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VICTORY: Occupy Protesters Save Top Activists’ Home From Foreclosure

Colleen McKee Espinosa & Nick Espinosa

Nick Espinosa has fought foreclosures in the greater Minneapolis area for more than six months as an activist with Occupy Homes MN. Now, in a city that has some of the nation’s highest foreclosure rates, he and his fellow activists have saved another home: this time, it’s his own.

Citibank foreclosed on Colleen McKee Espinosa, Nick’s mother, who fell behind on her mortgage after she stopped receiving child support payments. She attempted to make two past-due payments to Citibank to catch up on the mortgage, but was instead notified that the home was already in foreclosure. Despite assurances that the bank wanted to work with her, it denied her a mortgage modification and was set to auction the home at a sheriff’s sale tomorrow.

Instead, under pressure from Occupy Homes MN and other activists, the bank announced today that it approved a modification that will keep the family in its home:

An official with CitiMortgage’s Executive Response Unit contacted the Espinosa family with news that Citibank had approved a loan modification that would keep the family in their home and reduce their payments by one-third on a 7.5 year payment plan. The dramatic news came less than 24 hours before the house was to be sold at auction on Wednesday, June 13.

I’m so relieved that my family’s home of 16 years will not be on the auction block tomorrow,” said Colleen McKee Espinosa, a nurse and single mother who received widespread support after she pledged not to leave her home without a good faith negotiation. “We are grateful that Citibank has decided to accept my payments, and we look forward to signing the final paperwork.”

Despite Occupy Homes MN’s success at preventing evictions and foreclosures — it has already saved two previous homeowners — McKee Espinosa did not originally want to be a part of the Occupy movement. “Nick tried to drag me to homeowners meetings,” she told the Minnesota Star Tribune. “I had heard their stories and thought they were naive idealists. I supported Nick, but thought that you couldn’t fight the banks.”

After seeing the movement’s success, however, she changed her mind. “This negotiation represents a victory not just for our family, but for millions of families facing foreclosures across the country,” Nick Espinosa said today. “Countless families could stay in their homes if banks simply modified their loans based on the actual market value and reduced their principal, instead of the price to which banks inflated them before they crashed our economy. … If they can fix it for our family, they can fix it for millions of others.”

NOTE TO ROMNEY: The Federal Government Does Fund Teachers, Firefighters, And Police

Mitt Romney dismissed criticisms that he does not want to hire more teachers, firefighters, and police officers as “absurd” on Tuesday morning, telling Fox News Channel that if elected president, he would not have the ability to control the hiring decisions of local governments:

ROMNEY: Of course, teachers and firemen and policemen are hired at the local level and also by states. The federal government doesn’t pay for teachers, firefighters or policemen. So obviously that’s completely absurd.

But Romney’s comment demonstrates a disturbing lack of understanding of both federal funding and his own published plans. While it is true that teachers, firefighters, and police are hired at the local level, a significant portion of their funding, recruiting, and training comes from the federal government.

Here are just some of the ways the federal government funds:

Teachers

Firefighters

Police

GOP Rep. Says He Would Reject Budget Deal That Included $10 In Spending Cuts For Every $1 Of Revenue

During the Republican presidential primary debates, the GOP candidates revealed just how far to the right they have drifted on budget matters when all of them indicated that they would reject a budget deal that consisted of $10 in spending cuts for every $1 in revenue increases. Today, in response to a question from MSNBC’s Mike Barnicle, Rep. Aaron Schock (R-IL) indicated that he would do the same if he were presented with such a deal:

BARNICLE: Would you accept $10 in savings for $1 in increasing fees or taxes, whatever you want to call it? Ten to one. Would you accept it?

SCHOCK: No.

Watch it:

Schock has signed the Americans for Tax Reform anti-tax pledge, circulated by ATR President Grover Norquist, which states that signees will never approve of any tax increase for any reason. But an increasing number of Republicans are breaking with the ATR pledge. Most recently, former Gov. Jeb Bush (R-FL) criticized the pledge, saying, “I don’t believe you outsource your principles and convictions to people.”

Politics

Romney Bashes Stimulus, Then Fundraises In Home Of Stimulus Recipient

Mitt Romney spent this morning in Florida trashing the stimulus, saying the Obama administration “borrowed almost a trillion dollars but used it to protect government.”

But just hours after the speech, Romney boarded a plane to Tennessee to fundraise with a beneficiary of Obama’s stimulus funds.

Romney will spend Tuesday night at a $10,000-a-head fundraiser at the house of Orrin H Ingram II, Chairman of the Ingram Barge Company — which received $130,000 in federal stimulus money. Ingram Barge Company is a private company, not a government entity.

Romney has a record of saying one thing and doing another when it comes to the stimulus. He once even attacked the stimulus at a college that took stimulus funds.

Education

Louisiana Lawmakers Object To Funding Islamic School Under New Voucher Program

The Louisiana legislature narrowly passed a new education spending bill last week that allows students in low-performing districts to pay for private school tuition using state-funded vouchers.

The new provisions for funding private and parochial schools has quickly devolved into a war of words over religion. Even though millions of dollars are being made available to dozens of schools with overt religious agendas, some Republicans balked at the last minute when it was revealed that a private Islamic school had also applied for 38 vouchers under the new program:

Rep. Kenneth Havard, R-Jackson, objected to including the Islamic School of Greater New Orleans in a list of schools approved by the education department to accept as many as 38 voucher students. Havard said he wouldn’t support any spending plan that “will fund Islamic teaching.”

“I won’t go back home and explain to my people that I supported this,” he said.

The Islamic School of Greater New Orleans has since withdrawn its request for vouchers. But Havard’s concern for religious teaching being funded by taxpayer dollars seems to extend only so far. Reuters reported earlier this month that some of the parochial schools that stand to benefit the most intersperse biblical teachings directly into math, science and reading curricula, often at the expense of an actual education.

New Living World, which says it can accept more than 300 vouchers, is one such school. The campus has no library, and classrooms are often adorned with little more than a TV on which biblically-themed DVDs recite the day’s lesson. Another, The Upperroom Bible Church Academy, is housed in a windowless building with no playground. They can accept more than 200 students, and would stand to receive as much as $1.8 million. Eternity Christian Academy (135 vouchers) doesn’t permit the teaching of evolution.

The $3.4 billion bill helps fund the state’s entire education system, which affects more than 700,000 Louisiana students. Two of the state’s largest teachers’ unions say they are already exploring legal options to challenge the constitutionality of the new law.

Security

Report: Hiring Veterans Is Good For Business

Hiring veterans is good for business, according to a series of interviews conducted by the Center for a New American Security (CNAS) with 87 representatives from 69 companies. CNAS, which compiled their findings into a report released on Monday, found that companies articulated 11 reasons for hiring veterans, including: leadership and teamwork skills; character; structure and discipline; expertise; effectiveness; and loyalty.

However, while businesses cited many benefits from hiring veterans, they also reported challenges regarding veterans’ difficulty in translating their military experience to the civilian workplace and concerns about future deployments by National Guard members and reservists.

“Changes to government policy could alleviate some of these challenges,” write the report’s authors, Margaret C. Harrell and Nancy Berglass. “The deployment concerns warrant a change in law, while others require the participation of companies, nonprofit organizations or veterans themselves.”

And despite the general positive perception of veterans in the workplace, veterans continue to experience at least a one percentage point higher unemployment rate than their civilian counterparts, a fact explained in the report as stemming from companies’ desire to hire veterans but only being able to do so when there is a “business-related motivation.” Younger veterans, ages 18 to 24-years-old, experience even higher unemployment rates. Nearly one-in-four were out of work last month.

The report, “Employing America’s Veterans, Perspectives from Business,” besides offering a the business case for hiring veterans, also recommends several steps to increase veteran employment [PDF]:

  • The Department of Defense (DoD), the Department of Labor and veterans themselves should become more adept at translating military experience into qualitative skills and characteristics for civilians employers.
  • The DoD and Department of Veterans Affairs (VA) should form public-private partnerships with companies and nonprofit organizations that specialize in employment and supporting veterans.
  • Congress should take steps to revise the Uniformed Serves Employment and Reemployment Rights Act rules pertaining to prolonged and repeated voluntary overseas deployments.
  • DoD should create a resume bank in which service members who are leaving military service can participate.
  • The report’s authors conclude that while companies benefit from hiring veterans, “Veteran employment is also important to national security, as stable and supportive civilian employment enables reservists and guardsmen to serve as our nation requires.” Moreover, “Hiring veterans serves those who serve the nation. It is also plain good business.”

    FOUL PLAY: Five Cities That Want Taxpayer Money To Finance Pro Sports Stadium Boondoggles

    Drawing of the new 49ers stadium in Santa Clara, CA

    Cities across the country are turning to taxpayers to finance newer, fancier sports stadiums that feature more luxurious amenities than their predecessors, a trend that has persisted through the Great Recession and economic recovery despite dire state budget situations.

    Team owners, with an assist from state and local governments, persuade taxpayers to finance these projects by promising increased economic activity, jobs, and growth, but those promises don’t often come true. The stadiums rarely pay for themselves, leaving local economies engulfed in debt while teams come back asking for even newer stadiums before the current facilities are paid off. Often, if taxpayers don’t agree to finance new facilities, teams threaten to move, leaving dedicated fans and indebted taxpayers behind.

    Here are five cities that are currently in the process of financing either new stadiums or expensive renovations to their current facilities for their professional sports teams:

    Minneapolis: After years of fighting, the Minnesota state Senate approved a stadium deal handing Minneapolis’ NFL team, the Minnesota Vikings, $348 million in state subsidies. Minneapolis will contribute another $150 million in public financing. That was actually lower than the original plan, which used taxpayer money to pay for more than 60 percent of the stadium’s total cost. The deal comes just two years after the opening of Target Field, the new home of baseball’s Minnesota Twins that was paid for by a new sales tax. The city still owes more than $50 million on the Target Center, home of the NBA’s Minnesota Timberwolves, and neighboring St. Paul still owes $32 million on the Xcel Center, which houses hockey’s Minnesota Wild. The state also paid for nearly half of the $300 million stadium that became of the new home of the University of Minnesota’s football team in 2009.

    Santa Clara: In February, Santa Clara’s city council promised the NFL’s San Francisco 49ers more than $878 million in public loans for a new stadium to replace the team’s stadium in San Francisco. The city claims the loan will have no impact on its General Fund, even as its only assurance that the debt will be repaid comes from stadium revenue projections. Voters approved a stadium plan in 2010 but fought for a new referendum this year on grounds that the city didn’t spell out how the deal was financed. The new referendum was ruled invalid, though, and the 49ers broke ground in March.

    Washington, DC: Taxpayers in the nation’s capital need no reminder about the negative effects of financing a stadium. Less than a decade ago, the city approved a taxpayer-financed stadium for its new Major League Baseball team, the Washington Nationals. Now, Major League Soccer’s D.C. United are seeking a new facility that would cost $157 million — and that’s before the cost of land is added. It’s unclear how the stadium would be financed, though city officials have reportedly expressed willingness to fund new infrastructure projects to serve the stadium. And the United are taking a page from the books of teams in larger sports in an attempt to get a stadium, exploring a move to Baltimore at the same time.

    Atlanta: The Georgia Dome is a premier sports facility that hosts major sporting events nearly every year and is the home of the NFL’s Atlanta Falcons. But Falcon’s owner Arthur Blank is seeking a new stadium, even though the Dome is only 20 years old. Construction of the new stadium would rely on $300 million in taxpayer funds, even as the state’s education budget remains drained from the effects of the Great Recession.

    St. Louis: In 1995, the city of St. Louis opened a new dome for its NFL team, the St. Louis Rams. The dome was financed in part by $126 million in bonds that will ultimately cost $720 million. (The same year, the city agreed to help finance a new stadium for its professional baseball team after it threatened to move to suburban Illinois.) Just 17 years into their 30-year lease, the Rams are asking for major renovations to the stadium thanks to a deal that requires the city to maintain its “first-tier” status. St. Louis recently rejected the Rams’ renovation proposal, but reports surfaced yesterday showing that it offered the team $48 million in public subsidies in a counter-offer.

    In these cities and others, state and local governments are cutting services, slashing education budgets, and selling local hospitals, even as they ask taxpayers to pay for new and existing sports facilities. Pro teams that want new stadiums have an easy solution for getting them: instead of holding their hand out to taxpayers, they should foot the bill themselves.

    Romney Reverses Course, Claims It’s ‘Completely Absurd’ To Say He Doesn’t Want To Hire More Teachers

    Mitt Romney slammed President Obama last week for wanting to hire “more firemen, more policemen, and more teachers,” making a clear assertion that those workers belong among the 700,000 public sector workers who have lost their jobs in the last three years.

    Romney’s campaign chair and other endorsers have backed him up on this desire to keep public employees out of work. But during an appearance on Fox News Tuesday morning, Romney contradicted his own remarks, saying that the Obama campaign was making “a very strange accusation” when it claimed he didn’t want to hire more teachers:

    KILMEADE: He says you’re out of touch. He says you want to cut firefighters and teachers, that you don’t understand what’s going on in these communities. What do you say to that, governor?

    ROMNEY: That’s a very strange accusation. Of course, teachers and firemen and policemen are hired at the local level and also by states. The federal government doesn’t pay for teachers, firefighters or policemen. So obviously that’s completely absurd. He’s got a new idea, though, and that is to have another stimulus and to have the federal government send money to try and bail out cities and states. It didn’t work the first time. It certainly wouldn’t work the second time.

    Watch it:

    Romney may be trying to rhetorically distance himself from his comments, but his policy position remains the same. And it isn’t just bad for America’s schools and public safety departments, it’s bad for the overall economy too. Replacing the lost public sector jobs would reduce unemployment by a full percentage point and make the economic recovery stronger.

    Econ 101: June 12, 2012

    Welcome to ThinkProgress Economy’s morning link roundup. This is what we’re reading. Have you seen any interesting news? Let us know in the comments section. You can also follow ThinkProgress Economy on Twitter.

    • Some JP Morgan Chase officials were alerted two years ago to the risky trades that have cost the bank billions. [Wall Street Journal]
    • Federal Reserve officials are voicing their concerns about the ongoing European financial crisis. [Reuters]
    • A loophole is causing problems for regulators investigating executives from the failed investment firm MF Global. [Wall Street Journal]
    • U.S. states are forecasting that revenue for the upcoming fiscal year will be the highest in five years. [Associated Press]
    • A new study found that the more corporations spend on lobbying, the worse they perform financially. [Reuters]

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