Dems propose budgets

Dems propose budgets

WASHINGTON — House and Senate Democrats rolled out election-year budget blueprints Wednesday that would produce sizable surpluses by 2012 by allowing President Bush’s tax cuts to expire as scheduled.

The $3 trillion budget plans for 2009 would award greater-than-inflation increases to domestic programs. The White House said Bush would veto agencies’ spending bills.

The House Budget Committee worked toward a vote late Wednesday on the annual budget resolution. The Senate Budget Committee planned a vote today.

The Senate’s measure is $18 billion, or 4 percent, more than Bush’s budget for domestic programs such as education, health research, housing and veterans health care. The House version offers an increase of $22 billion, almost 5 percent.

Fundraiser on trial

CHICAGO — A jury was selected Wednesday in the federal corruption trial of a fundraiser for Sen. Barack Obama and Gov. Rod Blagojevich, setting the state for opening statements in a case that could embarrass some of Illinois’ most powerful politicians.

Opening statements in Antoin “Tony” Rezko’s trial were to begin Thursday, U.S. District Judge Amy J. St. Eve said. The identities of the 12 jurors and six alternates will be kept secret, at least for now.

Rezko, 52, is accused of joining with millionaire attorney Stuart Levine in a scheme to shake down companies hoping to invest state teachers’ pension fund money or build hospital expansions.

Rezko admits he raised hundreds of thousands of dollars for Blagojevich and sizable amounts for Obama but insists he never took part in any shakedown scheme. Neither politician is charged with wrongdoing.

Case access sought

TORONTO — Several media organizations, including The Associated Press, are asking an appeals court to lift a news blackout on a terrorism case that one lawyer says includes charges of a plot to storm Canada’s parliament.

Authorities announced the arrest of 17 suspects in June 2006 after they allegedly tried to obtain three tons of ammonium nitrate. They accused the suspects of plotting terror attacks in southern Ontario and said they were inspired by al-Qaida.

One defense lawyer has said his client and some of the other suspects were charged with plotting to attack Parliament, take hostages and possibly behead the prime minister if their demands for the release of Muslim prisoners were not met.Canada’s criminal code allows judges to bar the publication of details of bail hearings if the accused requests a ban.

Peace talks to resume

JERUSALEM — The moderate Palestinian leadership agreed under heavy U.S. pressure Wednesday to resume peace talks with Israel, dropping a demand that Israel first reach a truce with Islamic Hamas militants acting as spoilers.

The announcement gave Secretary of State Condoleezza Rice a modest accomplishment for a brief troubleshooting mission. It left open the question of how both sides will eventually confront Hamas militants in charge of the 1.4 million Palestinians — nearly half the population — living in the sealed-off Gaza Strip. The talks are supposed to frame a deal for a Palestinian state this year.

Sailor convicted

NEW HAVEN, Conn. — A former Navy sailor was convicted Wednesday of leaking details about ship movements to suspected terrorism supporters, an act that could have endangered his own crewmates. Jurors convicted Hassan Abu-Jihaad, 32, of Phoenix of providing material support to terrorists and disclosing classified national defense information on the second day of deliberations.

Jurors convicted Hassan Abu-Jihaad, 32, of Phoenix of providing material support to terrorists and disclosing classified national defense information on the second day of deliberations.The American-born Muslim convert formerly known as Paul R. Hall faces up to 25 years in federal prison when he is sentenced in May.

Flood unleashed

PAGE, Ariz. — Twin torrents of water unleashed from a dam coursed through the Grand Canyon on Wednesday in a flood meant to mimic the natural ones that used to nourish the ecosystem by spreading sediment.

Interior Secretary Dirk Kempthorne pulled the lever releasing the water from Glen Canyon Dam, upstream from Grand Canyon National Park.

More than 300,000 gallons of water per second were released from Lake Powell above the dam near the Arizona-Utah border.

Associated Press