goal of nearly doubling the allotment, said Blair Taylor, executive director of Memphis Tomorrow. The group includes Memphis CEOs David Bronczek, head of FedEx Express; William E. Evans, head of St. Jude Children's Research Hospital; and John Carson, CEO of Morgan Keegan Inc. Together, their companies bring in more than $50 billion in annual revenues and locally employ 80,000 people. The state spends $86.5 million on pre-K programs, serving a total of 18,000 children. At $4,803 per child, it would cost $160 million to provide pre-K services to every at-risk 4-year-old in the state. "We understand that $160 million is a lot and that times are tight, but at the end of the day, it's about priorities," Taylor said. http://www.commercialappeal.com/news/2011/dec/15/pay-it-forward/

Texas: Overcoming a backlog (Stateline)

How Texas conquered a mountain of food stamps applications Two years ago, the 316 offices in Texas where people go to sign up for food stamps were the very image of a government backlog. Long lines of frustrated people, many of them hungry, snaked through dingy spaces designed to handle much smaller crowds. The back offices werent much better. Desks of state employees were littered with piles of applications in boxes under workers desks and stacked on top of them that hadnt yet been entered into the states computer systems. Texas was the worst state in the country at performing a straightforward task: giving food stamp applicants a yes or no within 30 days in normal cases and 7 days for emergency cases. Thats the standard set by the federal 10

government, which oversees the state-run program. According to state data, at the height of the backlog in November 2009, Texas processed only 57.5 percent of new applications on time. In reality, the problem was much worse because stacks of pending applications werent properly being counted as part of the problem. http://www.stateline.org/live/details/story?contentId=619336

OPINION Editorial: Move to TVAAS scores a fairer way to measure student success rates (JS)
Is it fair to apply the same education standards and test-score goals to all school systems across the nation, such as is done through the No Child Left Behind law? While we have long supported aspects of NCLB, such as testing standards to measure student progress, we increasingly are skeptical of the practice of labeling schools and school systems as "failing," as in failing to meet average yearly progress benchmarks. The chief cause of our doubts is the wide range of challenges faced by schools and school systems. Tennessee's request for a NCLB waiver from the federal government would, instead, turn to Tennessee Value Added Assessment System data to measure student progress. This makes sense for Tennessee, which has considerable experience with this highly regarded system. But, we would urge, even TVAAS scores should be viewed in the context of the specific challenges faced by students in Tennessee's 95 counties. A review of a map created by the Tennessee County Technical Assistance Service, based on data supplied by the Tennessee Department of Education, makes it clear to us that applying the same standards to every school system, and then labeling many of them as failing, is unfair and likely discouraging to local school professionals, residents and students. http://www.jacksonsun.com/article/20111215/OPINION01/112150302/Editorial-Move-TVAAS-scores-fairer-waymeasure-student-success-rates

Columnist: Will Haslam Let the 'Death Tax' Die? (Metro Pulse)
Gov. Bill Haslam has said he will oppose Republican legislators efforts this session to repeal the Hall Income Tax and the state inheritance tax, saying the state cant afford to give up revenue at the moment. Legislators see the repeals as popular election year actions and argue that they will prompt more people with capital and assets to retire in Tennessee rather than Floridaanother state without an income tax. Look for a compromise in which the death tax repeal will be phased in over five years. No taxes on the first million the first year, raise it to $2 million the second year, until the limit moves to $5 million in five years. It would take care of most family farms and small businesses at that level, and the amount of lost revenue could be absorbed by the state budget more easily. Should Haslam veto the measure, it might set up a confrontation with conservative legislators. http://www.metropulse.com/news/2011/dec/14/will-haslam-let-death-tax-die/

Editorial: Awareness of photo ID for voting still lacking (Daily News Journal)
Tennessee's new voter photo ID law is causing some confusion among the state's electorate and could even disenfranchise some voters in the 2012 elections. With that in mind, the Rutherford County Election Commission made the right move recently by opting to notify 3,660 residents without photo IDs on their driver's licenses about the state's law. Election Commissioner Johnny Taylor persuaded the five-member commission last week to reach out to residents and let them know they might need to take steps to ensure they have an acceptable photo ID for voting. Commission Chairman Ransom Jones estimated it would cost $1,500 for postcards to notify people 11

about the state law, which takes effect Jan. 1, requiring voters to show an official photo ID before casting ballots. That's a small price for Rutherford County to pay to let people know about the laws affecting one of their most important constitutional rights. Election Administrator Nicole Lester told commissioners she expects the state Division of Elections to notify people about the new guidelines. But Rutherford County shouldn't wait on the state to take action. http://www.dnj.com/article/20111215/OPINION01/112150314/EDITORIAL-Awareness-photo-ID-voting-stilllacking

Guest columnist: Smoking cessation underfunded in TN (Tennessean)

Is Tennessee a quit-friendly state for smokers who want to end their deadly addiction to nicotine? A new study by the American Lung Association shows the Volunteer State is making progress, aided by the addition of a TennCare smoking-cessation benefit. But the annual Helping Smokers Quit: Tobacco Cessation Coverage 2011 certainly does not place Tennessee in the top tier of quit-friendly states, which includes Maine, North Dakota, Delaware and W yoming. The TennCare benefit, a longtime goal of tobacco-control advocates, was finally funded in Gov. Bill Haslams 2011-12 budget. Tobacco-control advocates give thanks to the governor, Lt. Gov. Ron Ramsey and House Speaker Beth Harwell for recognizing the benefit is an investment in the better health of the TennCare population. Today, anyone who is enrolled on TennCare has access to this benefit an important step in beating their addiction. The Lung Association applauds the efforts by the Bureau of TennCare to develop a cessation benefit that provides access to the prescription medications and various cessation aids available as well as individual, group and telephone counseling to help work through the quitting process. http://www.tennessean.com/article/20111215/OPINION03/312150023/Smoking-cessation-underfunded-TN

Frank Cagle: Who Can Judge a Judge? (Metro Pulse)

As Al Gore might say, there is no controlling legal authority The oft repeated question around town the last couple of weeks is what did the Knoxville legal community know about Judge Richard Baumgartners drug problem and when did they know it? It is certainly an important question and some outside entity needs to investigate and tell the community the results. If people knew Baumgartner was impaired by a drug habit and he was allowed to preside over four high-profile, multi-million-dollar murder trials, its criminal. The trials subjected the victims families and the community to horrific evidence about heinous crimes and now it appears the trials will have to be done over again. The question I have is, how can we prevent it happening again? Defense attorneys and prosecutors cannot confront judges. They have no authority to tell them what to do and the prospect of having a judge mad at you (they think) is too terrible to contemplate. Judges can ruin your career and cost you your cases. Commenters have suggested that reporters should have known Baumgartner was impaired and busted him. Its not a reporters job to police the court system. http://www.metropulse.com/news/2011/dec/14/who-can-judge-judge/

Editorial: Crisis looms, politics persist (Commercial Appeal)

Crucial economic stimuli such as the payroll tax cut should not be held hostage to make a point. The widening gap between members of Congress and ordinary Americans yawns some more in the current standoff in Washington over the proposed extension of the payroll tax cut. Politicians who don't have to worry about overdue rent, winter utility bills or rising college tuition have no qualms about making the masses sit and wait for their elected representatives to do their jobs. And current conditions do not suggest that now would be an appropriate time to end a tax cut that will save Tennessee wage earners an estimated $2 billion this year. Arkansas and Mississippi workers are taking home an estimated $800 million more in each state because of the cut, which if extended would save the average American family $1,000 next year. That is money that would go into working people's households to help fuel an economic recovery that is far from complete. It's money that members of both political parties and independents, as well, want to see in the hands of working people. http://www.commercialappeal.com/news/2011/dec/15/editorials-crisis-looms-politics-persist/

Times Editorial: Ban on cell use urged (Chattanooga Times Free-Press)

A raft of reports in recent years has documented the burgeoning problem of drivers who drive while dangerously distracted by cellphones, texting and other rising uses of mobile devices. So while it may be disheartening to users of such devices, it should come as no surprise that the National Transportation Safety Board has finally taken a firm decision to urge states to ban drivers' use of hands-free devices, including wireless headsets. The NTSB's recommendation springs from a decade of in-depth studies into distraction-related accidents, including those by airline and tugboat pilots as well as auto drivers. These have, indeed, become legend. Another widely 12

noted chain collision this week was caused by a 19-year-old near St. Louis who had sent or received 11 text messages in 11 minutes just before he plowed into the back of a tractor truck. The tragedy that piled up around him involved two fatalities and injuries to a number of students riding in two school buses that also slammed into the tractor truck. The needless toll of deaths and injuries caused by distracted drivers is now as appalling as it is frequent. Though nine states now ban the use of hand-held phones and 35 ban texting, it's become obvious that states' current laws are not adequate to curb the growing trends of distracted driving and the variety of mobile devices they use. http://www.timesfreepress.com/news/2011/dec/15/ban-on-cell-use-urged/?opiniontimes

Free-Press Editorial: An easy way to create jobs (Chattanooga Times Free-Press)

In a time of long-term high unemployment, the Obama administration could create more than 20,000 jobs simply by allowing the construction of an oil pipeline from Canada to Texas. The Keystone XL pipeline project has wideranging support, from Republican lawmakers to labor unions. But to satisfy his environmental extremist allies, the president put off a decision on the pipeline until 2013. In response, the House of Representatives on Tuesday passed a bill that would pave the way for construction of the pipeline, as well as extend payroll tax relief for 160 million Americans. Republicans would pay for the short-term loss of government revenue caused by the payroll tax cut by freezing federal workers' pay and finding other cuts in the bloated federal budget. But the Democratrun Senate vowed to block the legislation, and the president said he would veto it even if it got through the Senate. Instead of cutting excessive federal spending, Democrats insist that wealthier Americans -- who already pay a disproportionately high share of taxes -- pay even higher taxes to fund the payroll tax cut. And like the president, they side with environmental activists in opposing the job-creating Keystone pipeline. http://www.timesfreepress.com/news/2011/dec/15/fp2-an-easy-way-to-create-jobs/?opinionfreepress ###

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