Budget stalemate goes on

Budget stalemate goes on

HARRISBURG — A faint glimmer of hope emerged Tuesday that Pennsylvania’s three-week-old budget stalemate may soon be resolved, after a House vote that moved the dispute closer to being handled by a committee of legislative leaders.

The Democrat-controlled House voted 150-49 to reject a Republican-penned state budget that passed the Senate late Monday. The bill was sent back to the Senate, and all sides predicted a six-member, bipartisan conference committee of senators and representatives would be appointed to attempt to find common ground.

Dispute over treasure

TAMPA, Fla. — Deep-sea explorers based in Florida filed an objection Tuesday to a judge’s recommendation that they give 17 tons of shipwreck treasure back to Spain.

The dispute concerns the 200-year-old wreck of a Spanish galleon that carried thousands of silver coins and other artifacts estimated to be worth $500 million. The ship is believed to be the Nuestra Senora de las Mercedes y las Animas, which exploded in battle and sank in the Atlantic Ocean west of Portugal in 1804, claiming the lives of 200 people.

Ethics violation alleged

ANCHORAGE, Alaska — An independent investigator has found evidence that Gov. Sarah Palin may have violated ethics laws by accepting private donations to pay her legal debts, in the latest legal distraction for the former vice presidential candidate as she prepares to leave office this week.

The report obtained by The Associated Press says Palin is securing unwarranted benefits and receiving improper gifts through the Alaska Fund Trust, set up by supporters.

An investigator for the state Personnel Board says in his July 14 report that there is probable cause to believe Palin used or attempted to use her official position for personal gain because she authorized the creation of the trust as the “official” legal defense fund.

Health plan in jeopardy

WASHINGTON — House Democrats put their divisions on display over the details and timing of health-care legislation Tuesday despite fresh attempts by President Barack Obama to hasten a compromise on the issue that looms increasingly as a major test of his clout.

With a self-imposed deadline for action in jeopardy, the Democratic leadership juggled complaints from conservatives demanding additional cost savings, first-term lawmakers upset with proposed tax increases and objections from members of the rank-and-file opposed to allowing the government to sell insurance in competition with private industry.

Gates’ charge dropped

BOSTON — Prosecutors dropped a disorderly-conduct charge Tuesday against prominent black scholar Henry Louis Gates Jr., who was arrested by a white officer at his home near Harvard University after a report of a break-in.

The city of Cambridge issued a statement saying the arrest “was regrettable and unfortunate,” and police and Gates agreed that dropping the charge was a just resolution.

Diplomats told to leave

TEGUCIGALPA, Honduras — Honduras’ interim government ordered Venezuelan diplomats Tuesday to leave the country as the international community threatened new sanctions on the Central American nation if negotiations fail to resolve the crisis.

Venezuelan Embassy charge d’affaires Ariel Vargas said he received a letter from the Honduran Foreign Ministry ordering his diplomats to leave in 72 hours.

Venezuelan President Hugo Chavez has been the most vociferous critic of what he calls the “gorilla” government that overthrew his ally Manuel Zelaya on June 28.

The government of Roberto Micheletti, whom congress swore in as president after the coup, accused Venezuela of meddling in its affairs and of threatening to use its armed forces against Honduras.

Taliban mounts assaults

GARDEZ, Afghanistan — Suspected Taliban militants armed with bombs, rifles and rocket- propelled grenades launched near-simultaneous assaults Tuesday on Afghan and U.S. facilities in two eastern cities, killing six Afghan police and intelligence officers.

The attacks in Gardez and Jalalabad may have been aimed at relieving pressure on Taliban fighters in southern Afghanistan — the focus of U.S. and British operations against the hard-line Islamic militants.

A quick response by Afghan police and soldiers prevented higher casualties. Eight insurgents were killed and one was captured in the two attacks, officials said, adding that none got away.

Associated Press