A2


Politics & The Nation


Politics&Nation More body scanners coming to an airport near you


Apple’s gadgets help preserve a tribe’s endangered language Californians undercounted in census, state officials say Digest


California:Newborn girl left at L.A. station


TheWorld Military hospital treats children and Afghans too


Blast kills 42 at food aid center in Pakistan


Dutch police arrest 12 Somali men suspected of plotting attack Iraq to resume oil exports from its Kurdish north


Digest Britain: In Christmas message, queen encourages sports


CORRECTION


l In today’s Magazine, which was printed in advance, the pho-


to credits for the Closer Inspec- tion feature on the gingerbread WhiteHouse are incomplete. All


of the photographs were by Ben- jamin C. Tankersley except for the one of the White House model; that photo was by Jahi Chikwendiu.


The Washington Post is committed to correcting errors that appear in the newspaper. Those interested in contacting the paper for that purpose can: E-mail: corrections@washpost.com. Call: 202-334-6000, and ask to be connected to the desk involved — National, Foreign, Metro, Style, Sports, Business or any of the weekly sections. The ombudsman, who acts as the readers’ representative, can be reached by calling 202-334-7582 or e-mailing ombudsman@washpost.com


JULIO CORTEZ/ASSOCIATED PRESS


EZ SU


KLMNO Well-suited for the job


A3 A5 A7


A8


A10 A10 A11 A14


China raises interest a second time in 3 months in effort to slow property, inflation gains


A19 A10


John Godzieba, portraying Gen.George Washington and holding a spyglass, guides the reenactment of the 1776 crossing of the Delaware River in Washington Crossing, Pa., on Saturday.


SUNDAY, DECEMBER 26, 2010


Outgoing governors’ group leader sees ‘watershed’ moment R


KLMNO Newspaperdelivery


Forhome deliverycommentsorconcerns contactusat


washingtonpost.com/subscriberservices or send us an email at homedelivery@washpost.com


or call 202-334-6100or800-477-4679


To subscribe 1-800-753-POST To adverTise


washingtonpostads.com


Classified: 202-334-6200 Display: 202-334-7642 To reachThe Newsroom


Metro:202-334-7300; metro@washpost.com National: 202-334-7410; national@washpost.com


Business:202-334-7320; business@washpost.com Sports:202-334-7350; sports@washpost.com


Ombudsman (reader representative for news coverage): 202-334-7582; ombudsman@washpost.com


To reachThe opiNioNpages


Letters to the editor: letters@washpost.com maiNswiTchboard


To contact any department: 1-202-334-6000


E-replicaEdition:Tosignup: thewashingtonpost.newspaperdirect.com On the Internet: washingtonpost.com


Forthe blindand visuallyimpaired,The Post is available through the National Federation forthe Blind(410-659-9314).


Publisheddaily(ISSN 0190-8286).POSTMASTER: Send addresschangesto TheWashington Post,115015thSt. NW,Washington, DC. 20071. Periodicals postage paid in Washington, D.C., and additional mailingoffice.


ay Scheppachmay not be a household name in Washington, butwhen he


steps down early in the newyear as executive director of the NationalGovernorsAssociation, the capitalwill have lost one of itsmost knowledgeable and valuable public servants. Scheppach has spent three


decades at the intersection of state and federal governments. He has sized up rising political talent (two governors fromhis years, Bill Clinton ofArkansas andGeorgeW. Bush of Texas, went on to become president).He hasweathered partisan upheavals and survived internal strains that threatened to disrupt the generally bipartisan organization. He is nowpreparing for the


next chapter of his careerwith a move to theUniversity of Virginia.As he reflected on his years at theNGAa fewdays ago, he acknowledged that the decision to depart is bittersweet, as it comes during one of the most challenging times that states have ever faced. Scheppach hasworkedwith


governors in good times and bad. His tenure has spanned three


If you can find a better deal, TAKE IT!


THE SUNDAY TAKE Dan Balz


serious recessions.What states are experiencing today, he believes, is farworse than anything that hit themduring the downturns in the early 1980s and early 1990s. “This is probably 80 timesworse than that,” he said. Abudget expert by training


(hewas deputy director of the Congressional BudgetOffice before coming to theNGA), Scheppach offered some arresting statistics to buttress his argument thatwhat the states are going through today is historic—and by nomeans close to being over. From1978 to 2008, state


revenues grewby an average of 6.5 percent annually. In just one year (1983) did state revenues actually fall, and then by less than 1 percent.During 2009-10, states sawtheir revenues decline for five quarters, once by 16.8 percent. “You basically had revenues


fall off a cliff,” he said. “The financialmeltdown and the great recessionwas just a huge game- changer, and I think it’s going to last a decade in terms of state impacts.” Though the recessionmay be over officially, history shows that


for the states, theworst times come in years one, two and three after the recession ends. Scheppach said stateswould probably not return to revenue levels they enjoyed in 2008 until 2013 or 2014. So after four decades inwhich


revenues rose virtually interrupted atmore than 6 percent annually, states are in the middle ofwhat could be five yearswith no net revenue growth.Once revenues return to prior levels, stateswill have unmet needs to dealwith, plus the arrival of the newhealth-care lawand the financial costs itwill entail. “When you put that all


together and add health-care reformin themiddle of that in 2014,we’re in a lot of trouble,” he said. Scheppach sees no alternative


tomajor cuts in education funding by the states.Higher education has already felt the pinch, but that is likely to extend to elementary and secondary funding, aswell. “Basically, health care is eating our seed corn,” he said. He recalled the period of the


1980s and early 1990s,when a group ofmostly Southern


governors led the push for education reformin their states and later, several northern governors pushed reforms in the welfare systemthat became models for national changes. Other governorswrestledwith the relationship between Washington and the states— who should dowhat. He describes that as “the


leadership period” in state government, an extraordinarily fertile era for innovation and experimentation.Are those days over?Are today’s state executives doomed only to preside over retrenchment? Ironically, Scheppach thinks not.He sees this era as one of potentially significant creativity and modernization in the states. “So far they’ve been in sort of a


survivalmode,which is consolidate, cut, furlough, fire,” he said of contemporary governors. “But nowyou’ve got to look forward and say: ‘We are in a different growth path.Howdo we redesign the programs, from prisons to elementary and secondary to pensions?’ . . . In thatway it’s awatershed.” Scheppach cited IndianaGov.


MitchDaniels (R) as one governor alreadymoving along this track. “He sawit coming and has done a lot of redesign and streamlining,” he said.He also mentionedNewJerseyGov. Chris Christie (R) as another state executive tacklingmajor changes. “He’s frank and blunt aboutwhere he’s coming from: ‘I’mgoing to hit you upside the head,’ and then he hits you,” he said. “He’s not sneaking up on you.” Scheppach expressed


The innovative 5/5 ARMis designed tomake the financing of yourhome more affordable.


Jumbo & Conforming at the samerate For purchases & refinancing Wepaymost lender’s fees† You pay no points‡


Apply today.


PenFed.org/MortgageDC 800.970.7766 ~ Se habla español.


Allrates andoffersare as of December 21,2010, offeredfor alimited time,and subjecttochange without notice.Rateisvariableand canincrease. Differentterms and conditions mayapplyinPuerto Rico.†Investmentproperties are noteligible for this rate or lender fee offer.ExistingPenFedmortgageisnot eligible for lender fee offer. PenFed pays credit report, flood search, tax setup and appraisal fees. We pay settlement attorney fees if one of our preferred settlement providers is used. If a loan is withdrawn, does not close or the purchase contract is terminated, all third party fees and costs incurred will become the responsibility of the applicant. ‡A new ARM used to refinance an existing PenFed first mortgage will carry a 1% origination fee. Other terms and conditions for lender’s fees may apply; please contact a mortgage rep for details.


They Gave. We Give Back.


PenFed realizes that freedom has aprice. Through our support of the PenFed Foundation, we help provide for the unmet needs of those serving to protect our freedoms today and those who have served their nation in the past.


n This year alone, our Military Heroes® Fund has paid nearly $300,000 in bills to help families of the wounded overcome financial emergencies, and to support day care costs for children of the wounded at military hospitals.


n We’re raising funds to build a $12.5 million Defenders Lodge adjacent to the Palo Alto Veterans Administration Hospital to provide free lodging for veterans of all wars.


n Dream Makers program has placed more than 120 families into their first homes with down-payment grants.


n We’ve provided over $1.7 million as an alternative to predatory lenders through the ARK loan program.


For more information, visit penfedfoundation.org. SALE ENDS JANUARY 2ND


1000’s of items are still available at tremendous savings! This is your last chance to take advantage of our special


Year-End Inventory Reduction Sale prices and floor samples.


YEAR-END INVENTORY REDUCTION


ANNUAL


optimismthat two incoming Democratic governors— California’s Jerry Brown andNew York’sAndrewCuomo—will tackle the fragile fiscal condition of their stateswith fresh eyes and fresh ideas. Scheppach has seen changes in


theNGAover the years.He misses some of themore vigorous debates the governors once engaged in, both privately and publicly.He fears that the state- federal relationship has deteriorated.He seesmore partisanship even in an organization that generally avoids openwarfare.Hewishes governors had a larger voice in the health-care debate this past year. But he has fewreal regrets as he prepares to leave after the annualmeeting thiswinter. FormerNGAchairs offered


bipartisan praise for thework Scheppach has done over the years. “Ray Scheppach is a beacon of fairness in a partisan sea,” saidMichael Leavitt, a former governor ofUtah. “It’s combative and partisan in the world he’s lived in, and to prosper and survive and be respected on both sides of the aisle is tribute to his skill and evenhandedness.” FormerVermont governor


HowardDean said: “He knows policy aswell as anybody in Washington.He has just an extraordinary institutional memory and great ability to get alongwith people across the aisle and survive.” Dean,who can be as combative


a partisan as the best of them, wasNGAchairwhen Republicans captured Congress in 1994,which briefly threatened the organization’s cohesion and put Scheppach in the cross hairs. “Hewas very thoughtful, unflappable, careful, not given to extreme views of either side,” he said. Those are goodmeasures of


ThePentagonFederal Credit UnionFoundationisa501(c)(3) nonprofit. PentagonFederal Credit Unionpaysall labor costs. Your donation goes right to our programs.


Rockville • 301/881-6010 | Dulles • 571/323-6000 www.sheffieldfurniture.com


the kind of contribution Scheppach hasmade to the national debate over almost 30 years and a reminder of the importance of the states in helping solve the country’s problems.


balzd@washpost.com


FINAL WEEK!


FURNITURE


Sale


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156