Illinois corporate tax credits swelled to $161 million 2011

When lawmakers raised taxes on Illinois residents and businesses, they also increased corporate income tax breaks for a select group of companies.

In 2011, businesses were eligible to claim about $161 million in tax credits — double from the prior year — mostly because of the increase to 5 percent from 3 percent in the state's personal income tax rate, which is a factor in determining the value of the incentives. The boost marked the largest increase in the Economic Development for a Growing Economy tax credit program, the state's main economic development program, since its creation in 1999.

Deere & Co., Boeing Co. and Caterpillar Inc., whose leader severely criticized lawmakers for tax hikes, were among dozens of companies that received more robust tax breaks. Some companies' deals also allowed them to be in line to receive tax incentives even while laying off workers or lowering wages.

The EDGE program allows a business to claim a credit against its corporate income tax liability if it agrees to create and/or retain jobs and make an investment in the state of at least $1 million, for companies with fewer than 100 workers, and at least $5 million for larger companies.

Once accepted into the program, which typically lasts 10 years, a company applies on an annual basis for a tax credit certificate, similar to a voucher, which it can claim when it files its taxes.

Marcelyn Love, a spokeswoman with the Department of Commerce and Economic Opportunity, which administers the program, said that under the tax credit program companies make investments and employ workers, practices that otherwise would not have occurred without the credits.

"Both the private investment and the increased employment significantly increase tax revenue collection for the state in excess of the credits given," Love said in an email. Far from adding to the tax burden, she added, these incentives actually generate revenue for the state. "Further, most of these tax credits pay for themselves within two years."

The certificates are the only way to gauge the potential cost and scope of the program, because tax filings are not public. The Tribune obtained the 2011 certificates data, the latest year available, under the state's Freedom of Information Act. Companies have as many as five years to redeem a certificate.

After a deal is finalized, a company has two years to meet its side of the bargain and begin applying for certificates. Thus, the increase in the total value of 2011 tax breaks is also the result of companies receiving certificates for the first time. For example, Ford Motor Co. began applying for its certificates in 2010 from a 2007 deal.

During Gov. Pat Quinn's administration, companies have received increasingly larger deals. Many have been for retaining jobs, according to a Tribune analysis. In 2011, Sears Holdings Corp. was offered a tax credit package worth $150 million over 10 years to keep its headquarters in the state and retain at least 4,250 full-time jobs. The company, which after the deal was announced revealed that it was closing 125 stores nationwide, has yet to apply for a certificate. Five of those stores were in Illinois. State officials have said that during a recession, when few jobs are created, it's important to focus on retaining workers.

Chris Brathwaite, a Sears spokesman, said the company's employment level at its headquarters is higher than the more than 6,000 jobs it had when the deal was approved, but he declined to provide figures.

In general, the value of a certificate equals the number of jobs created and/or retained, multiplied by wages tied to those jobs and the state's personal income tax rate.

That means companies that didn't add one worker and kept wages at the 2010 rate received a 67 percent boost to their 2011 corporate income tax break. Just like individuals, corporations also registered a tax rate increase in 2011. Lawmakers set the new corporate income tax rate at 7 percent, up from 4.8 percent. The increases in breaks partially offset that hike.

The formula under which companies become eligible to receive tax breaks was aimed at encouraging job creation and increasing employee wages. Still, the 2011 data revealed that some companies made deals to allow job cuts and still qualify for incentives, a practice known as "normal attrition."

A case in point is Motorola Mobility. For the past two years, Motorola Mobility has qualified for certificates worth a total of $22.6 million while slowly chipping away at its workforce. Late last year, the smartphone-maker, which was acquired by Google Inc. in May, announced it was laying off 20 percent of its global workforce. Locally, the company cut hundreds of workers, bringing its Illinois head count to about 2,300, a figure that would make it ineligible for a 2013 certificate unless it boosts its workforce before the end of the year.

The Department of Commerce and Economic Opportunity said the EDGE program played a crucial role in keeping Motorola Mobility in Illinois after it was acquired by Google. Its presence, the agency said, is drawing more technology investment and jobs to the state.

A state lawmaker wants the state to end the wiggle room practice, cap at $100 million the annual amount of tax breaks awarded and remove the investment bar so more small and medium-size businesses can qualify for breaks.

"Large multinationals are getting all the breaks," said Rep. Jack Franks, D-Marengo, adding that his focus is to modernize the program and increase accountability.

Franks' House Bill 1336 would also limit the length of the tax breaks to five years and require that companies pay workers at least the median salary of their occupation as determined by federal data. The bill also eliminates the provision requiring companies to make a capital investment in the state of at least $1 million or $5 million, depending on their size. And it creates a nine-member board to oversee the deals, with members appointed by the governor and approved by the state Senate.

Franks said that the Department of Commerce and Economic Opportunity shouldn't promote the program while also negotiating deals with companies, because it creates a conflict of interest.

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Passengers leave crippled ship

MOBILE, Alabama—

A crippled cruise ship that lost power for more than four days in the Gulf of Mexico was pulled into a port in Mobile, Alabama, late on Thursday as passengers cheered the end of a "hellish" voyage marked by overflowing toilets and stinking cabins.

Tugboats pulled the Carnival Triumph into port in a drama that played out live on U.S. cable news stations, creating another public relations nightmare for cruise giant Carnival Corp. Last year, its Costa Concordia luxury ship grounded off the coast of Italy, killing 32 people.

Exhausted passengers lined the ship's decks, waving towels and flashlights and cheering as it pulled into dock, while hundreds of people watched from the shore.

Carnival officials said it could take up to five hours for the more than 4,200 people on board to disembark the ship, which has only one working elevator.

Once on solid ground, many passengers still had a lengthy journey ahead. More than 100 buses were lined up waiting to carry passengers on a seven-hour bus ride to Galveston, Texas, while others had elected to stay overnight in hotels in Mobile before flying home, Carnival said.

An engine fire on Sunday knocked out power and plumbing across most of the 893-foot vessel and left it adrift in the Gulf of Mexico. The ship, which went into service in 1999, was on a four-day cruise and on its way back from a stop in Cozumel, Mexico.

Over the last four days, passengers described an overpowering stench on parts of the ship and complained to relatives and media by cellphone that toilets and drainpipes overflowed, soaking many cabins and interior passages in sewage and turning the vessel into what some have described as a giant Petri dish.

"The thing I'm looking forward to most is having a working toilet and not having to breathe in the smell of fecal matter," said Jacob Combs, an Austin, Texas-based sales executive with a healthcare and hospice company.

Combs, 30, who said he had been traveling with friends and family on the Triumph, had nothing but praise for its crew members, saying they had gone through "hell" cleaning up after some of the passengers on the sea cruise.

"Just imagine the filth," Combs told Reuters. "People were doing crazy things and going to the bathroom in sinks and showers. It was inhuman. The stewards would go in and clean it all up. They were constantly cleaning," he said.

Officials greeted passengers with warm food and blankets and cell phones. Carnival Cruise Lines Chief Executive Gerry Cahill told reporters he planned to board the ship and personally apologize to passengers for their ordeal.

"I know the conditions on board were very poor," he said. "I know it was difficult. I want to apologize for subjecting our guests to that," he said.

"We pride ourselves with providing our guests with a great vacation experience and clearly we failed in this particular case."

Operated by Carnival Cruise Lines, the flagship brand of Carnival Corp, the ship left Galveston a week ago carrying 3,143 passengers and 1,086 crew. It was supposed to return there on Monday.

A Coast Guard cutter escorted the Triumph on its long voyage into port since Monday, and a Coast Guard helicopter ferried about 3,000 lbs of equipment including a generator to the stricken ship late on Wednesday.

Earlier in the week, some passengers reported on the poor conditions on the Triumph. They said people were getting sick and passengers had been told to use plastic "biohazard" bags as makeshift toilets.

Smoke from the engine fire was so thick that passengers on the lower decks in the rear of the ship had to be permanently evacuated and slept the rest of the voyage on the decks under sheets, passengers said.

'VERY CHALLENGING CIRCUMSTANCES'

Cahill has issued several apologies and Carnival, the world's largest cruise company, says passengers will receive a full credit for the cruise plus transportation expenses, a future cruise credit equal to the amount paid for this voyage, plus a payment of $500 a person to help compensate for the "very challenging circumstances" aboard the ship.

Mary Poret, who spoke to her 12-year-old daughter aboard the Triumph on Monday, rejected Cahill's apology in comments to CNN on Thursday, as she waited anxiously in Mobile with a friend for the Triumph's arrival.

"Seeing urine and feces sloshing in the halls, sleeping on the floor, nothing to eat, people fighting over food, $500? What's the emotional cost? You can't put money on that," Poret said.

Some passengers said conditions onboard improved on Thursday after the generator was delivered to the ship, providing power for a grill to cook hot food.

Carnival Corp Chairman and CEO Micky Arison faced criticism in January 2012 for failing to travel to Italy and take personal charge of the Costa Concordia crisis after the luxury cruise ship operated by Carnival's Costa Cruises brand grounded on rocks off the Tuscan island of Giglio. The tragedy unleashed numerous lawsuits against his company.

The cruise ship mogul has taken a low-key approach to the Triumph situation as well, even as it grabbed a growing share of the U.S. media spotlight. His only known public appearance since Sunday was courtside on Tuesday at a game played by his Miami Heat championship professional basketball team.

"I think they really are trying to do the right thing, but I don't think they have been able to communicate it effectively," said Marcia Horowitz, an executive who handles crisis management at Rubenstein Associates, a New York-based public relations firm.

"Most of all, you really need a face for Carnival," she added. "You can do all the right things. But unless you communicate it effectively, it will not see the light of day."

Carnival Corp shares closed down 11 cents at $37.35 in trading on Thursday on the New York Stock Exchange. The shares closed down 4 percent at $37.46 on Wednesday after the company said voyage disruptions and repair costs related to Carnival Triumph could shave up to 10 cents a share off its second-half earnings.

The Triumph is a Bahamian-flagged vessel and the Bahamas Maritime Authority will be the primary agency investigating the cause of its engine room fire.

Earlier this month, Carnival repaired an electrical issue on one of the Triumph's alternators. The company said there was no evidence of any connection between the repair and the fire.

For all the passengers' grievances, they will likely find it difficult to sue the cruise operator for any damages, legal sources said. Over the years, the cruise industry has put in place a legal structure that shields operators from big-money lawsuits.

(Additional reporting by David Adams and Kevin Gray in Miami, Writing by Tom Brown; Editing by Peter Cooney and Lisa Shumaker)

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Eric Church leads line-up for country music awards

NASHVILLE, Tennessee (Reuters) – Singer-songwriter Eric Church grabbed the lead in one of the biggest events in country music on Wednesday with seven nominations for the Academy of Country Music Awards while country-pop darling Taylor Swift received five nods.

Church, 35, was nominated as Male Vocalist of the Year and received his second consecutive nod for Album of the Year, this time for his widely acclaimed 2011 album “Chief”, in the 48th annual Academy of Country Music Awards.

He was also nominated for Single Record and Song of the Year for “Springsteen”, which became his second No. 1 single last year, and for Video of the Year for “Creepin’”.

Newcomer Hunter Hayes, 21, garnered six nominations, including New Male Vocalist of the Year and Video of the Year for “Wanted.” Hunter is new to the country scene, having released his self-titled debut album last year.

Country music favorites Swift and Miranda Lambert, 29, whose hits include “The House That Built Me and “Over You,” received five nominations each.

Swift received her fourth consecutive nomination for Entertainer of the Year. If she wins, it will be the 23-year-old singer’s third consecutive claim to that title which is decided by country fans’ voting.

Swift is also nominated for the sixth time for Female Vocalist of the Year and for the fourth time for Video of the Year for “We Are Never Ever Getting Back Together.”

Swift was ranked last year by Forbes as the second top-earning woman in music after bringing in an estimated $ 58 million from her album, endorsements and a perfume in the past year. She was beaten to top slot by Britney Spears.

Lambert’s country singer husband Blake Shelton and Luke Bryan will co-host the annual award ceremony in Las Vegas on April 7. Shelton has hosted the show for the past three years.

(Reporting by Vernell Hackett, Editing by Belinda Goldsmith)

Music News Headlines – Yahoo! News

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Well: Ask Well: Swimming to Ease Back Pain

Many people find that recreational swimming helps ease back pain, and there is research to back that up. But some strokes may be better than others.

An advantage to exercising in a pool is that the buoyancy of the water takes stress off the joints. At the same time, swimming and other aquatic exercises can strengthen back and core muscles.

That said, it does not mean that everyone with a case of back pain should jump in a pool, said Dr. Scott A. Rodeo, a team physician for U.S.A. Olympic Swimming at the last three Olympic Games. Back pain can have a number of potential causes, some that require more caution than others. So the first thing to do is to get a careful evaluation and diagnosis. A doctor might recommend working with a physical therapist and starting off with standing exercises in the pool that involve bands and balls to strengthen the core and lower back muscles.

If you are cleared to swim, and just starting for the first time, pay close attention to your technique. Work with a coach or trainer if necessary. It may also be a good idea to start with the breaststroke, because the butterfly and freestyle strokes involve more trunk rotation. The backstroke is another good option, said Dr. Rodeo, who is co-chief of the sports medicine and shoulder service at the Hospital for Special Surgery in New York.

“With all the other strokes, you have the potential for some spine hyperextension,” Dr. Rodeo said. “With the backstroke, being on your back, you don’t have as much hyperextension.”

Like any activity, begin gradually, swimming perhaps twice a week at first and then progressing slowly over four to six weeks, he said. In one study, Japanese researchers looked at 35 people with low back pain who were enrolled in an aquatic exercise program, which included swimming and walking in a pool. Almost all of the patients showed improvements after six months, but the researchers found that those who participated at least twice weekly showed more significant improvements than those who went only once a week. “The improvement in physical score was independent of the initial ability in swimming,” they wrote.

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Push for online sales taxes pick up steam in Congress

U.S. states could collect millions of dollars in online sales taxes, with members of both parties in Congress sponsoring legislation Thursday that would resolve states' decades-long struggle to tax businesses beyond their borders.

"Small businesses and states alike are suffering from the inability to collect due -- not new -- taxes from purchases made online," said Rep. Steve Womack, R-Ark., adding the legislation is a "bipartisan, bicameral, common-sense solution that promotes states' rights and levels the playing field for our Main Street businesses."

Legislation on the Amazon tax, named for the colossal Internet retailer, has languished for years.

In 1992 the Supreme Court decided the patchwork of state tax laws made it too difficult for online retailers to collect and remit sales taxes. So states can tax Internet only sales made by companies with a physical presence in the states. That means online retailers such as Amazon.com Inc. collect sales tax in some states and not in others.

The bills introduced on Thursday reconcile differences in legislation that the House of Representatives and Senate considered last year. The nearly identical details in the bills and strong bipartisan support mean the final bill could be sent to President Barack Obama this year.

Members of Congress recently assured state lawmakers they would pass a law in 2013.

In the last decade, Internet sales have gone from 1.6 percent of all U.S. retail sales to more than 5 percent, according to Commerce Department data, a proportion that will likely grow as shoppers make more purchases on handheld devices. In the third quarter of 2012,  "e-commerce" sales were $57 billion, the department said.

Large Internet retailers are worried the tax could drive up the cost of doing business. They would also have to create new systems and software to collect the surcharges, adding to their costs. Amazon said in July it prefers having the tax issue resolved at the federal level.

When the 2007-09 recession caused states' revenues to collapse, Republican and Democratic governors backed the tax as a financial solution that would not require federal aid.

A leader in the Republican party, Virginia Gov. Bob McDonnell went so far as to figure online tax revenue into his recent plan for overhauling the state's transportation funding.

"The revenue states are losing out on is legally owed, but because of a pre-Internet Supreme Court ruling, states aren't able to collect it," Sen. Deb Peters, R-S.D., said in a statement.

States and cities say they can recoup billions of dollars with the tax. Fitch Ratings estimates put the states' loss at $11 billion.

Some states are considering their own legislation. Florida is debating a bill that advocates say could bring the state more than $400 million.

Small retailers, meanwhile, have said the sales tax will will allow them to compete with massive online retailers.

"While store owners collect and remit state and local sales taxes their digital competitors are off the hook -- and benefiting because of it," said David French, the National Retail Federation's senior vice president for government relations, in a statement.

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Anxiety grows as Chicago Public Schools narrows closing list

After trimming the number of schools that could be closed to 129, Mayor Rahm Emanuel's school administration on Wednesday entered the latest and what is likely to be the most intense phase so far in trying to determine which schools should be shut.

Chicago Public Schools chief Barbara Byrd-Bennett is expected to pare the preliminary list before unveiling a final one at the end of March. She said administrators will determine which schools are saved in the coming weeks amid a final round of community meetings to hear arguments from parents, teachers and community groups about why their schools should stay open.

If a hearing Wednesday night in North Lawndale was any indication, CPS still has a long way to go to gain the public's trust.

"Our schools don't need to close," Dwayne Truss, vice chairman of CPS' Austin Community Action Council, said in front of hundreds of people packed inside a church auditorium in the West Side neighborhood. "CPS is perpetrating a myth that there's a budget crisis."

CPS initially said 330 of its schools are underenrolled, the chief criterion for closing. Members of a commission assembled to gather public input on the issue told CPS officials earlier this year that closing a large number of schools would create too much upheaval. The Tribune, citing sources, said the commission indicated a far smaller number should be closed than initially feared, possibly as few as 15.

CPS then started holding its own hearings and on Wednesday, while following many of the formal recommendations made by the Commission on School Utilization, said 129 schools still fit the criteria for closing.

The new number and the latest round of hearings sets the stage for the administration to counter questions about the district's abilities to close a large number of schools and the need to do so.

For many who have already turned up to school closing meetings, this final round of hearings will be even more critical. School supporters must show how they plan to turn around academic performance and build enrollment, and also make the case for any security problems that would be created by closing their school.

"We are prepared now to move to the next level of conversation with our community and discuss a list of approximately 129 schools that still require further vetting and further conversation," Bryd-Bennett said. "We are going to take these 129 and continue to sift through these schools."

In the past, political clout has played a role in the district's final decisions. Already this year, several aldermen have spoken out on behalf of schools in their wards.

On the Near Northwest Side, for instance, the initial list of 330 underused schools included about six in the 1st Ward. Ald. Proco "Joe" Moreno helped organize local school council members, school administrators and parents to fight any closing. He also took that fight to leaders in City Hall and within CPS' bureaucracy. Nearly all of the schools in the ward were excluded from the list of 129.

"It is effort and it's organizing and not just showing up at meetings and yelling. Anybody can do that," Moreno said. "Those schools that proactively work before those meetings and explain what they are doing, what they need and that they are willing to accept new students, that's when politics works.

"My responsibility in this juncture was to focus on these schools," he said. "I had to work on the inside, with CPS and with City Hall, and with my schools on the outside."

Most of the schools on the list of 129 are on the West, South and Southwest sides, many in impoverished neighborhoods that saw significant population loss over the last decade. Largely spared were the North and Northwest sides.

In all, more than 43,000 students attend those 129 schools on the preliminary list, according to CPS records.

The area with the most schools on the list is a CPS network (the district groups its schools in 14 networks) that runs roughly from Madison Street south to 71st Street and from the lake to State Street. The preliminary list includes 24 schools in that area.

The Englewood-Gresham network has the second-largest number, 19, while the Austin-North Lawndale network where Wednesday night's meeting was held still has 16 schools on the list.

CPS critics said the preliminary list is still too large to be meaningful and that the district's promise to trim it before March 31 is only a tactic to make the final number seem reasonable.

"They started out with such a far-fetched, exaggerated list of schools, many of which are nowhere near underutilized," said Wendy Katten, co-founder of the parent group Raise Your Hand. "They might appear to be looking like they're listening, but they're not. They have not done a thorough and substantive assessment of these schools."

Following the commission's recommendations, CPS last month removed high schools and schools performing at a high level academically from consideration. On Wednesday, the district said schools with more than 600 students or utilization rates of at least 70 percent have also been taken out of consideration for closing.

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Music kingpin Jimmy Iovine: “Most tech companies are culturally inept”

NEW YORK (TheWrap.com) – Jimmy Iovine and Dr. Dre will launch a new paid subscription music service this summer branded under the successful Beats headphone brand, Iovine said on Tuesday.

Speaking at AllThingsD’s conference in Laguna Beach, the chairman of Interscope-Geffen-A&M sought to explain why his service will be better than the ones currently available. One reason? It’s being designed by creative people instead of geeks.

“Most technology companies are culturally inept,” Iovine said. “The way content companies never get tech right, never get culture right. They can hire anyone they want to sing in front of advertisements, but they never get curation right.”

Iovine then said that everyone offers the same service except for Apple, for which he reserved high praise. Steve Jobs was able to create a great service because he mirrored the current generation, boasting a background in both culture and technology.

However, this new Beats service will be “completely different” from iTunes, focusing on curating playlists for its users. Iovine spent a lot of time talking about how the order of songs matters, how Bruce Springsteen spent six months determining the eight-song order of “Born to Run.”

The Beats service customize what songs plays next for each user, relying on tastemakers like Nine Inch Nails leader turned composer Trent Reznor.

“My daughter plays Patsy Cline and Beyonce on the same playlist,” Iovine said. “We can’t just give them albums. They are telling us now. How loud do they have to scream it?”

Iovine, who helped launch both Eminem and Lady Gaga, has a vested interest in helping artists profit, too. While he seemed to praise Spotify, many musicians have complained that they do not get enough money from the service. Iovine said his service would enable artists to see who was listening to their music so they could get a better sense of their fan base.

Members of the audience thought that might raise privacy issues, but Iovine just flashed his smile and said he remained optimistic.

Beats bought music service MOG last summer and revealed in January that it is planning a new subscription service. Ian Rogers, former CEO of Topspin Media, will run the new service, code-named Daisy.

Music News Headlines – Yahoo! News

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The New Old Age Blog: A New Commission: Time to Cheer or Yawn?

The fate of the Class Act, which would have established the nation’s first voluntary public long-term care insurance program, was sealed in 2011 when the Obama administration shut it down, essentially calling it unworkable.

As long as the language remained part of the Affordable Care Act, supporters allowed themselves to hope, or perhaps fantasize, that the administration might return to the subject. How to care for an aging population, and who pays for that and how, are questions that won’t go away.

But Congress quietly administered the coup de grâce last month, during the fiscal cliff negotiations. The budget deal stripped the Class Act language from the Affordable Care Act. R.I.P.

In its place — thanks to the intervention of Senator Jay Rockefeller, Democrat of West Virginia — the negotiators created a Commission on Long-Term Care, charged with developing plans for “a comprehensive, coordinated and high-quality system” ensuring long-term care for older adults and people with disabilities.

Its 15 members — three picks each for the president, the Senate majority and minority leaders, and the House speaker and minority leader — face a tight deadline. Within six months, they are supposed to recommend legislative or administrative actions, including actual legislative language. Then bills are to be introduced in both houses of Congress on the very next day they are in session.

Which sounds like urgency, but is it? Even Connie Garner, the longtime Kennedy staff member who directs the advocacy group called Advance Class, was skeptical. “What can you really do in six months?” she said. Actuaries and policy types had been working on the Class plan for 19 months before the plug was pulled. “And so what if you introduce a bill?” she went on. “You can introduce stuff and nothing happens.”

So when Advance Class held its monthly board meeting a few days after the Class Act officially bit the dust, Ms. Garner figured this push for a national long-term care approach was dead, along with her organization. She had prepared a valedictory, praising the group for at least putting the issue on the national agenda.

“But they said, ‘No, we’re going to keep Advance Class going; we’re going to fight the long fight,’ ” she recalled. So on we go.

Discouragingly, the commission has already hit delays: Its members were to be named within 30 days of the budget deal’s enactment, but only the Congressional Democrats have made appointments.

Senator Harry Reid, the majority leader, nominated a veteran health policy scholar, Judy Feder, who is now at the Georgetown University Public Policy Institute; the labor executive Laphonza Butler, who heads California’s United Long-Term Care Workers Union; and Javaid Anwar, a Nevada internist.

Representative Nancy Pelosi, the House minority leader, appointed Bruce Chernof, chief executive of the SCAN Foundation, which promotes quality care for the elderly; Judith Stein, founder of the Center for Medicare Advocacy; and George Vrandenburg, a retired corporate lawyer who has put his philanthropic muscle behind Alzheimer’s causes.

We have heard nothing yet from the White House or the Republican Congressional leadership.

Maybe that barely matters. “I can’t imagine anything coming out of this commission that won’t be totally forgotten a year from now,” said Jesse Slome, executive director of the American Association for Long-Term Care Insurance. “How many commissions have there been?”

Yet one thing that he and the proponents at Advance Class can agree on — maybe the only thing — is that this issue demands attention.

Otherwise, Mr. Slome says, we are stuck with what we have when it comes to older people who might need expensive care for 30 years, and disabled people who might need care for even longer. And what we have, he said, amounts to “a little here, a little there, a little Medicare, a lot of Medicaid, a little long-term care insurance and a lot of unpaid family caregiving.” (I would say very little long-term care insurance, and a vast amount of unpaid family care.)

Discussing the future of Medicare and Medicaid without including long-term care is pointless, Mr. Slome added. Ms. Garner notes that she meets frequently with Republicans and that they never dismiss the issue as unimportant.

Well, there’s a start.

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Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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American, US Airways to merge

AMR Corp., parent of American Airlines, and US Airways Group will merge, the companies said Thursday.

They would create the world's largest airline, edging out Chicago-based United Airlines, if the $11 billion merger is approved by regulators.

In Chicago, the two airlines have little overlap. American Airlines is the No. 2 carrier in the region, with about 27 percent of the market, 500 flights per day and 9,300 Chicago-based employees. O'Hare is American's second-largest hub, after Dallas-Fort Worth. 

By contrast, US Airways flights account for just 2 percent of the airline seats flying out of Chicago's airports, and the carrier has 170 employees in Chicago.
 
The combined airline will keep the American Airlines name but be run by US Airways CEO Doug Parker, while American's CEO, Tom Horton, becomes nonexecutive chairman.

gkarp@tribune.com

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Dorner case: Human remains found in debris of burned cabin

Charred human remains have been found in the burned cabin where police believe fugitive ex-cop Christopher Dorner was holed up after trading gunfire with law enforcement, authorities said.

If the body is identified to be Dorner’s, the standoff would end a weeklong manhunt for the ex-LAPD officer and Navy reserve lieutenant, who is accused of going on a revenge-fueled spree following his firing by the Los Angeles Police Department several years ago. Four people have died allegedly at Dorner’s hands.

The last burst of gunfire Tuesday came after the suspect, attempting to flee law enforcement officials, shot to death one San Bernardino County sheriff’s deputy and seriously injured another. He then barricaded himself in a wooden cabin outside Big Bear, not far from ski resorts in the snow-capped San Bernardino Mountains east of Los Angeles, according to police.

Just before 5 p.m., authorities smashed the cabin's windows, pumped in tear gas and called for the suspect to surrender. They got no response. Then, using a demolition vehicle, they tore down the cabin's walls one by one. When they reached the last wall, they heard a gunshot. Then the cabin burst into flames.

Los Angeles Police Chief Charlie Beck said he would not consider the manhunt over until a body was identified as Dorner.

"It is a bittersweet night," said Beck as he drove to the hospital where the injured deputy was located. He is expected to survive, but is expected to need several surgeries. "This could have ended much better, it could have ended worse. I feel for the family of the deputy who lost his life."

According to a manifesto Dorner allegedly posted on Facebook, he felt the LAPD unjustly fired him several years ago, when a disciplinary panel determined that he lied in accusing his training officer of kicking a mentally ill man during an arrest. Beck has promised to review the case.

Dorner, 33, vowed to wage "unconventional and asymmetrical warfare" against law enforcement officers and their families, the manifesto said. "Self-preservation is no longer important to me. do not fear death as I died long ago."

Last week, authorities had tracked Dorner to a wooded area near Big Bear Lake. They found his torched gray Nissan Titan with several weapons inside. The only trace of Dorner was a short trail of footprints in newly fallen snow.

On Tuesday morning two maids entered a cabin in the 1200 block of Club View Drive and ran into a man who they said resembled the fugitive, a law enforcement official said. The cabin was not far from where Dorner's singed truck had been found and where police had been holding press conferences about the manhunt.

The man tied up the maids, and he took off in a purple Nissan parked near the cabin. About 12:20 p.m., one of the maids broke free and called police.

Nearly half an hour later, officers with the California Department of Fish and Wildlife spotted the stolen vehicle and called for backup. The suspect turned down a side road in an attempt to elude the officers but crashed the vehicle, police said.

A short time later, authorities said the suspect carjacked a light-colored pickup truck. Allan Laframboise said the truck belonged to his friend Rick Heltebrake, who works at a nearby Boy Scout camp.

Heltebrake was driving on Glass Road with his Dalmatian, Suni, when a hulking African American man stepped into the road, Laframboise said. Heltebrake stopped. The man told him to get out of the truck.

"Can I take my dog?" Heltebrake asked, according to his friend.

"You can leave and you can take your dog," the man said. He then sped off in the Dodge extended-cab pickup — and quickly encountered two Department of Fish and Wildlife trucks.

As the suspect zoomed past the officers, he rolled down his window and fired about 15 to 20 rounds. One of the officers jumped out and shot a high-powered rifle at the fleeing pickup. The suspect abandoned the vehicle and took off on foot.

Police said he ended up at the Seven Oaks Mountain Cabins, a cluster of wood-frame buildings about halfway between Big Bear Lake and Yucaipa. The suspect exchanged gunfire with San Bernardino County sheriff's deputies as he fled into a cabin that locals described as a single-story, multi-room structure.

The suspect fired from the cabin, striking one deputy, law enforcement sources said. Then he ducked out the back of the cabin, deployed a smoke bomb and opened fire again, hitting a second deputy. Neither deputy was identified by authorities. The suspect retreated back into the cabin.

The gun battle was captured on TV by KCAL-TV Channel 9 reporter Carter Evans, who said he was about 200 feet from the cabin. As Evans described on air how deputies were approaching the structure, he was interrupted by 10 seconds of gunfire.

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