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U.S. Economy Grew 3.2 Percent in Fourth
Quarter<http://www.nytimes.com/2014/01/31/business/us-economy-grew-3-2-in-fourth-quarter.html?ref=business>
The American economy finished 2013 on a healthy note, buoyed by strong
consumer spending along with an improved trade picture, spurring hopes that
the momentum will continue into this year.

At an annual rate of 3.2 percent, the growth in the fourth quarter was a
deceleration from thepace of expansion in the summer, the Commerce
Department said, but was still well above the anemic rate of growth in the
first half of 2013.

The economy was weighed down early in 2013 by the effects of the tax
increases and federal spending cuts imposed by Washington, but surprised
many experts by then shrugging off much of the impact of the fall's
government shutdown and debt-ceiling standoff...........................................................................................
What sank the Senate's Iran sanctions
bill?<http://theweek.com/article/index/255771/what-sank-the-senates-iran-sanctions-bill>

So, what happened to the Iran sanctions bill? The short version: Time,
pressure, and journalism.

The journalism category encompasses two points: First, reporters actually
read the legislation, and it doesn't quite match up with the claims of lead
sponsors Sen. Robert Menendez (D-N.J.) and Sen. Mark Kirk (R-Ill.), who say
the sanctions would only take effect if Iran was found to be negotiating in
bad faith. A much-cited analysis by Edward
Levine<http://armscontrolcenter.org/issues/iran/articles/analysis_of_faults_in_the_menendez-kirk_iran_sanctions_bill_s_1881/>
at
the Center for Arms Control and Non-Proliferation showed that the Iran
sanctions would kick in *unless* Obama certified a list of impossible or
deal-breaking conditions.

Journalists also started asking the cosponsors about their intentions. It's
possible there were never 59 votes for the bill, but the legislation was
filed right before Christmas and many reporters (not unreasonably)
conflated cosponsorship with support for the bill, regardless of what was
happening with the negotiations. They only asked on Tuesday night and
Wednesday because Obama brought up the issue in his State of the Union
speech.

Time without action always saps momentum, but with the Iran sanctions bill
it also allowed events to catch up with the proponents of new sanctions.
When they filed the bill Dec. 20, the interim Iran deal was just a talking
point; a month later it was reality. The Obama administration, U.S.
intelligence community<http://thinkprogress.org/world/2014/01/29/3222241/clapper-iran-sanctions-counterproductive/>,
and outside analysts<http://theweek.com/article/index/255168/should-congress-stop-meddling-with-the-iranian-nuclear-talks>
agree
that new sanctions would scuttle the deal, and its harder to take that risk
when that deal is in effect.

..........................................................................................
Why Democrats might not retake the House anytime
soon<http://theweek.com/article/index/255769/why-democrats-might-not-retake-the-house-anytime-soon>

Barring political earthquakes, the type of which haven't been seen in 12
years, Democrats aren't likely to regain control of the House, and they
might lose several seats in the Senate. No matter how successfully Obama
prosecutes his agenda in 2013, this fact won't change. It explains why he
will govern at a remove from Congress for the next few years, and why he
was so eager to accept a two-year budget deal that many Democrats found
distasteful.

Given the disastrous approval ratings of House Republicans, it's easy to
wonder why Democrats aren't in better shape. But past elections heavily
influence future ones. In 2010, House Republicans won more than 60 new
seats, and their partisans in state legislatures set out to draw them as
safely as possible for the future. That's why, in 2012, Democrats won the
House popular vote by 1.4 million but managed to net only eight House
seats, leaving Republicans with a healthy 33 seat cushion.

Here's what we're looking for when reports come in on Friday:

..........................................................................................
Campaign finance: Gearing up for
'14<http://www.politico.com/story/2014/01/campaign-finance-2014-election-outlook-102835.html?hp=l8>On
Friday, campaigns, political action committees and super PACs will close
the books on 2013.

Campaign finance reports are due at midnight to the Federal Election
Commission. While 2013 was a typically sleepy non-election year, campaigns
and outside groups spent much of the year preparing for the 2014 campaign
with donor outreach, key staff hires and targeted early ad buys.

On the outside money front, Democrats have created a small network of
big-money groups to try to compete with their Republican counterparts.
Meanwhile, GOP operative Karl Rove -- who has dominated the past two cycles
with his Crossroads network -- has vowed to play big in primaries.

Here's what we're looking for when reports come in on Friday:

..........................................................................................

*Arctic blast paralyzes Atlanta*
At least 12 deaths were blamed Wednesday on the freak snow and ice storm
that created chaos in the Deep South. Elected officials in Georgia
criticized the National Weather Service for inadequate warnings about the
storm, which paralyzed Atlanta. More than 10,000 children had to stay
overnight in schools and 239 slept on their school buses before finally
making it home Wednesday. An undetermined number of motorists were
stranded, too, when evacuating crowds got stuck on highways that clog even
during normal rush hours. [*USA
Today*<http://www.usatoday.com/story/weather/2014/01/29/snowstorm-travel-disruption-south/5010845/>
, *Associated Press*<http://www.washingtonpost.com/national/snow-ice-send-souths-flagship-city-reeling/2014/01/29/eb64ede6-8935-11e3-a760-a86415d0944d_story.html>
]
..........................................................................................
States seek alternatives to lethal
injection<http://www.washingtonpost.com/blogs/govbeat/wp/2014/01/30/states-search-for-alternatives-to-lethal-injection/>A
shortage of the lethal chemicals needed to execute prisoners has some
states with pending executions considering new methods of killing condemned
prisoners -- including ones that haven't been used for more than half a
century.

Lawmakers in several states have proposed bills this year to allow
executions by firing squad, gas chamber and electrocution, if the chemicals
necessary for lethal injections are unavailable.

The shortage stems from the European drug manufacturers who produce
ingredients for the lethal three-drug cocktail that most states use. The
European Union, which opposes the death penalty, had threatened to limit
exports of one drug if it was to be used in executions; the drug, propofol
is a common anesthetic used in hospitals.


*..........................................................................................*

*Fed latest taper weighs on stocks*
Emerging market stocks hit two-and-a-half-month lows on Thursday following
the Federal Reserve's announcement that it would continue tapering its
economy-boosting bond purchases. Major U.S. indexes
dropped<http://www.reuters.com/article/2014/01/29/us-markets-stocks-idUSBREA080LL20140129>
by
one percent on Wednesday. At outgoing Chairman Ben Bernanke's last policy
meeting, the Fed decided improvement in the economy justified buying $65
billion monthly, down from $75 billion in January and $85 billion monthly
in 2013. Investors had hoped the Fed would pause to calm the
markets<http://theweek.com/article/index/255731/was-the-feds-latest-taper-a-huge-mistake>.
[*Reuters*<http://www.reuters.com/article/2014/01/30/us-markets-global-idUSBRE96S00E20140130>
]
..........................................................................................

*Justices lift stay that delayed Missouri killer's execution*
The Supreme Court refused a last-minute appeal filed on behalf of a
Missouri death-row inmate, Herbert Smulls, whose lawyers argued there was
no way to know whether the state's lethal injection drugs caused undue
suffering, because the state won't say who makes one of the components. The
high court briefly delayed the execution, originally scheduled for Tuesday
night so it could have more time to review the case. Smulls, 56, was
convicted of killing a jewelry store owner in a 1991 robbery.
[CNN<http://edition.cnn.com/2014/01/29/justice/supreme-court-missouri-execution/>
]
..........................................................................................

*California Assembly pushes restrictions on the use of drones*
California lawmakers have approved a bill limiting how law enforcement and
public agencies can use aerial drones in their state. The bill, if approved
by the state Senate, would require agencies to destroy any data collected
by unmanned aircraft within six months, and forbid arming them. The bill
also would require law enforcement agencies to get a warrant before using
surveillance drones, but Assembly member Jeff Gorell (R) opposed an
outright ban, saying such technology "is the future." [*Los Angeles
Times*<http://www.latimes.com/local/political/la-me-pc-assembly-floor-bills-20140129,0,66786.story>
]
..........................................................................................

*Snowden is up for a Nobel Peace Prize*
Two Norwegian politicians have nominated Edward
Snowden<http://theweek.com/article/index/255766/the-case-for-and-against-giving-edward-snowden-the-nobel-peace-prize>
for
the Nobel Peace Prize for leaking secret documents on the National Security
Agency's mining of phone and email records. Snowden, a former NSA
contractor, is now hiding out in Russia evading espionage charges back
home. Socialists Baard Vegar Solhjell and Snorre Valen, who nominated him,
said he probably damaged some nations' security, but that his leaks would
help make the world more peaceful by igniting a debate on threats against
civil liberties. [*Voice of
America*<http://theweek.com/article/index/255768/Bieber's%20legal%20troubles%20keep%20mounting%20Justin%20Bieber,%20fresh%20off%20a%20DUI%20charge%20in%20Miami%20Beach,%20turned%20himself%20in%20at%20a%20police%20station%20in%20his%20native%20Canada%20on%20Wednesday%20night%20to%20face%20an%20assault%20charge.%20His%20SUV%20was%20mobbed%20by%20screaming%20fans%20and%20a%20swarm%20of%20reporters%20and%20photographers.%20The%20case%20stems%20from%20an%20alleged%20confrontation%20Bieber%20had%20with%20a%20limo%20driver%20a%20month%20ago.%20The%2019-year-old%20pop%20star%20is%20also%20under%20investigation%20for%20the%20egging%20of%20his%20neighbor's%20house%20in%20California.%20%5BCNN%5D%20http:/edition.cnn.com/2014/01/29/showbiz/justin-bieber-toronto-arrest/>
]
..........................................................................................

*Times journalist pushed out by China's leaders*
On Thursday, China expelled *New York Times* journalist Austin Ramzy, the
paper's second reporter forced to leave mainland China in 13 months. Ramzy
left on the day his visa expired because he was not issued a new one. The
move, however, is seen as an attempt by the country's new leadership to
squelch reporting on the tremendous wealth amassed by top Chinese leaders
and their relatives. [*USA
Today*<http://www.usatoday.com/story/news/world/2014/01/29/china-expels-us-reporter-austin-ramzy/5005889/>
]
..........................................................................................

*Ship arrives home early after hundreds fall ill*
Royal Caribbean's Explorer of the Seas returned to port Wednesday after
cutting short a Caribbean cruise because 700 out of 3,050 passengers fell
ill. The suspected culprit: Novovirus. If confirmed, it would be the
biggest novovirus outbreak in 20 years. Travelers said people were getting
sick everywhere. "They were throwing up in buckets and bags," said Briton
Kim Waite, 50, who fell ill on a trip she took to celebrate ending her
cancer treatments. "I've never wanted to go home so much in my life."
[*Associated
Press*<http://abcnews.go.com/Health/wireStory/cruise-ship-sick-toll-nears-700-return-nj-22283780>
]
..........................................................................................

*Google sells Motorola Mobility to Lenovo*
Lenovo has agreed to buy Motorola Mobility from Google for $2.91 billion.
Google bought the company for $12.5 billion just three years ago, but has
already recovered some of the money by selling off its cable-box division
for $2.4 billion. Motorola Mobility's performance has been a disappointment
since it was sold off by Motorola. It lost $248 million in the last
quarter, and $192 million in the year-ago quarter, notes Matt Burns at
TechCrunch, "so the trend here isn't positive."
[*TechCrunch*<http://techcrunch.com/2014/01/29/lenovo-to-buy-motorola-mobility-from-google/>
]
..........................................................................................
*2016 Presidential News:*

Jeb Bush discusses 2016
decision<http://www.politico.com/story/2014/01/jeb-bush-2016-election-102846.html?hp=r1>
Former Florida Gov. Jeb Bush says he will make a decision on whether to run
for president in 2016 at "the right time" -- later this year.

"I don't wake up each day saying, 'Now what am I going do today to make the
decision?' I'm deferring the decision to the right time, which is later
this year," Bush said in an interview Wednesday with Miami CBS affiliate
WFOR.

The brother of former President George W. Bush and son of former President
George H.W. Bush said he will make up his mind based on whether he can run
an uplifting campaign.

"The decision will be based on, can I do it joyfully? Because I think we
need candidates to lift our spirits, it's a pretty pessimistic country
right now," Bush said. "And is it right for my family? So I don't want to
even think about that until the right time, and that's later on."
..........................................................................................

Poll: Huck leads 2016 GOP
hopefuls<http://www.politico.com/story/2014/01/poll-mike-huckabee-leads-2016-gop-hopefuls-102813.html?hp=l13>The
former Arkansas governor gained 3 points in the past month to top the GOP
field at 16 percent.
..........................................................................................
How did Bridge-gate hurt Christie? It diminished his crossover appeal to
Democrats.<http://www.washingtonpost.com/blogs/the-fix/wp/2014/01/30/how-did-bridge-gate-hurt-christie-it-diminished-his-crossover-appeal-to-democrats/>
The bridge scandal that has rocked the administration of New Jersey Gov.
Chris Christie (D) has hurt the governor by diminishing one of his key
selling points as a potential 2016 presidential candidate: Crossover appeal
to Democrats.

*Opinion:*

President Karzai's
Perfidies<http://www.nytimes.com/2014/01/30/opinion/president-karzais-perfidies.html?partner=rssnyt&emc=rss>

The Afghan leader seems to have decided that there is something to be
gained in destroying his relationship with the United States.
..........................................................................................
The Farm Bill Could Have Been
Worse<http://www.nytimes.com/2014/01/30/opinion/the-farm-bill-could-have-been-worse.html?partner=rssnyt&emc=rss>

Though the legislation made some useful reforms, it would still reduce
food-stamp benefits for too many families in need.

..........................................................................................
How much will we pay to
drive?<http://www.delawareonline.com/article/20140130/OPINION11/301300030/How-much-will-we-pay-drive->Gov.
Markell's new highway investment proposal presents Delawareans with three
challenges.

*DE News:*

*House Democratic leaders scold Flowers, clarify his
powers*<http://www.delawareonline.com/article/20140130/NEWS02/301300004/House-Democratic-leaders-scold-Flowers-clarify-his-powers>

House leadership ripped into an embattled Chip Flowers Wednesday afternoon,
criticizing his dealings with Delaware's Cash Management Policy Board
before a committee cleared a bill that limits Flowers' ability to manage a
$2 billion taxpayer portfolio.

Flowers has fought with the board over management of the state's cash
portfolio since taking office. Board members appointed by Gov. Jack Markell
pleaded with lawmakers last year to approve legislation that would settle
the dispute.

"It sounds to me like you're a member of a nine person board that follows a
Democratic process ... and you don't like the way the vote turns out and you
go and do whatever you want," House Speaker Pete Schwartzkopf said. "And
then you say the law doesn't say what it says, which is the purpose of this
law, which it clarifies so that everybody understands the cash management
policy board sets the rules, and you execute the rules."

Flowers questioned the attacks on him by fellow Democrats after Wednesday's
hearing, saying Schwartzkopf, of Rehoboth, and House Majority Leader
Valerie Longhurst, of Bear, were lobbing "firebombs" at him meant to
publicize false information.

"They were swinging, making up stuff, 'Chip Flowers runs on his own.' None
of that is true," Flowers said. "I'm disappointed that members of the
committee tried to give the public the wrong perception. That's not the way
I believe my party should stand; that's not the way I think some members of
the General Assembly should stand."

The legislation, sponsored by top General Assembly Democrats and supported
by Gov. Jack Markell, says the unelected board - not Flowers - has the sole
authority to manage the state's portfolio.

But Flowers said he is watching out for the state's taxpayers and wading
through "uncomfortable" situations with the board. He told the committee
that he's concerned that the proposal gives the board too much power,
doesn't give him appeal rights, and gives him no authority to act if he's
uncomfortable with a board decision.

"I'll be very blunt and put it on the record. One of the members said, 'We
don't have to work with you because they're going to ram a bill down your
throat,'" Flowers said. "That's how much power we've given to a private
board that they don't even have to listen to the publicly elected official
in trying to do the things that are right for the state."

Schwartzkopf earlier repeatedly asked Flowers if anyone on the board had
ever put him in a position where he felt that he was doing something
illegal. "Simple question: yes or no."

Flowers told the committee there were times that the Treasury has asked
members of the board to recuse themselves, and they did not.

"Yes, Mr. Speaker, I do feel uncomfortable," he said.

Unsatisfied with the answer, Schwartzkopf later shot back at Flowers.

"Until you have some evidence of corruption or any of those things, I think
calling members of the board who dedicate their time without pay, to help
monitor our state finances, corrupt, is a little bit corrupt," he said.

The nine-member board includes five gubernatorial appointees, two members
of Markell's cabinet, the state controller general and the treasurer
himself.

Longhurst said for lawmakers to have to bring this legislation forward to
the General Assembly is "a bit of a waste of our time because we already
know what the code says."

"I don't think we need to be here, but we are here today," she said.

As the committee approached a vote on releasing the legislation, Longhurst
asked Flowers repeatedly if he understood the new legislation.

"Will this law clarify the state treasurer's position on the cash
management board? I think it's an easy yes or no," she questioned Flowers.
"Do you understand what this law will do and what your role is on that
board?"

Flowers said he understands the responsibilities granted to the board and
he will follow the language.

Last year, Flowers was questioned by the Office of Management and Budget
about travel expenses for his deputy, who admitted using a state credit
card for personal expenses.

Flowers came under fire for failing to document questionable travel
expenses out of his office, including additional days he and former-deputy
Treasurer Erika Benner remained in Alaska after a four-day conference in
September 2012.

Benner already reimbursed the state more than $1,300 for the cost of
expenses while in Alaska, and last year Flowers said he would repay
taxpayers $1,027.39 for his travel during his three years in office,
including nearly $461 for charges he made during the Alaska trip.
..........................................................................................
Markell proposes 10-cent gas tax hike to pay for
roads<http://www.delawareonline.com/article/20140130/NEWS02/301300036/Markell-proposes-10-cent-gas-tax-hike-pay-roads>

Gov. Jack Markell wants to increase Delaware's per-gallon gas tax by 10
cents and authorize new state borrowing to pay for a $500 million,
five-year proposal to improve roads and bridges statewide.

Markell and Shailen Bhatt, his transportation secretary, announced the
proposals Wednesday at the Delaware Department of Transportation in Dover
to a crowd of business and labor leaders who have urged Markell to spend
more on roads to help create jobs.

Some members of the General Assembly, who will have to sign off on
Markell's proposals, also attended the crowded briefing. The higher taxes
and new debt would generate $100 million annually in the state's
Transportation Trust Fund.

"There is no industry that could possibly be successful if you have
expenses that grow with inflation and you have revenues that don't,"
Markell said. "But that is the story of our Transportation Trust Fund."

Delaware motorists now pay 23 cents in state gas tax, which was last
increased in 1995.

A 10-cent increase is expected to generate about $50 million a year.

Lawmakers in the General Assembly were lukewarm Wednesday about the
governor's proposals, which would nearly double planned capital spending on
roads over the next five years.

"I'm not in favor of it at this point," House Majority Leader Valerie
Longhurst, a Bear Democrat, said of raising the gas tax. Longhurst would
not comment on the position of the broader House Democratic caucus.

Every member of the House faces re-election in the fall, and could be
reluctant to raise taxes this year.

"We need time to sit down and go through the entire budget," Longhurst said.

Senate President Pro Tem Patricia Blevins, D-Elsmere, said the Senate
Democratic caucus has not discussed the details of Markell's proposal.

"I do support the gas tax, reluctantly. None of us want to do it, including
the governor," Blevins said.

"But we haven't raised the gas tax in a very long time, so we haven't kept
pace with inflation and the cost of construction has gone up dramatically.
And we need to pay for new roads and infrastructure," she said.

Markell and Bhatt warned that voting against new funding would result in
delays to critical roadway projects, including improvements on the
Christiana River Bridge in south Wilmington, widening of Del. 1 from
Tybouts Corner to Del. 273 and safety projects up and down the state.

Last year, the transportation agency postponed roughly $46 million worth of
capital projects, including more than 20 safety-driven improvements across
the three counties.

Voting against the governor's proposal also would result in reduced
Municipal Street Aid and Community Transportation Funding, which lawmakers
use to pave roads and fund other minor roadway improvements in their
districts, the governor and Bhatt said.

"We've been delaying projects because we've had uncertainty in the funding
for the Transportation Trust Fund," Bhatt said. "The problem only gets
bigger as we go forward."

Markell's plan takes capital spending on roads back to 2009 levels. In the
current budget year, the transportation agency is spending $192 million on
road and bridge improvements.

That is projected to fall to $128 million next year.

In each of the last three fiscal years, lawmakers have voted to send $40
million in abandoned property revenue to the transportation fund to bolster
road and bridge improvements.

Democrats control strong majorities in both chambers of the General
Assembly, and could pass the infrastructure package along party lines.

But some in leadership have indicated they will not act without Republican
support. In the Senate, the margin is slim. Senate Democrats control 13
seats, and need all members to sign off on any proposal to raise taxes if
no Republicans go along. Blevins said she hopes to see Republican support.

In a statement Wednesday, Senate Minority Leader Gary Simpson called a
10-cent gas tax increase "awfully steep. People are being hit with higher
taxes left and right throughout the state," Simpson said. "And I think now
is just the wrong time, without knowing all of the details, to be passing
such a hefty increase."

"We should get this done, we should absolutely get this done. This is not a
partisan bill," said Markell.

He noted that Pennsylvania, which has a Republican governor, recently
raised gas taxes to help fund road projects. "There is nothing about
infrastructure that is partisan one way or another."

The governor also called on business and labor leaders to talk to members
of the General Assembly about the merits of his plan.

"It's not a partisan issue. It is a competition issue, however," said Paul
Morrill, executive director of the business group The Committee of 100.
"Without a world class infrastructure, we're simply not going to be
competitive. We need to make this investment."

Sam Lathem, the president of the Delaware AFL-CIO, said spending on
infrastructure is necessary to create jobs.

"We pounded and beat and hammered on the governor to create jobs," Lathem
said. "We didn't tell him how to do it. We need jobs. I think he's come up
with the best way to do that."


--
Sam Losow
*Finance Assistant*
Beau Biden, DE Attorney General
Office: (302) 295-8340
Cell: (202) 821-3399
sam@beaubiden.co