In his recent blog, "The Trouble with Retirement Planning Calculators," Mark Miller references a report by the Society of Actuaries of 12 calculators that "had a host of problems." One of these calculators is ESPlanner (Economic Security Planner), which provides economics-based planning. I know this calculator very well since I developed it through my company. None of the problems referenced by Mark pertain at all to our software.

If Mark had read the Society of Actuaries study carefully, he would have realized that, with a couple arguable exceptions, each time they pointed out a problem, they also said our software didn't have that problem. The Society wasn't in the business of endorsing a particular program, but one can read between Turner's lines about what program he feels is best, but that requires actually reading their report.

Let me make this more precise by referencing the six problems Mark identifies.

1. Social Security Projections. Most retirees get a third or more of retirement income from Social Security. Yet many retirement calculators don't gather the detailed information needed to project these benefits accurately, Turner says. "They often project Social Security income using a bare minimum of information: typically your current earnings, your age, and the year you expect to retire," he says. The Social Security Administration offers the best projection tool, customized to your actual earnings history.

What Turner said is correct. What Mark said about Social Security's own benefit calculations is not.

Turner is right that every calculator, but one (namely ESPlanner), makes incredibly crude Social Security benefit calculations because they don't ask users to input their precise past covered earnings history or their projected future covered earnings. ESPlanner does precisely this and then proceeds to calculate survivor, child, retiree, divorcee, mother and father, and spousal benefits taking into account earnings reductions, early retirement reductions, delayed retirement credits, family benefit maximums, recomputations of benefits, windfall elimination provisions, offset provisions, and the list goes on.

In contrast, Social Security doesn't calculate for you your spousal, child, retiree, divorce, mother or father, or survivor benefits. It only calculates your retirement benefit. And when it does this, either on line or in the annual benefit statement it sends us, Social Security provides anything but "the best projection." Had Mark done his homework, he'd have learned that Social Security projects zero economy-wide real wage growth and zero inflation in all future years. This is clearly a highly unrealistic assumption. Social Security makes this assumption because it's afraid that people will compare their future benefit with their current pay and infer a higher replacement rate than will actually end up being the case because their earnings will also likely grow through retirement. So for younger people, in particular, Social Security is significantly understating their likely future benefit.

2. Rate-of-Return Assumptions. Three of the free calculators used pre-set future investment rate-of-return assumptions that you can't change, and their percentages varied widely. One, created by the U.S. Department of Labor's Employee Benefits Security Administration, assumed a 5 percent average annual return from 401(k)s; several others assumed 10 percent. If a calculator won't let you choose your anticipated rate of return, either be sure you're comfortable with its assumption or walk away.

ESPlanner lets you set your annual return and also lets you change it. And if you run the Monte Carlo simulations, the mean return can change every year based on what you said you'll be holding.

3. Life Expectancy. It's impossible to know how long you'll live, of course. On average, 65-year-old men can expect to live another 17 years, and women another 20 years. Some calculators, the study found, automatically input life expectancy figures. But they fail to account for differences by race, income, and gender. And they also don't take into consideration that you or your spouse might live longer than the averages.

Life expectancy is not the right planning horizon, period. It's maximum age of life. You have to plan to live to your maximum age for the simple reason that you might. Maximum age of life is what ESPlanner uses.

4. Housing. The calculators make very different assumptions about what you'll do with your house at retirement. "Some assume you won't liquidate your home; others assume you will sell and downsize," Turner says. Very few of the tools analyze the impact on your finances of carrying a mortgage into retirement.

ESPlanner is innocent of all these charges.

Among the free calculators reviewed, only the U.S. Department of Labor calculator lets you plug in home equity when calculating your retirement assets.

This statement by Mark is not true. We have a free version of ESPlanner available at www.eplanner.com/basic that lets you enter your home equity for both your primary and vacation homes. And the paid version lets you change your primary and vacation home (lets you move) twice in the future.

5. Inflation. None of the free calculators -- and few of the professional tools -- listed inflation as a retirement-planning risk. Some of the tools let you plug in just one percentage forecast, even though inflation can fluctuate widely over time. Others put in their own default inflation rate, ranging from 2.3 to 4.6 percent. That spread can make a huge difference in how much the purchasing power of your assets will shrink over a 25-year retirement.

ESPlanner lets you enter changes in future inflation rates and encourages you to do What Ifs.

6. Spouses. Few of the free calculators helped couples forecast retirement income for a surviving spouse. They rarely let users enter separate information for both spouses and run numbers with differing life expectancies for them, for example. When the calculators recommended annuities for retirement income (most didn't), none suggested buying one with a survivor's benefit.

Not guilty as charged. ESPlanner makes extremely precise calculations for survivors. Indeed, you can kill off your spouse at any age and see in very fine detail how you will do in every future year after the murder. An example of our being hyper anal here is calculating federal and state taxes in extremely fine detail separately for each year the survivor might be alive, conditional on the age the other spouse dies (or is murdered).

Laurence Kotlikoff is a professor of economics at Boston University, President of Economic Security Planning, Inc. (see www.esplanner.com), and the author of Jimmy Stewart is Dead: Ending the World's Ongoing Financial Plague with Limited Purpose Banking.

This Week's Top Stories in Foreign Affairs:

Financial Mishaps
It was a week of tense financial news from Washington to Athens. In the American Capitol, members of Congress grilled Goldman Sachs executives over their controversial mortgage derivative trading activities and new documents alleging that the financial giant knowingly engaged in activity that contributed to the 2008 economic downturn. While Americans bickered, Europeans dealt with a much more tangible economic crisis: that of Greece. Finding a tenable way to manage the crippling debt in Athens has faltered due to the intractable positions of European leaders, the IMF and the Papoulias government. Markets grow ever more aware that Greece is not alone in its structural economic weakness and attention has spread to other parts of the EU, notably Spain. As Greece went into meltdown, Spain's credit rating plummeted, and fear for the future of the Euro spread throughout the continent. As a result, increased criticism has been given to debt-rating agencies like the S&P for their role in casting a negative light on and castigating national markets. One concern that has begun to resonate among analysts is this: what effect could the crisis in Greece have on the world's economic recovery?

War Reports:

Iraq
An Iraqi court disqualifies two candidates in Ayad Allawi's winning coalition in last months, erasing his two seat lead over incumbent Nuri al-Maliki. Many analysts decried al-Maliki's specious manipulation of the election results and worried that Iraq would be unable to form a coalition government ahead of the scheduled US withdrawal of combat forces in September. At best this is a transient political crisis, at worse a protracted leadership vacuum could lead space for violent sectarian conflict to resume.

Afghanistan
US and Afghan forces continued their preliminary actions into Kandahar Province ahead of a major offensive there. President Karzai's brother Ahmed Wali Karzai heads the Kandahar Provincial Council and critics say that his corrupt practices and collusion with drug leaders have in advance already undermined any positive effect of a military victory against the Taliban. Elsewhere, reports emerge that Pakistan may be taking action against the Taliban in North Waziristan, where Afghan insurgents have long enjoyed relative sanctuary. If true and if successful, it would be a significant advantage for the US effort in Afghanistan.

Analysis in Brief:

Base Politics
Japan and the US relations are strained as the Hatoyama government flails to find a solution to relocating the locally reviled Marine Corps Air Station Futenma on Okinawa ahead of a self-imposed deadline of end May. There are reports that an agreement could see the base moved to Henoko Bay, outside of the city center but still on Okinawa. Nearly 100,000 protesters took to the street demanding the relocation of the Station off the Island. Some analysts believe that Tokyo wants the base moved to Tokunoshima Island, about 200 miles away and separating the Marine Station from the other US forces on Okinawa, a move previously rejected by Washington but perhaps an imperfect resolution to the problem.

Encryption and Decryption in China
How do you control the market? Make the rules such that you have access to everything. That's what Beijing did this week to electronics by introducing rules that force electronics manufacturers to reveal the encryption codes to their products. These codes which are proprietary per manufacturer, will allow the Chinese government to access much more data and technological control than before. Most irked by this new regulation are foreign companies like Cisco Systems. Although Cisco and other companies have not commented, many analysts remark that the measure will serve to bolster Chinese business and deter foreign companies that have no desire to decrypt their products.

Russia's Rosy Week
It was a week of diplomatic victories for Moscow. Perhaps the biggest victory was in Ukraine. Ukrainian Prime Minister Mykola Azarov announced that Moscow and Kiev would hold bilateral talks aimed at cooperation in a variety of arenas. This came after physical fighting in the Ukrainian Parliament over a series of Russian-related agreements over a Black Sea port and pipeline issues. In the end, analysts agree that the Kiev-Moscow pact further solidifies Russia's hold over its former Soviet region, and spells bad news for European energy independence, at least in the short term. Also this week, Russia and Norway ended a territorial dispute over their border on the floor of the Arctic Ocean. Meanwhile, analysts note that Russo-Polish ties could be warming.

Hungary Turns Conservative
Hungary's conservative party Fidesz won a two-thirds majority in a general election victory and its leader Viktor Orban will become prime minister.

Crisis in Thailand
Though PM Abhisit Vejjajiva says he favors a political solution, the Thai government seemed to turn to a more strong handed response to the six week long political crisis that is turning more violent by the day with opposition red shirts and supporters of Thaksin Shinawatra who want the government to call early elections.

The Foreign Affairs Roundup can be read every Friday on the Huffington World Page and the Simple Intelligence Site.

Alternet posted an excerpt today from Bill McKibben's new book, EAARTH: Making Life on a Tough Planet. My friend and neighbor leeleepits (no really, she lives in my neighborhood, Atwater Village) shared this link with me today via Twitter.

The Surprising Reason Why Americans Are So Lonely, and Why Future Prosperity Means Socializing with Your Neighbors

McKibben explains that our "hyperindividualized" economy has eliminated the need for our neighbors in our daily lives. When we can order whatever we need online and have it delivered to our doorstep, who needs to rub elbows with their neighbors at the local market? The sad side effect of our convenience culture is that we spend less time with family and friends. We have lost the sense of "community" with the people around us. While we have easy access to everything we need, we enjoy that convenience essentially alone.

Of course, we've learned recently that an economy devoid of place not only makes us sad and lonely, it's also doomed to fail in a spectacular fashion. And this has us all re-evaluating what it is we really need. As McKibben so cleverly puts it, "There aren't enough iPods on Earth to compensate for those missing friendships."

So it's a good thing that communities around the world are creating new solutions and focusing on local economies. We're seeing quite a bit of this innovation right here in Los Angeles.

My own startup here in downtown LA, NeighborGoods, is a website that enables you to borrow and rent stuff from your neighbors instead of buying everything new. Save money, live more sustainably, and strengthen the community in your neighborhood.

In a similar vein, there are several local Time Banking projects where you can exchange your skills with your neighbors. By volunteering your time and skills to those who need it, you bank credits to receive services in return.
Echo Park Time Bank
Arroyo Time Bank
West LA Time Bank

Local Restaurant in Silverlake serves fresh organic locally grown food and it's a huge hit with the east side hipsters. My friend Cris says Local serves "the best chilaquiles I've ever had in my life."

NeighborGoods is proud to be a part of this trend toward building a more sustainable local economy. Mostly though, we want to help you be a little less lonely. What are some of your favorite examples of the local trend in your neighborhood?

In Washington these days, not much is assured. Senate Republicans have ended their filibuster of financial reform, but this just allows debate on the bill to go to the Senate floor. There remains plenty of opportunity for opponents to make more mischief. Still, all signs point to a deal.

The conventional political theory behind getting a financial reform bill through Congress runs something like this. Backed by the Administration, Democrats have proposed changing the rules governing the financial sector which are opposed by the big banks and their allies but their influence is being offset given their contributing role in the Great Recession. Republicans in Congress, who have not wanted to see the President succeed in anything, are reticent about blocking legislation that can be billed as taking on Wall Street, especially as a fall election looms where they are anticipating significant gains. That's a recipe for finding common ground on the political playing field.

But what's in the bill? After all, the details surely must matter and will determine whether it is a deal worth taking. {I previously outlined five benchmarks for President Obama to consider before he signs on the dotted line}. What we do know is that the current regulatory regime did not include sufficient safeguards to prevent a near total collapse of the national economy nor protect households from being pushed into products they did not need nor understand. Risks of financial instability were exacerbated rather than contained. Priority number one for reform should not focus on finding a political compromise but making sure we don't repeat the economic experience of the last few years. That is hardly a partisan position. And if we look closer at some of the major provisions of the bill under consideration, they also potentially create common ground on the policy landscape and point toward getting a bill done now that is not just politically wise, but moves the ball down the policy playing field as well.

To be sure, financial reform is complicated and necessarily has many moving pieces. The Administration and their Congressional allies support creating a new risk regulator that would focus on the entire system rather than on stability of particular firms as well as a new watchdog agency that would look out for the interests of consumers who have been exposed to a rash of unfair and deceptive practices. Republicans are concerned with the expanded role of government, which they think would hamper the functioning of the marketplace and put taxpayers on the hook for bailing out bad actors. They claim to want a bill focused on Wall Street and not Main Street.

So, the question is do we need protection from Wall Street firms that are "too big to fail" or protection from the firms operating unsupervised on Main Street that are peddling high-cost and low-value products? I'd argue that we need both and there is an inherent connection between the two that should prove attractive to a bipartisan majority of Congress. Here's why.

The financial services landscape has evolved in recent years so borrowers and lenders increasingly met in space that lacked public oversight. The non-bank, alternative financial sector grew into a $27 billion a year industry almost overnight. This includes the subprime mortgage market, the payday loan industry as well as car title loan shops, check cashing outlets, and pawn shops, which are often concentrated in poorer neighborhoods and used by people with lower-incomes and without mainstream bank accounts. The result is a bifurcated financial services system where families with fewer resources are steered toward higher-cost services in order to conduct basic financial transactions. The current regulatory regime is not designed to identify the risks to the everyday consumer because their eyes are trained on the safety and soundness of the banks, rather than households. This has produced a neglect of the nonbank sector, and the uneven standards between the two sectors eventually produced problems that spread to banks. No one was able to prevent the competitive pressure that allowed mad mortgage practices which grew in the nonbank subprime market from infecting the larger system. In fact, the securitized package of subprime mortgage derivatives was a poison pill which was sold across the globe.

When earning become dependent on practices that only thrive through a lack of transparency, regulators across the board have a harder time cracking down and ensuring there are sufficient level of capital holdings in the entire system. As a result, the fight over consumer protection is not a place to compromise, but it is essential for preventing the re-emergence of a financial meltdown.
Consumers should not have to accept different levels of protections depending on which entity provides their financial service or offers their product. Rectifying this actually pairs well with more effective oversight because it levels the playing field and ultimately protects the health of the entire system, lessening the probability of future bailouts. More consistent oversight and accountability standards for financial products should cut down on unfair and deceptive practices but also create a more predictable regulatory environment for all firms, which is a key ingredient for business success and should make the entire sector stronger.

The "no bailouts" refrain offers common cause to both the left and the right. Given the recent history, it is a slogan likely to be popular with a public that is no mood to hold the bankers and financiers harmless. More significantly, our best chance to achieve this goal is to establish a level playing field for a wide range of financial firms and create an independent and empowered watchdog looking out to protect consumers in a complex and changing financial marketplace. It is also why we should see a bill passed in the near future that will be consequential in both political and policy terms.

Reid Cramer directs the Asset Building Program at the New America Foundation, a nonpartisan think tank in Washington, D.C.

PORTLAND, Ore. — Jason Richardson wanted to be the wild card in the playoffs for the Phoenix Suns.

So while the Portland Trail Blazers were focused on Amare Stoudemire and Steve Nash, Richardson came up big for the third time in the first-round series, scoring 28 points in a 99-90 Game 6 victory Thursday night.

The win sends the third-seeded Suns into the second round against seventh-seeded San Antonio, which advanced by beating Dallas 97-97 earlier Thursday night. The opening game of the Western Conference semifinals is Monday night in Phoenix.

Richardson had 29 points in the Suns' 119-90 victory in Game 2 before scoring a career playoff-high 42 in a 108-89 win in Game 3.

"Everybody knows what Steve can do, and everybody knows what Amare can do. I'm just trying to be that wild card, that third scorer, and help us get wins and try to go deep into the playoffs," Richardson said.

The Suns last went to the second round in 2007, when they got past the Los Angeles Lakers to open the playoffs before falling to the Spurs. In 2008, the Spurs got the best of Phoenix in the first round.

Since the 2002-03 season, the Spurs have eliminated the Suns from the postseason four times.

The Suns went up 53-41 at halftime and led by as many as 16 points in the second half. The Blazers tied it at 76 midway through the fourth quarter, but could not pull ahead.

Martell Webster had 19 points for Portland, which failed to advance out of the first round for the second straight year.

The Blazers narrowed it to 74-71 with 10:44 left on Rudy Fernandez's 3-pointer. Jared Dudley fouled Webster on a 3-point attempt, and Webster made two free throws to close to 74-73.

After Leandro Barbosa's bank shot, Jerryd Bayless hit a long jumper that pulled Portland within one. Amare Stoudemire fouled LaMarcus Aldridge, who made one of two free throws to tie it at 76.

Stoudemire's layup prevented Portland from taking the lead, and Goran Dragic added a basket to put the Suns in front 80-76. Phoenix extended it on two consecutive layups and a 3-pointer from Richardson to make it 87-78 with 4:36 left.

Steve Nash sealed it with a 3-pointer that gave the Suns a 92-82 lead.

Stoudemire finished with 22 points for the Suns, while Nash, who said afterward that he had been battling a hip injury since Game 2, had 10 points.

Richardson made five of eight 3-point attempts.

"J-Rich definitely shot the ball extremely well from the outside and he created for us," Stoudemire said. "He's been a great addition to this team, a great help in the playoffs, and hopefully we can see that great play continue in the next series."

Brandon Roy had 14 points for the Blazers in his first start of the series. Portland's three-time All-Star had arthroscopic surgery for a torn meniscus in his right knee two days before the series against the Suns opened.

He was originally ruled out of the first round, but unexpectedly came back for Game 4, which the Blazers won 96-87 at the Rose Garden.

Roy had 10 points in that game, then got just five in Portland's 107-88 Game 5 loss in Phoenix, but he was coming off the bench – which he said made him uncomfortable.

Roy said that after all the team had been through, he wanted to finish on the court and not on the bench.

"I was happy I was able to play," he said. "I wasn't able to play as well as I liked. I didn't have quite the bounce that I needed but at least I can go into the summertime knowing that I'm healthy and I finished the season out with my guys."

The Suns, who found success in the series when they established a fast pace, went up 17-6 early with Richardson hitting three 3-pointers.

But Stoudemire collected two quick fouls and retreated to the bench. Richardson wound up with 14 points after the first quarter, but it was tempered by Nash's five turnovers.

Portland narrowed it to 28-26 on Fernandez's 3-pointer.

The Suns stretched the lead to 41-32, but Roy finally came alive, hitting a running 3-pointer from the top of the key with 4:51 to go in the half.

Hill's fast-break layup and free throw made it 53-40. Richardson finished the first half with 19 points. He made all four of his 3-point attempts.

Channing Frye hit a 3-pointer to put Phoenix up 64-50 midway through the third quarter.

Webster hit consecutive 3-pointers that narrowed it to 69-65, but Dudley answered with a 3-pointer for the Suns.

Phoenix coach Alvin Gentry credited the defense.

"At the end of the night, they shot 38 percent. To me, that's a credit to our defense. Nobody really talks about it, but we like it," Gentry said. "In the locker room, we pat each other on the back."

Hill advanced past the first round for the first time in his 14-year career.

The Suns are 6-1 in their last six potential series-clinching games.

Portland has never won a series that they have trailed 3-2.

"Seemed like every time we were able to get close we'd make a mistake," Blazers coach Nate McMillan said. "Whether it was a turnover or a bad possession, they make you pay. Nash has had that MVP-type season. Richardson was big this series. Amare came with his `A' Game tonight."

NOTES: C Greg Oden was at Portland's shootaround earlier Thursday. The 7-foot former No. 1 draft pick broke his left kneecap and required season-ending surgery early in December. Oden addressed reporters during Thursday's shootaround, saying he was not yet doing any court-related workouts. ... Suns C Robin Lopez, who has a bulging disc in his back, participated in the Suns' shootaround but is not close to returning. It was unclear if he'd be available for the second round.

CHARLESTON, W.Va. — Massey Energy Co. is offering $3 million to each of the families of 29 men killed in an explosion at its Upper Big Branch coal mine in West Virginia, the daughter of one of the victims said Thursday.

The offer came a week earlier when Massey officials visited the family, said Michelle McKinney, daughter of Benny Ray Willingham. McKinney said other families have received the same offer.

Massey did not immediately respond to calls seeking comment.

The widow of William Griffith has already filed a wrongful death lawsuit, while the mother of Adam Morgan has won a court order preserving relevant records and potential evidence from the disaster. The April 5 explosion – the nation's worst coal mining disaster in 40 years – also has prompted legal action by several current and former shareholders.

McKinney isn't interested in settling.

"Nope," she said. "My dad didn't have a price tag on him. Don Blankenship don't have enough money to pay me."

Massey CEO Blankenship is among the highest paid executives in the coal industry. McKinney said she would like to take every penny he has.

"Maybe it'll save somebody else's life," she said.

On Monday, Richmond, Va.-based Massey laid out a financial package that it said would free the families from ever worrying about money.

Among other things, Massey said families would receive five times the miner's annual pay as life insurance benefits and an additional payment to surviving spouses. The offer also would include health coverage both for surviving spouses and dependent children, and four years' worth of college or vocational education at any accredited school in West Virginia for those children.

Director Robert Foglesong said accepting those benefits would not prevent a family from pursuing any legal claims.

Federal and state investigators suspect the explosion was caused by a combination of methane gas and combustible coal dust. Toxic gases have kept them from entering the mine. Officials say tests showing the presence of acetylene and ethylene, gases not normally found in an underground work environment, suggest a fire may be burning somewhere.

Things we learned today: We're spending more money on lobbying than ever before. Dick Durbin isn't Tim Geithner's biggest fan. There are holes in the Dodd-Lincoln derivatives amendment. Ladies make John Edwards light up like a Christmas tree. Also, Floridians love animals...no they REALLLLY love animals. This is HUFFPOST HILL for April 29th, 2010:

BREAKING

IMMIGRATION BILL ON DECK - We're declaring a moratorium on reporting whether Harry Reid will bring climate change or immigration reform to the Senate floor first until one of them is actually filed. This evening, as HuffPost Hill went to press, Reid was joined by Charles Schumer, Bob Menendez, Dick Durbin, Pat Leahy and Dianne Feinstein to announce the outlines of a Democratic immigration bill. There's no telling if or when it'll hit the floor.

TEA PARTY ALERT: DEM BILL WOULD CREATE NATIONAL ID - The outline is tough. Really tough. And it includes a national ID, which they call "biometric social security cards." From the summary of the bill: "These cards will be fraud-resistant, tamper-resistant, wear resistant, and machine-readable social security cards containing a photograph and an electronically coded micro-processing chip which possesses a unique biometric identifier for the authorized card-bearer."

The Dem plan includes sanctions on employers and spends money on thousands of new border patrol and drug-war agents, helicopters -- black ones, no doubt -- unmanned drones and the "installation of high-tech ground sensors throughout the southern border and for equipping all border patrol officers with the technological capability to respond to activation of the ground sensors in the area they are patrolling." After the guns comes a little bit of butter: a possible pathway to citizenship for some of the estimated 10.8 million people here without documentation. The bill would create "a broad-based registration program that requires all illegal immigrants living in the U.S. to come forward to register, be screened, and, if eligible, complete other requirements to earn legal status, including paying taxes." The full summary (pdf): http://bit.ly/9FPeaz

OIL SLICK FAST APPROACHING LOUISIANA COAST - AP lede right now: "The edge of a massive oil spill in the Gulf of Mexico was expected to reach the Mississippi River delta by Thursday night and a new technique to break up the oil a mile underwater could be tried, officials said." http://huff.to/aKTMhp NOAA says the oil released is light-to-medium crude, different than Valdez spill, and will hit shore as "mats or strings or tar balls."

EXCLUSIVE: "The massive gush of oil spilling from the site of the rig that exploded last week exceeds the worst-case scenario predicted by oil giant BP when it filed its exploration plan with the government," HuffPost's Marcus Baram reports. "Yesterday, the estimated size of the spill quintupled to over 210,000 gallons a day. In BP's exploration plan, which allowed it to avoid filing a more detailed site-specific plan, the company outlined a worst-case scenario of 162,000 gallons a day." http://huff.to/dtFRPJ

WH energy/climate adviser Carol Browner today on POTUS's offshore drilling plan: "Obviously, what's occurring now will also be taken into consideration as the administration looks to how to advance that plan and what makes sense and what might need to be adjusted. We need to learn from the incident."

MORE... Nelson to introduce anti-drilling measure. Bill Nelson isn't even letting the crude touch down. In a letter to President Obama, the Florida Democrat signaled he will introduce a bill suspending plans to expand offshore drilling. http://bit.ly/904ek9

BUT... Mary Landrieu took to Senate floor today to warn that the response to the spill shouldn't be to limit off-shore drilling. It's more dangerous to bring oil in by tanker than to drill for it here, she said, adding, "I am not saying that to minimize this disaster."

TONIGHT on HuffPost: Rep. Charlie Melancon's dispatches from the Louisiana Gulf coast, checking out the damage first-hand.

(Quote that will haunt Robert Gibbs, from last week: "The president still continues to believe the great majority of [offshore drilling] can be done safely, securely and without any harm to the environment" http://bit.ly/9EX5fL)

CRIST MAKES IT OFFICIAL - From the speech before a not-terribly-excited crowd in St. Pete: "The easy thing for me would have been to run for re-election as governor, but for me it's never been about doing what is easy.... I haven't supported an idea because it's a Republican idea or Democratic idea. I support ideas because they are good ideas for the people."

HOUSE BILL TO BREAK UP BANKS - Brad Miller (D-N.C.) is gathering cosponsors for the SAFE Banking Act, which would limit the size of banks and require existing big ones to break themselves up.

STAGGERING LOBBY SPENDING - Over $900 million was spent on lobbying between January 1 and March 31 -- that's $19 million every day, larger than overall lobbying expenses in three out of four quarters last year, according to a new Center for Responsive Politics report. 2010 is on course to be the most lucrative year yet for lobbying industry. http://bit.ly/cyddVK

EXCLUSIVE: GUEST LIST FOR HADDAD-ROSEN BRUNCH - Eric Cantor, Eric Holder, Rupert Murdoch, John Cusack and Kathryn Bigelow will join a crowd of several hundred at Tammy Haddad's annual pre-White House Correspondents Dinner Saturday brunch, cohosted by Hilary Rosen and Susan Axelrod to benefit Axelrod's anti-epilepsy foundation. http://bit.ly/czuHzb

DURBIN VS. GEITHNER - No. 2 Senate Democrat became the highest-ranking member of his party to publicly question the administration's efforts to help struggling homeowners, HuffPost's Shahien Nasiripour reports. Durbin told TreasSec Tim Geithner at a hearing this afternoon that his proposed changes to the widely-criticized 'HAMP' foreclosure program "won't be implemented until the fall, and may be too little, too late." http://huff.to/c7tEiB

RIELLE HUNTER ON OPRAH - Take it all in: "We noticed each other. There was a mutual staring going on. it was just a connection..." Then Edwards saw her on the street "and he lit up. He was just so excited. Just lit up like a Christmas tree. Bright as can be. And I just turned to him and said, 'You're so hot.' And he practically jumped in my arms." Hunter never doubted that Edwards was the father of her child because she was not seeing anyone else and they "never used birth control." After Elizabeth found out about the relationship, "He calls me back a little later saying that it's over. We're done. I assumed that she was standing there when he said that and he was in a traumatic state. His worlds had just collided. And he hung up the phone. I didn't cry. I had the thought, 'What do you mean we're over? We're just getting started." ... "There is a sex tape... I don't think there was a lot of thought going on in the heat of the moment. It was a -- you know, something behind closed doors that was private and I believe should remain private."

Video lowlights: http://huff.to/9Jifj4

YOU ARE FORECLOSING ON RED ROOF INN - Well, not exactly you, but the Federal Reserve is foreclosing on a bunch of Red Roof Inns that it acquired from a collapsing Bear Stearns, Debt Wire is reporting. Pdf: http://bit.ly/bP1GtE

FINAL UK DEBATE - Wrap-up from BBC, which moderated: "Gordon Brown has made a plea to voters not to risk change as he sought to salvage Labour's election campaign in the final TV debate before polling day. The Labour leader, whose party is third in many opinion polls, warned against a Tory and Lib Dem coalition which would put 'at risk' economic recovery. David Cameron said Mr Brown was trying to 'scare' voters and the Tories could deliver the 'change we need'. Nick Clegg urged voters to "choose the future you really want'. BBC Political Editor Nick Robinson said the debate had no clear winner, but after the events of the past 48 hours the momentum entering the final week of the campaign appeared to be with Mr Cameron." http://bit.ly/bOukib

LATE-BREAKING TECH NEWS - Email release: "Wired.com has identified the person who found and sold an Apple iPhone prototype. Brian J. Hogan, a 21-year-old resident of Redwood City, California says although he was paid by tech site Gizmodo, he believed the payment was for allowing the site exclusive access to review the phone. Gizmodo emphasized to him 'that there was nothing wrong in sharing the phone with the tech press,' according to his attorney Jeffrey Bornstein. Wired.com discovered that Hogan was the finder of the prototype by following clues on social network sites, and then confirmed his identity with a source involved in the iPhone find." http://bit.ly/9s3db4

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TRENDING

2010 TREND - WaPo's Garance Franke-Ruta: "Record numbers of GOP women campaigning for House seats" http://bit.ly/bvcbMk

DEBATE BEGINS ON FINANCIAL REFORM, FOR REAL - It's here! It's here! After three days of unending obstinacy from Senate Republicans, the upper chamber began debate on financial reform with a great big helping of meh. The proceedings began with a whole lot of back patting and consideration of a derivatives amendment introduced by Chris Dodd and Blanche Lincoln. Debate is expected to stretch for over two weeks, with the objective of passing a bill by mid-May. http://bit.ly/bEDFRd

HOLES IN DERIVATIVES AMENDMENT? - AlterNet calls into question the efficiency of the Dodd-Lincoln amendment: "Lincoln would have banned any derivatives that constitute outright gambling. Some derivatives help companies hedge risks, but others are just straightforward bets that a Las Vegas bookie could set up for you. This is the kind of trading that got Goldman Sachs into trouble with the Securities and Exchange Commission...The biggest source of trouble with derivatives is the fact that the entire market operates in secret. Banks trade with each other, and that's the end of it. Nobody else in the market verifies the trade, and no regulator supervises it...

"Lincoln's bill required central clearing for almost every derivatives trade, and the Dodd-Lincoln mash-up includes that language. Unfortunately, it also includes a brief section that completely undercuts that new rule (for wonks, its Section 739, paragraphs A and B). Under the current bill, there is no penalty for anybody who fails to centrally clear their trades--even though the bill labels this activity illegal. What's more, even though this behavior is illegal, the trade itself is still valid. In other words, banks are required to bring their trading into the open. But if they don't shed light on their trades, nothing will happen to them. I wonder what banks will choose." http://bit.ly/8YE6c0

FRIGHTENING PENTAGON REPORT: AFGHAN TALIBAN GETTING STRONGER - LA Times' Julian E. Barnes writes, "A Pentagon report presented a sobering new assessment Wednesday of the Taliban-led insurgency in Afghanistan, saying that its abilities are expanding and its operations are increasing in sophistication, despite recent major offensives by U.S. forces in the militants' heartland. The report, requested by Congress, portrays an insurgency with deep roots and broad reach, able to withstand repeated U.S. onslaughts and to reestablish its influence, while discrediting and undermining the country's Western-backed government." http://bit.ly/a2V6gV

Full Pentagon report (pdf): http://bit.ly/bs8sUx -- Central Asia analyst Joshua Foust tweets, "Page 129 of this document succinctly summarizes why we will lose the war in Afghanistan" http://bit.ly/9LCrl2

SCOTUS WATCH: KAGAN ENDORSED HOT-BUTTON BUSH NOMINEES - HuffPost's Sam Stein: "The current Solicitor General and leading choice for the Supreme Court signed her name to letters of recommendation for two controversial Bush picks: Peter Keisler, the co-founder of the conservative Federalist Society whose various nominations were blocked in the Senate; and Michael McConnell, a conservative law professor who was nominated and confirmed to the 10th Circuit Court of Appeals.In offering her support, Kagan explained that she did not agree with every aspect of the respective nominee's jurisprudence, merely the character and integrity they brought to the bench. Several prominent progressive figures and many academics made similar assessments." http://huff.to/dw32cB

CONAN BLASTS LENO - Early peek at Conan O'Brien's first post-NBC interview on Sunday's 60 Minutes: 'He went and took that show back and I think in a similar situation, if roles had been reversed, I know-- I know me, I wouldn't have done that,' O'Brien says. 'If I had surrendered The Tonight Show and handed it over to somebody publicly and wished them well-- and then...six months later. But that's me, you know. Everyone's got their own, you know, way of doing things,' he tells Kroft. Asked by Kroft what he would have done, O'Brien says, 'Done something else, go someplace else. I mean, that's just me.'"

GRAHAM: "I CARE EQUALLY ABOUT IMMIGRATION AND CLIMATE CHANGE" - Ezra Klein spoke with Lindsey Graham, who has been in the center of the Senate scheduling kerfuffle: "I care equally about immigration and climate change. But if you stack them together this year you'll compromise climate and energy. You'll compromise my ability to get votes on climate change. When I told everyone I would do climate, in fact, I was assured we also wouldn't be doing immigration. And on immigration, Arizona has made comprehensive reform very difficult this year. And the manner in which it's coming up, where Sen. Reid brings it up at a rally because he's down 15 points in Nevada, is bad for immigration reform." http://bit.ly/d5H7la

DEPORTING-YER-OFFSPRING WATCH, DAY SIX - Despite the best efforts of Duncan Hunter, American-born children are not being deported...YET.

DOJ TO TAKE ACTION AGAINST ARIZONA? - High-ranking officials in the Obama administration think the DOJ should get litigious on Arizona for its take-no-prisoners by taking-a-lot-of-prisoners immigration law. From WaPo's Markon and Kornblut: "'The president had strong words to say and the attorney general had strong words to say,' said one law enforcement official, who spoke on the condition of anonymity because no decision has been made. 'Considering that it's signed into law, and Arizona is doing a lot of pomp and circumstance, do you see a friendly way out of this?' A key legal ground being considered, officials said, is the doctrine of 'preemption -- arguing that the state's law illegally intrudes on immigration enforcement, which is a federal responsibility." http://bit.ly/cikV7L

GRIJALVA IN HUFFPOST: "Turning immigrants into scapegoats for every social and economic setback is not what America should be about. The new Arizona law has introduced the unspoken word 'race' into the debate. By promoting racial profiling as a legal tool, it has effectively unmasked a very real motivation for some people to oppose meaningful immigration reform," writes Rep. Raul Grijalva of Arizona in HuffPost this evening.

OH, AND ONE MORE THING DUNCAN HUNTER... - If they're American citizens, would foreign countries even be required to take the kids? If not, would we just jail them?

BECAUSE YOU'VE READ THIS FAR - Here's Darius, the world's largest rabbit: http://bit.ly/8Z8QfM

OBAMA TO FILL FED BOARD OF GOVERNORS VACANCIES - Today the President formally nominated Janet Yellen to fill the number two spot at the Fed and also proposed Peter Diamond and Sara Bloom Raskin for board vacancies. HuffPost Hill says this at the risk of tanking their nominations, but we really like Diamond and Raskin. Yellen kinda blew it on the housing bubble, the biggest economic-management blunder in decades, but she says she's learned from it. And if you're not convinced yet on Raskin, let's leave it at this: She lives in Takoma Park.

COMFORT FOOD

- Floridians can't stop schtupping animals and now a legislator there is trying to ban bestiality...for the second time. http://bit.ly/9NHh24

- Never-before-published images of Hitler's bunker. http://bit.ly/cRhieL

- "How I Met Your Motherboard" compiles peoples' stories of their first computer experiences. http://bit.ly/cFFaI7

- The worst American oil spills. http://huff.to/bB8iFX

- Why do these khakis cost $500? http://nyti.ms/9ADPDa

- The most bizarre beauty treatments. http://bit.ly/cdMPiJ

- From the makers of the Snuggie comes the Spankie. Complete with easy access for...um... http://bit.ly/cStNUx

TWITTERAMA

@billmaher: Every asshole who ever chanted 'Drill baby drill' should have to report to the Gulf coast today for cleanup duty

@HeardontheHill: @repaaronschock is the fastest House Member (by just one second!) but @johnthune reigns as quickest in Congress. http://bit.ly/ao1LMx

@AmanpourCNN: Walking on set for my last live program at CNN [EDITOR'S NOTE: :( ]

@DavidCornDC: Just got an email from Ban Ki-Moon saying there's $8.5m for me in a bank account. Wow. Why do people hate the UN? http://bit.ly/bWOCbg

@hillhulse: now on twitterverse; hope don't regret it. Will try to provide scooplets and not shame NYT. http://bit.ly/cpxdGJ

@FishbowlDC: HuffPost Introduces the Badge System: Want to unleash your inner hall monitor? Now you can, with HuffPost Badge... http://bit.ly/aDh05B

THE TUBE

TONIGHT

Tom Coburn and Sherrod Brown were on Ratigan. Florida Senate candidate Kendrick Meek was on the Situation Room and Hardball. Ed Schultz talked immigration with Xavier Becerra and financial reform with Debbie Stabenow. Bob Menendez weighs in on immigration on Olbermann.

TOMORROW

"Avatar" director James Cameron joins Mark Warner and OPM Director John Berry on the American Federation of Government Employees' "Inside Government" radio show at 10am (1500 AM in D.C.). Bill Halter talks about his primary challenge to Blanche Lincoln on the Rundown.

ON TAP

6:00 pm - 8:00 pm: Renown chef and "Top Chef Masters" contestant Marcus Samuelsson will give a free cooking demo at Macy's tonight [Macy's, 1201 G Street NW].

7:00 PM: Crank the glamor to 11 tonight at a star-studded, WHCD Week gala. "The Celebration of the American Spirit Gala" will feature performances by the Creative Coalition which will highlight the need to preserve American cultural heritage. All this is, of course, society-speak for "Holy shit, it's the dude from Entourage!" Expect your typical coterie of B list-ish WHCD guests including Adrian Grenier, Ashley Greene, Dana Delaney, Marlon Wayans, Spike Lee, Tim Daly, Richard Schiff, Wendie Malick, Tom Fontana, Patricia Arquette, Cheryl Hines, Steven Weber, Omar Epps, Wilmer Valderrama, Chazz Palminteri, Barry Levinson, Dan Glickman and Hilary Rosen.

7:00 PM - 9:00 PM: Some of D.C.'s most prominent figures will assemble this evening to test their trivia chops at the second annual "Political Pursuit." Dana Bash, Jonathan Karl, Chuck Todd and Judy Woodruff rep the broadcast news team. Chris Cillizza, Jay Newton-Small, Stuart Rothenberg and Karen Tumlty suit up for print media. Sherrod Brown, Tom Davis, Roger Wicker and another official to be named later hold it down for the congressional team. RSVP: http://bit.ly/12kR8T [DAR, 1776 D Street, NW].

7:00 pm - 11:00 pm: If a party for the "Young Consultants of DC" makes you throw up in your mouth, wash it down with some half-priced drinks [The Muse, 717 6th Street NW].

7:00 pm: Kitty Kelley discusses her new Oprah biography [Tysons Corner Center, 7851 L. Tysons Corner Center, McLean].

Got something to add? Send tips/quotes/stories/photos/events/fundraisers/job movement/juicy miscellanea to Eliot Nelson (eliot@huffingtonpost.com), Ryan Grim (ryan@huffingtonpost.com) or Nico Pitney (nico@huffingtonpost.com). Follow us on Twitter @HuffPostHill (twitter.com/HuffPostHill). Sign up here: http://huff.to/an2k2e

The Associated Press said Thursday its net income plunged as revenue fell nearly 10 percent last year. The news cooperative also expects a decline in revenue this year, which would be its first back-to-back drop since the Great Depression.

The AP released its 2009 financial results at the not-for-profit organization's annual meeting in New York. AP executives used the forum to explain some of the ways they hope to boost revenue for the organization and its members, such as with news applications for the iPad.

Net income decreased 65 percent to $8.8 million in 2009 from $25.1 million a year earlier. The AP would have posted a loss had it not booked a $13.2 million gain from the sale of its German-language news service. Revenue totaled $676.1 million, a drop from $747.7 million in 2008.

It was the first annual decline in revenue since a 6 percent drop in 1993. If revenue falls this year as anticipated, it would be the first time that has happened in consecutive years since 1932 and 1933, according to the 164-year-old organization's corporate archives.

Back then, the AP got most of its money from the U.S. newspapers that own it. The AP is far more diversified today, with a steadily growing amount of money coming from online and broadcast customers, photo archives and other commercial endeavors such as a sports statistics joint venture. U.S. newspapers account for about one-fourth of AP's revenue today.

The cooperative has been cutting the fees of both U.S. newspapers and broadcasters, which together account for 40 percent of revenue, to help them deal with their own financial woes.

Other media companies had an even tougher year than the AP.

For instance, revenue at Gannett Co., publisher of USA Today, plummeted 17 percent last year after falling the previous two years as well. Similar declines were reported by The New York Times Co. Several newspaper publishers filed for bankruptcy protection. The Seattle Post-Intelligencer went online only and the Rocky Mountain News closed entirely.

The AP began bracing for its financial erosion in late 2008 as it became increasingly apparent that the cooperative would have to assist newspapers and broadcasters.

With some media executives threatening to drop AP services to save money, the AP lowered its fees for U.S. newspapers by $30 million last year. It plans a $45 million reduction for newspapers and broadcasters this year.

The downturn turned out to be more severe than AP anticipated. It had forecast 2009 revenue of about $700 million, a roughly 6 percent decline, at last year's annual meeting.

With less money coming in, the AP reduced its payroll expenses by 10 percent last year. The cuts – achieved through attrition, buyouts and layoffs – left the AP with about 3,700 employees worldwide.

The AP ended 2009 with $53.2 million in cash, up from $34.5 million in 2008. The cooperative also shaved its debt by about $1 million to $4.2 million at the end of 2009.

The financial pressures facing the AP and other long-established media have been mounting in recent years as more people get their news for free on the Internet and advertisers shift more of their spending to less expensive online outlets. The Internet's emergence as a marketing medium has hurt newspapers in particular because they make most of their money from print ads.

Meanwhile, the AP is trying to bring in more revenue from the Internet and mobile devices. It struck a new licensing deal for an undisclosed amount with Yahoo Inc. this year and is trying to negotiate a new contract with Internet search leader Google Inc. A licensing deal with Microsoft Corp. is set to expire this summer.

"The AP, in the last five years, has laid the foundation for a new way of doing business in the digital marketplace," AP Chairman William Dean Singleton said at Thursday's meeting. Singleton also is CEO of MediaNews Group Inc., publisher of the San Jose Mercury News and 53 other daily newspapers. His holding company recently emerged from bankruptcy protection.

As part of its digital focus, the AP will launch a service it says will enable it and participating newspapers to track where and how their online content is being used. The AP believes the service, called a news registry, can help it and newspapers find new moneymaking opportunities from online licensing and advertising.

About 200 newspapers have been testing the registry since late last year. The AP hopes to have about 600 newspapers on board when the service officially debuts July 14.

The AP also hopes to build on the popularity of its news application for mobile phones with more sophisticated programs tailored for the iPad, Apple Inc.'s new computer tablet. The initial iPad application is free, but the AP plans other "apps" that will require subscriptions.

"We believe the infrastructure we are putting in place will make it possible for publishers to set rights, apply tags, create products and execute sales direct to consumers," AP CEO Tom Curley said.

Despite the financial challenges facing the AP, Curley said the cooperative remains committed to covering every major story in the world.

The AP spent substantially less on the mission last year as its expenses for news assignments and coverage dropped $18 million, or 24 percent, from the prior year, to $58 million. Part of the reduction was purely belt-tightening, said Ken Dale, the AP's chief financial officer, but there also were fewer big events such as an Olympics or national elections to cover in 2009.

A panel of AP editors and reporters at Thursday's meeting discussed the cooperative's commitment to international news and political coverage.

Jonathan Katz, AP's Haiti correspondent, described the devastation in that country following the Jan. 12 earthquake that killed 230,000 to 300,000 people, according to government estimates. Katz, the only foreign correspondent based in Haiti when the earthquake struck, is focusing his reporting on how more than $12.7 billion in relief and reconstruction funds sent to the country will be managed.

Deputy Managing Editor Sally Buzbee and Assistant Managing Editor Tamer Fakahany discussed the AP's coverage of global hot spots, including Afghanistan, the Israeli-Palestinian conflict, Iraq and Iran.

"Our journalistic presence on the ground in Iran, which is more restricted than it was last summer, is really critical to our ability to report on this dangerous part of the world," Buzbee said.

In other news at Thursday's meeting, the AP elected two new directors to three-year terms on its 18-member board. They are: Michael Golden, vice chairman of The New York Times Co. and president and chief operating officer for The New York Times Regional Media Group; and Katharine Weymouth, publisher of The Washington Post and CEO of Washington Post Media.

They replace directors who are retiring from the board after reaching their maximum tenure: Boisfeuillet (Bo) Jones, vice chairman of The Washington Post Co.; and H. Graham Woodlief, vice president of Media General Inc.

Four incumbents were re-elected to the board: Robert Jack Fishman, president and CEO of Lakeway Publishers Inc., and publisher-editor of the Citizen Tribune in Morristown, Tenn.; Mary E. Junck, CEO of Lee Enterprises Inc.; Steven O. Newhouse, chairman of Advance.net and editor-in-chief of The Jersey Journal in Jersey City, N.J.; and Charles V. Pittman, senior vice president at Schurz Communications Inc. in South Bend, Ind.

___

Associated Press Writer Beth Fouhy in New York contributed to this story.

Fifty years ago, visionary leaders created California's Master Plan for Higher Education. For decades the master plan provided millions of Californians with opportunities to pursue their academic ambitions and improve their vocational skills. A well-trained and educated workforce entered the private sector and enhanced California's reputation as a state on the cutting edge of the future, creating new and exciting industries, powering our economic growth and engaging in trailblazing research.

Now, however, our higher education system is reeling. The visionaries are gone and our community colleges and public universities are bruised by cuts, furloughs and ever-increasing fee hikes that threaten affordability and access for students across California.

Stories about this decline can be found on campus after campus. A University of California, San Diego professor worries about students' inability to get into the classes they need for graduation. California State University, Sacramento officials consider turning away qualified students because more people want to enroll than the university has funding to handle. A CSU student concludes the system is creating a generation of student debtors.

A report this month by the Public Policy Institute of California finds that the state is confronting two main crises in higher education: budget cutbacks and an education skills gap. By 2025, the state will have a shortage of one million college educated workers relative to demand unless we substantially increase rates of college enrollment and graduation.

Yet with all this daunting news, we spend more on prisons than we do on all three higher education systems combined - a black mark on the Golden State.

There's a better way. Tens of thousands of Californians have marched on college campuses and city streets to save higher education. My bill, AB 656 - the Fair Share for Fair Tuition bill - will generate almost $2 billion a year for our community colleges and public universities. It would levy a 12.5 percent extraction fee on oil companies. California is currently the only major oil producing state that does not impose an extraction fee on oil companies. Even former Governors Sarah Palin of Alaska and George W. Bush of Texas both levied oil fees and used them to help fund higher education in their states. Now is the time for California to join the rest of the nation.

Big Oil has experienced record profits in recent years. For example, Exxon-Mobil earned a $45.2 billion profit just two years ago, the most ever by a publicly-traded U.S. company. AB 656 will redirect a small portion of that huge profit to the place California needs it most to secure a prosperous future - higher education.

Our state's colleges and universities generate billions of dollars in economic activity and attract billions more in research dollars that fuel our economy and provide good-paying jobs to thousands of workers. They also educate and train our workforce and, because of all this, poll after poll shows the public supporting our universities.

Join the movement to support higher education in California and recommit our great state to investing in the Master Plan for Higher Education. To date, 75,000 supporters have signed cards and over 12,000 people have registered their support for AB 656 by joining Facebook.com/FairTuition.

Join us on Facebook.com/FairTuition today or sign our online petition to help California keep the promise of the Master Plan for Higher Education.

Alberto Torrico is the Chair of the Select Committee on Prison Reform and Rehabilitation as well as candidate for California Attorney General. For additional information, visit: www.AlbertoTorrico.com.