As ‘fiscal cliff’ deadline nears, OPM updates furlough guidelines



“We wanted to take some prudent steps to keep federal employees informed in case of an order for sequestration,” said Thomas Richards, OPM’s communications director.


He added that the guidelines were not issued as “a reaction to any specific action” involving the talks between President Obama and congressional leaders.

“It’s nothing more than that,” Richards said.

Nonetheless, after months of the White House expressing confidence that the standoff would be resolved before a crisis hit and that furloughs would be unnecessary, the guidance reflects the reality that little time remains on the calendar to avert the automatic cuts that will be triggered by a failure to reach a deal by the year’s end.

Obama returned to Washington from Hawaii on Thursday in an effort to keep the talks alive. As the deadline approaches, federal workers have grown increasingly worried about the potential threat to their jobs.

The guidance notes that “agencies are responsible for identifying the employees affected by administrative furloughs based on budget conditions, funding sources, mission priorities (including the need to perform emergency work involving the safety of human life or protection of property), and other factors.”

Employees will be given a minimum 60-day notice before any furlough of longer than 22 days takes place, according to the document. A 30-day notice will be given for shorter furloughs.

The guidance also specifies that employees may not take other forms of paid time off, including annual or sick leave, in lieu of being furloughed. Nor is an employee allowed to volunteer to do his or her job for free, unless otherwise authorized by law.

The guidelines are updated from a previous version issued in April by OPM in response to the possibility of a government shutdown at the time.

“The policy folks are diving down deep into the weeds,” Richards said. “We wanted to make sure the guidelines were up to date to reflect the possibility of sequestration.”

Richards said the OPM will soon post answers to frequently asked questions on the agency’s Web site (opm.gov/furlough).

“It will be questions like, ‘Do I need to show up for work on January 2nd? Yes, you do,’ ” Richards said.

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Yachting: Wild Oats XI wins Sydney to Hobart race in record time






HOBART, Australia: Supermaxi Wild Oats XI smashed its own record time by nearly 17 minutes in Australia's Sydney to Hobart ocean yacht race, taking line honours on Friday ahead of Ragamuffin-Loyal.

Thousands of onlookers cheered at Hobart's Constitution Dock as the favourite came home in one day, 18 hours, 23 minutes and 12 seconds for its sixth victory over the prestigious 628 nautical mile bluewater classic.

Wild Oats XI also won every year from 2005 to 2008 and in 2010.

"It was close, we only just made it but it's a great result for the whole team," skipper Mark Richards said after crossing the finish line.

"This boat is a great machine and we're very proud of it. Getting the record is a big thing and it's very satisfying."

Ragamuffin-Loyal, which beat Wild Oats by just three minutes last year and is skippered by 85-year-old Syd Fischer, finished four-and-a-half hours later with gear damage hampering a bid for back-to-back wins.

"A lot of things just went wrong," said Fischer. "But it's a good boat, well built, strong and it goes fast. We'll make modifications for next year."

Lahana was running third in a tight battle with Black Jack, ahead of Loki in fifth. Jazz leads the handicap standings, which takes into account the dimensions of each boat in the fleet, ahead of Calm and Secret Men's Business.

The previous record was one day, 18 hours, 40 minutes and 10 seconds, set in 2005, and Richards had his 100-foot yacht well ahead of that pace late Thursday as they powered down Tasmania's east coast.

But a northeasterly tailwind gave way to a weaker westerly that dramatically slowed progress.

Wild Oats' crew had all but given up on breaking the record after rounding Tasman Island in the middle of the night and it was touch and go as they sailed up Hobart's Derwent River.

But the unfurling of a bigger headsail ultimately made the difference to tack home surrounded by a flotilla of smaller vessels.

"It was a very tricky night, the breeze died on us. It was very testing and we had to make a lot of sail changes, but it's all part of the Sydney-Hobart," said Richards.

"The crew have been together a long time and when the going gets tough they just get tougher."

Wild Oats XI led the 76-vessel fleet from the starting gun in Sydney Harbour on Wednesday in a famously unforgiving race that takes crews across the notorious Bass Strait.

As well as dealing with the tough conditions, the boat hit an unknown object that damaged a daggerboard beneath the hull.

Catastrophic conditions claimed six lives and sank five yachts in 1998, and vessels are routinely unable to complete the race.

However, there have so far only been two retirements this year - Living Doll and Primitive Cool.

The 2013 event was marred by the controversial expulsion of supermaxi Wild Thing, the 2003 line honours winner, which was among the top three favourites.

Officials banned it just hours before the start, citing incomplete documentation of major modifications that extended the vessel to 100 feet. Skipper Grant Wharington continued to protest Friday.

He claimed the man who banned his yacht, race director Tim Cox, did not know enough about boat-building and had "egg on his face".

Cox rejected the criticism and told Wharington to "lay off the personal insults", according to Sydney's Daily Telegraph.

- AFP/de



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Militant killed in gunfight in Kashmir

SRINAGAR: A separatist guerrilla has been killed and a police personnel injured in an ongoing gunfight in Kashmir's Pulwama district, police said on Friday.

A team of district police, 55 Rashtriya Rifles and 182 battalion of CRPF ( Central Reserve Police Force) launched a search operation at Budgam in Asthana Mohalla of Pulwama on Friday morning following information about the presence of militants there, a police official said.

The militants opened fire on the security forces during the search, triggering a gunfight in which a militant was killed.

"One constable also sustained injuries in the gun battle that is still on," the official added. The militants are reportedly hiding in a house.

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White House Says It Has No New Fiscal Cliff Plan













The White House said today it has no plans to offer new proposals to avoid the fiscal cliff which looms over the country's economy just five days from now, but will meet Friday with Congressional leaders in a last ditch effort to forge a deal.


Republicans and Democrats made no conciliatory gestures in public today, despite the urgency.


The White House said President Obama would meet Friday with Democratic and Republican leaders. But a spokesman for House Speaker John Boehner said the Republican "will continue to stress that the House has already passed legislation to avert the entire fiscal cliff and now the Senate must act."


The White House announced the meeting after Senate Minority Leader Mitch McConnell, R-Ky., called the budget situation "a mess" and urged the president to present a fresh proposal.


"I told the president I would be happy to look at whatever he proposes, but the truth is we're coming up against a hard deadline here, and as I said, this is a conversation we should have had months ago," McConnell said of his phone call with Obama Wednesday night.


McConnell added, "Republicans aren't about to write a blank check for anything Senate Democrats put forward just because we find ourselves at the edge of the cliff."


"That having been said, we'll see what the president has to propose," the Republican Senate leader said.


But a senior White House official told ABC News, "There is no White House bill."


That statement, however, may have wiggle room. Earlier today White House spokesman Jay Carney said, "I don't have any meetings to announce," but a short time later, Friday's meeting was made public.


It's unclear if the two sides are playing a game of political chicken or whether the administration is braced for the fiscal cliff.


Earlier today, fiscal cliff, Senate Majority Leader Harry Reid lashed out at Republicans in a scathing speech that targeted House Republicans and particularly Boehner.






Charles Dharapak/AP Photo













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Reid, D-Nev., spoke on the floor of the Senate as the president returned to Washington early from an Hawaiian vacation in what appears to be a dwindling hope for a deal.


The House of Representatives will meet for legislative business Sunday evening, leaving the door cracked open ever so slightly to the possibility of a last-minute agreement.


But on a conference call with Republican House members Thursday afternoon, Boehner kept to the Republican hard line that if the Senate wants a deal it should amend bills already passed by the House.


That was the exact opposite of what Reid said in the morning, that Republicans should accept a bill passed by Democratic led Senate.


Related: What the average American should know about capital gains and the fiscal cliff.


"We are here in Washington working while the members of the House of Representatives are out watching movies and watching their kids play soccer and basketball and doing all kinds of things. They should be here," Reid said. "I can't imagine their consciences."


House Republicans have balked at a White House deal to raise taxes on couples earning more than $250,000 and even rejected Boehner's proposal that would limit the tax increases to people earning more than $1 million.


"It's obvious what's going on," Reid said while referring to Boehner. "He's waiting until Jan. 3 to get reelected to speaker because he has so many people over there that won't follow what he wants. John Boehner seems to care more about keeping his speakership than keeping the nation on a firm financial footing."


Related: Starbucks enters fiscal cliff fray.


Reid said the House is "being operated with a dictatorship of the speaker" and suggested today that the Republicans should agree to accept the original Senate bill pass in July. Reid's comments, however, made it clear he did not expect that to happen.


"It looks like" the nation will go over the fiscal cliff in just five days, he declared.


"It's not too late for the speaker to take up the Senate-passed bill, but that time is even winding down," Reid said. "So I say to the speaker, take the escape hatch that we've left you. Put the economic fate of the nation ahead of your own fate as Speaker of the House."


Boehner's spokesman Michael Steel reacted to Reid's tirade in an email, writing, "Senator Reid should talk less and legislate more. The House has already passed legislation to avoid the entire fiscal cliff. Senate Democrats have not."


Boehner has said it is now up to the Senate to come up with a deal.


Obama, who landed in Washington late this morning, made a round of calls over the last 24 hours to Reid, Boehner, Senate Minority Leader Mitch McConnell, R-Ky., and House Minority Leader Nancy Pelosi, D-Calif.


Related: Obama pushes fiscal cliff resolution.






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Hawaii’s lieutenant governor is named to the U.S. Senate



With the “fiscal cliff” five days away and critical decisions facing the Senate, the White House said Schatz would fly to Washington on Wednesday evening with President Obama. Schatz said he would be in place to be sworn in Thursday.


Abercrombie chose Schatz, 40, a former state Democratic Party chairman and state lawmaker, over U.S. Rep. Colleen W. Hanabusa (D), whom Inouye had indicated shortly before his death would be his preference to replace him.

“No one and nothing is pre­ordained,” Abercrombie told reporters in Hono­lulu. He said Inouye’s views were taken into account but so were those of grass-roots activists and his own analysis of what was best for the state.

He said Schatz, a native of Michigan, was best positioned to help Hawaii begin to rebuild its congressional seniority.

He called Schatz “intelligent, forceful, insightful, committed.”

Schatz will be joined in the Senate next month by Rep. Mazie K. Hirono (D), who was elected in November to replace retiring Sen. Daniel K. Akaka (D).

The pair of newcomers will replace one of the nation’s most stable lawmaking teams: A modest World War II hero, Inouye had represented the Aloha State in the Senate since 1963, becoming president pro tempore of the chamber and chairman of the powerful Appropriations Committee. Akaka has served in the Senate since 1980.

Schatz will hold the job for two years until Hawaii voters choose a replacement to fill out the final two years of Inouye’s term.

Schatz, who will be one of the Senate’s youngest members, told reporters that he is planning to stand for election in 2014 to complete Inouye’s term and then to run for reelection in 2016.

“No one can fill Senator Daniel K. Inouye’s shoes — but together, all of us, we can try to walk in his footsteps,” Schatz said, indicating he would focus on retaining federal funding for the state and addressing climate change.

The selection of Schatz was something of a surprise, given Inouye’s wishes and the esteem with which he is held in the state. But Abercrombie is close to Schatz and indicated that he was hesitant to choose Hanabusa and force a new special election to fill her House seat.

Jennifer Sabas, Inouye’s chief of staff, indicated in a statement that Hanabusa’s selection was ­Inouye’s “final wish.”

“While we are very disappointed that it was not honored, it was the governor’s decision to make. We wish Brian Schatz the best of luck,” she said.

Rising Democratic star Tulsi Gabbard, 31, an Iraq war veteran and former Hono­lulu City Council member who was elected to the House in November, had some strong supporters nationally, including Newark Mayor Cory Booker, who endorsed her for the Senate seat via Twitter.

The appointment of Schatz came at a particularly critical time, with Democratic leaders anticipating a potentially close vote in the coming days on a tax plan designed to avert the most serious economic impacts of the year-end fiscal cliff.

In the absence of a broad, bipartisan deficit-reduction package, Obama has called on Congress to at least pass a bill to extend tax breaks for the middle class and potentially forestall automatic budget cuts set to hit in January.

Democrats hope that Republicans will agree to forgo a filibuster and allow an up-or-down vote on a temporary fix, requiring only a bare majority to pass. If the GOP requires a 60-vote threshold for the bill, as has increasingly become standard in the Senate, Democrats hope that a handful of Republicans would join Democrats in supporting the measure and send it to the House.

Either way, Democrats will need every vote they can muster if the legislation is brought to the floor. A bill passed by the Senate in July to extend tax rates first enacted under President George W. Bush for those making less than $250,000 a year was adopted by a narrow 51 to 48 margin.

All Republicans opposed the measure, along with Sens. James Webb (D-Va.) and Joseph I. Lieberman (I-Conn.).

With tax hikes set to hit virtually every American in a matter of days, a similar measure could pick up additional support this time around. But the possibility of a squeaker vote led Senate Majority Leader Harry M. Reid (D-Nev.) to take the unusual step of urging Abercrombie to fill the Hawaii seat quickly.

“It is critically important to ensure that the people of Hawaii are fully represented in the pivotal decisions the Senate will be making before the end of the year,” Reid said in a statement Saturday.

Hawaii law required that Abercrombie choose a replacement from a list of three finalists selected by the state Democratic Party.

The party’s central committee met Wednesday — several days earlier than had been planned before Reid’s request for speed — to hear two-minute speeches from most of the 14 candidates who had formally asked the party to consider them for the role.

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Tokyo's Nikkei 225 hits 21-month high






TOKYO: Tokyo's benchmark Nikkei 225 index on Thursday closed at its highest level since the quake-tsunami disaster in March last year, a day after Japan's new conservative government took power.

The Nikkei added 0.91 percent, or 92.62 points, to 10,322.98 by the close, finishing above 10,254.43, its level on March 11, 2011 when a massive temblor hit Japan, sparking a tsunami and subsequent nuclear crisis.

The broader Topix index of all first-section shares was up 0.75 percent, or 6.38 points, at 854.09.

"Some say the market is now overbought, but the trend is your friend, and few are willing to risk going short at the moment," said an equity trading director at a foreign brokerage.

"Japan is now right in the middle of the radar for foreign portfolio managers."

In forex trade, the US dollar rose to its highest level in more than two years against the yen as Shinzo Abe was sworn in as prime minister.

Abe -- whose Liberal Democratic Party won a landslide election victory this month -- has repeatedly said he would pressure the Bank of Japan for more easing measures, comments that have helped bring down the value of the yen.

- AFP/al



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PM Manmohan Singh for gradual hike in energy prices, cut in subsidy

NEW DELHI: Describing the current economic situation as a difficult one, Prime Minister Manmohan Singh on Thursday hinted at tough decisions like hike in energy prices and reduction of subsidies to achieve the growth target of 8 per cent in the 12th Five Year Plan.

Inaugurating the National Development Council (NDC) meeting, Singh cautioned that "business as usual" policies will not be sufficient to achieve the scaled down growth target of 8 per cent, which he said was "ambitious".

The NDC, which comprises Cabinet ministers and state chief ministers, is meeting here to approve the 12th Plan (2012-17) document.

The Planning Commission for the second time proposed reduction in the average annual growth target for the 12th Plan. It was first scaled down from 9 per cent to 8.2 per cent and now to 8 per cent.

Noting that energy prices in India are "too low", Singh said, "some phased price adjustment is necessary".

The central government and the states, he said, "must work together to create awareness in the public that we must limit the extent of energy subsidies".

The Prime Minister further said that the 12th Plan has made a case for containing subsidy as failure to control them would mean that "other plan expenditures have to be cut or the fiscal deficit target exceeded".

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Space Pictures This Week: Green Lantern, Supersonic Star









































































































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Okla. Senator Could Prevent Gun Control Changes












If there's one person most likely to keep new gun-control measures from passing Congress swiftly, it's Sen. Tom Coburn.


Conservatives revere the Oklahoma Republican for his fiscal hawkishness and regular reports on government waste. But he's also a staunch gun-rights advocate, and he's shown a willingness to obstruct even popular legislation, something in the Senate that a single member can easily accomplish.


That mixture could make Coburn the biggest threat to quick passage of new gun-control laws in the aftermath of the Newtown, Conn., shooting that has prompted even pro-gun NRA-member lawmakers like Sen. Joe Manchin, D-W.Va., to endorse a new look at how access to the most powerful weapons can be limited.


Coburn's office did not respond to multiple requests to discuss the current push for gun legislation. But given his record, it's hard to imagine Coburn agreeing to a major, new proposal without some fuss.


The last time Congress considered a major gun law -- one with broad support -- Coburn held it up, proving that the details of gun control are sticky when a conservative senator raises unpopular objections, especially a senator who's joked that it's too bad he can't carry a gun on the Senate floor.


After the Virginia Tech massacre in 2007, Congress heard similar pleadings for new gun limits, some of them similarly to those being heard now. When it came to light that Seung-Hui Cho, the mentally disturbed 23-year-old who opened fire on campus, passed a background check despite mental-health records indicating he was a suicide threat, a push began to include such records in determining whether a person should be able to buy a gun.




Rep. Carolyn McCarthy, D-N.Y., a longtime gun-control advocate whose husband was killed in a mass shooting on the Long Island Rail Road in 1996, introduced a widely supported bill to do just that. The NRA backed her National Instant Check System Improvement Amendments Act of 2007.


But Coburn didn't. The senator blocked action on the bill, citing concerns over patient privacy, limited gun access for veterans, and the cost of updating the background-check system,


In blocking that bill, Coburn pointed to a government study noting that 140,000 veterans had been referred to the background-check registry since 1998 without their knowledge.


"I am certainly understanding of the fact that some veterans could be debilitated to the point that such cataloguing is necessary, but we should ensure this process does not entangle the vast majority of our combat veterans who simply seek to readjust to normal life at the conclusion of their tours. I am troubled by the prospect of veterans refusing necessary treatment and the benefits they are entitled to. As I'm sure you would agree we cannot allow any stigma to be associated with mental healthcare or treatment of Traumatic Brain Injury," Coburn wrote to acting Veterans Secretary Gordon Mansfield.


Coburn succeeded in changing the legislation, negotiating a set of tweaks that shaved $100 million over five years, made it easier for prohibited gun owners to restore their gun rights by petitioning the government, and notifying veterans that if they abdicated control of their finances they would be added to the gun database. The bill passed and President Bush signed it in January 2008.






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Democrats push for tax cuts they once opposed



President Obama has put the extension of the tax cuts for most Americans at the top of his domestic agenda, a remarkable turnaround for Democrats, who had staunchly opposed the tax breaks when they were written into law about a decade ago.




With Obama leaving his Hawaii vacation for Washington on Wednesday and lawmakers returning Thursday, the main dividing line between Republicans and Democrats has come down to whether tax rates should increase for top earners at the end of the year, when the Bush-era tax cuts are set to expire. While Republicans want to extend all the cuts, Democrats are pushing to maintain lower rates on household income below $250,000. Those lower rates significantly reduce the taxes of nearly all American households that earn less than $250,000 — and many who earn more, even if tax rates are allowed to increase on income above that figure.

While it is increasingly unlikely that the two parties will reach an agreement to avoid the fiscal cliff before Jan. 1, it is all but certain that their ultimate deal, whenever it comes, will make permanent the lower rates for most Americans.

R. Glenn Hubbard, dean of the Columbia Business School and an architect of the Bush tax cuts, said it is “deeply ironic” for Democrats to favor extending most of them, given what he called their “visceral” opposition a decade ago. Keeping the lower rates even for income under $250,000 “would enshrine the vast bulk of the Bush tax cuts,” he said.

Democrats say they have reconsidered their opposition to the Bush tax cuts for several reasons. The cuts were written into law from 2001 to 2003 after a decade in which most Americans saw robust income growth. Over the past decade, by contrast, median wages have declined, after adjusting for inflation, amid a weak economy. Allowing tax cuts for the middle class to expire would further reduce take-home pay.

“We’ve had these tax cuts in place since 2001. The world changes, and the economy is where it is,” said Steven Elmendorf, who was chief of staff to former House minority leader Richard A. Gephardt (D-Mo.), a primary opponent of the Bush tax cuts. “With people’s economic status, we should not be raising taxes on people earning under $250,000.”

What’s more, income inequality has been growing. Sparing the middle class higher taxes while requiring the wealthy to pay more would tip the scales slightly in the other direction.

“The reason there’s been this movement toward broad consensus on renewing the tax cut for working- and middle-class families is that will give us a sharper progressivity in the tax system that is very much desired by Democrats and progressives who’ve seen an income distribution more and more distorted toward the wealthy,” said Betsey Stevenson, former chief economist in Obama’s Labor Department and a professor at the University of Michigan, who added that taxes may have to rise even more than currently contemplated to meet the country’s needs.

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