Welfare Award
California was awarded by far the biggest share of a $1.1 billion federal pot intended to help welfare recipients find jobs but state officials nonetheless complained about the strings attached to the $189 million allocation.
The funds are to be used to move long-time welfare recipients with few job skills into the work force by providing job training and assistance. But local governments are required to provide a one-third share of matching funds to any grant monies they receive, and some officials such as L.A. County Board of Supervisors Chairman Zev Yaroslavsky complain that they cannot afford the matching-funds requirement.
Further, state officials complained that the funds are being allocated in such a way that there is no central control over their use.
California’s grant is nearly twice as large as that of the next highest recipient New York, which was awarded $96 million.
Disney Buys Sports Channel
In the latest blow in the battle between Walt Disney Co. and News Corp. to create the nation’s dominant cable sports empire, Disney announced plans to acquire the Classic Sports Network.
Disney, owner of ESPN, has been bidding for the cable sports channel against News Corp.’s Fox Sports operation, according to the Wall Street Journal. Disney’s reported bid of $175 million was accepted by the private owners of the Classic Sports Network.
Fox Sports is a joint venture between News Corp., Tele-Communications Inc. and Rainbow Media Sports Holdings Inc. It has been putting together a national network of regional sports channels (including Fox Sports West and Fox Sports West 2 in the Los Angeles TV market) much to the chagrin of Disney, which had hoped to pursue a similar strategy to complement ESPN.
Classic Sports Network is a small cable channel that features reruns of classic sporting events. It has about 11 million subscribers.
Emissions Trading Suspended
In response to a Los Angeles civil rights complaint, the state Air Resources Board last week suspended all new emissions trading programs a move that could affect a wide range of manufacturing companies throughout the state.
The complaint was filed last month by critics of a pollution control program in which local oil refiners are allowed to exceed state emissions limits by buying and destroying high-polluting vehicles. Critics object to the program because they claim it results in higher levels of pollution in the low-income neighborhoods where the refineries are located.
State and federal regulators have yet to make a ruling on the complaint, but the Air Resources Board decided to suspend any new pollution-trading programs until the issue is resolved. Existing programs will remain in effect.
The U.S. Environmental Protection Agency is expected to rule on the L.A. complaint before the end of the year.
Arco Gas Purchase
Atlantic Richfield Co. last week announced plans to pursue a $4 billion liquefied natural gas venture in Indonesia, marking a major shift for the company toward the Pacific Rim.
Arco, whose Alaskan oil fields are beginning to dwindle, confirmed that the “Tangguh” project in Indonesia’s offshore Irian Jaya region contains proved and probable reserves in excess of 13 trillion cubic feet. Arco owns 40 percent of the project, the company’s biggest discovery in 30 years.
Arco will become a major supplier of natural gas to Asia by proceeding with the venture, though it faces heavy competition. Exxon Corp. and Mobil Corp. are exploring an even bigger liquefied natural gas project in Indonesian waters, and supplies of the gas are plentiful.
Arco’s plans call for production of liquefied natural gas by 2003, by which time market demand is expected to increase.
DirecTV Under Fire
El Segundo-based DirecTV is under investigation by 20 state attorneys general, including California’s, for alleged consumer fraud.
The satellite broadcasting company offered consumers a special offer granting a $200 rebate on the cost of the satellite dishes necessary to recieve DirecTV programming on the condition that they pay a monthly fee for a year’s worth of programming.
In April, DirecTV moved seven Encore movie channels offered on its Total Choice package (which sold for $29.99 a month) and placed them on a new package costing $4 per month more. Consumers complained that they had agreed to buy a certain package for a year, only to see their package change.
DirecTV officials counter that the channels were replaced by six new networks: the QVC shopping channel, WGN, Animal Planet, TV Food Network, Trinity Broadcasting Network and Channel Earth. Nonetheless, the attorneys general sent a request for information on the changes to the company in July.
Van Nuys Airport Curfew
The Federal Aviation Administration agreed Aug. 29 to allow the city of Van Nuys to extend its curfew on noisy flights from crowded Van Nuys Airport.
Residents have long complained about noise from the airport, considered the busiest general aviation airport in the nation. A year ago, the FAA reject a request by the city to extend the curfew, which forbids takeoffs of aircraft generating more than 74 decibels of engine noise between 11 p.m. and 7 a.m.
But Aug. 29, the FAA agreed that the city could begin the curfew at 10 p.m. It also approved a proposed “non-addition” rule that forbids the addition of any more noisy jets based at the facility.
“This is great news for neighbors of the Van Nuys Airport,” said Mayor Richard Riordan in a prepared statement. “The FAA decision is a step forward in bringing some relief to the residents who live near the airport and its jet noise, and in balancing this protection with the need to continue to successfully operate an important engine of our local economy.”
Compiled by Dan Turner
