Should Brett Favre come out of retirement…again?

lthough NFL training camps are still weeks away, each passing day brings new reports suggesting that Brett Favre is about to come out of retirement for a second time in as many years. The Vikings have openly admitted their interest and Favre has done the same.
While the New York Jets and Green Bay Packers are trying to rebuild around younger quarterbacks, the Minnesota Vikings appear to be willing to throw a proverbial Hail Mary pass to an aging quarterback in the hopes he can take them to the Promised Land.
During an appearance on HBO’s Joe Buck Live, his first since retiring from the New York Jets last February, the three-time NFL MVP said he had surgery a couple of weeks ago on his throwing arm. He said the doctor who performed the surgery on his biceps told him it would take four to five weeks to find out if the procedure was a success.
As long as his right arm is healthy, it looks like Favre is coming back to the NFC where he’s spent almost his entire career. The Cajun may not be able to part the river that runs through the Twin Cities, but his eye-popping statistics cannot be overlooked so easily: he won Super Bowl XXXI, was voted Associated Press MVP three years in a row (last one shared with Barry Sanders), selected 10 times to play in the Pro Bowl and he holds NFL record for the most touchdown passes.
Last year, Favre’s season with the Jets started well; in week four he threw six touchdowns against the Arizona Cardinals, a personal best and one fewer than the NFL record. By week 12, the Jets had compiled an 8-3 record, including a win over the previously undefeated Tennessee Titans. However, the Jets lost four out of the last five games of the season including the final game against the Miami Dolphins, who had acquired Chad Pennington after he was released from the Jets to make room for Favre.
In a recent interview, the NFL’s all-time leader in touchdowns, receptions and receiving yards, Jerry Rice didn’t show a lot of confidence in Favre. Rice said the stress of a 16-game season might be too much for a 39-year-old. “Brett is a competitor. But I know towards the latter part of my career, even though I still wanted to be out on that football field, it was like things became a little bit more difficult,” Rice told the Minneapolis Star-Tribune.
Should Brett Favre come out of retirement…again?
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PHOTO: New York Jets quarterback Brett Favre leaves the field after throwing an interception against the Miami Dolphins during the fourth quarter of their NFL football game in East Rutherford, New Jersey, December 28, 2008. REUTERS/Ray Stubblebine

Watson leads Golden Oldie march at Turnberry

TURNBERRY, Scotland (Reuters) - Tom Watson rolled back the years to grab an early one-shot lead in Thursday's first round of the British Open as a bunch of veterans took advantage of ideal scoring conditions.
With hardly a breath of wind at the spectacular Ailsa Course, the 59-year-old American fired a flawless five-under-par 65 to set the pace in the season's third major.
Thirty-two years after outduelling Jack Nicklaus to win the first Open staged at Turnberry, Watson upstaged his Spanish playing partner Sergio Garcia who opened with a 70.
"I played very well in the practice round and thought I would do well this week," Watson told BBC television after covering the back nine in three under.
Asked if he drew on memories of his 1977 triumph dubbed the 'Duel in the Sun', the eight-times major winner replied: "I don't dwell in the past.
"Certainly it has been at the forefront of conversations this week. A lot of kids playing in this tournament were not even born in 1977," five-times Open champion Watson added with a smile.
Australian John Senden, a late addition to the field after the withdrawal of Indian Jeev Milkha Singh on Tuesday due to a rib injury, birdied four of the last six holes for a 66.
Also at four under was in-form American Steve Stricker, who has won twice on the PGA Tour in his last four starts.
Much of the early running, however, was dominated by senior players with former winners Mark Calcavecchia, 49, and Mark O'Meara, 52, and Vijay Singh, 46, carding matching 67s.
Calcavecchia, who teed off in the first group of the day on a sun-splashed morning, made the most of the conditions.
PERFECT WEATHER
"The weather was perfect," the 1989 winner told reporters. "There was no wind and the early start doesn't bother me. I played well.
"I hate to say Turnberry was easy, because it's a really hard course, but if you're going to shoot a good score out there, today was the day to do it."
Calcavecchia tied for 11th when the Open was last held at Turnberry in 1994 and he felt the layout, stretched by 247 yards since then, now posed a tougher challenge.
"The fairways are narrower, there are more bunkers and it is longer," he said. "A lot of the holes are three-woods off the tee and I don't remember the rough ever being as thick.
"Thankfully I only hit it in there once today."
World number one Tiger Woods, a heavy favorite to win his 15th major title, was one over after 16 holes.
Watched by huge galleries in a high-profile grouping with Briton Lee Westwood and Japanese teen sensation Ryo Ishikawa, Woods offset a birdie at the second with a bogey at the third.
He then birdied the par-five seventh to reach the turn in one-under 34 before following another bogey at the 10th with a birdie at the par-three 11th. He aso bogeyed the 15th after hitting a poor chip and the 16th.
Title holder Padraig Harrington of Ireland, who is seeking a rare British Open hat-trick, was among the late starters.

Obama prods Congress on healthcare; Senate panel acts

WASHINGTON (Reuters) - Saying it was "time to get this done," President Barack Obama pressed on Wednesday for swift congressional action on healthcare after a Senate panel approved a bill to overhaul the $2.5 trillion industry.
Panels led by his Democratic Party have stepped up activity on legislation that would meet Obama's goal of guaranteeing all Americans healthcare coverage, but they remain far from resolving the thorniest issue -- how to come up with about $1 trillion over 10 years in new taxes or savings to pay for it.
The first of five congressional panels to act, the Senate Health Committee approved legislation by a 13-10 vote that would set up a government-run insurance program to compete with private insurers. No Republicans voted for the measure.
The vote came a day after House Democratic leaders introduced a sweeping healthcare reform bill that included a government insurance option and is partially paid for with a planned tax on the wealthy. It would require employers to offer health coverage or pay into a government fund.
Obama praised the Senate panel's action, but appealed to Americans to get involved, saying at the White House, "It's time for us to buck up Congress, this administration, the entire federal government, to be clear that we've got to get this done."
The full Senate must vote on healthcare legislation and reconcile its bill with the House proposal before it goes to the White House.
Health insurance reform is considered central to Obama's administration, building on his campaign pledge to expand coverage and control skyrocketing medical expenses, which are a burden on the federal government, businesses and individuals.
The Senate bill would require most Americans to obtain health insurance and require employers of more than 25 workers to provide coverage or face a $750-per-worker penalty. Insurers could no longer bar people with pre-existing conditions. But, no one with insurance would be required to change insurers.
In a renewed push for Congress to complete work on healthcare reform before it recesses in August, Obama met with four Republican senators at the White House on Wednesday afternoon. They discussed ways the healthcare delivery system could be reformed to eliminate waste and lower costs while improving the quality of care.
They agreed it was a top priority to fix what is broken in the healthcare system, while building on what works, an administration official said.
In a series of network television interviews on healthcare, Obama said he now supported a requirement that all Americans have health insurance.
TAX PROPOSALS CONTROVERSIAL
"I'm now in favor of some sort of individual mandate as long as there's a hardship exemption," Obama told the "CBS Evening News," saying he had changed his mind since his statements during the presidential campaign opposing a mandate. [nN15375456]
Most Americans have health insurance that is partially paid by their employers, but an estimated 46 million have no coverage.
The National Federation of Independent Business, which worked to derail President Bill Clinton's reform push in the early 1990s, warned lawmakers the House bill would harm U.S. jobs and that it failed to meaningfully curb costs

Capitol police say suspect killed near Capitol

WASHINGTON (Reuters) - U.S. Capitol Police said one suspect was killed and two officers injured in a shooting near the U.S. Capitol on Wednesday in an incident police said was not related to Capitol security.
Police briefly closed a road adjacent to the Senate side of the complex, home to the U.S. Congress, and entrances to the Capitol building were temporarily locked on its North side.
The shooting occurred after a Capitol police officer tried to make a routine traffic stop near Union Station, a police spokeswoman said. Sgt. Kimberly Schneider said the driver fled, nearly ran over two officers, struck a parked and then crashed into a police cruiser.
"The subject disregarded repeated demands by police officers to put down the weapon that the suspect had. He began shooting a weapon at several U.S. Capitol Police officers. U.S. Capitol Police returned fire, hitting the suspect," Schneider said in statement.
Schneider said the suspect, who was not identified, had died. She said the shooting was an isolated incident and no one else was involved.
Robert Drumm, visiting Washington from Edmond, Oklahoma said he was walking near the Capitol when he saw police cars engaged in a high speech chase with a white Mercedes.
There was a crash and then "boom, boom, boom, boom. A pause and then a bunch more," Drumm added, estimating he heard more than a dozen gunshots.
The incident was the second shooting in just over a month near a popular tourist attraction in Washington.
On June 10, an elderly gunman linked to an anti-Jewish website shot and killed a security guard at the U.S. Holocaust Memorial Museum, a short distance from the Capitol.

Foreclosures at record high in first half 2009 despite aid

NEW YORK (Reuters) - U.S. home foreclosure activity galloped to a record in the first half of the year, overwhelming broad efforts to remedy failing loans while job losses escalated.
Foreclosure filings jumped to a record 1.9 million on more than 1.5 million properties in the first six months of the year, RealtyTrac said on Thursday.
The number of properties drawing filings, which include notices of default and auctions, jumped 9.0 percent from the second half of 2008 and almost 15 percent from the first half of last year.
"Despite everybody's best efforts to date we're not really making any headway against the problem," Rick Sharga, senior vice president at RealtyTrac in Irvine, California, said in an interview.
Loans that were temporarily frozen by various state and federal programs, which mostly ended in March, started pushing through the process in the past three months.
One in every 84 households with loans got at least one foreclosure filing in the first half of this year.
"I don't think this suggests the economy is any worse than anyone expected but I certainly don't think it shows by itself any signs of improvement," Sharga said.
President Obama's housing rescue is gaining momentum in refinancing troubled borrowers with higher-rate loans and modifying untenable terms for others.
But the programs have been off to a slow start and in some cases will be too late or not enough to help severely struggling homeowners, industry analysts agree.
Private sector efforts to alter loans terms have made headway but are facing an uphill battle as the unemployment rate heads to double digits.
Problems emanating from loans made when standards were much looser have taken a back seat to defaults stemming from job losses and wage cuts.
"Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes are now worth represent a potentially significant future risk," James J. Saccacio, RealtyTrac chief executive, in a statement.
In June, as home prices continued to fall, albeit more slowly, foreclosure filings rose 5.0 percent from May and 33 percent from a year earlier.
June's foreclosure activity was the third highest on record, and the fourth straight month of filings on more than 300,000 properties.
"If we're really going to slow down the inflow of new foreclosure activity we are probably going to need to see more aggressive and more integrated activity between the lending community and the government," Sharga said.

he Treasury Department asked the largest 25 mortgage servicers last week to appoint a special liaison to work directly with government officials aiming to thwart defaults.
RealtyTrac forecasts about 4 million total filings this year on 3.2 million households with loans, which means little improvement from the first-half performance. The prior record was 3.1 million filings last year, up from a more typical year when about 800,000 foreclosure actions would be made.
The highest unemployment rate in nearly 26 years is the biggest factor keeping homeowners from staying current on monthly payments, Sharga said.
But there could also be a whiplash caused by "the big white elephant in the middle of the room" -- option ARMs, or adjustable rate mortgages with the option to make minimum payments. "A lot of them are going to be seriously upside down, probably at least 40 percent upside down."
That would mean a borrower owes at least 40 percent more on the mortgage than the home is worth.
A new U.S. program enabling borrowers are up to 25 percent upside down to refinance their loans would not be enough to help most option option ARM holders, Sharga said.
States where sales and prices soared most in the five-year housing boom early this decade stayed hardest hit in the first half of 2009.
Nevada remained the state with the highest foreclosure rate, with one in every 16 housing units with a loan getting a foreclosure filing. Arizona, Florida and California followed.
Other states in the top 10 were Utah, Georgia, Michigan, Illinois, Idaho and Colorado.
California was the state with the highest total number of foreclosure filings in the first half, with actions taken on 391,611 properties, or one in every 34 housing units with mortgages.

GM exits bankruptcy

DETROIT (Reuters) - A new General Motors emerged from bankruptcy protection on Friday -- far more quickly than most industry watchers had expected -- as a leaner automaker pledging to win back American consumers and pay back taxpayers.
A whirlwind 40-day bankruptcy for GM concluded with the closing of a deal that sold key operations to a new company majority-owned by the U.S. Treasury.
The development, which follows a similar fast-track reorganization of Chrysler, represented a victory for the Obama administration and its commitment to save jobs and prevent a liquidation of the largest U.S. automaker.
At the same time, the U.S. government has taken on substantial new risks as a 60 percent owner of the new GM with a $50 billion equity investment and $10 billion in debt and perpetual preferred shares.
Analysts said the government intervention had given GM a new chance and sharply lower operating costs, but left management facing deep challenges given the weak economy and GM's long-running slide in market share.
"I wouldn't really call it a new GM, it is just a smaller GM. That would be more of an apt description. They still have a lot of hurdles to jump," said Mirko Mikelic, portfolio manager at Fifth Third Bank. "Right now, they are in a survival mode."
Chief Executive Fritz Henderson said the new company would shed layers of management, make decisions faster and shed the bureaucracy that critics say contributed to the failure of the 100-year-old automaker.
The company's white-collar workforce will be cut by more than 20 percent by eliminating 6,000 jobs. Executive ranks will be cut 35 percent.
NO MORE BUSINESS AS USUAL
"The bottom line is that business as usual -- and as we have had it until today -- is over," Henderson told reporters at GM's Detroit headquarters. "Everyone associated with GM must be prepared to change -- and fast."
Bankruptcy slashed GM's debt and healthcare obligations and brought down labor costs to be on par with Japanese competitors led by Toyota Motor Corp.
The new GM will have slashed its debt and healthcare obligations by $48 billion, dropped almost 40 percent of the dealers from an unprofitable network and moved to sell laggard brands such as Saab, Saturn and Hummer.
Analysts said that gives GM a chance to deliver on its commitment to launch more fuel-efficient cars and to focus its resources on fewer brands, models and dealerships.
"The challenge in the future is how to approach a marketplace that has been burned by GM," said Pete Hastings, a fixed-income analyst at Morgan Keegan.
While key assets and the Chevrolet, Cadillac, Buick and GMC brands were sold out of bankruptcy to form the new General Motors Company, other assets, including shuttered factories, remain in bankruptcy for a liquidation process

U.S. eyes possible goal increase for the Afghan army

WASHINGTON (Reuters) - The United States and NATO may need to increase their goal for expanding Afghan forces significantly to better support President Obama's strategy for stabilizing the country, officials said on Friday.
The current goal is to boost the Afghan army to 134,000 soldiers and police to 86,000 by 2010 to ensure the U.S. and NATO security mission has what officials have described as "an Afghan face."
But officials, who spoke on condition of anonymity, said top defense and military officers have discussed plans to double the goal for Afghan soldiers to nearly 270,000 to better combat insurgents and avert the possibility that Western forces might come to be viewed by Afghans as foreign occupiers.
"All of that has been discussed," said one official.
Obama administration officials have examined the possibility of increasing the Afghan army and police to 400,000 personnel. But no decisions have been made.
The Washington Post reported on its Web site on Friday that the new U.S. commander in Afghanistan, Army General Stanley McChrystal, has told U.S. Defense Secretary Robert Gates that the target for Afghan security forces should be increased well beyond current targets.
U.S. defense and military officials had no immediate comment on the Post article.
(Reporting by David Morgan; editing by Todd Eastham)

Americans swap homes for hotels as recession bites

CAMBRIDGE, Massachusetts (Reuters) - Some Americans are swapping homes for motels as the ranks of the homeless swell during the recession, crowding out shelters and forcing cities and states across the country to find new types of housing.
In Massachusetts, a record number of families are being put up in motels due to high unemployment and the rising number of homes going into foreclosure, costing taxpayers $2 million per month but providing a lifeline for desperate families.
"I feel like this has saved my life," said Tarya Seagraves-Quee, a 37-year-old former nurse.
Seagraves-Quee has lived in a cramped one-bedroom suite in a hotel in Cambridge, Massachusetts, with three of her four children for nearly two months. "I'm managing the best way possible. I've learned to make things in the microwave oven."
In Massachusetts, homeless shelters are at capacity. State law requires temporary accommodation for those without shelter, leading authorities to place 830 families, including 1,125 children, in 39 motels -- an unprecedented number.
"This truly is the highest we have ever seen it," said Nancy Paladino, director of the family team for the Boston Health Care for the Homeless.
Other cities are noticing a similar trend. In Indianapolis, Indiana, overcrowded homeless shelters are turning families away, forcing growing numbers to seek vouchers for hotels provided by nonprofit groups such as United Way.
"Anecdotally, it's increased," said Michael Hurst, director of the Coalition for Homeless Intervention and Prevention Indianapolis. The advocacy group started to compile statistics on the number of homeless families living in hotels this year after noticing signs of an increase.
"The hotel owners will tell you it has increased. The homeless service providers and the school officials will say we know there are more people living in hotels and putting their kids in school because that is the address they are giving us."
'JUST A STEPPING STONE'
In the Dallas-Fort Worth metropolitan area, the large Wilson family turned to a budget motel as a weeklong transition between a homeless shelter and an apartment.
"Each step we're going it's just a stepping stone," said 42-year-old Frederick Wilson as he sat with his wife, Annette, in a one-bedroom suite they share with four of the six children in their care, including a grandchild.
Called by God, they said, to move from Minnesota to Texas, the family has rapidly made a shift from homeless status to paid employment. Annette has just landed a job as a bus driver, while Frederick said he will work in an office that offers clerical support to Medicaid patients.
They spent two-and-a-half weeks in a homeless shelter in Dallas and were preparing to move into an apartment from the motel. The Urban League, an organization that helps struggling African Americans, is paying the $204 cost of their suite, which does not include sheets, pillows or toilet paper.
In Phoenix, demand for emergency accommodation is swamping available services as the recession and spiraling foreclosures turn even more families out of their homes.

Obama mulls bailout funds for small business

WASHINGTON (Reuters) - The Obama administration is considering a plan to help small businesses through the economic downturn by diverting some of the billions of dollars approved by Congress for bank bailouts, but the idea is at a very preliminary discussion stage, officials said on Friday.
The proposal to shift part of the $700 billion bank bailout program to millions of smaller firms would allow the administration to help one of the largest sources of job creation in the U.S. economy.
The idea is among many possible economic support efforts that have been discussed by the Treasury, White House and Small Business Administration, but no decisions are imminent.
"There has been no determination," said one administration official. "There have been many, many ideas and many possible steps that have been thrown out for consideration among the members of this administration, so any consideration of this idea is extremely preliminary."
The Washington Post on Friday reported that Treasury Department officials are floating the idea of using bailout funds to expand a Small Business Administration program that helps small businesses borrow money from banks at low rates.
Under that plan, lines of credit for small companies could be increased. The government would step in and repay a loan, maybe as much as 90 percent of it, if a company defaulted.
At a White House meeting last week, Treasury Secretary Timothy Geithner showed support for the proposal while National Economic Council director Lawrence Summers had reservations, but neither has taken a final stand on the plan, the Post said.
The newspaper said administration officials told it discussions are in the early stages and a final plan is not likely before autumn.
The internal debate over using some of the financial bailout money to help small business comes as market confidence in the stabilization of the economy has weakened, and rising concern about continued job losses.
President Barack Obama and Democrats are trying to fend off criticism from Republicans that a $787 billion economic stimulus is not working, and some are discussing the possibility of a second stimulus plan.
At a House of Representatives hearing on Friday, Geithner said the stimulus program was "on its expected path" in putting money in taxpayer pockets, and promised that infrastructure investments would have their "maximum effect" on the U.S. economy in the second half of the year.
Using funds from the Troubled Asset Relief Program would provide a source of already approved funds, but it could cause anger among members of Congress who approved the program to keep the financial sector from collapsing.
After 10 large banks returned $68 billion in taxpayer funds last month, the Treasury has about $127 billion in uncommitted TARP funds at its disposal.

Allen Stanford lightly regulated by Florida: newspaper

MIAMI (Reuters) - Florida regulators seldom checked the Miami operations of Allen Stanford after giving the accused fraud master unprecedented freedom to send cash overseas and sell investment securities, the Miami Herald newspaper reported on Sunday.

Beginning in 1998, the newspaper said, Stanford had clearance from Florida bank regulators to move money from a Florida office to Antigua without filing reports to government agencies and to sell certificates of deposit to wealthy investors without fraud checks.

"Over objections by the state's chief banking lawyer -- including concerns that Stanford was laundering money -- regulators granted sweeping powers never given to a private company," the newspaper said.

Now in jail, after last week being refused bail by a judge in Houston, Stanford, 59, faces criminal charges for a $7 billion Ponzi scheme involving high-yielding certificates of deposit at his bank in the Caribbean island of Antigua.

Stanford says he is innocent of the charges and that his multinational business was legitimate until the federal regulators gutted it by filing civil charges, which led to the confiscation of all his assets by a court-appointed receiver.

Stanford's Miami office was lushly appointed and one of the best producing in Stanford's company, which frequently focused on Latin American clients, according to the Miami Herald.

"There was no lawful way that office should have been opened," the newspaper quoted Richard Donelan, the state's chief banking counsel, as saying.

Donelan told the newspaper that he argued during the late 1990s that the Stanford proposal broke Florida law and substantial questions existed about whether Stanford's bank complied with laws and money laundering in the Caribbean.

After winning the right, never before granted in the state, to run a foreign trust office, Stanford sold certificates of deposit without reporting the purchases, the newspaper said, citing state and court records.

"In the first six years, the office -- known as Stanford Fiduciary Investor Services -- took in $600 million from customers, state records show," according to the newspaper.

The newspaper said that the Miami offices, unlike other Stanford companies elsewhere in the United States, bypassed rules requiring regular reports to officials of the amounts of money sent overseas.

"In fact, employees shredded records of the trust agreements and (certificate of deposit) purchases once the original documents were sent to Antigua, state records show," the newspaper said.

State examiners visited the Stanford office three times over the past 10 years, the newspaper said.

An official of Florida's Office of Financial Regulation was not immediately available on Sunday to respond to the newspaper story, but the Herald said officials at agency had refused to comment other than to say they were reviewing the 1998 decision.

Disney worker dies in Florida monorail collision

MIAMI (Reuters) - A Walt Disney World employee died on Sunday in a collision of monorail trains carrying tourists at the theme-park complex in central Florida, according to a theme park spokeswoman.

The futuristic elevated trains collided near the entrance to the sprawling resort's Magic Kingdom park around 2 a.m. Eastern time, according to spokeswoman Zoraya Suarez.

Details of injuries were not immediately available, she said, though local media reported no tourists were seriously injured. The cause of the crash was being investigated, according to local police.

Disney World, a unit of the Walt Disney Co, has closed the monorail system used to carry tourists to parks and hotels, but otherwise was operating normally, according to Suarez and Mike Griffin, a vice president at the resort

Schwarzenegger signals key budget concession

SAN FRANCISCO (Reuters) - Governor Arnold Schwarzenegger, optimistic California can finish its budget negotiations in a few days, is willing to reconsider his proposed cuts to education in hopes of averting a cash crisis, the San Francisco Chronicle said on Saturday.

A compromise between the Republican governor and Democratic lawmakers may help clear the way for an agreement on an overdue state budget and avert a cash crisis for the government of the most populous U.S. state. California already is issuing billions of dollars in "IOUs" and, without a deal, is on track to run out of cash this month.

The San Francisco Chronicle reported that Schwarzenegger, in a Friday meeting with its editorial board, said he would be willing to reconsider his proposal to help reduce California's $26.3 billion budget deficit with cuts to school spending that would require suspension of constitutional rules on education expenditures.

"We are not stuck ... about the suspension," Schwarzenegger said during the meeting. "We've got to analyze all this."

He said budget negotiations are moving fast. "I think if we continue this way we can get this done in the next few days," he said.

Backing off on education spending cuts would go a long way with Democrats who control the state legislature.

On Thursday Democrats said they would no longer hold out for increasing taxes to help raise revenues to fill the budget gap. That was a major concession to Schwarzenegger and Republican lawmakers, who had opposed tax hikes and pressed for balancing the state's books with deep spending cuts.

That helped Republicans gain confidence that a budget deal could be reached soon.

"I think there is at least a 50-50 chance that we'll find a solution that is acceptable to all parties within a week," Assembly Republican Leader Sam Blakeslee said.

Democrats see backing off on education spending cuts as an important concession by Schwarzenegger.

"While taxes may be off the table, education cuts also have to be off the table," Democratic state Senator Leland Yee told Reuters.

GRIM REVENUE OUTLOOK

Lawmakers failed to agree on balancing the state's budget on Tuesday and the state government began its fiscal year on Wednesday without a spending plan in place.

In response, state finance officials began issuing "IOUs" in lieu of payments for tax refunds owed to taxpayers to preserve cash from higher prior payments, including payments to investors holding the state's debt. They warned that local agencies overseeing health programs and a variety of recipients of state financial aid, including the disabled and college students, could be in line for IOUs.

The state controller plans to issue more than $3 billion this month in registered warrants promising payments if Schwarzenegger and lawmakers fail to agree on a budget

California is experiencing a severe revenue downturn as a result of the recession, rising unemployment and the lengthy housing downturn that will leave the state's government with an austere budget. It likely will force additional spending cuts throughout the fiscal year.

"The reality is that the revenues are not looking good," Yee said. "We just simply don't have the money to keep up the pace of services we're providing."

California finance officials hope a budget deal is reached soon so they can stop their IOU effort, which aims to reassure the municipal debt market that the state will honor its bond payments ahead of nearly all other obligations.

Finance officials also want to reassure the market in anticipation of having to sell short-term debt for cash-flow purposes once a budget deal is reached.

California's budget turmoil has made Wall Street nervous. Standard & Poor's warned in a statement on Wednesday that if California's budget is not settled soon, the state's A-credit rating, already the lowest of any of the 50 states, is at risk of falling.

Autopsy planned for slain NFL star Steve McNair

NASHVILLE (Reuters) - Autopsies were being performed on Sunday on the bodies of former NFL quarterback Steve McNair and a female friend who were found shot to death on Saturday in a Nashville apartment, police said.

McNair, who was 36, was shot multiple times, according to a statement posted late Saturday on the Nashville police website. Sahel Kazemi, 20, was also found dead in the living room of the condominium with a single bullet wound to her head.

A pistol was found near Kazemi's body. The police offered no possible motive for the killings, and a spokesman was not available for comment on Sunday.

A witness reported that McNair arrived at the condo early Saturday morning. Kazemi's vehicle was already parked outside, the statement said.

McNair rented the condo with sporting goods dealer Wayne Neeley, who arrived there before 1 p.m. on Saturday and found the two bodies. Neeley called a friend who came to the scene and called the police.

Two days earlier, Kazemi had been arrested in the early hours for driving under the influence. McNair was in the passenger's seat at the time of the police stop.

McNair, who played 13 seasons in the NFL, was a local hero who did extensive charity work in Nashville. He played mostly with the Tennessee Titans and its predecessor team, the Houston Oilers.

Drafted by the Oilers in 1995 out of Alcorn State College in Mississippi, McNair led the Titans to their only Super Bowl appearance, losing to the St. Louis Rams in 2000.

He was the NFL's co-MVP in 2003, and was selected for the Pro Bowl three times. McNair ended his career with the Baltimore Ravens and retired after the 2007 season.

According to local press reports, Kazemi had moved to Nashville from her parents home in Florida. She worked as a waitress at a restaurant where she met McNair.

McNair was married and had four sons, one of whom, Steven Jr., is a high school football star who has received offers to play college football

Michael Jackson drug reports prompt doctors' warning

LOS ANGELES (Reuters) - Media reports about possible drug use by pop star Michael Jackson the day he died prompted a warning from anesthesiologists on Sunday, as lawyers prepared to square-off in a courtroom battle over his estate.

Reports of prescription drug use have increasingly surfaced since the "Thriller" singer's sudden cardiac arrest more than one week ago, and a police probe is said to be focusing on the role doctors may have played in providing Jackson with at least one powerful medication, anesthetic Diprivan, according to the Los Angeles Times.

Investigators are trying to determine if the drugs, which were found in searches of Jackson's rented Los Angeles mansion, were improperly prescribed and if they had a role in the June 25 death of the "King of Pop" at age 50.

"Numerous bottles," of Diprivan without labels were found at the mansion, according to the Los Angeles Times.

Diprivan, the brand name of propofol, is an anesthetic that "should never be used outside of a controlled and monitored medical setting," the American Society of Anesthesiologists (ASA) said in a statement, noting that its members have not studied the particulars of Jackson's death.

Patients can have extremely variable responses to the drug and some patients can become completely anesthetized, including losing the ability to breathe, the group said.

Two autopsies were performed on Jackson after his death but toxicology results are not expected for weeks.

BATTLE OVER JACKSON'S ESTATE

Meanwhile, the battle over Jackson's estate was set to move forward on Monday, with a hearing scheduled in Los Angeles Superior Court between lawyers for his 79-year-old mother, Katherine Jackson, and attorneys who were named as co-executors of a Jackson will that surfaced late last week.

At stake is a fortune that an attachment to the will estimated could be worth more than $500 million, although Jackson has been reported as deeply in debt the day he died.

Katherine Jackson was granted temporary administrator of Jackson's affairs last week before the will, which names lawyer John Branca and music executive John McClain, as co-executors over the 2002 will, putting his assets in a family trust that benefits his three children, Katherine Jackson, and charities.

A separate hearing over the guardianship of Michael Jackson's children has been postponed until July 13. In the meantime, Katherine Jackson has been named temporary guardian of Prince Michael Jackson Jr. 12, Paris Michael Katherine Jackson, 11, and Prince Michael Joseph Jackson, II, 7.

About 1.6 million people have registered to be one of 8,750 people who will get two free tickets to attend Jackson's public memorial, set for Tuesday morning in downtown Los Angeles