Where is the Money Going?

Pennsylvania Halts Unemployment Checks to Prisoners (after 16 Years)

A state audit revealed that more than 26,000 inmates in local jails received jobless benefits, with some getting an average of $344 a week. Officials expect to save the state about $18 million annually by not paying prisoners unemployment. Other states have had the same problem, including South Carolina and Arizona. read more

Obama to Propose Funding of Billion-Dollar Brain-Mapping Project

Experts say the research could lead to better understanding of diseases like Alzheimer’s, Parkinson’s, schizophrenia and autism, and could produce new therapies for mental illnesses. Additionally, it may open doors for new achievements in the area of artificial intelligence. The new brain project will be organized by the Office of Science and Technology Policy, and will also involve the Defense Advanced Research Projects Agency (DARPA) and the National Science Foundation. read more

Drug Industry Whines about Losing Small Percentage of Profits from Medicare

At issue is the Medicare Part D drug program that was created in 2006 to cover beneficiaries eligible for both Medicare and Medicaid. Before Part D came along, drug companies were required to provide rebates to the government to help pay for medications for so-called dual eligible beneficiaries. But eliminating the rebates has proved costly to the government. The Congressional Budget Office has said the switch would save billions of dollars in government spending every year. read more

Despite 50-Year-Old Supreme Court Ruling, Poor Defendants Still have Trouble Finding Lawyers

The case, Boyer v. Louisiana, stems from a claim by Jonathan Edward Boyer that his constitutional right to a speedy trial was violated when the state of Louisiana refused to pay for his defense counsel for five years. Boyer has argued that witnesses died during the lengthy delay and he suffered a mental breakdown which rendered him unable to assist in his own defense. read more

Economy Recovers for Richest 1%; Income Flat for the other 99%

Despite the old saying, it seems a rising tide does not necessarily lift all boats. According to newly released data, since the end of the Great Recession in 2009 the richest 1% have increased their income by 11.2% while incomes for the bottom 99% actually shrank by 0.4%. As study author Emmanuel Saez, an economist at the University of California, Berkeley, put it, “the top 1% captured 121% of the income gains in the first two years of the recovery.” read more

Court Rules Jurors can be Informed that Fact Witnesses are Well-Paid for Testimony

Trial judges may admit testimony from high-paid fact witnesses, but should alert the jury to the danger of bias, New York’s highest court ruled last week. At issue was a $10,000 fee paid to fact witness Barry Krosser, an emergency room physician who treated a patient for a fall she had suffered. Under cross-examination, Krosser acknowledged the fee, but insisted it had no effect on his testimony. read more

Ex-San Diego Mayor O’Connor’s Billion-Dollar Gambling Habit Lands Her in Court

O’Connor reportedly lost $13 million gambling between 2000 and 2009, while placing wagers worth $1 billion. O’Connor’s attorney said she would play video-poker for hours at the Barona Resort & Casino near San Diego. But she was also a regular in Las Vegas, where casinos would send a jet for her. O’Connor admitted taking money from the R.P. Foundation in 2008 and 2009 while she was one of its trustees. read more

Government Report Urges more Research on Environmental and Behavioral Causes of Breast Cancer

Among the factors deemed worthy of further research were: • Alcohol intake • Insufficient physical activity • Weight gain in adulthood • Night shift work • Exposure to pesticides • Exposure to industrial pollutants • Radiation from medical and non-medical sources • Exposure to light at night • Family, community and social influences. read more

FTC Says 1 in 5 Americans Have at Least One Error on Their Credit Report

The FTC found that about 20% of consumers have an error on at least one of their three credit reports. The consumer credit rating business is dominated by three players: Experian, Equifax and TransUnion. Federal regulators also found that 5% of consumers have credit-report errors that could result in them having to pay more for financial products, such as auto loans and insurance. read more

Australian Study Shows Wind Energy Now Cheaper than Coal or Gas

New wind farms can supply electricity at a cost of AU$80 per megawatt hour (MWh), compared to AU$143/MWh for new coal-fired power plants and AU$116/MWh for new gas-fired generation, according to research by Bloomberg New Energy Finance. The calculations included the cost of carbon emissions. But even without a carbon price, wind energy still was 14% cheaper than new coal plants and 18% cheaper than new gas plants. read more

Under the Radar, Payroll Tax Increase Hits the Working Poor

A Thomson Reuters/University of Michigan survey of consumers revealed an unusual divergence of financial change among different income groups in January, with 32% of those with household incomes of less than $75,000 a year reporting that their income had dropped, compared with 23% of those with incomes of more than $75,000. Only 13% of lower-income households reported an increase income, whereas 38% of upper-income households did so. read more

Texas Pays for Private Prisons while Thousands of Beds in Public Prisons are Empty

Thousands of beds sit empty in Texas state prisons, while the state pays $123 million a year to lease beds from private prisons, including Corrections Corporation of America (CCA), the biggest of the private prison operators. Specifically, there are as many as 10,000 empty beds in Texas’s 111 state prisons, and hundreds of empty slots at the state’s six detention centers for teens, according to Texas state Senate Criminal Justice Committee Chairman John Whitmire (D-Houston). read more

Pentagon and VA End Billion-Dollar Electronic Health Records Project

Despite several years’ worth of positive progress reports and more than $1 billion, the Department of Defense (DoD) and the Department of Veterans Affairs (VA) announced they are abandoning their attempt to create a unified, shared electronic health-records system for service members and veterans. Now, DoD and VA say merging the existing systems presents a faster, cheaper path toward eventual integration of medical records. read more

46 Members of Congress Owe Money on Student Loans

Freshman Representative Raul Ruiz (D-California) has the distinction of owing the most, between $115,001 and $300,000. The son of migrant farmworkers, Ruiz graduated from Harvard Medical School. Four other House members also owe at least $100,000: Republicans James Bridenstine of Oklahoma, John Carter of Texas and Tom Rooney of Florida, and Democrat Grace Meng of New York. read more

Is It Time for Federal Court Records to be Free to the Public?

Public Access to Court Electronic Records (PACER) provides any American with complete access to docket text, opinions, and all documents filed regarding court cases. PACER has been described as “a tremendously useful tool” by its supporters. But there is a big drawback to PACER. Users must pay for downloading, viewing, and even searching for case materials. read more

Major Banks Use Pay-Card Scheme to Shift Millions of Dollars in Costs to the Unemployed

The NCLC found that many states, like Arizona, make it difficult for residents to sign up for direct deposit with the state government. And in at least five states—California, Indiana, Kansas, Maryland and Nevada—direct deposit is not an option at all. The consumer group contends that this situation is illegal under federal law prohibiting states from requiring benefits recipients to open an account with a specific bank. read more