Washed It!

It wasn’t tough decisions on California’s ailing schools, or the prison crisis or the direction of healthcare reform that kept lawmakers locked in chambers for more than 20 hours before they finally passed the latest budget in state history Friday morning.

What bedeviled the process of approving the $125-billion spending plan was such matters as whether electronic highway billboards should have advertisements, whether a big political donor should be appointed to a state commission, whose name should adorn a disaster-relief bill, and whether the state needs a paid secretary of volunteerism.

The vote was supposed to be easy, a bipartisan election-year feint that pushed tough decisions into the future, papering over the deficit with clever accounting.

The budget lawmakers passed would keep state services at the status quo, with a freeze on school spending, modest trims to healthcare programs and some new money for universities.

It assumes billions of dollars in federal aid that most experts agree will never materialize and relies on loans and bookkeeping maneuvers such as transfers and funding shifts.

Yet the approval process became an all-night affair, with tens of millions of dollars in transportation spending lost because lawmakers had a spat over electronic billboards and DUI checkpoints.

Some Democrats disliked a provision to sell advertising space for soft drinks, automobiles or other products alongside the flashing alerts about abducted children and hazardous road conditions on the more than 700 state-owned electronic freeway billboards. The proposal was pushed by Gov. Arnold Schwarzenegger.

“Who thinks it’s a good idea to give drivers one more reason to take their eyes off the road?” said Sen. Joe Simitian (D-Palo Alto). He chairs a budget subcommittee that initially rejected the plan, which was later reinserted into the budget by legislative leaders.

Sen. Gil Cedillo (D-Los Angeles) sought to make the multi-provision bill more palatable by adding a new measure. It addressed an element of alleged corruption in Bell, where the city was reported to be making money by towing the cars of sober immigrants from DUI checkpoints if they did not have proper ID.

Without a provision banning such a practice, Cedillo was refusing to vote for it and other parts of the budget, which was contained in 21 bills. Democrats added it. Some Republicans said the proposal could interfere with legitimate law-enforcement actions, and the bill failed to garner enough votes to pass. So the Senate killed the entire $112-million transportation bill.

Just after dawn, an impromptu hearing was needed to get a bill authorizing schools funding back on track. GOP senators were refusing to put up the votes for it, and the measure came up short. Senate leader Darrell Steinberg (D-Sacramento) abruptly announced there would be a 120-second hearing, stopped business on the budget and conducted a confirmation proceeding that took just slightly longer.

Senators approved a Schwarzenegger nominee to the California Transportation Commission whom they had refused to confirm through the normal committee process. Steinberg, with a hint of sarcasm, declared the nominee, Fresno developer and GOP donor Darius Assemi, “eminently qualified.”

Sen. Jeff Denham (R-Atwater) spoke in praise of Assemi and changed his vote. The education bill passed.

Over in the Assembly, meanwhile, lawmakers were annoyed by a demand they said came from the governor. It called for the state to create a “Secretary of Volunteerism,” a paid post. The idea was heavily mocked in side conversations and during floor debates.

“I would like to volunteer to be the Wizard of Adjournment,” Assemblyman Roger Niello (R-Fair Oaks) said after 3:30 a.m., when the legislation finally passed the lower house

Ultimately, the full Legislature approved the post, with some lawmakers expressing worry that the governor might otherwise use his line-item veto authority to retaliate.

“This was the governor’s thing — or else his blue pencil came out,” said Sen. Fran Pavley (D-Agoura Hills).

Other last-minute side issues included a bid by Republicans to secure a tax break for online travel companies such as Orbitz and Expedia. It didn’t survive. A proposal to help San Diego use more redevelopment funds in a way that could help facilitate construction of a new NFL stadium made it to the governor’s desk.

Special tax breaks for a timber company, cable companies and software firms made it to the governor’s desk too. So did a provision that could help boost the bottom line of an ethanol company founded by former Secretary of State Bill Jones, an ally of and contributor to Schwarzenegger.

Not all of the bickering was partisan. Sen. Leland Yee of San Francisco, a Democrat, refused to vote with most of his caucus on many elements of the budget. He paid a price: Disaster-relief legislation that he wrote for families affected by the San Bruno explosion and fire was killed, and Democrats later moved to Schwarzenegger an identical measure without Yee’s name on it.

Lawmakers sweat the small stuff

So long, “Sesame Street.” And probably “NewsHour,” “Antiques Roadshow,” “Nova,” “Masterpiece” and ” Frontline” too, at least for many Los Angeles TV viewers.

After months of fractious negotiations, KCET, the flagship public broadcasting station in the Los Angeles market for 40 years, abruptly announced Friday that it would exit the PBS network effective Jan. 1. The move, which caught PBS officials in Washington by surprise, marks the first time a major-market station has left the network and will make KCET the largest independent public TV station in the nation.

“This is not a decision we made lightly,” Al Jerome, the station’s president and chief executive, said in a statement.

“We have been in discussions with PBS for over three years about the need to address challenges that are unique to our market as well as our station.”

In a follow-up interview, Jerome said the station would assemble its own programming, a plan that would take roughly two years to implement fully. KCET is expected to keep airing locally produced public-affairs shows such as “SoCal Connected.” Last month it announced a new Sunday-night movie show hosted by KTLA entertainment reporter Sam Rubin. Jerome said the station was also exploring news, documentaries and other programming from providers in Japan, Canada and other countries as well as the Hollywood community.

But Jerome acknowledged that some longtime viewers face the immediate prospect of losing favorite, nationally recognized shows. “There are going to be some disruptions,” he said. According to Jerome, KCET would remain a nonprofit enterprise mostly reliant on funds from viewers and corporate donors; the station’s FCC license does not permit it to become a commercial, for-profit outlet supported entirely by the traditional 30-second spot.

Station officials have complained they could not afford to pay member dues that rocketed 40% after KCET in 2005 won a landmark series of grants from oil giant BP and other sources totaling $50 million for two series aimed at preschoolers. Those grants came with the stipulation the money could not be used for paying dues to PBS. But PBS has defended the dues structure as necessary to maintaining quality programming and argued KCET was asking for special treatment.

Talks aimed at ending the impasse have gone nowhere. The door is still open for KCET to remain tied to PBS through a proposed consortium with Southern California secondary public stations: Orange County’s KOCE as well as KVCR in San Bernardino and KLCS, which is licensed to the Los Angeles Unified School District. The group would share certain programming, fundraising and marketing functions to save money and operate more efficiently. But Jerome said KCET would still remain independent under that scenario. It’s also possible that the station and PBS could reach an 11th-hour settlement, but those hopes seem to be growing dimmer with each passing day.

Friday’s move left PBS officials scrambling. In a sign of how badly relations have frayed with the dissident station, a network spokeswoman was not aware that KCET was about to send out a news release announcing the split until a reporter called to ask about it.

“PBS was notified today of KCET’s intention to withdraw its membership,” PBS said in a statement. “At issue were KCET’s repeated requests that it be allowed to operate as a PBS member station without abiding by PBS policies and paying the corresponding dues.

“PBS’ goal is to have a financially stable service in the Los Angeles market,” the network added. “PBS fully supports the idea of a Southern California consortium of stations and continues discussion with KOCE, KVCR and KLCS, PBS’ additional stations serving the Los Angeles market.”

Their divorce could wind up being painful for both KCET and PBS — not to mention local viewers.

The station faces the challenge of trying to raise funds without invoking name brands such as “Sesame Street” and “Antiques Roadshow.” Such famous PBS series are frequently cited as reasons to donate during ubiquitous on-air pledge drives. Without such brands, KCET may find it much harder to persuade viewers to open their wallets, especially during a time of economic uncertainty and reduced corporate giving.

However, KCET’s prospects for viability could greatly improve if KCET secures funding from the federal government. In a statement released Friday by the Corporation for Public Broadcasting, which receives Congressional funding and distributes it to public media, KCET will still be eligible for federal monies as long as it is — as it plans to be — an FCC-licensed educational television station, providing noncommercial and general interest programming.

In the meantime, the loss of its largest West Coast station casts a dark cloud over the future of PBS, at a time when many TV analysts are already questioning the relevance of a federally mandated broadcasting entity that dates from the 1960s.

“PBS certainly does not play the essential role it once did in the nation’s media landscape,” Jeffrey McCall, a media professor at DePauw University wrote in an e-mail. “For years, PBS provided things that couldn’t be had from the traditional networks. Public affairs, educational programs, dance, fitness, crafts, kids shows, documentaries and all that were found on your local PBS affiliate and perhaps no place else.

“Now, with cable outlets, not to mention the Internet, the public doesn’t rely on PBS for such fare,” McCall added. “Those multichannel entities are rooted in corporate vision, but they only need a niche audience to make a go of it these days. Not to mention that PBS has taken on some of the corporate vision itself, with lengthy, enhanced underwriting announcements, corporate partnerships, etc.”

Now that KCET has taken the plunge as an independent station — PBS will have to write a new chapter for its network in Southern California.

Local attorney Gordon Bava, chairman of KCET’s board of directors, said in a statement: “While separating from the PBS mother ship is daunting, the potential of providing a media platform for the creative, scientific, and cultural communities of Southern California to create informative and entertaining non-commercial programming with a fresh perspective is very exciting.”

scott.collins@latimes.com
Los Angeles affiliate KCET is leaving the PBS network

Democrats and their allies, moving to counter millions of dollars flowing to Republican campaigns from groups such as the U.S. Chamber of Commerce, have accused the international business organization of using foreign money to influence American elections.

The effort to paint conservative political groups as fronts for multinational corporations and foreign billionaires gathered steam this week after an affiliate of the liberal-leaning Center for American Progress charged that the chamber was using funds from foreign corporations to finance its political operations in Washington.

Foreign spending in U.S. elections is against the law. Tita Freeman, vice president of communications at the chamber, called the Center for American Progress report “unfounded and completely erroneous.” The foreign companies cited in the report “pay nominal dues” that “do not support U.S. chamber political activities,” Freeman said.

The liberal group MoveOn.org planned a rally outside the chamber’s Washington headquarters Thursday to bring attention to the charges.

The issue of campaign fundraising is casting a shadow over this year’s races after a Supreme Court ruling in January allowed unlimited campaign spending by corporations, labor unions and interest groups — some of which are not required to disclose their funding sources.

Corporations and interest groups, operating outside official political party committees, have provided a potent source of cash for Republicans. Democratic-allied groups have attempted to match the spending but lag far behind.

The liberal organization Think Progress said on its website that an investigation found that dues and fees collected from the chamber’s overseas chapters and foreign business members goes into the same account used to fund its political activities.

Freeman called the allegation “an attempt to silence businesspeople, to silence those who support free enterprise, and an intentional diversion in advance of the midterm elections.”

The chamber and two new groups cofounded by Republican strategist Karl Rove — American Crossroads and its affiliate, Crossroads GPS — are expected to spend more than $100 million on media campaigns in the final month before election day. Allies of Democrats have attempted to counter the overwhelming budgets of right-leaning groups with their own meager but pointed ad buys.

On Wednesday, Campaign Money Watch, a Democratic-leaning group that advocates for public financing of elections, took out a $750,000 ad to oppose the Republican candidate for governor in Colorado. The move came a day after American Crossroads spent about the same on ads opposing the Democratic incumbent.

Also Wednesday, the National Education Assn. committed to spending $15 million this cycle and began airing television ads for Democratic incumbents in Arizona and Ohio.

But with less than one month to go, the big money still trended in Republicans’ favor.

On Tuesday, Crossroads GPS spent more than $1 million on advertising against Alexi Giannoulias, the Democratic candidate for President Obama’s former Senate seat in Illinois, according to records filed with the Federal Election Commission.

Meanwhile, two nonpartisan groups that advocate stricter campaign finance controls urged the Internal Revenue Service this week to investigate Crossroads GPS. The Campaign Legal Center and Democracy 21 said the Rove group is organized in a way that “allows its donors to evade the public disclosure requirements” that otherwise would apply if the organization was registered differently.

kim.geiger@latimes.com
Liberal groups say foreign funds aid Republicans

The new Assembly speaker’s promise was unequivocal: Decisions about how billions upon billions of California taxpayer dollars are spent would no longer be made in private meetings or in the middle of the night.

“The budget will not be written behind closed doors,” Speaker John P

President Obama announced Friday that Rahm Emanuel, his chief of staff and a fearsome White House operative, is resigning his post and would be replaced with another senior advisor.

Emanuel, who is planning to run for mayor of Chicago, departs 20 months into Obama’s presidency and leaves as one part of a staff shuffle that will bring a significant turnover at the top levels of the White House policy and economic team.

Senior presidential advisor David Axelrod is planning to leave the White House next year to begin preparations for Obama’s 2012 reelection drive, and economic advisor Lawrence Summers is quitting the White House to return to Harvard University.

Obama named senior advisor Pete Rouse to serve as Emanuel’s replacement, at least for now.

Emanuel’s departure had been expected since Mayor Richard Daley announced in September that he would not run for reelection. Obama lavished praise on Emanuel for his work at the White House.

“He just brings an unmatched level of energy and commitment to every single thing he does,” Obama said after embracing Emanuel before a cheering White House assembly.

Possible candidates for the permanent job include Thomas E. Donilon, a deputy national security advisor; Robert Bauer, White House counsel; Tom Daschle, a former Senate Democratic leader; and John Podesta, a former chief of staff to President Clinton.

cparsons@latimes.com
Obama makes it official, sends off top aide Emanuel

The day after Jesse Kelly won the Republican primary in Arizona’s 8th Congressional District, Democratic incumbent Gabrielle Giffords went on the air with a lacerating attack. Noting that Kelly said he ultimately wanted to eliminate Social Security, Giffords’ television ad warned that Kelly “is a risk we can’t afford.”

Kelly, a construction manager with no political experience, had made the mistake of venturing into the mine-strewn politics of Social Security. No matter that he said he would preserve benefits for current retirees. The fact that he once described it as “the biggest pyramid scheme in history” gave his rival the equivalent of cannon fodder in a district where nearly one-fifth of the population is older than 65.

Kelly is now running his own ad vowing to “honor our commitment to seniors,” trying to fend off a line of assault that Democrats are stepping up throughout the country. It’s one of the few consistent themes in Democratic campaign commercials in a year when the party has otherwise eschewed a national message.

Accusing Republicans of wanting to do away with Social Security is a well-worn trope for Democrats. But a slew of “tea party”-backed candidates who have called for privatizing or eliminating the program have given Democrats fresh ammunition at a time when they are on the defensive about healthcare reform and the economic stimulus.

The strategy allows Democrats to link their rivals to former President George W. Bush, who sought to allow younger workers to invest a portion of their Social Security taxes in the stock market.

“And because it has also become a rallying cry among some of the tea party movement … it’s an indicator of how far to the right and how extreme a position the Republican candidates are taking,” said Rep. Chris Van Hollen of Maryland, chairman of the Democratic Congressional Campaign Committee, which has devoted the majority of its spots to slamming House GOP candidates on the topic.

Republicans, however, complain that their rivals are distorting their position.

“There have been numerous fact-checks and editorials calling out Democrats for their Social Security attacks,” said Paul Lindsay, spokesman for the National Republican Congressional Committee. “Democrats are desperately trying to scare seniors.”

“This is what a Democrat says when they’re losing an argument,” said Grover Norquist, president of the conservative Americans for Tax Reform. “If they’re saying this, it means they don’t have anything else to say.”

Nevertheless, Norquist advises GOP candidates to steer clear of Social Security on the campaign trail: “It’s too easy to demagogue.”

Indeed, it’s a testament to the political thorniness of the subject that most Republicans are strenuously avoiding it now that the primaries have passed. While Rep. Paul Ryan (R-Wis.) proposed personal retirement accounts for younger workers in his “Roadmap for America’s Future” economic plan this year, the GOP “Pledge to America” released last week does not address how to reform Social Security, whose outlays will regularly exceed its revenue beginning in 2016, the Congressional Budget Office estimates.

But Democrats are still feeding off comments made by their GOP rivals earlier in the year. In Nevada, Senate Majority Leader Harry Reid weaves it into nearly every spot he runs against Republican Sharron Angle, who has backed away from earlier statements that she would phase out Social Security. A commercial for Sen. Michael Bennet (D-Colo.) includes footage of GOP rival Ken Buck calling Social Security “a horrible policy,” words Buck later said he regretted.

A commercial for Rep. Baron P. Hill (D-Ind.) spotlights a clip of GOP challenger Todd Young calling the program “a Ponzi scheme.” And a new ad by Democratic challenger Tarryl Clark argues that Rep. Michele Bachmann (R-Minn.) views seniors as addicts, noting that she said she wants to “wean everybody off” Social Security.

“In the past, the Democrats had to strain and work hard to convey the risk of a Republican victory to Social Security,” said Lawrence Jacobs, a political science professor at the University of Minnesota who studies the program. “This year, it’s low-hanging fruit … because there are prominent Republicans running for the Senate and House who have very publicly and clearly raised questions about future of Social Security.”

But in some races, Democrats have taken more generic comments by GOP candidates as evidence of their antipathy to the entitlement. In Wisconsin, the Democratic Congressional Campaign Committee has run three ads asserting that former prosecutor Sean Duffy, the GOP nominee for an open House seat, supports a plan to privatize Social Security. “Sean Duffy may not be worried about his retirement security, but the rest of us are,” stated one, featuring images of the onetime star of MTV’s “The Real World” climbing into a purple SUV.

As evidence, the committee cited Duffy’s endorsement of Ryan’s “Roadmap” plan. But Duffy has never explicitly voiced support for personal accounts, and on his campaign website he states, “I have not and will not endorse privatizing Social Security.” The Democrats’ campaign committee said Duffy was merely trying to backtrack.

It remains to be seen whether the Democratic fusillade will pay off for them at the ballot box. Evan Tracey, president of Campaign Media Analysis Group, a division of Kantar Media that tracks political advertising, said the party was hitting Social Security particularly hard in this cycle because the passage of healthcare reform took away one of their traditional critiques of the GOP.

“The Democratic message is — let’s face it — fear-based and designed to get seniors worried about their Social Security check,” he said. “That’s as common as Republicans calling Democrats liberals. I don’t know if anybody has presented a real argument that’s going to connect with voters.”

matea.gold@latimes.com
Democrats campaign on GOP threats to Social Security

A Food and Drug Administration advisory panel debated Monday whether to endorse the safety of genetically engineered salmon, but instead urged the agency to require more studies to demonstrate the fish’s safety.

The North Atlantic salmon developed by AquaBounty Technologies Inc. of Waltham, Mass., would be the country’s first genetically engineered food animal.

The Veterinary Medicine Advisory Committee did not vote on the FDA’s preliminary findings that the fish was safe for people to eat and did not pose a significant environmental risk. Instead, the panel offered a series of recommendations aimed at fleshing out information, including the possibility that the fish could trigger allergies or other health problems in some consumers.

The panel’s chairman, David Senior of Louisiana State University, said he thought members generally believed the fish was safe to eat, but were concerned that some studies had a small sample size.

One panelist, Greg Jaffe of the nonprofit Center for Science in the Public Interest, predicted after the meeting that the FDA would eventually approve the salmon, “but I don’t think the agency’s going to go quickly on this.”

The salmon is produced by taking a portion of the gene that protects the ocean pout fish against freezing, transplanting it into the growth gene of a Chinook salmon and transferring the blended genetic material into the fertilized eggs of a North Atlantic salmon.

The resulting fish grows during the winter months as well as the summer, unlike an ordinary salmon.

Several panelists raised concerns about the fast-growing fish, saying there were not enough data to answer key questions about allergens and other potential risks.

“There are questions that have not been answered by the data that has been presented,” said panelist James McKean, a veterinarian and professor at Iowa State University.

But other panelists argued there was no difference between the altered salmon and its natural counterpart.

“I would not feel alarmed about eating this kind of fish,” said Gary Thorgaard, a professor and fish researcher at Washington State University.

The panel’s conclusions are not binding, but the FDA usually heeds its recommendations.

The hearings continue Tuesday, when the FDA will hear testimony about what labeling, if any, should be required if the salmon was approved.

azajac@latimes.com

Reuters contributed to this report.

FDA advisors urge more study of genetically altered salmon

California’s deeply troubled labor market took another hit in August as employers laid off more workers than expected, renewing fears that the state’s economic recovery has stalled.

Employers cut 33,500 jobs, marking the third straight month of losses and pushing the state’s unemployment rate to 12.4%, up from 12.3% in July, according to data released Friday by the Employment Development Department. California has lost 113,100 jobs since August 2009.

Last month’s losses were widespread, hitting almost all sectors, including construction, manufacturing, financial services, leisure and hospitality, trade, transportation and utilities. Government was the biggest loser, shedding 9,200 jobs, most of them temporary census positions.

“The thing that is disconcerting is that we have lost jobs in virtually every industry,” said Sung Won Sohn, an economist and UC Channel Islands professor. “At this stage of an economic recovery, we should be doing much better.”

California has one of the highest unemployment rates in the country, well above the national rate of 9.6%.

The deteriorating job market is bad news for the Golden State’s 2.3 million unemployed workers. Almost 1 million of them have been jobless for more than six months. And nearly 200,000 have exhausted their unemployment benefits, which last up to 99 weeks.

Some of the unemployed — discouraged or depressed — have quit looking for work. About 926,000 such Californians who are no longer counted as unemployed said they want a job, according to the most recent state government figures. Some are going back to school or retraining for other careers. Others are retiring early or applying for disability insurance.

California’s labor force participation rate, which measures the percentage of the population working or actively seeking a job, fell to 64.2% in July from 66% in July 2008. Economists said that’s a worrisome decline that could hurt the state’s productivity down the road.

“When the economy turns south, people exit the labor market,” said Mary Daly, a vice president at the Federal Reserve Bank of San Francisco who has studied the trend. “They search and search and don’t find anything, so they just stop looking for work.”

Applications to the Social Security disability insurance program are projected to reach 3.3 million in the 2010 fiscal year, a 27% jump from 2008, according to Mark Hinkle, a spokesman for the agency. In California, applications increased to 287,000 in the 2009 fiscal year, up 12% from the year before.

“As the economy has gotten worse, the applications have gone up at a pretty steady correlation,” said Social Security Commissioner Michael Astrue.

Mark Allen Jr., 29, lost his job at a mortuary in downtown Los Angeles in April and has been unable find new employment. His car was repossessed two weeks ago and he’s barely making his rent. Allen said he had been battling medical problems for a few years. After consulting a lawyer, he’s now in the process of applying for disability benefits.

“It’s absolutely a last resort,” he said. “I really don’t know where to turn before I am totally out on the street.”

Other unemployed workers are going back to school. Community colleges throughout the state are experiencing “unprecedented demand,” said Paige Marlatt Dorr, a spokeswoman for California Community Colleges, the largest higher education system in the nation.

But because of funding cuts, campuses had to turn away 140,000 students in the 2009-10 school year, she said.

Rosemead resident Queenie Luc, 52, is studying commercial and medical billing at Los Angeles City College. She lost her job in 2008 when the garment factory that she managed closed.

“I just want to finish so I can find a job,” Luc said.

But so far, California employers have shown little confidence in the strength of the economic recovery.

“Businesses are still really cautious and are taking a wait-and-see attitude,” said Jerry Nickelsburg, senior economist at the UCLA Anderson Forecast.

Los Angeles County lost 12,800 jobs in August as the unemployment rate rose to 12.6% from a revised 12.4% in July. Manufacturing, information and government experienced significant job losses. But construction and professional and business services gained jobs.

Orange County’s unemployment rate fell to 9.6% in August, from a revised 9.9% in July. The county lost 2,300 jobs, with the biggest losses in government, educational and health services and trade.

In the Riverside-San Bernardino metro area, the unemployment rate fell to 14.8% from a revised 15.1% in July. Job losses were modest, with payrolls down by only 100 positions. Still, that area has lost 22,700 jobs over the last year.

San Diego County lost 2,200 jobs in August, and its unemployment rate dropped to 10.6% from a revised 10.9% in July. Ventura County added 500 jobs as its unemployment rate fell slightly to 11.2% from 11.3% the month before.

Cristina Molinari, 60, has been out of work since July 2008 and ran out of benefits in April. The Woodland Hills resident worries that because of her age no one will hire her. A onetime computer programmer, she says she has been told that her skills are outdated, or, alternatively, that she’s overqualified.

She recently called the Social Security Administration to inquire about receiving benefits early. They said she was too young for Social Security but recommended she apply for disability insurance.

“It’s ironic that I’m too young for that. Because as far as the job market, I’m too old to be hired,” she said. “It’s pretty tough.”

alana.semuels@latimes.com

Job losses cut wide swath in California

The ranks of the working-age poor climbed to the highest level since the 1960s as the recession threw millions of people out of work last year, leaving one in seven Americans in poverty.

The overall poverty rate climbed to 14.3 percent, or 43.6 million people, the Census Bureau said Thursday in its annual report on the economic well-being of U.S. households. The report covers 2009, President Barack Obama’s first year in office.

The poverty rate increased from 13.2 percent, or 39.8 million people, in 2008.

The share of Americans without health coverage rose from 15.4 percent to 16.7 percent — or 50.7 million people — mostly because of the loss of employer-provided health insurance during the recession. Congress passed a health overhaul this year to address the rising numbers of uninsured people, but its main provisions will not take effect until 2014.

In a statement, President Barack Obama called 2009 a tough year for working families but said it could have been worse.

“Because of the Recovery Act and many other programs providing tax relief and income support to a majority of working families — and especially those most in need — millions of Americans were kept out of poverty last year,” Obama said.

The new figures come at a politically sensitive time, just weeks before the Nov. 2 congressional elections, when voters restive about high unemployment and the slow pace of economic improvement will decide whether to keep Democrats in power in the House and Senate or turn to Republicans.

The 14.3 percent poverty rate, which covers all ages, was the highest since 1994. It was lower than predicted by many demographers who were bracing for a record gain based on last year’s skyrocketing unemployment. Many had predicted a range of 14.7 percent to 15 percent.

Broken down by state, Mississippi had the highest share of poor people, at 23.1 percent, according to rough calculations by the Census Bureau. It was followed by Arizona, New Mexico, Arkansas and Georgia. On the other end of the scale, New Hampshire had the lowest share, at 7.8 percent.

Analysts said the full blow of lost incomes was cushioned somewhat by increases in Social Security payments in 2009 as well as federal expansions of unemployment insurance, which rose substantially under the economic stimulus program. With the additional unemployment benefits, workers were eligible for extensions that gave them up to 99 weeks of payments after a layoff.

David Johnson, the chief of the Census Bureau’s household economics division, estimated that expanded unemployment benefits helped keep 3.3 million people out of poverty last year.

The 2009 poverty level was set at $21,954 for a family of four, based on an official government calculation that includes only cash income, before tax deductions. It excludes capital gains or accumulated wealth, such as home ownership, as well as noncash aid such as food stamps.

Another 7.8 million people would have been counted above the poverty line if food stamps and tax credits were included as income, Johnson said.

Last year saw the biggest single-year increase in Americans without health insurance, lifting the total number to the highest since the government began tracking the figures in 1987. The number of people covered by employment-based health plans declined from 176.3 million to 169.7 million, although those losses were partially offset by gains in government health insurance such as Medicaid and Medicare.

Diane Rowland, executive vice president of the Kaiser Family Foundation, said additional increases in the uninsured are probable in the short run.

In 2014 under the new health law, Medicaid will be expanded to pick up millions more low-income people, and the government will offer tax credits for many middle-income households to use to buy coverage through new online insurance markets in each state.

By 2019, the government has estimated that nearly 93 percent of the U.S. population will have health insurance, roughly a 10 percentage point increase from today’s level.

Other census findings:

–Among the working-age population, ages 18 to 64, poverty rose from 11.7 percent to 12.9 percent. That puts it at the highest since the 1960s, when the government launched a war on poverty that expanded the federal role in social welfare programs from education to health care.

–Poverty rose among all race and ethnic groups, but stood at higher levels for blacks and Hispanics. The number of Hispanics in poverty increased from 23.2 percent to 25.3 percent; for blacks it increased from 24.7 percent to 25.8 percent. The number of whites in poverty rose from 8.6 percent to 9.4 percent.

–Child poverty rose from 19 percent to 20.7 percent.
1 in 7 Americans live in poverty, Census Bureau reports

Richard J. Bing of La Ca