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Three commissioners appointed by Gov. Rick Perry may grant some of the nation’s largest refineries a tax refund of more than $135 million _ money Texas’ cash-strapped schools and other local governments have been counting on to help pay teachers and provide other public services.

The refund would mean more pain for some communities after a year in which state lawmakers had to grapple with a $27 billion shortfall and slashed spending on public schools by more than $4 billion. Nearly half the refund would be taken from public schools, and those in cities where the refineries are based would be hurt the most.

“We were already cut at the knees as it is, but more cuts? It’s appalling,” said Patricia Gonzales, a single mother of 13-year-old twins at Park View Intermediate School in Pasadena, a refinery town just south of Houston. Gonzales was just elected president of the school’s new parent-teacher organization, which was formed this summer after the state budget cuts left the school lacking everything from pencils to paper towels.

The Texas Commission on Environmental Quality is evaluating 16 requests for the refund, which concerns a piece of pollution-controlling equipment. If granted, the refund total for those requests could add up to more than $135 million, according to county tax data and application documents analyzed by The Associated Press. What’s more, agency documents show that if the commission grants the requests, at least 12 other refineries that have not sought a refund also could qualify.

The three-person commission last year expressed some support for the refund, prompting concern the panel is preparing to side with the industry in the middle of a budget crisis.

Should the commission approve the request, it would fall in line with Perry’s argument on the GOP presidential campaign trail that by being friendly to business he has attracted businesses and jobs to Texas while other states suffered.

“Gov. Perry appoints individuals who are qualified and willing to serve, and expects they will consider all of the facts and make the appropriate decision,” said Lucy Nashed, a spokeswoman for Perry.

The refund request has to do with a piece of technology used by refineries to minimize pollution. Beginning in 2006, the U.S. Environmental Protection Agency began requiring refineries to remove sulfur dioxide from diesel and gasoline in an attempt to reduce vehicle pollution. Many refineries had to either upgrade existing “hydrotreater” units or purchase new, more effective equipment.

Valero first asked for the refund for six of its refineries in 2007, and wants payment retroactive to that year. Since then, at least four other companies have joined in and asked for the same retroactive refund.

Valero is arguing that the units should be exempt under a Texas law that says industrial plants don’t have to pay taxes on equipment purchased to reduce on-site pollution. The law saves companies millions, and is meant to encourage investment in new technology.

At first, the request was denied. The commission’s staff said the hydrotreaters reduce pollution in diesel and gas, not necessarily at the plant. In fact, staff said, the hydrotreaters actually increased sulfur dioxide pollution near the refineries because the toxic gas is now burned off in a flare.

Valero appealed, and the panel’s chairman, Bryan Shaw, said last April that the Legislature likely intended a broader interpretation of the law. He instructed his staff to research whether they could award partial exemptions to Valero. Shaw declined to be interviewed for this story, saying it could present a conflict because the issue will be brought before him again.

Valero alone could potentially get a refund of more than $92 million, but spokesman Bill Day said the San Antonio-based company believes the final refund _ if approved _ would be much smaller. He said appraisers will ultimately decide the value of the refinery properties and it’s unlikely the numbers will be as high as those the companies noted on the applications they submitted to the commission.

There is no timeline for a ruling. The slow pace of decision-making has left municipalities and school districts in an uncomfortable position in which they collect _ and spend _ money they could be forced to return, acknowledged Susana Hildebrand, a chief engineer at the TCEQ.

“We don’t have a statutory deadline, so there’s not a legal impetus,” she said. “I understand the concern that the taxing authorities have.”

Refunding tax money would be yet another hit for counties, cities and school districts that are already cutting corners and improvising to make up for lost funds. Schools alone could be forced to fork over $62.8 million, according to data compiled by the AP.

In smaller, more rural counties _ where property taxes from large industrial complexes provide a big chunk of funding for schools and government services _ the impact could be greater. For example, in Moore County, where a Valero refinery is seeking exemptions on two units, a $15.8 million refund would amount to more than $720 per person.

“If it was a good year and property values were up it wouldn’t be so bad,” said Hugh Landrom Jr, president of Hugh Landrom and Associates, an engineering firm that does industrial appraisals for Galveston and other counties that are home to large refineries and chemical plants.

“It’s compounded by the state budget cuts that are being passed down to everybody,” Landrom said.

And because of a complex law aimed at evening the playing field between areas that have large refineries _ and a strong tax base _ and those that don’t, all schools in the state would ultimately be impacted if the abatement is approved, though refinery towns would be hurt the most, said David Hodgins, consultant and attorney for the Texas Association of School Administrators.

“The dollars that are lost by these school districts directly affect the children of the employees that help make these companies what they are,” Hodgins said.

For Gonzales and other parents in Pasadena, the prospect of the school district having to hand back money is terrifying. Already, the middle school her children attend has laid off eight staff members and is asking for parents to donate money to pay for basketballs, volleyballs and even gloves for the science teachers, Gonzales said.

The mom-turned-activist said she learned about the refineries’ requests while lobbying earlier this year to convince Perry and the Legislature to dip into the state’s so-called rainy day fund to ease cuts to the schools _ an effort that failed.

Gonzales lives near a miles-long stretch of refineries, where massive pipes and stacks light the night like skyscrapers do in other cities. An intense, burnt chemical scent hangs over the town.

“You smell it. That’s what we’re known for. Stinkadena because of the refineries,” Gonzales said. “There are days when we can’t go out because our children’s asthma is that bad … and then they want money back?”

Valero said no one _ not the refinery owners, municipalities, commission or appraisal districts _ knows how much the industry could get if a refund is granted.

“It’s not going to be a disaster,” said Day, the company spokesman.

“I guarantee you, it’s not a surprise to the school districts,” he added. “Yes, they spent the money, yes we’re asking for an abatement on our pollution control equipment … but this is really no different than a homeowner appealing their property tax, just on a larger scale.”

In the meantime, Gonzales and other parents are planning to sell “$10,000 brownies” _ a gimmick aimed at raising awareness about how much money they would have to raise to make up for the lost refinery funds. The group also plans to boycott gas stations if necessary to fight the request.

“We pay taxes every day. Small businesses pay taxes. Why should big corporations get breaks?” she asked.

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Rebuffing an election boycott by Shiite protest groups, supporters of the country’s Sunni rulers voted in a special parliamentary election that is likely to reinforce divisions after seven months of unrest in the Gulf’s main Arab Spring showdown.

Bahrain’s confrontation between a reform-seeking Shiite majority and Sunni rulers holding near-total power remains one of the trickiest puzzles for the West as the Middle East’s politics are redrawn.

The Shiites’ calls for a greater say in national affairs echoes the same notes as in other Arab nations whose uprisings gained clear Western support. But Bahrain’s Sunni rulers have strong cards that most others cannot play, including a critical military partnership with Washington as hosts to the U.S. Navy’s 5th Fleet _ the Pentagon’s front-line force against potential threats from Iran.

“This is a fake election. It’s useless,” said one man among a group of young Shiites gathered in streets littered with trash, rocks and tear gas canisters from clashes the night before.

“We don’t have any stake in the political system anymore,” said the man, who only gave his first name, Ali, fearing retaliation by the authorities.

The elections were needed to fill 18 seats in the 40-member parliament left vacant by a mass resignation of Shiite lawmakers to protest crackdowns, including deadly clashes, arrest sweeps and workplace purges. The boycott call by the main Shiite blocs effectively turned their backs on Bahrain’s political system and staked their hopes in an embarrassingly low turnout at the elections.

But Bahrain’s state TV announced the turnout at 51 percent in the districts with open seats _ lower than the 67 percent turnout in last year’s full parliamentary election, but an apparent strong reply against the boycott.

Most of the voters who turned out Saturday appeared to be supporters of the government.

Full results are expected by early Sunday. But the most important outcome was already determined by the Shiite boycott: The opposition must now decide whether to escalate public protests as their best remaining option.

“Leaving the political process opens up the obvious question of where to go from here,” said Toby Jones, an expert on Bahraini affairs at Rutgers University. “This opens the door for groups calling for more confrontation.”

More than 30 people have died in the unrest and hundreds have been arrested, including activists sentenced to life in prison after being convicted of plotting to overthrow the ruling system.

In recent months, Bahrain has faced near daily skirmishes after security forces crushed a wave of large-scale marches and sit-ins inspired by other Arab uprisings. The current clashes are isolated in Shiite neighborhoods and pose no direct danger to the leadership. But they highlight the deep frustrations among many Shiites _ who account for about 70 percent of the population _ and the growing belief in poorer districts that mass protests are the only way to force change.

Hours after the voting ended, clashes raged in some mainly Shiite areas into early Sunday.

Shiites claim they suffer widespread discrimination, including being blocked from top political and government posts. They also bristle at daily evidence of perceived second-class status, such as security forces bringing aboard Sunni Muslims from other Arab nations and south Asia under a government program that grants citizenship in exchange for loyalty.

“Each side sees itself as the legitimate voice of the country and the others as those standing in the way,” said Jones. “The election just drives home this message. It’s political theater on both sides to make a point.”

Security was boosted to high-alert levels for the election. Police set up dozens of checkpoints and patrolled key roadways.

An election coordinator, Brig. Abdullah bin Saif Al Nuaimi, said several arrests were made for trying to disrupt the voting, including throwing stones at cars coming to polling stations.

The voting in predominantly Shiite areas appeared light. At one polling station in the Manama neighborhood of Sanabis, which has been the scene of clashes since Friday, only about 30 ballots were cast in the first four hours of voting.

But at a polling station in Hamad Town, a mixed Sunni-Shiite area, the voting was noticeably stronger with a steady stream of people. Voting was also brisk at special locations, including a mall in the capital, Manama.

Bahrain’s parliament has little direct powers, but it carries important symbolism as part of limited political reforms started about a decade ago. It also is one of the few popularly elected bodies permitted by the Arab kings and sheiks who rule the Gulf from Kuwait to Oman.

“It was my duty to vote and show I have solidarity with the leaders of Bahrain,” said Samira, a 32-year-old Sunni, who only gave her first name for fear of being harassed after she voted in Sanabis.

Bahrain’s prime minister, Prince Khalifa bin Salman Al Khalifa, claimed the voting “asserted that we are on the right path toward a better future.” A government-issued guide to the elections carried the heading: “From anarchy to action.”

The U.S. has urged all parties in Bahrain to restart reconciliation talks, which were opened by the government in July and produced a set of proposals that included boosting the powers of the parliament. But the U.S. has been careful not to reprimand Bahrain’s leaders too harshly in public to avoid jeopardizing strategic bonds in the Gulf.

Bahrain has the backing of powerful neighbors. A Gulf force, led by Saudi Arabia, was dispatched to Bahrain in March to help prop up the 200-year-old Sunni dynasty.

But the protests across the region have stirred some small steps toward more political openness.

The United Arab Emirates also held elections Saturday for seats on a national advisory council, which has no legislative powers but is promoted by Emirati officials as part of a widening “experiment” in allowing a greater public voice in affairs. The UAE’s elections will be decided by about 129,000 hand-picked voters.

Next week, Saudi Arabia plans to hold municipal elections after a nearly two-year delay. Women, however, will be still barred from participating or voting.

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stl jobwatch

Highlights from our blog tracking trends in employment, the economy and labor in St. Louis and beyond. stltoday.com/jobwatch

St. Louis cab company is cited for job discrimination

A St. Louis taxi company has been ordered to pay damages totaling $85,000 for denying a driving position to a candidate after he disclosed a prior medical condition during the applications process.

The Laclede Cab Company’s rejection of the applicant constituted workplace discriminaton, according to a report filed by the Missouri Commission on Human Rights.

Laclede Cab claimed its insurance carrier wouldn’t cover a driver because he’d suffered a stroke some years before.

The commission said the driver had been employed by other cab companies in the years after he was stricken.

“A company violates the law when it assumes that a person with a disability cannot perform a job,” commission executive director Alisa Warren said in a statement issued Monday morning.

“Such stereotypes deny people with disabilities the chance to earn a living and it also deprives employers of capable and dedicated employees.”

The commission, a division of the Missouri Department of Labor, ordered Laclede Cab to pay $50,000 in damages and another $35,000 for violating the applicant’s civil rights.

Dave McNutt, the owner of Laclede Cab, said the company is appealing the commission’s ruling.

(09.13.11)

Missouri unemployment edges up slightly

Thousands of dehumidifiers are being recalled for a second time after being blamed for more house fires.

The Consumer Product Safety Commission says LG Electronics Tianjin Appliance Co. is again announcing a recall of Goldstar and Comfort-Aire dehumidifiers because they can pose a fire and burn hazard. The CPSC says they are believed to be responsible for more than $1 million in property damage.

About 98,000 dehumidifiers are being recalled. The power connector for the machine’s compressor can short-circuit paydayloans.

The dehumidifiers were first recalled in December 2009 following four significant fires. Since then, the company has received 16 additional incident reports of arcing, smoke and fire associated with the dehumidifiers, including nine significant fires. No injuries have been reported.

Consumers can call 877-220-0479 for more information.

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Wholesale businesses boosted their stockpiles for a 19th consecutive month in July, but their sales were flat. Faltering demand could force businesses to cut back on orders when the economy is at risk of another recession.

The Commerce Department said Friday that wholesale inventories rose 0.8 percent in July. Sales were unchanged, the poorest showing since a 0.3 percent drop in May.

Weakening sales could shake business confidence and cause them to cut back on their restocking. Still, economists say sales will rebound in coming months as the economy mounts a modest recovery from extremely weak growth in the first half of this year.

In July, the ratio of inventories to sales increased slightly to 1.17 from 1.16 in June. That means it would take 1.17 months to exhaust the current level of stockpiles. That ratio is very close to the record low of 1.13 hit in March.

Leaner stockpiles typically suggest wholesalers will boost factory orders in the months ahead. But that is largely dependent on sales.

The economy expanded at an annual rate of just 0.7 percent in the first six months of the year, the slowest growth since the recession officially ended two years ago. Employers did not add any net new jobs in August. Slower growth and poor hiring have raised concerns that the economy could fall back into a recession.

President Barack Obama on Thursday called on Congress to pass a $447 billion package to boost job growth. The plan includes a deeper Social Security tax cut, an extension of long-term unemployment benefits, and tax cuts for businesses that hire workers that have been unemployed for at least six months, and more spending on schools, roads and other public works.

U.S. manufacturing has been one of the strongest sectors of the economy since the recession ended. Efforts by businesses to restock depleted shelves have fueled much of that factory production.

But factory activity weakened in the spring, in part because of supply chain disruptions caused by the Japan crisis. As a result, U.S. manufacturers have had a difficult time getting component parts, particularly for autos and electronics.

Autos production and sales increased this summer, a sign that those disruptions may be easing.

Still, the Federal Reserve last month said it expects the economy will stay weak for the next two years. As a result, it said it planned to keep interest rates at super-low levels for at least through mid-2013.

The Fed next meets on Sept. 20-21. Federal Reserve Chairman Ben Bernanke said in a speech Thursday that policymakers will consider a range of options to support the economy at that meeting which was expanded from one to two days to provide more discussion time.

Some economists expect the Fed will increase the percentage of long-term Treasury securities it holds as a way to exert further downward pressure on long-term interest rates.

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Italy’s ten-year borrowing costs have hit a new euro-era high amid ongoing fears that Europe’s debt crisis could spread to the country.

Premier Silvio Berlusconi is to address both houses of parliament on the state of the economy later Wednesday, as Italy president calls for new measures.

Spain is also under the market spotlight. Prime Minister Jose Luis Rodriguez Zapatero has delayed his vacation by a day to monitor the increasingly bleak scenario.

Italy’s borrowing costs on Tuesday spiked.19 percentage points to 6.21 percent, while Spain’s rose 0.09 points to 6.34 percent, a little shy of Tuesday’s euro era high of 6.45 percent.

Meanwhile, the Milan Stock Exchange lost 2.1 percent, while Spain’s main index was 0.1 percent higher.

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The economy is at risk of slipping into another recession.

It nearly stalled in the first six months of the year, the government reported Friday. Economic growth was feeble in the second quarter and practically nonexistent in the first no fax payday advances.

The new picture of an economy far weaker than most analysts had expected suddenly made a second recession a more serious threat

Kent Mechels spent the last three Christmases away from his family plowing snow off Minnesota roads so people could drive safely. It was a hardship he accepted as part of the job, he said.

But Mechels’ latest sacrifice _ getting laid off during a state government shutdown now entering its second week _ has him thinking about quitting.

“I’m looking at other state agencies in different states right now. I’ve lived in Minnesota my entire life. I may be leaving,” said Mechels, a single father from Rochester. “When the state government treats their employees like this, I don’t need to be part of it.”

Many of the 22,000 public employees out of work in Minnesota’s budget impasse say they will get through the extended layoff by tapping into personal savings, relying on a spouse’s income or unemployment checks, and making household spending cuts. But others are looking for new jobs, creating the potential for a brain drain that would be one more negative from the nation’s longest state government shutdown in a decade.

Erik Pakieser, an emergency planner for the state transportation department, took to Twitter soon after the shutdown to shop his services for what he hopes could be a better-paying job in the private sector. The state stands to lose an employee it spent a lot of money training, the St. Anthony Village man said.

“If I get a better job, great. If I don’t, I’m going to get my state job back eventually,” he said. “Who knows? Maybe there’s a silver lining in all this.”

Isaias Petros, of Minneapolis, works in land management with the Department of Transportation and said he doesn’t have much money saved to get through the shutdown. Though he is single with no children, Petros said he needs at least a temporary job to pay back some student loans.

“I was not ready for this,” he said, adding that he was actively looking for “anything” that could help him support himself.

Not everyone is job hunting.

Brent Anderson, who manages Whitewater State Park in southeastern Minnesota, has a wife who works and said he simply plans to cut back on expenses. Anderson is spending more time volunteering at the Goodview Fire Department, catching up on paperwork and thinking about painting his house trim.

One of the biggest shutdown casualties in Anderson’s family is his teenage daughter. She was scheduled to take her driver’s license test last Tuesday and was excited about getting behind the wheel. Now she’ll have to wait because the state is not offering driving tests during the shutdown.

“It’s a little disappointment for a 16-year-old,” Anderson said.

Jim Ullmer, of Crystal, a commercial vehicle inspector for the Department of Public Safety, has been babysitting his 18-month-old granddaughter, who he took to an anti-shutdown union rally at the Capitol last week.

“We’ve cut back and skipped a lot of things just in preparation,” Ullmer said. “Right now I’m just babysitting little Anna. … She’s a full-time job and I love doing it, but I’d much rather be out doing my job.”

Ullmer also has been spending time on the phone. He’s the chief steward statewide for members in his agency who belong to the American Federation of State, County and Municipal Employees. He tells members curious about how long the shutdown will last to call their legislators.

“Ask them. They’re the ones who are keeping us out here,” Ullmer said.

The workers’ money woes contrast sharply with the position of state lawmakers, who are still eligible for their salaries during the shutdown _ although some have chosen not to take them. And while their unions are a traditional power base for Democrats and support for Dayton remains strong, it’s not universal.

Brian Lindholt, of Minneapolis, says Republicans could end the shutdown simply by meeting the Democratic governor halfway.

“This is real. This is not a joke,” said Lindholt, a father of three who works for the Department of Transportation. “This is real life and we’re without a job right now because … they are holding the majority as legislators so they think they can strong-arm the governor.”

But Pakieser, who belongs to the Minnesota Association of Professional Employees, criticized the unions for their close alliance with the governor.

“I feel like Dayton has gone out of the way to mislead people about his compromise attitude,” Pakieser said. He said a video is circulating on YouTube of Dayton imploring lawmakers in February to join him in pledging not to shut down the government, yet Dayton vetoed all major state agency funding bills Republicans passed at the end of the session.

“It just looks to me like he wanted to force a shutdown. … He chose to spread maximum pain throughout the state government,” Pakieser said.

Some, like Mechels, say both parties deserve blame.

“They’re hired to do a job,” Mechels said. “They’re not doing their job, and they’re using us for pawns.”

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Retail sales in June were once again a mixed bag with some categories such as luxury retail showing continued strength while others such as furniture still struggling.

Those are the findings of MasterCard Advisors SpendingPulse, a macroeconomic report tracking national retail and service sales across all payment forms.

“What we saw in June in many ways was a continuation of what we saw last month,” said Mike Berry, director of industry research for the SpendingPulse. “On the whole, things were generally upbeat.”

Jewelry has been an especially interesting category to watch. It’s been on a roller coaster ride since 2008, taking hits and then making comebacks that coincide with the ups and downs of the stock market, he said.

In June, jewelry posted strong results despite the fact that many consumers traded down from high-end jewelers to more mid-tier outlets, he said.

The recent drop in gas prices may also have helped brick-and-mortar stores, including restaurants, last month, Berry said.

“But we also have to keep in mind that even though we are off of those highs, gas prices are still substantially higher than a year ago,” he said.

So there is still a possibility of gas prices dampening some consumer spending. He also added that online sales have grown by double digits in recent months as consumers have looked for ways to avoid driving to the store.

As for the upcoming back-to-school season, Berry noted that children’s and family apparel have been on the rise in the last year, which could bode well for the season. Children outgrow clothing, so families do have to replenish those supplies.

But he also noted that last year’s back-to-school season was stronger than expected, so the comparisons this year will be more challenging.

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Sony Corp. Chief Executive Howard Stringer credited “very loyal” PlayStation Network gamers for flocking back to the service in big numbers, as he sought Tuesday to reassure shareholders following a series of embarrassing hacker attacks.

Stringer apologized for the data breach in April, which compromised personal data from more than 100 million online gaming and entertainment accounts. Sony was subsequently criticized for lax security and acting too slowly to inform customers as it grappled with one of the largest-ever security thefts.

Stringer said at an annual shareholders meeting held at a Tokyo hotel that as many as 90 percent of subscribers have come back since the Japanese company began restoring service last month.

“Our brand perception, you’ll be happy to know, is clearly improving again,” he told a less-than-happy crowd.

Executives faced harsh questioning from individual shareholders, who expressed frustration and anger over the hack. One man even asked for Stringer to step down. Though his suggestion generated scattered applause, it ultimately went nowhere.

Sony’s stock price has fallen 30 percent this year, compared with a roughly 6 percent decline in the benchmark Nikkei 225 stock average.

The Tokyo-based company estimates the hacks will cost 14 billion yen ($173 million) in increased customer support costs, freebie packages to welcome back customers, legal fees, lower sales and measures to strengthen security.

Stringer said he believes Sony was attacked because it tried to protect its intellectual property, lending credence to widespread speculation that the moves were meant to punish the company for suing hackers like George Hotz. Known as “Geohot,” Hotz broke into the PlayStation 3 operating system and posted the steps online.

“These are our corporate assets, and there are those who don’t want us to protect them,” Stringer said.

Executives reiterated that the attacks have not derailed Sony’s core strategy of more deeply connecting its hardware, content and services.

“My foremost responsibility to the board and all of you is to further advance the transformation process, firmly establish Sony’s position as a global product, content and service leader in the networked digital era and ensure our continued development and growth,” Stringer said.

Sony is forecasting a return to profit for this fiscal year after logging three straight years of red ink. Along with the data breaches, the company has been battling production delays and sales losses after supplier factories were damaged by the March 11 earthquake and tsunami.

It expects an 80 billion yen ($989 million) profit for the current fiscal year.

In a statement later Tuesday, Sony released executive compensation figures for the last fiscal year through March 31. Stringer received 345 million yen ($4.3 million), along with stock options worth 518 million yen.

(This version CORRECTS Corrects day to Tuesday in paragraph one)

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