DENVER (AP) - Colorado state government stands to lose $45 million in the current fiscal year and $100 million in the next one because of tax changes included in the federal fiscal cliff agreement.

The Denver Post reports that the revenue cuts will come in estate tax revenue.

Last month, state officials projected that state tax revenue would be $159 million more than expected in the current fiscal year as the economy improves and $142 million more than expected in the next year.

Officials say the decline in estate tax revenue means this year's revenue will be $114 million more than projected and next year's would be $42 million.

That will affect discussions over which programs should get additional revenue, including education and tax relief for the poor.

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RALEIGH, N.C. (AP) - Overall, the repeal of the "don't ask, don't tell" has gone smoothly during the nearly year and a half that gays have been allowed to serve openly. For some same-sex military couples, however, frustrations are mounting.

Because of the 1996 law denying federal recognition to same-sex marriage, these couples do not get benefits that straight married couples get, such as housing allowances and health care coverage for a non-military spouse.

Pentagon officials say they are bound by the Defense of Marriage Act. But advocacy groups say there are numerous steps that could be taken now to treat struggling same-sex couples more fairly.

Among the proposed steps are issuing official military IDs to same-sex spouses, ensuring spouses have full access to on-base social programs, and letting same-sex couples qualify for military housing.

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New county commissioners were sworn in Tuesday in Elbert County; as they begin the new year work continues on budget issues for the county, but there's confusion on how big the problems really are.

The confusion began in December; it was a Denver Post article described a sticky financial situation in Elbert County. Newly-elected Commissioner Robert Rowland was quoted as saying the county would only have enough money in the general fund for, "about 3 1/2 minutes," into 2013; about $6,095.

"The checkbook is empty," Rowland told the Denver Post.

Then, just last week, two outgoing commissioners -- John Shipper and Del Schwab -- sent out a letter saying the details Rowland described in the article weren't true by, "hundreds of thousands of dollars."

So, where's the mix-up? None of those three -- Rowland, Shipper, or Schwab -- would clarify for News 5. Multiple calls to all three went unreturned.

County Treasurer Rick Pettit says the $6,095 amount came from an October meeting where the commissioners were weighing where the balance of revenue and spending would be at the end of the year.

"That was the preliminary budget, that wasn't actually the actual budget that was adopted at the end of the year," says Pettit.

"It's (the $6,095 amount) an estimate," says Commissioner Kurt Schlegel. "Our ending fund balance came in much higher than that."

Elbert County ended the year at almost $96,000 extra in the general fund.

"It's a better cushion, but it's not enough," says Schlegel. "We need to be able to have reserves to fall back on; at this point in time we have very minimal reserves."

It's another belt tightening year ahead for Elbert County, but not necessarily an emergency according to Pettit and Schlegel.

"We're not sitting in a good position, but we are definitely in a better position than what we were at the end of 2011," says Treasurer Pettit.

"And projections are that we'll be much better at the end of '13 than we were at the end of 2012," adds Commissioner Schlegel.

Commissioner Schlegel and Treasurer Pettit both say Elbert County has the money to pay its bills going into the new year, and more money -- property tax revenue -- will be coming in at the end of February.

Commissioner Schlegel says right now it looks like that'll have an extra $300,000 in the general fund at the end of 2013, but (as we've seen) those numbers can fluctuate.

 

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Changes are here for the Bureau of Land Management's Wild Horse and Burro Program; the BLM is charged with managing public land and the wild animals on it. A Colorado Springs activist for protecting wild horses and burros says she believes the changes come from a heated conversation Interior Secretary Ken Salazar - who's in charge of the BLM - had with a reporter about the program in November.

Secretary Salazar was at a get-out-the-vote event in Fountain, and he granted an interview to a Gazette reporter that was also reporting for ProPublica. Local filmmaker and director of the Cloud Foundation, Ginger Kathrens, joined in.

Kathrens says the reporter asked about the sale of 1,700 wild horses to a known advocate of horse slaughtering, Tom Davis; that's when Kathrens says Sec. Salazar got upset.

The cameras went down, but audio was still recording; it caught Salazar saying, "You know what? You do that to me again, I'll punch you out. Okay?"

Sec. Salazar has since apologized.

Now, fast forward to the present, there are new rules for the Wild Horse and Burro Program beginning immediately:

- No more than four wild horses and/or burros may be bought by a single individual or group within a six-month period without proper approval.

- When buying wild horses or burros, purchasers must describe where they intend to keep the animals for the first six months after purchase. Without prior approval the BLM won't sell more than four animals destined for a single location in a six-month period.

- Buyers have to provide transportation for the purchased animals from the BLM's short-term holding corrals or other locations to the new home.

- The BLM will inspect trailers and reserves the right to refuse loading if the trailer does not ensure the safety and humane transport of the animal.

Kathrens believes these changes are coming specifically because of what Sec. Salazar was being asked about at the time -- the sale of 1,700 horses that are now unaccounted for.

"I commend the BLM for making the changes, but my hope is that they will be carried out the way that the Secretary intends and that they won't be in some way circumvented," says Kathrens.

News 5 contacted the BLM to ask questions about the changes; communications officers in Colorado directed us to others in Washington D.C., but they haven't returned our calls. When News 5 gets a response we'll bring it to you.

In their press release about the changes, the BLM lists resources to report any inhumane treatment or sales to slaughterhouses of federally protected wild horses or burros. You can call in a report by calling 866-4MUSTANGS (866-468-7826), or you can send in an email to WILDHORSE@BLM.GOV.

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RALEIGH, N.C. (AP) - In choosing to serve her country in uniform, Hayleigh Lynn Perez knowingly accepted a nomadic life. Now the former Army sergeant says she and thousands of other veterans trying to get a higher education are being penalized for that enforced rootlessness.

Under the Post-9/11 GI Bill, the federal government will pick up the full in-state cost for any honorably discharged service member wishing to attend a public college or university. But because the often intricate rules governing residency differ from state to state, and even within university systems, many veterans face a bewildering battle to exercise the benefits they've already fought for.

"It is part of our contractual agreement when we join the military," says Perez, who filed a $10 million federal civil rights lawsuit against the University of North Carolina Board of Governors after one of its schools denied her resident status. "It's been paid for - with blood and sweat and tears and deployments."

Until last year, the Department of Veterans Affairs would cover up to the highest rate charged for in-state students at a public school in that state. But under changes that took effect in August 2011, while veterans can receive up to $17,500 a year for study at private schools, the agency will pay only "the actual net cost for in-State tuition and fees assessed" by the public institution the veteran is attending.

And if that person is deemed a nonresident, the veteran often must pay the difference out of pocket.

"For the first time since the inception of the GI Bill, residency for tuition purposes is now an issue for thousands of veterans," says Jason Thigpen, founder and president of the Student Veterans Advocacy Group. "Invariably, many are left with no home state for tuition purposes as a result of this change."

Army Staff Sgt. Stephen Lee was still in Afghanistan - his second deployment to the war zone - when he began looking at colleges. The California native settled on the University of Wisconsin-Madison and had already begun his studies when he learned of the coming changes to his GI Bill benefits.

He was looking at an extra $20,000 a year out of pocket.

"It was a HUGE jump," says Lee, whose military occupational specialty, or MOS, was human intelligence collector. "And that's when I had to start thinking really hard about whether or not I was going to be able to afford school, or whether I'd have to take a year off and work while I tried to get in-state status."

Around that time, the university opted into the Yellow Ribbon Program, a provision of the GI Bill under which the school and the VA agree to split the difference between the resident and nonresident rate. There was only a limited amount set aside for the program, and students have to reapply each year, but Lee lucked out.

"This uncertainty almost took me out of school," he says. "California's not home for me anymore. At the same time, I didn't have any choice of living in Kentucky or Tennessee. That's where the Army told me I was going. You're kind of in this limbo where you don't know where your state residency lies."

He graduated in May with a bachelor's in political science.

Hayleigh Perez's case is a prime example of how convoluted these situations can become.

Perez, 26, enlisted in 2005 and was stationed at North Carolina's Fort Bragg, where she trained as a radiology technologist. She later did a 15-month deployment to Camp Bucca, Iraq.

While serving, the Iowa native met and married Sgt. 1st Class Jose Perez-Rodriguez, a medic, and the couple bought a home in Raeford, near the North Carolina base. Perez's next assignment took her to Texas, where she mustered out in 2009.

When Perez learned in late 2011 that her husband's orders would bring the family back to North Carolina, where they had continued paying property taxes, she began applying to schools. She was accepted at both Fayetteville State University and UNC-Pembroke.

But while FSU granted her resident status, Pembroke - which had the courses she most required - classified her as an out-of-state student. The difference in her out-of-pocket costs: $4,603.50 per semester.

When Perez's appeal to UNC was denied, she and Thigpen's group sued.

"Mrs. Perez provided ample evidence to both UNC System Schools in order to substantiate her domicile as a resident in and of the State of North Carolina," she said in her suit, filed Nov. 8. "Mrs. Perez filed for a residency appeal hearing with UNC Pembroke, was denied any representational assistance and in turn her appeal was denied after being treated with malice and contempt by UNC Pembroke officials ..."

The university system has not yet responded to the complaint, but spokeswoman Joni Worthington denied discrimination against Perez or any other veteran.

"We certainly believe that the university has complied fully with federal and state law," she told The Associated Press. "On the contrary, we have demonstrated a strong commitment to be very supportive of the military, which is obviously very important here in North Carolina."

Under North Carolina law, active-duty service members stationed here are to be considered residents. But Perez had already been discharged by the time she was accepted at the schools and had not yet been back the requisite year.

"The burden of proof is on the student," Worthington says.

Worthington agreed that because of the GI Bill changes, "recipients are financially disadvantaged if they choose to attend a public institution of higher education. We believe the level of tuition benefits available at private institutions should apply to public institutions, as well."

Last year, Thigpen's group helped draft the Veterans Education Equity Act, which would amend Title 38 to extend the $17,500 tuition cap to public institutions. The bill - introduced by U.S. Rep. G.K. Butterfield, D-N.C. - never got beyond the subcommittee hearings.

Thigpen says his group will renew its efforts in the next Congress. But some states have already decided to act on their own.

According to Student Veterans of America, nine states have passed legislation to offer in-state tuition rates for veterans, regardless of how long they've lived there. Five other states have legislation pending, says Mike Dakduk, the group's executive director.

In 2011, Arizona amended its laws to grant veterans "immediate classification as an in-state student" ''while in continuous attendance toward the degree for which currently enrolled." and "demonstrated objective evidence of intent to be a resident of Arizona." The Rhode Island Board of Governors for Higher Education changed its rules in 2009 to grant all veterans in-state status.

"These courageous men and women have made great sacrifices in leaving behind their families, their jobs and all that is familiar to them in life to serve our state and our nation," chairman Frank Caprio said at the time. "These veterans deserve our admiration and respect, and aiding their efforts to secure a college degree is one small way we can and should show our appreciation for everything they have done."

In Texas and Wisconsin, veterans who were residents at the time of enlistment retain permanent in-state tuition eligibility in the state university system. The Illinois Veteran Grant program pays for up to 120 credit hours of tuition, but veterans must have lived in Illinois at the time of enlistment and have returned to the state no more than six months after discharge.

Lawmakers introduced a bill in California's General Assembly last February to grant veterans with at least three years' service one year's worth of resident status so they can begin their studies immediately. It died in the appropriations committee without even coming up for a vote.

Veterans can attend Connecticut's state schools tuition-free, provided they've lived in the state at least a year upon enrollment. An attempt in 2011 to amend that requirement failed.

But at the University of Connecticut, a veteran seeking a tuition waiver need only "be domiciled in Connecticut at the time of acceptance."

In Iowa, resident status is left up to the each school's board of regents.

Dakduk says this patchwork of rules has left a lot of veterans bewildered, to the point where many either pay the difference out of pocket, take out loans or just give up.

"By and large, veterans don't complain about it," he says. "They kind of just suck it up and move forward."

Justin Curley refused to just suck it up.

The Missouri native was a medic in the Air Force. But, like many veterans, he learned that those skills didn't automatically translate to a job in the civilian world.

After leaving the service in 2009, Curley moved to New Orleans and applied to the nursing program at Delgado Community College. But because he hadn't been employed in the state for at least one year, the chancellor denied him in-state status.

Curley took out loans to cover the difference, about $3,000 a year. But a friend convinced him to fight, and he launched a petition drive on the site change.org.

"Essentially, because I constantly moved with the Air Force, the Louisiana Community and Technical College System is taking away the veterans benefits I rightfully earned in favor of unwritten policies that are left up to the discretion and judgment of the board and chancellor," he wrote. "To me, that says I'm a resident of nowhere. All because of my service."

In October, Curley met with newly installed Chancellor Monty Sullivan. Not only did Sullivan grant Curley the in-state rate, he refunded his money back to fall 2011.

Curley says recruiters tell a lot of "half-truths" to convince people to enlist. But the most important promise - that of an education - shouldn't come with strings, he says.

"There wasn't any fine print," says Curley, 30, who has two more semesters before getting his registered nurse certification. "There wasn't any, 'Well,IF you're considered in-state,' 'IF you're not considered in-state, 'You MIGHT have to pay this,' 'You MIGHT have to pay that.' There wasn't like some little quiet announcer guy in the background saying there are going to be all these stipulations. We were just told this is what it's going to be. ...

"If we contributed to the security of our country, isn't that worth more than having lived in a state in a year?" he asks. "It just seems kind of silly."

In a follow-up email, Worthington noted that because Perez-Rodriguez is currently stationed here, Perez "would be considered an in-state resident were she to re-apply to a UNC institution now." Perez argues that she had already established residency based on her own active-duty service in North Carolina.

Perez dipped into her 3-year-old daughter's college fund to pay for one semester at Pembroke but has since transferred to Methodist University in Fayetteville, a private school. She says the government is covering the entire cost.

Her original plan was to become a physician's assistant. Now, she's going for a master's degree in public policy.

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January brings changes for the Palmer Lake Police Department; a complete shuffling of the staff. News 5 first brought you this story in November.

As we move forward in 2013, there will be no more full-time officers for Palmer Lake PD -- only part-time. Also, there will be no more police chief.

"We grew up with Dale Smith as Town Marshall, and he knew almost everybody in town," says Pat McCarthy; a Palmer Lake resident. He's not sure how to take the moves that the department is making this year.

"Right now we're just kind of waiting and seeing,"

"That sounds like there isn't going to be as much help as there has been," says Genevieve Newton; another Palmer Lake resident.

In November the out-going chief, Kieth Moreland, told News 5 these changes were for budget reasons; there wasn't enough sales tax revenue to support the department as it was. So, they made a change, but the department has been hoping it doesn't mean a change in service levels to go with it.

"As it stands right now, you will still have the Palmer Lake Police Department to call upon for your services," Former Chief Moreland told News 5 in November. "There will be somebody on the road 24/7."

Residents say, in this close-knit community, they'll keep an eye out for one another, but the road ahead for the police department is unclear.

"I just hope that the crime is covered," says Newton.

Right now a department lieutenant is running things; they'll re-evaluate the new format in 90 days.

 

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The uncertainty leading up to the midnight deadline for Congress for the fiscal cliff is creating a lot of hustle and bustle in southern Colorado. Some locals seem to be bracing for the impact if we completely fall off.

Monday was a busy morning at the Goodwill donation center near N. Academy Blvd. in Colorado Springs; clearing room out after Christmas, getting things out of the house for the end of the year, and other reasons.

"Receipts for your taxes, and every little bit helps," says Cheryl Devine, who stopped by to donate. Some of that rush is because of the looming fiscal cliff, but not all.

Work has been stacking up for Colorado Springs accountant Paul Nelson.

"About twice as busy with my appointments and phone calls," says Nelson.

Nelson says it's mostly people asking what to do. He says people are asking about some things more than others, like the estate tax - people moving money in fear of higher tax rates ahead - but also things that affect paycheck to paycheck, like how much is taken out for Social Security.

Normally, when it comes to the Social Security payroll tax, we're supposed to be paying 6.2 percent from each paycheck, but for the last two years Congress lowered it to 4.2 percent - helping to give most people a two-percent raise, and hopefully stimulate the economy. Now - if we go over the cliff or the lower rate isn't extended - pay checks go up.

"And there are a lot of people that pay payrolls on the first, and they don't even know what tax to take out of their employees paychecks," says Nelson.

So, eyes are on Washington.

"We don't know what the result of this is going to be," says Nelson.

For most of us, at the time, it's out of our hands.

 

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DENVER (AP) - The Colorado Bureau of Investigation is planning to ask lawmakers for $500,000 to help it more quickly process the huge backlog of background checks for gun buyers that has swamped the agency after the elementary school shooting in Newtown, Conn.

The Denver Post reports that in November, it took an average of 23 minutes for a gun buyer in Colorado to get a criminal-background check. The wait time now has stretched to nearly seven days as the CBI struggles with the backlog of more than 11,000 applications.

CBI spokeswoman Susan Medina says the supplemental appropriation would be used for more staff and technology.

Meanwhile, state Rep. Claire Levy, a Boulder Democrat, has suggested that gun buyers pay a fee for the background checks.

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PASADENA, Calif. (AP) - NASA's newest Mars rover is gearing up for a road trip. But first, it has to drill into a rock.

Curiosity's first priority in the new year is to test out its drill. Mission managers had wanted to get it done this year, but they ran out of time because other activities took longer than expected.

The car-size rover landed in a crater near the Martian equator over the summer to great fanfare. Since then, it has been taking it slow.

Curiosity is expected to start the drive to a mountain in mid-February after drilling is complete. Scientists predict it'll take nine months to get there with stops along the way.

The rover is on a two-year mission to determine whether the landing site could have been favorable for life.

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The clock is ticking toward a deadline for a free foreclosure review.

Monday, December 31st, is the deadline to ask for the free review; that's if your home was in foreclosure in 2009 or 2010.

USA Today reports millions of homeowners are eligible for the review, but fewer than 400,000 have requested one. The paper says homeowners may have ignored or misunderstood notification letters because they resembled letters sent by scammers.

To visit the Independent Foreclosure Review, click here.

 

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WASHINGTON (AP) - A U.S. Army brigade will begin sending small teams into as many as 35 African nations early next year, part of an intensifying Pentagon effort to train countries to battle extremists.

The teams will be limited to training and equipping efforts, and won't be permitted to conduct military operations without specific, additional approval from the secretary of defense.

The sharper focus on Africa by the U.S. comes against a backdrop of widespread insurgent violence across North Africa, and as the African Union and other nations discuss military intervention in northern Mali.

The terror threat from al-Qaida-linked groups in Africa has been growing steadily. Officials believe the Sept. 11 attack on the U.S. consulate in Benghazi may have been carried out by insurgents with ties to al-Qaida in the Islamic Maghreb.

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DENVER (AP) - The National Park Service is trying to find at least an 8 percent cut in spending in case Congress fails to reach a decision on the "fiscal cliff."

The Denver Post reports Colorado, home to 17 National Park Service properties, could see cuts that impact the state's tourism industry, including curtailment of hours for visitors centers, curtailment of the number of rangers and cuts in research.

The potential federal cuts are a result of legislation passed last year after a "super committee" composed of members of Congress couldn't strike a deal on ways to decrease the federal budget.

Should Congress fail to reach a deal, an 8.2 percent cut from the National Park Service budget would take effect in January. The Park Service would lose almost $212 million from the agency's $2.58 billion budget.

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NEW YORK (AP) - The United States says the U.S. Army has detained more than 200 Afghan teenagers captured in the war for about a year at a time at a prison next to Bagram Airfield in Afghanistan.

The U.S. State Department calls the detainees "enemy combatants" in a report sent to the United Nations on America's compliance with the U.N. Convention on the Rights of the Child.

The United States says a few of the Afghan teens are still confined at the air base, which will be turned over to the Afghan government.

It says "Many of them have been released or transferred to the Afghan government"

The United States says most of the juvenile Afghan detainees were about 16 years old.

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NEW YORK (AP) - The owner of Olive Garden and Red Lobster says it won't bump any full-time workers down to part-time status, after its tests aimed at limiting health care costs resulted in a publicity backlash that took a bite out of sales.

At the same time, Darden Restaurants Inc. isn't ruling out relying more heavily on part-timers over the long haul.

The company, based in Orlando, Fla., is set to announce Thursday that none of its current full-time employees will have their status changed as a result of the new regulations. The move will come just two days after the company lowered its profit outlook for the year, citing failed promotions and negative publicity from its tests that used more part-time employees. The tests were aimed at keeping down costs tied to new health care regulations, which will require large companies to provide insurance to full-time workers starting in 2014.

After Darden's tests were reported in October, the company received a flood of feedback from customers through its website, on Facebook and in restaurants, said Bob McAdam, who heads government affairs and community relations for Darden. Additionally, he said that internal surveys showed both employee and customer satisfaction declined at restaurants where the tests were in place.

"What that taught us is that our restaurants perform better when we have full-time hourly employees involved," he said.

McAdam declined to give specifics on the internal surveys but said the decline was "enough to make a decision." Beyond the first year of the regulation, however, the company said it still needs to see how costs and other factors play out to determine what its workforce will look like in following years.

For now, about 75 percent of the company's 185,000 employees are part-timers. Although that mix should hold for the time being, whether it changes in the future "will depend on how the business goes," McAdam said.

The company says its turnover rate is about 50 percent of employees a year, meaning it has significant flexibility to increase its use of part-time workers without changing the status of its current full-time workers.

Under the new health care law, companies with 50 or more workers could be hit with fines if they do not provide basic coverage for full-time workers and their dependents. Starting Jan. 1, those penalties and requirements could significantly boost labor costs for some companies, particularly in low-wage industries such as retail and hospitality where most jobs don't come with health benefits.

Darden isn't alone in considering changes to its workforce as a result. CKE Restaurants, which owns Carl's Jr. and Hardee's fast-food chains, has said it plans to employ more part-time workers. McDonald's Corp., the world's biggest hamburger chain, has also noted that it was reviewing factors that impact its health care costs, including its number of full-time employees.

And earlier this month, Papa John's CEO John Schnatter wrote a column in the Louisville Courier-Journal after making comments that suggested business owners could find "loopholes" to get around the requirements, such as cutting hours. Following negative feedback, Schnatter's column clarified that it was a move he believed franchise owners and other small businesses would make, rather than the Papa John's as a company.

Darden's test began in February in four markets, although the company declined to say how many restaurants were involved. It included hiring more part-time workers and replacing full-time workers who left with part-time workers. In other cases, managers were told to ensure part-timers were given no more than 30 hours of work a week.

Darden's problems run deeper than the bad publicity related to the test, however. The company has been working to boost sales and attract customers at its flagship Olive Garden and Red Lobster restaurants, in part by putting a greater emphasis on value and updating menus. But on Tuesday, it noted that its recent promotions again failed to resonate with customers, and warned that it expected revenue at restaurants open at least a year to fall by 2.7 percent in its fiscal second quarter. The metric is a key gauge of health because it strips out the impact of newly opened and closed locations.

Beyond health care costs, Darden has made cutting labor costs a priority in recent years. In the most recent fiscal quarter, the company's restaurant labor costs were 31 percent of sales. That's down from 33 percent three years ago. The reduction has been driven by several measures.

Last year, for example, the company put workers on a "tip sharing" program, meaning waiters and waitresses share their tips with busboys, bartenders and other employees. This allows Darden to pay more workers a far lower "tip credit wage," rather than the federal minimum wage of $7.25 an hour. Servers at Red Lobster also now handle four tables at a time, instead of three.

Andy Barish, a Jefferies analyst, on Wednesday cut his rating on Darden to "Hold" from "Buy," noting that the company's efforts to boost traffic have fallen flat. Sterne Agee analyst Lynne Collier backed her "Buy" rating but cut her price target by $8 to $55, attributing the company's weak second-quarter guidance to tough economic conditions and promotion-related mistakes. But at this point, she said the bad news is already reflected in the company's stock price.

Although Darden in part blamed negative publicity for the lower outlook for the year, it noted that the impact was hard to quantify. In the meantime, the company is hoping its assurances that its current full-time employees won't have their status changed in 2014 will allay customers' concerns and anger.

"In the midst of all the uncertainty, we thought it was important to say something declarative," McAdam said.

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WASHINGTON (AP) - One central question, after all the bluster is cut away, stands between the White House and Republicans in Congress reaching a deal that would prevent the U.S. economy from falling off the so-called "fiscal cliff" - the issue of taxes.

President Barack Obama insists that government income be increased $1.6 trillion partly by raising the tax rate on high income Americans. The Republicans have proposed that government revenue increase $800 billion through elimination of tax loopholes and reducing income deductions. That disagreement is closely tied to the related issue of government spending, especially on highly popular social programs like Medicare health insurance coverage for Americans at age 65.

Obama, meanwhile, laid out a hard position Wednesday on threats from some Republicans to create another fight over the nation's debt ceiling, telling business leaders it's "not a game that I will play."

Obama said in remarks to the Business Roundtable that he has heard of reports that Republicans may be willing to agree to higher tax rates on the wealthy and then come back in 2013 with more leverage to extract spending cuts in exchange for raising the government's borrowing limit.

Obama says that approach is "a bad strategy for America." He told the group of chief executives that he wants to break that habit before it even starts.

A portion of the current fiscal cliff threat arose from an agreement to institute major spending cuts starting Jan. 1 - cuts that both Democrats and Republicans oppose - as part of a deal last year to raise the nation's debt ceiling. Current law requires Congress to sign off on raising borrowing power. Legislators routinely approved greater indebtedness, until the two most recent times it came up.

Last year's brutal fight over the U.S. debt limit led the nation to the brink of default for the first time in its history. The move prompted Standard & Poor's to take the drastic step of stripping the government of its "AAA" rating on its bonds, a sign of the toll of the political debacle.

Those conflicts aside, however, proposals from both sides already have significant overlap in their competing budget proposals that could form the basis for a long-term deal that would avert what some economists call a potential catastrophe.

The Obama administration and House of Representatives Speaker John Boehner continue to ridicule the negotiating stances of the other side. But beneath the tough words were the possible makings of a deal to avoid the cliff, which is a combination of expiring tax cuts and automatic, across-the-board spending cuts due to take effect in January.

Economists warn the fiscal cliff, a result of prior failures of Congress and President Barack Obama to reach a lasting deal, could plunge the U.S. economy back into recession.

While the White House and Congressional Republicans disagree philosophically on tax rates for the rich and spending cuts to popular benefit programs, both sides now concede that tax revenue and reductions in entitlement spending are essential elements of any deal.

If the talks succeed, it probably will be because Boehner, the most powerful Republican in Washington, yields on raising tax rates for top earners. The White House, in turn, would likely have to bend on how to reduce spending on Medicare, the federal health care program for the elderly, and some changes in Social Security, the government pension program.

The possible makings of a deal could borrow heavily from a near-bargain last year during debt-limit negotiations.

Then, Obama was willing to reduce cost-of-living increases for federal Social Security pension beneficiaries and increase the eligibility age for Medicare, as Boehner and other top Republicans have demanded. On Tuesday, Obama did not shut the door on Republican ideas on such entitlement programs.

"I'm prepared to make some tough decisions on some of these issues," Obama said, "but I can't ask folks who are, you know, middle class seniors who are on Medicare, young people who are trying to get student loans to go to college, I can't ask them to sacrifice and not ask anything of higher income folks."

"I'm happy to entertain other ideas that the Republicans may present," he added in an interview with Bloomberg Television.

At the core, the negotiations center on three key points: whether tax rates for upper income taxpayers should go up, how deeply to cut spending on entitlements such as Medicare and how to deal with raising the government's borrowing limit early next year.

White House spokesman Jay Carney dismissed Boehner's proposals as "magic beans and fairy dust."

Boehner countered: "If the president really wants to avoid sending the economy over the fiscal cliff, he has done nothing to demonstrate it."

Tax rates have emerged as one of the most intractable issues, with Obama insisting the rates on the top 2 percent of earners must go up and Boehner standing steadfast that they must not.

Boehner, instead, has proposed raising $800 billion through unspecified loophole closings and limits on tax deductions.

On Tuesday, the president said he would consider lowering rates for the top 2 percent of earners - next year, not now - as part of a broader tax overhaul effort that would close loopholes, limit deductions and find other sources of government revenue. "It's possible that we may be able to lower rates by broadening the base at that point," Obama said.

The two sides are also close, at least in theory, on curbing spending on a host of miscellaneous programs, as well as new fees. These could lead to higher airline ticket prices, for example, an end to Saturday mail delivery, fewer food stamps and lower farm subsidies.

Republicans claim they could glean $300 billion from such cuts and fees over 10 years; the White House promises $250 billion.

So far, the public seems ready to hold Republicans responsible if negotiations fail. A new Washington Post-Pew Research Center poll shows that 53 percent say the Republicans would deserve blame if the nation tips over the fiscal cliff, and only 27 percent of those surveyed say Obama would be to blame.

Forty-nine percent don't believe Obama and Congress will reach a deal by Jan. 1, whereas 40 percent are more optimistic.

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WASHINGTON (AP) - A panel of outside experts says NASA is adrift without a coherent vision for where it should be going.

The report is by the National Academy of Sciences. But the panel doesn't blame the space agency. It faults the president, Congress and the nation.

President Barack Obama in 2010 told NASA to plan to send astronauts to a nearby asteroid.

But the panel of experts says few in NASA or the space community have embraced that destination. NASA hasn't allocated much money for it and its vague strategic plan avoids mention of an asteroid mission.

Veteran astronaut and panel member Bob Crippen, who piloted the first space shuttle mission, said he has never seen the space agency so unfocused.

NASA officials contend they have clear and challenging goals.

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LOS ANGELES (AP) - NASA says it wants to launch another mega-rover to Mars modeled after the wildly popular Curiosity.

The space agency said Tuesday the spacecraft will be built from spare parts from Curiosity. It would also use the novel landing system that delivered the car-size rover to Mars in August.

The new mission is scheduled for 2020 and is estimated to cost about $1.5 billion. But scientists haven't hashed out exactly what the rover would try to accomplish on Mars.

NASA says it's another step toward eventually sending astronauts to the red planet in the 2030s.

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DENVER (AP) - The Colorado Lottery says last week's huge Powerball jackpot helped it record its best week ever for sales.

An average week for the Colorado Lottery is about $10 million in sales. The agency says it had sales of $22 million last week, when the Powerball jackpot was $588 million.

The agency reports the figure includes $12.63 million from Powerball sales in Colorado last week, including almost $8.4 million in sales just on Wednesday, when the Powerball drawing was held. That's several times the average weekly Powerball sales in Colorado of about $1.5 million.

Colorado uses lottery proceeds to help fund new trails, as well as open space and wildlife protection.

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WASHINGTON (AP) - Americans have shown about as much appetite for the $1 coin as kids do their spinach. They may not know what's best for them either.

Congressional auditors say doing away with dollar bills entirely and replacing them with dollar coins could save taxpayers $4.4 billion over the next 30 years.

Vending machine operators have long championed the use of $1 coins because they don't jam the machines, cutting down on repair costs and lost sales. But most people don't seem to like carrying the coins. In the past five years, the Mint has produced 2.4 billion Presidential $1 coins. Most are in storage, and production was suspended about a year ago.

Lawmakers are also exploring how the Mint could use different metals to reduce the cost of making coins.

(Copyright 2012 The Associated Press. All rights reserved.)

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Talks of school closures have come up again for District 11 in Colorado Springs; the biggest school district in the area.

"What's best for our students, and the community, in the future, in the long run? And we're going to try and stream line and make things a little more efficient," says Devra Ashby, spokesperson for D-11.

The district is looking at several options, some of which include closing Wasson High School, Mann Middle School and several elementary schools; including Bates, Edison, Lincoln, and Midland.

No decisions have been made; D-11 has a series of community meetings planned for the month of December (5th, 10th, 13th, 17th, 18th and 19th) to discuss plans.

D-11 officials say they realize these decisions also have an impact on people living in the district who don't have children in their school system.

Oscar Furrow has lived across the street from Wasson High School for several years. He says he doesn't care one way or the other if they close the school.

"If they need it for the kids then I'm for it, but they don't really need it then I'm for closing it," says Furrow.

He's not worried about his property value dropping if the school closes; he thinks the building will be put to a different use relatively quickly.

The district is planning to release more on what they're looking into on Monday. In the meantime they've put details on the options they have so far on their website; to check it out or for more on the community meetings, click here.

 

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