April 27, 2024

Archives for January 2014

Biography Casts Critical Light on Fox News Chief

In the corporate thicket of News Corporation, according to a new book, Mr. Ailes dared to battle with Lachlan Murdoch, a son of Rupert Murdoch, the chairman, openly gloating when the younger Mr. Murdoch eventually left his post at the company and even commandeering his chair.

At Fox News, the book says, Mr. Ailes was disdainful of even his most bankable on-air talent, privately calling Bill O’Reilly “a book salesman with a TV show” and Brian Kilmeade, a peppy Fox host, “a soccer coach from Long Island.”

Those episodes are described in “The Loudest Voice in the Room” by Gabriel Sherman, a 560-page biography of Mr. Ailes being published on Jan. 21 by Random House.

The book aims to be an exhaustive look at Mr. Ailes’s life and his monumental career, particularly as chairman of Fox News Channel. Under his stewardship, the network, known best for its conservative opinion shows in prime time, dominates the cable news competition, frequently posting ratings better than those for its main rivals, MSNBC and CNN, combined. It has also become the most profitable division of News Corporation, its parent, with annual earnings that have been estimated at $1 billion.

The book describes in detail Mr. Ailes’s professional ambition, his desire to influence American politics through a conservative prism, and his status as a visionary who possessed an intuitive understanding of the power of television to shape public opinion. Before entering the corporate world, Mr. Ailes was a political consultant, and Mr. Sherman’s book credits him with being a pioneer in using television during election campaigns.

In the months before publication, the book has drawn sharp criticism from a chorus of people connected to Fox News, including employees and contributors who have taken to Twitter to attack Mr. Sherman.

Mr. Ailes, in what some viewed as an attempt to pre-empt Mr. Sherman’s book, cooperated with another biography, “Roger Ailes: Off Camera” by Zev Chafets, which was published last year by Sentinel, a conservative imprint at Penguin.

In his book, Mr. Sherman, a contributing editor at New York magazine, follows Mr. Ailes from his boyhood in Ohio to his perch as one of the most powerful figures in the history of television.

Despite being unsatisfied with many of the Republican candidates for president in 2012, Mr. Ailes endeavored to promote Mitt Romney on Fox News programs, the book says. Before the Wisconsin congressman Paul D. Ryan was chosen as Mr. Romney’s running mate, Mr. Ailes advised Mr. Ryan that his television skills needed work and recommended a speech coach.

At the beginning of the general election, a four-minute video criticizing President Obama’s policies was broadcast on “Fox and Friends,” provoking outrage from the left and prompting the network to say publicly that Mr. Ailes had no involvement in its creation. In “The Loudest Voice in the Room,” Mr. Sherman writes that the video “was Ailes’s brainchild.”

The New York Times obtained a copy of the book in advance of its publication.

Mr. Sherman said in the source notes that he interviewed 614 people who knew or worked with Mr. Ailes for the book, which took more than three years to report and write. More than 100 pages are devoted to source notes and bibliography..

Former employees cited in the book talked of Mr. Ailes’s volatile temper and domineering behavior. In one anecdote, a television producer, Randi Harrison, told Mr. Sherman that while negotiating her salary with Mr. Ailes at CNBC in the 1980s, he offered her an additional $100 each week “if you agree to have sex with me whenever I want.”

A Fox News spokesperson said in a statement on Tuesday: “These charges are false. While we have not read the book, the only reality here is that Gabe was not provided any direct access to Roger Ailes and the book was never fact-checked with Fox News.”

The book also describes an explosive episode dating back to 1995, when Mr. Ailes was a high-ranking executive at NBC and locked in a power struggle with another executive, David Zaslav.

Article source: http://www.nytimes.com/2014/01/08/business/media/biography-casts-critical-light-on-fox-news-chief.html?partner=rss&emc=rss

New Leader at Billboard Sees Future in Visuals

Guggenheim Partners, which owns The Hollywood Reporter and Billboard, with Dick Clark Productions, the Golden Globes and the American Music Awards, is expected to announce on Wednesday that Ms. Min will become co-president and chief creative officer. John Amato, formerly chief executive of The Backstage, a newspaper and website aimed at actors, will be co-president and will lead business efforts at Billboard and The Hollywood Reporter.

Lovingly or mockingly called “the bible” by music executives, Billboard has been the music industry’s steadfast trade paper for decades, outlasting all rivals and setting the terms for success through its still closely watched charts. But as the music industry has been cut in half in the last decade, Billboard has shrunk, churning through editors and losing circulation.

In a telephone interview, Ms. Min, 44, said she was aware of the challenges that Billboard and the industry it covers were confronting, but said she believed that the publication could find traction through a more visually arresting presentation and broader coverage.

“Music is one of the most powerful mediums around,” she said. “Billboard, because of its charts and coverage, has the credibility and authority to access great stories and the people who are making news. It’s the music industry after all — we should be able to have some fun with that.”

It is a formula that worked at The Hollywood Reporter, which Ms. Min took over in 2010, after a successful tenure at Us Weekly. Although she faced doubts about her task, she created a weekly magazine built on lush visuals and in-depth treatment of the machinations of Hollywood. The magazine covers became sought-after real estate, with film and television stars happy to pose for a magazine that is read in the canyons and on the studio lots of Los Angeles.

Despite a relatively stable circulation of 72,360, the magazine has not been a source of profit, but The Hollywood Reporter’s website attracted 11.89 million unique visitors last November, up from 9.24 million in November 2012, according to the tracking service comScore.

The success of the magazine and the website has been less about conquering the entertainment news beat than capturing the Hollywood zeitgeist with its covers. Its round tables of entertainment luminaries have drawn attention. And what had been a dowdy also-ran in Hollywood now hosts a robust schedule of events and parties.

Billboard is still the most authoritative voice covering the music world, although it has struggled to reinvent itself as tumult in the music industry has reduced its pool of traditional subscribers. Its average circulation for the first half of 2013 was 16,524 copies, according to BPA Worldwide, after declining steadily since the 1990s, when it reached about 40,000.

Its website has remained one of the most popular music publications online, driven by music news and Billboard’s charts. Over the last year the site received an average of 3.3 million visitors a month in the United States, according to comScore, putting it slightly behind Rolling Stone but ahead of music outlets like Pitchfork and Spin.

To adapt to the changing music industry, Billboard has expanded its coverage into the periphery of technology, advertising and branding — the source of more and more of the money in music since sales have plunged. It has also developed an extensive business in industry conferences, and licenses its name to various businesses, including a concert hall in Tokyo.

Its charts have also adapted to changes in how music is consumed. Last year, it began to incorporate YouTube in the way it compiles the Hot 100, its standard pop singles chart.

“What we are really trying to achieve is platform maximization,” Todd Boehly, the president of Guggenheim Partners, said in an interview. “We would have the print, we would have the digital and it would be my goal that we would have other forms of distribution over the next several years.”

The changes at Billboard are part of an effort to expand the company’s footprint in live award events built on well-known media products — the Billboard Music Awards, the Golden Globes and the American Music Awards all continue to draw — at time when broadcast television is struggling to attract audiences in real time.

Guggenheim, whose principals have an interest in the Los Angeles Dodgers, is seeking to buy or build entertainment assets that live on multiple platforms.

In addition to expanding the role of Ms. Min, who will be responsible for the editorial direction of Billboard and The Hollywood Reporter, the company announced that its Prometheus Global Media group would be split into two groups: an entertainment group consisting of Billboard and The Hollywood Reporter and The Madison Avenue Group, made up of Adweek, the Clios, the annual advertising awards, and Film Expo.

Asked about changes in staff at Billboard, Ms. Min pointed out that most of the employees who were at The Hollywood Reporter when she took over remained there.

Article source: http://www.nytimes.com/2014/01/08/business/media/new-leader-at-billboard-sees-future-in-visuals.html?partner=rss&emc=rss

Vote in Senate Starts Talks on Extending Unemployment Benefits

The three-month extension of benefits passed with no room to spare, on a vote of 60 to 37, and some of the six Republicans who voted yes made clear that they wanted the $6.4 billion cost paid for through cuts elsewhere in the budget.

Still, even getting the Senate on to the bill was a victory for President Obama and Democratic leaders, who have tried for weeks to steer away from health care and budget wrangling and onto pocketbook issues, which they say they will use to try to frame the 2014 elections. Senator Charles E. Schumer, Democrat of New York, hailed the vote as a shift in “the tectonic plates of our politics.”

Republicans opposed to the extension will begin offering alternatives on Wednesday. Senator Marco Rubio of Florida, one of the Republicans’ potential presidential hopefuls, will speak about poverty and unveil proposals that he says will help the chronically poor without consigning them to a lifetime of government assistance. On Thursday, Representative Paul D. Ryan of Wisconsin, the Republican vice-presidential nominee in 2012, will also speak about a conservative approach to poverty.

A deal that widens Republican support for the unemployment extension would give Democrats weeks to pressure balking House Republican leaders, highlighting fractures in a party offering differing policy answers to poverty and income inequality. Democrats were not terribly optimistic that an accord could be reached, though they said that fiscally conscious Republicans also feeling heat from struggling constituents had been receptive to genuine negotiations.

“We’ll only know that after long discussions without preordained outcomes, and sometimes you only know when you call the vote,” said Senator Jack Reed, a Rhode Island Democrat and co-author of the unemployment bill, with Senator Dean Heller, Republican of Nevada. The senators represent the two states with the highest unemployment rates. “This is still a tough, tough struggle,” Mr. Reed added.

Tuesday’s vote merely got the Senate to consider the unemployment bill formally. The six Republicans who voted yes included moderates like Senators Susan Collins of Maine and Lisa Murkowski of Alaska, but also conservatives from states with unemployment rates above the national average, like Senators Rob Portman of Ohio and Dan Coats of Indiana.

Leading voices in the Republican Party have questioned extending emergency unemployment benefits that were first passed in 2008, the height of the recession. Senator Rand Paul, a Kentucky Republican and possible presidential candidate in 2016, has warned that the benefits are a narcotic for the unemployed, lulled by handouts away from seeking work. Groups like the political action committee Club for Growth and the Heritage Foundation’s political arm, Heritage Action, also warned Republicans against the extension.

Yet most Republicans put aside the “safety net as hammock” arguments, and enough of them were willing on Tuesday to begin the formal process of extending benefits.

“There was enough concern,” Mr. Coats said, “and maybe some legitimate need to do some extension of unemployment benefits, that it shouldn’t have been just shut down.”

Mr. Obama, accompanied by unemployed Americans as he spoke in the East Room of the White House, tried to keep the pressure on congressional Republicans. “We’ve got to get this across the finish line without obstruction or delay,” he said.

But Speaker John A. Boehner of Ohio made clear that in addition to demanding that an extension of expired benefits be paid for, he would also tie it to Republican priorities like building the Keystone XL oil pipeline, expanding exemptions from the Affordable Care Act and opening energy exploration on federal land.

Article source: http://www.nytimes.com/2014/01/08/us/politics/unemployment-benefits.html?partner=rss&emc=rss

Boston Globe Hires Journalist to Focus on Catholicism

The Boston Globe announced on Tuesday that it would hire John L. Allen Jr., a journalist for The National Catholic Reporter, and explore starting a free-standing publication dedicated to Catholicism.

“There is a resurgence of global interest in the Catholic Church, inspired by the words and deeds of the newly installed leader, Pope Francis,” Brian McGrory, the editor of The Globe, said in a statement.

Mr. Allen, 48, who has reported on the Vatican from Rome, has written nine books and is a senior Vatican analyst for CNN, “is basically the reporter that bishops and cardinals call to find out what’s going on within the confines of the Vatican,” Mr. McGrory said.

Mr. Allen’s hiring, and the plans for a publication aimed at Catholics, come as more news organizations seek to break out specialized content for specific groups. They are among the first moves made by The Globe since it was purchased from The New York Times Company by John W. Henry, principal owner of the Boston Red Sox, in 2013.

According to the 2010 U.S. Religion Census by the Association of Statisticians of American Religious Bodies, Massachusetts has nearly three million Catholics out of a population of over 6.5 million.

Pope Francis was selected as Time magazine’s person of the year in 2013, after a series of comments in which he played down issues like abortion and same-sex marriage, and spoke out against financial inequality. Though he is a popular figure, some more conservative members of the church have said they feel abandoned by his attempts to appeal to a broader audience.

In an article announcing Mr. Allen’s departure, Dennis Coday, the editor of The National Catholic Reporter, said that he was sad to lose him but that “more media outlets providing accurate, fair coverage of the church can only enhance all our efforts.”

The Boston Globe won a 2003 Pulitzer Prize for public service for “courageous, comprehensive coverage of sexual abuse by priests” in the Catholic Church, according to its website.

Article source: http://www.nytimes.com/2014/01/08/business/media/boston-globe-hires-journalist-to-focus-on-catholicism.html?partner=rss&emc=rss

‘Downton Abbey’ Returns to a Record Audience

The proof is in the ratings for the show’s fourth-season premiere on Sunday, which not only set a record for the series, with 10.2 million viewers, but also further confirmed “Downton” as a major player in what has become a golden age for drama on television.

The audience for the “Downton Abbey” premiere on PBS was almost exactly the same size as that for the series finale of “Breaking Bad” on AMC, this season’s most-talked-about episode of television drama. That finale averaged 10.3 million viewers. (In both cases, the figures are for only the audiences who watched the episodes the nights they were on; the numbers grow significantly when delayed viewing is counted.)

The “Downton” audience was also virtually the same as that for this season’s premiere of “Scandal,” the hot drama on ABC (10.5 million).

“Downton” easily topped a host of television’s most celebrated cable dramas in terms of viewership. “Mad Men” on AMC had 3.4 million viewers for its most recent premiere. “Game of Thrones” on HBO had 4.4 million for its initial airing. The recent season finale of “Homeland” on Showtime had 2.4 million viewers.

“Downton” fits into the same category as those shows in several respects. It is a serial drama, runs each season for a limited number of episodes and benefits from binge watching. In the case of “Downton,” viewers are able to catch up on previous seasons on Amazon Prime. (They had been available on Netflix until this past July.)

The success of “Downton Abbey” continues to grow, despite the fact that the events of each season can easily be learned in advance. The season is broadcast in the fall on British television. PBS, however, continues to resist synchronizing with the British airing.

The PBS president, Paula Kerger, has defended that decision, saying “Downton” has become a “post-holiday tradition” for fans in the United States. Gareth Neame, one of the show’s executive producers, said in a recent conversation that maintaining this schedule helps the series because it means that “Downton” avoids facing the fusillade of broadcast network premieres in the fall.

The success of “Downton” has not gone unnoticed by the rest of the television business. NBC has already signed Julian Fellowes, who writes every episode of “Downton,” to create a series for American television, a drama to be set in New York in the 1880s.

Mr. Fellowes said in a recent interview that he will write only the pilot for the NBC show before returning to write the fifth season of “Downton.”

Article source: http://www.nytimes.com/2014/01/08/business/media/downton-abbey-returns-to-a-record-audience.html?partner=rss&emc=rss

Tax Break as a Not-So-Secret Weapon

The tax break wars are heating up again, as New Jersey aggressively pushes a revamped program to encourage businesses to stay or move within its borders.

The retooled tax credit is called Grow New Jersey, a consolidation and expansion of several previous programs. Some companies, even those already in the state, might be eligible for as much as $300 million in tax credits per project.

The state’s neighbors, particularly New York and Pennsylvania, are not taking the competition lightly, their officials say, particularly at a delicate time when certain regions are still struggling to climb out of the recession. Both states have been watching New Jersey’s moves, and seem to gearing up for a combative response.

So while New York City recently saw a major tax credit program expire that could put it at a disadvantage, Gov. Andrew M. Cuomo has been promising that he wants to push a new set of incentives for businesses — especially in beleaguered upstate New York — to try to stave off business flight.

Pennsylvania has been successful at wooing e-commerce companies and their enormous distribution centers to the state, although it too could face tougher challenges given how high the stakes are for economic investment.

“States are facing a Darwinian struggle for jobs, and New Jersey is using these incentives aggressively, and they are using them frequently,” said Joseph J. Seneca, a professor at the Edward J. Bloustein School of Planning and Public Policy at Rutgers University.

The New Jersey tax credits allow any company to apply for the 10-year credits, regardless of its size or type, as long as it is considering leaving the state or moving there and meets certain other capital investment and job requirements. The amount of the credit depends on location, the size of the work force, wages and other criteria. For example, a company relocating from another state that would move to a depressed urban area and would hire hundreds of people could earn as much as $300 million in credits.

The New Jersey program also seems to encourage an exchange of tax credits among companies, by permitting a company with little corporate income tax liability to sell some of its credits at a slight discount to another company.

“This is really substantial — it isn’t a tax credit you can lose, because you can sell them, so that is very appealing,” said Dan Breen, an executive vice president for business and economic incentives at Jones Lang LaSalle. “I have had some clients that are now looking at New Jersey that might not have otherwise, because of the difference in the incentive environment.”

The state Legislature approved the Grow New Jersey program in September, and in December it announced its first round of recipients: in exchange for nearly $93 million in tax credits, five companies agreed to retain 925 full-time employees in New Jersey and create 900 new jobs for a period of up to 15 years. The companies are Valeant Pharmaceuticals, the IDT Corporation, VF Sportswear, WebiMax and Marathon Data.

For years and years, tax breaks for major companies have been heavily criticized as corporate welfare by government reform groups, which argue that extremely well-off businesses are rarely penalized with a loss of credits if they fail to produce jobs. And fiscal conservatives often warn that the loss of millions of dollars in tax revenue year over year hampers a state from shoring up funds for the next possible downturn.

But the lure of bigger and broader protections keeps companies jockeying for the incentives. And the states have tried to work in provisions to keep the companies in check. In the case of Grow New Jersey, for example, recipients must certify they have created or maintained the specified number of jobs, and if they fail to meet the requirements, the state could withhold the credits or even require the companies to reimburse them.

“Our business development team has been fielding numerous calls by potential applicants,” Tim Lizura, the president and chief operating officer of the New Jersey Economic Development Authority, which oversees Grow New Jersey, said in an email. He said the next set of potential recipients would be recommended after the authority’s monthly meeting in mid-January.

And the state keeps burnishing its welcome mat, real estate experts say. Robert C. Kossar, the market director for New Jersey and Long Island operations for the brokerage firm Jones Lang LaSalle Americas, praised New Jersey’s lieutenant governor, Kim Guadagno, for her accessibility.

“Kim Guadagno gives everyone her cellphone — she’s made it her business over the last three years to be a conduit for the business community,” he said.

Article source: http://www.nytimes.com/2014/01/08/business/new-jersey-enticing-businesses-with-revamped-tax-credit-program.html?partner=rss&emc=rss

Low Inflation Worries the Euro Zone

Prices in the 17 European Union member states that were using the euro in 2013 rose in December at an annual rate of only 0.8 percent, Eurostat, the European Union statistical agency, reported on Tuesday in a first estimate that will be subject to revision in the weeks ahead. The December figure, which did not include Latvia since it adopted the euro on Jan. 1, was slightly lower than the 0.9 percent annual inflation rate for November.

The European Central Bank seeks to keep price growth steady at about 2 percent. The situation now, in which the rate of inflation is falling, is known as disinflation. If the situation continues in this direction, Europe could face outright deflation — a debilitating economic condition in which prices actually decline across the board.

As long as hints of deflation remain, the E.C.B. faces a difficult challenge.

Economists do not, for the most part, expect the E.C.B. to take action when its Governing Council meets on Thursday in Frankfurt. But the issue is certain to figure prominently in discussions between the bank’s president, Mario Draghi, and his colleagues.

Most worrisome to economists assessing the data released on Tuesday is the “core” inflation rate, which strips out volatile food and energy prices. It dipped to 0.7 percent — a record low since the advent of the euro currency. The core number for December was equivalent to the broader, overall figure for October that led the E.C.B. to cut its benchmark interest rate to a record low of 0.25 percent, down from 0.5 percent.

Clemente De Lucia, an economist at BNP Paribas, said on Tuesday that the December consumer price data might have been affected by a change in the way Germany calculated its inflation, so another month or two might be needed to be certain of the trend.

“Yet, the level of inflation remains dangerously low,” he wrote in a note. “Survey data show that the recovery is gaining some momentum. Yet its pace will remain rather low and it needs to be sustained by policy maker actions.”

Data for all of the euro zone members is not yet available, but there is significant variation in price trends within the zone. Germany, for example, posted inflation of 1.2 percent in December. But Cyprus, hammered by the collapse of its financial industry, is already experiencing deflation, as prices slipped 2.3 percent in December.

Spain’s consumer prices rose just 0.3 percent, while Italy’s rose only 0.2 percent, as those two countries’ troubled economies teetered near a deflationary cliff.

Deflation would only add to the broader economic malaise in the region, by hurting corporate profits and by leading consumers to delay purchases in anticipation of better deals in the future. It would also weigh heavily on borrowers, making loan repayments more expensive in real terms — a particular danger for Europe’s already fragile financial sector.

In the view of at least one outside observer, Europe’s deflationary pressure may be a symptom of a larger problem, in which austerity measures and imbalances among countries in the region have hampered growth. Jacob J. Lew, the United States Treasury secretary, said on Tuesday at a news conference in Paris that Europe needed to focus more on investment and stimulating demand, suggesting that the Continent’s most powerful economic engine, Germany, should take the lead.

“It’s clear that some countries have more capacity to stimulate growth and demand than others do,” Mr. Lew said, in a clear reference to Germany.

“Short-term demand has to be part of the agenda,” added Mr. Lew, who is on the Continent this week for talks with government leaders and finance officials in Paris, Berlin and Lisbon. “It’s too important to look at a single economic statistic.”

Mr. Draghi has suggested that the bank’s toolbox for addressing falling prices has not been exhausted, and includes the possibility of enacting negative interest rates — in effect, punishing commercial banks for depositing funds at the central bank. The goal of such a move would be to force banks to pump more money into the economy in the form of lending, which could have at least a mild inflationary effect.

This article has been revised to reflect the following correction:

Correction: January 7, 2014

An earlier version of this article erroneously included one euro zone member state among those covered by the December data on inflation. The inflation rate in Latvia, which adopted the euro Jan. 1, was not reflected in the data.

Article source: http://www.nytimes.com/2014/01/08/business/international/another-worryingly-low-inflation-rate-for-the-euro-zone.html?partner=rss&emc=rss

Faulty Websites Confront Needy in Search of Aid

Efforts at modernizing the systems for unemployment compensation in California, Massachusetts and Nevada have also largely backfired in recent months, causing enormous cost overruns and delays.

While the nation’s attention was focused on the troubled rollout of the federal health care site under the Affordable Care Act, the problems with the unemployment sites have pointed to something much broader: how a lack of funding in many states and a shortage of information technology specialists in public service jobs routinely lead to higher costs, botched systems and infuriating technical problems that fall hardest on the poor, the jobless and the neediest.

As a result, the old stereotype of applicants standing in long lines to speak to surly civil servants at government unemployment offices is quickly being replaced. Now those seeking work or government assistance are often spending countless hours in front of buggy websites, then getting a busy signal when they try to get through by phone.

In October, food stamp recipients in 17 states were unable to use their electronic cards for a day because the computer system that runs the program failed. Over the years, similar problems with systems in Georgia, Massachusetts, Texas, Colorado and other states have prevented people from getting food stamps and Medicaid benefits.

The problems come at a time when state legislatures are increasingly demanding efficient methods for people to apply online for aid, from food stamps to unemployment benefits.

“It’s like calling a radio station trying to get tickets,” said Gary A. Grimes, 52, an unemployed construction manager in Pensacola, Fla. His $275 weekly checks stopped after he tried to log in to report that he had gotten a weeklong job but still needed benefits.

High unemployment in recent years has forced states to process record numbers of benefit claims using outdated technology, and without significant increases in federal funding, according to a report in 2012 by the National Employment Law Project, an advocacy group for lower-wage workers. Most states are operating unemployment insurance programs with 30-year-old computer systems, said George Wentworth, a senior staff lawyer with the legal group.

“What we have seen is that a lot of the old systems have been breaking down,” Mr. Wentworth said. “The recession really ended up highlighting the fragile state of a lot of these systems.”

But for many states, the upgrade was even worse.

So many applications for benefits were stalled when California introduced its new system on Labor Day that the government had to process them by hand. About 148,000 people waited weeks for their unemployment checks.

Similar problems after Massachusetts rolled out its system in July cost the state $800,000 in overtime and new hires to resolve and prompted legislative hearings. The project was delivered two years late and $6 million over the original estimate, The Boston Globe reported.

Also in July, Pennsylvania scrapped its $153 million online system for unemployment benefits, because the project was “simply not working,” the state’s secretary of labor, Julia Hearthway, said at the time.

Florida’s website trouble stems from a 2011 law that required people to sign up online for unemployment benefits. Before the law, 40 percent of the applications were done by phone.

In April, in response to a complaint by the nonprofit Florida Legal Services, the federal Department of Labor found that the online requirement violated the civil rights of people with language barriers and disabilities. The Florida Department of Economic Opportunity lashed back, accusing the federal agency of being overly politicized.

The state agency’s website shows more than 78,000 calls came in to the customer service center last Thursday alone. Of those, fewer than 6,500 callers spoke with a representative. More than 300 customer service representatives and claims adjudicators will be hired in the coming months, the agency said last week.

The department blamed its vendor, Deloitte Consulting, which was also responsible for the projects in California and Massachusetts. The agency issued $6 million in penalties against the company, withheld a $3 million payment and on Dec. 23 began fining it $15,000 a day until the problems are fixed.

Article source: http://www.nytimes.com/2014/01/07/us/faulty-websites-confront-needy-in-search-of-aid.html?partner=rss&emc=rss

Payout May Come for an A.B.A. Team That Is Long Gone

But it has never been easy. The Spirits were excluded from the 1976 merger of the two leagues. So the Silnas watched unhappily as the New York (now Brooklyn) Nets, the Denver Nuggets, the Indiana Pacers and the San Antonio Spurs were absorbed into the N.B.A. But the Silnas negotiated an astonishing benefit that was critical to the merger: an agreement to be paid one-seventh of the national television revenue that each of the four teams was to receive, as long as the league continued to exist. That amounted to being paid in perpetuity, and so far, the deal has provided the Silnas with about $300 million.

Their deal is as much a part of A.B.A. history as red, white and blue basketballs, the 3-point line and the big Afros of Julius Erving and Darnell Hillman. It is a lasting memory of how, through luck or prescience, the Silnas and their lawyer, Donald Schupak, capitalized on the league’s growing popularity.

The N.B.A. has tried to buy them out, including an effort before the financial crash in 2008. Negotiations have picked up in the last six to nine months.

On Tuesday, the Silnas, the league and the four former A.B.A. teams will announce a conditional deal that will end the Silnas’ golden annuity. Almost.

The Silnas are to receive a $500 million upfront payment, financed through a private placement of notes by JPMorgan Chase and Merrill Lynch, according to three people with direct knowledge of the agreement. The deal would end the enormous perpetual payments and settle a lawsuit filed in federal court by the Silnas that demanded additional compensation from sources of television revenue that did not exist in 1976, including NBA TV, foreign broadcasting of games and League Pass, the service that lets fans watch out-of-market games.

Still, the league is not getting rid of the Silnas altogether. They will continue to get some television revenue, some of it from the disputed sources named in their lawsuit, through a new partnership that is to be formed with the Nets, the Pacers, the Nuggets and the Spurs, according to the people with knowledge of the agreement. But at some point, the Silnas can be bought out of their interest in the partnership.

The Silnas, of course, did not have to settle. They could have continued to make money from the N.B.A., without ever having to invest in players or build an arena. Clearly, their old agreement would have to be honored as long as the N.B.A. continued to exist.

But there is a reluctance, more by Daniel, 69, than Ozzie, 80, to keep fighting the league, said one of the people who discussed the agreement. Although wealthy people often plan their estates, much of the Silnas’ riches from the N.B.A. is already in family trusts.

Bob Costas, the NBC sportscaster who called Spirits games, said in a telephone interview, “My guess is that for the N.B.A., the upside is that in the foreseeable future, there will come a time when they will not have to look at this and blanch and it will be in the past.”

League officials declined to comment because the settlement must be approved by the judge, Loretta A. Preska, who has presided over the case in United States District Court in Manhattan.

The Silnas’ deal resonates, at least in part, because it appears that they snookered the league, or, more accurately, the Nets, the Pacers, the Nuggets and the Spurs, who dealt directly with the brothers.

But Michael Goldberg, the A.B.A.’s former general counsel, recalled in a recent interview that the four teams were desperate to get into the N.B.A. and willing to satisfy the Silnas.

“Schupak said they’d take TV rights in perpetuity as a kind of Hail Mary to get money down the road,” he said. “What was missing was someone saying, ‘Thirty years, 50 years, or until something happens, and it’s over.’ ”

The Spirits got a sweeter deal than the Kentucky Colonels, who were also not absorbed into the league. John Y. Brown, the Colonels’ owner, got $3 million to fold his team.

And while the Silnas, who were planning to move the franchise to Utah at the time of the merger, did not bring a roster that included Caldwell Jones and Marvin Barnes into the N.B.A., they got a $2.2 million payment — and all that television money. They never acquired another team and have attended to their investments (some of which went sour during the Bernard L. Madoff Ponzi scheme).

But their deal, widely called the greatest in sports history, if not in American business, lives on as a remnant of the marriage of the undercapitalized A.B.A. and the N.B.A. in its mid-1970s doldrums, before Magic Johnson, Larry Bird and Michael Jordan.

“The only way to appreciate this,” Goldberg said, “is to go back in a time capsule to the bidding wars between the leagues; the N.B.A. tiring of them, and saying, ‘Let’s take four teams, but not St. Louis and Kentucky, and we’ll move on.’ ”

Article source: http://www.nytimes.com/2014/01/07/sports/basketball/payout-may-come-for-an-aba-team-that-is-long-gone.html?partner=rss&emc=rss

In Jobless Youth, U.S. Is Said to Pay High Price

“The key takeaway here is that it’s not just the individuals who are suffering as members of our generation,” said Rory O’Sullivan, the policy and research director of the Young Invincibles, a postrecession youth advocacy group, which did the study. “When you have an entire generation of people that are out of work, it’s going to create tremendous costs for taxpayers both now and in the future.”

Fifteen percent of workers ages 16 to 24 are unemployed, compared with 7.3 percent of all workers. That does not include young people who are not working because they are in school, who are no longer looking for work or who were too discouraged to begin a job search. Much has been written about how much this will cost them in the long run, as they spend years trying to catch up.

The new report is an effort to quantify the financial effect now. Its authors determined how much young people would have paid in taxes had they been working, and how much less they would have collected in unemployment and other social welfare spending. Each jobless worker between 18 and 24 accounted for $4,100 a year, they concluded, and those between 25 and 34 accounted for $9,875, the study said.

Based on those figures, if youth unemployment were reduced to its prerecession rate, the study said, the federal government would recoup $7.8 billion, or $53 per taxpayer, and state and local governments would recoup $1.1 billion.

If all those discouraged young people, who are not counted as unemployed because they are not actively seeking work, were also in the labor force, the total figure would be larger: $25 billion. About 93 percent of that number comes from taxes that would have been collected, and the rest from averting social spending, the study said. The report estimated that effect per state taxpayer was greatest in Alabama, Kentucky and North Carolina.

The group intends to present its findings at a news conference on Tuesday with Senators Patty Murray of Washington and Cory A. Booker of New Jersey, both Democrats.

The report is the latest in several detailing the disproportionate effect of the recession on young people and their lifetime earnings. The findings have renewed interest in programs that long ago went out of fashion, like apprenticeships and vocational high schools. President Obama has said he will reward colleges and universities that demonstrate an ability to place graduates in paying jobs.

“Suddenly people are talking about youth,” said Anthony P. Carnevale, the director of the Center on Education and the Workforce at Georgetown, who wrote a foreword for the latest study. He said youth work programs went out of style in the 1980s, as the baby boom generation stopped needing them.

Now, struggles among white, middle-class young people have helped bring the issue back to the fore, he said. “They’re not getting traction,” he added. “The fear that’s the strongest of all is that young people won’t be middle class anymore.”

Still, Mr. Carnevale said, “Spending for retirement is crowding out investment in young people, especially human capital investment.”

Young Invincibles said that federal youth jobs programs had been cut by $1 billion a year since 2002, and recommended expanding the Labor Department’s registered apprenticeship program and AmeriCorps, a national service program that had more than half a million applicants last year for about 80,000 positions, Mr. O’Sullivan said. It also advocates restoring financing to Youth Opportunity Grants, which were aimed at at-risk youth and were ended in 2005.

Article source: http://www.nytimes.com/2014/01/07/business/economy/in-jobless-youth-nation-is-said-to-pay-high-price.html?partner=rss&emc=rss