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'Poverty rates lowest since 1979 by Genaro C. Armas Associated Press WASHINGTON - The nation’s pover ty rate dropped to 11.8 percent in 1999, the lowest since 1979, while median household incomes reached a record liigh, according to new Census Bureau data released Tuesday. There were 32.2 million people liv ing in poverty in 1999,2.2 million few er dian the year before, according to the agency’s annual report on income and ^ poverty. The overall poverty rate in 1998 was 12.7 percent. In addition, 16.9 percent of the na tion’s children were in poverty, also the lowest since 1979. Democrats and Republicans were quick to take credit for the good news. “This is a good day for America,” President Clinton said, calling attention to the poverty figures six weeks before the election. “We have proved that we can lift all boats in a modem, global, information-based economy.” Clinton spoke before about 100 staff members of the Office of Management and Bucjget and the Council of Economic Advisers after the Census Bureau re leased its report. The president called it “another economic milestone” for the Clinton-Gore administration. “These exciting developments are the direct result of the welfare refomi law Republicans wrote and finally pushed into law in 1996,” said Rep. Clay Shaw, R-Fla., a member of the House Ways and Means Committee. He said that without welfare reform, there would be “more children in poverty and more adults getting a welfare check in stead of a paycheck.” Every racial and ethnic group expe rienced a drop in both the number of poor and the percent in poverty, as did children, the elderly and people ages 25 to 44, said Census Bureau analyst Daniel Weinbeig. “Declines in poverty were con centrated in metropolitan areas, partic ularly central cities. And, on die income side, this was the fifth consecutive year that households experienced a real an nual increase in income,” Wfeinbergsaid. Accounting for inflation, the me dian income level for die nation’s house holds rose 2.7 percent from $39,744 in 1998 to a record-high of $40,816 last year. The average poverty threshold for a family of four in 1999, also account ing for inflation, was $ 17,029; for a fam ily of three, it was $13,290. Except for whites, the poverty rate for the nation’s major racial and ethnic groups set or equaled historic lows, the Census Bureau said: -African-Americans, 23.6 percent. -Hispanics, 22.8 percent. -Asian and Pacific Islanders, 10.7 percent. -Non-Hispanic whites, 7.7 per cent. Based on comparisons of two-year averages (1998-1999 and 1997-1998), the Census Bureau said no state showed a significant increase in poverty rates, while the District of Columbia and sev en stales - Arizona, Arkansas, Califor nia, New York, South Dakota, Utah, Vir ginia - showed decreases in poverty rates. Income levels for the major racial and ethnic groups also increased: -AfricaikAmericans, $27,910. -Hispanics, $30,735. -Asian and Pacific Islanders, $51,205. -non-Hispanic whites, $44,366. The median household income was up in 1999 in the Midwest ($42,679) and South ($37,422), but was statisti cally unchanged from 1998 in the North east ($41,984) and West ($42,720). A Supreme Court sends Microsoft case down to appeals court by Laurie Asseo Associated Press WASHINGTON - The Supreme Court on Tuesday sent the Microsoft antitrust case to an appeals court, effectively de 6 laying efforts by the government to break the software giant into two parts. The decision amounted to a tactical victory for Microsoft in the drawn-out legal battle. It had asked the justices to take tliat course. The Justice Department wanted the nation’s highest court to by pass that step and hear arguments this winter over whether the company must be broken up. The court acted on an 8-1 vote, with Justice Stephen G. Breyer dissenting. “Speed in reaching a final decision may help create legal certainty,” Brey er wrote, contending the Supreme Court should hear the case now. Microsoft is seeking to overturn U.S. District Judge Thomas Penfield Jackson’s ruling that it engaged in illegally anti competitive conduct. The judge in June • ordered the company split in two, but he postponed enforcement of the order dur ing Microsoft’s appeal. Tlie court action came as it got a jump on next Monday’s start of the 2000-2001 term. The court granted review in a dozen other cases. Microsoft spokesman Jim Cullinan said after Tuesday’s court action, “Wfe’ve always said we’re confident that this will be overturned on appeal, whether it was heard by the Supreme Court or the Court of Appeals.” “We look forward to presenting our aiguments to the Court of Appeals, where we will outline a nnniher nf errors com mined by the district court in this case,” he said. ^ Justice Department spokeswoman ^ Gina Talamona said, “We look forward ' to presenting our case to the Court of Appeals as expeditiously as possible.” “This is a serious setback for the gov ernment,” said William Kovacic, a George Wasliington University law professor and antitrust expert. “Their strategy was to 1 speed this case to resolution as quickly as possible... I tliink the government gam bled and failed. At this point, I tliink the possibility of breakup is next to zero.” s He said it might be a good time for the 1 government to go back to the bargaining s table with Microsoft. s Justice Department antitrust chief 1 ^foel I. Klein has said the government al ways remains ready to resume settlement P talks with the company if it is willing to P address wliat Klein called the fundamental c issues in the case. Although Klein leaves 41 the government Friday, his top deputy, l' A. Douglas Melamed, who worked close- " ly with Klein on the Microsoft case, will replace him and is not expected to alter the government's approach to the case. J Microsoft shires were up $3 to $64.25 in trading on the Ntisdaq Stock Market. C! A federal law allows major ;uititrust 1 cases to skip the appeals court step and 1 move straight from a trial court to the c Supreme Court if the justices grant di rect review. ^t Microsoft urged the justices not to Jl do so, contending the case is too com- w ajjlicatcd and that the appeals court should ^ clear out the procedural and factual un- so derbrush first.” The Justice Department said taking the case through the appeals court would delay a final ruling by at least a year. A long appeals process “could irreparably harm competition in a vital and rapidly evolving sector of the national econo my,” government lawyers contended. The justices also declined to hear a case against Microsoft filed by 19 states that joined the Justice Department in su ing the company in 1998. Jackson ruled that Microsoft illegal ly sought to maintain its monopoly over the operating systems that run personal computers. The judge also said Microsoft unlawfully tied its Wfeb brows er to its Windows operating system, which runs most of the world’s personal com puters. “Microsoft placed an oppressive thumb on the scale of competitive for tune, thereby effectively guaranteeing its continued dominance,” Jackson wrote in April when he ruled that Microsoft vi olated the Sherman Act. the same law used to break up monopolies from Standard Oil to AT&T. He ordered Microsoft to split itself into two companies. One would sell Win dows and the other would sell all other Microsoft software such as its “Word” program and Internet browser. The judge also ordered Microsoft to give other developers technical infor mation about the way Microsoft operat ing systems interact with its software, which would aid them in making their own products. Also, Microsoft would no longer control what icons are on the Win dows operating screen when a user buys a computer. Microsoft Chairman Bill Gates, the harvard University dropout who helped mild Microsoft into one of the world’s ichest companies, insists the Seattle >ased company has broken no antitrust aws. “This is clearly the most massive ittempt at government regulation of the echnology industry ever,” Gates said aft er Jackson issued the breakup order in une. Microsoft’s appeal called the order radical and unwarranted" and said Jack on made numerous errors in the case, "he company also complained about Jack on s contacts with reporters, saying he lould be disqualified if the case ever re lmed to the trial court level. The company sought to take its ap eal first to the U.S. Circuit Court of Ap eals for the District of Columbia be mse that court has reversed Jackson’s ocisions on Microsoft-related matters rice in the past. The Justice Department anted to avoid the Court of Appeals for ie same reason. The AT&T breakup produced the on two other appeals the Supreme ourt has taken directly from the trial iurt since the justices were given such scretion in 1974. In those cases, the ipreme Court summarily rejected chal lges to the AT&T breakup agreement. In a statement attached to the preme Court’s order Tuesday, Chief slice William H. Rehnquist said he mid not disqualify himself from han ng the Microsoft cases although his i is a partner in a Boston law firm hired Microsoft in another case. Consumer confidence higher than expected by Amy Baldwin Associated Press NEW YORK - Consumer confi dence rose more strongly than ex pected in September, which could bode well for holiday retail sales. The New York-based Conference Board said its Consumer Confidence Index now stands at 141.9, up slight ly from the revised 140.8 reported in August but down considerably from the record 144.7 registered in Janu ary and May. The index came in slight ly above the 141.5 that Will Street analysts were expecting. The Conference Board index, based on a monthly survey of some 5,000 U.S. households, is closely watched because consumer spending accounts for about two-third’s of the nation’s economic activity. The in dex compares results to its base year, 1985, when it stood at 100. The markets were lower fol lowing the consumer confidence re port. The Dow Jones industrial av erage was down 123 points to 10,685 pouits, while the Nasdaq composite index was down 12 points to 3,729 points. “Despite higher gasoline prices this summer and the prospect of high er heating oil costs this winter, con sumers remain in an upbeat mood,” said Lynn Franco, director of the Con ference Board’s Consumer Research Cotter. “Nothing in this latest survey suggests the economy will run out of steam soon.” Not only did consumers’ confi dence increase, but so did their ex pectations for the future. The index tracked expectations for better eco nomic conditions in the next six months at 114.7, up slightly from 113.9 last month. Despite the rising energy costs, the feeling among 18.4 percent of Americans is that the economy will continue to improve over the next six months. That’s up slightly from 17.2 percent in August. “The big increase is in expecta tions. It suggests consumers are still optimistic about the future,” said Gary Thayer, chief economist with A.G. Edwards & Sons Inc. in St. Louis. “What it shows is the increase in en ergy prices this summer are not re ally filtering through the whole econ omy.” Thayer predicted holiday retail sales will rise slightly, particularly if colder weather holds off. “People’s finances are still in pret ty good shape,” he said, however, “if a cold snap hits early, it might affect holiday spending.” Charles Haywood, the National City Bank professor of finance at the University of Kentucky in Lexing ton, said he was less certain holiday spending will increase. In fact, consumers might be “sobering up,” and could postpone their shopping trips, he added. “I wouldn’t be surprised if spend ing comes late this year. I think some households will hold off and say, ‘Let’s see where we are closer to Christ mas,’ “ Haywood said. Haywood also predicted con sumers will bargain hunt, some thing retailers griped about last year. The percentage of respondents who rated business conditions as “good” rose more than 2 percent age points, to 48.9 percent from 46.2 percent. The job market also looked bet ter. About 10.7 percent of consumers surveyed in September said jobs were “hard to get,” down from 11.5 per cent last month. Milosevic opposition ready to declare victory in election by Katarina Kratovac Associated Press BELGRADE, Yugoslavia - Yu goslavia’s opposition claimed Tuesday it has enough votes to avoid a runoff against President Slobodan Milosevic, as election officials remained silent on the official vote count. The opposition accused the gov ernment of stalling while Milosevic tries to manipulate the results, either to declare himself the winner or forte a runoff vote on Oct. 8. It said the State Election Commission lias until Wednes day to release the results of Sunday’s election or it would proclaim chal lenger Vojislav Kostunica the win ner. The opposition’s latest Lilly, based on 97.5 percent of the ballots, showed Kostunica leading with 55 percent to Milosevic’s 35 percent. Milosevic’s party had said Monday that with 37 percent of the ballots counted, the pres ident was ahead with 45 percent to Kostunica’s 40 percent. Opposition alliance spokesman Cedomir Jovanovic insisted Tuesday that the election commission convene, calling its silence “unprecedented.” He offered opposition registers and balloting material to assist the com mission if necessary. Milosevic’s officials should “con gratulate the opposition and hand over power without fear,” Jovanovic said, appealing to “reasonable members ... to persuade their leadership to ac cept the results.” The United States and dozens of Europe;m countries have issued stem calls for Milosevic to recognize the opposition tally and step down. British Prime Minister Tony Blair, in a speech Tuesday to a Labor Party conference, said: “And I say to Milo sevic. You lost. Go. Your country and the world has suffered enough.” By midday Tuesday, the commis sion had not reconvened after a brief meeting Sunday night, according to Sinisa Nikolic, a member of the panel from the ranks of the opposition al liance. “Wfe are not even dealing with pre liminary results, and I have no idea where and how the ballots are being counted,” Nikolic said. A Greek parliament member, one of several foreign observers invited by the Yugoslav government, also ex pressed concern about delays in re leasing the results. Carolos Papoulias told an Athens radio station it was cer tain that Milosevic’s party suffered “a widespread defeat” in municipal elec tions. “It also seems that the present coali tion retains a majority in the two par liaments and the third tiling from what we hear is that there may be a second Sunday for the election of a president,” Papoulias told Athens’ Flash radio. The chairman of the commission, Borivoje Vukicevic, told several dozen foreign observers from “friendly” coun tries - such as Russia, China and some African nations - that had mon itored the balloting that the commis sion was working “efficiently and in accordance with the law.” “The elections were free and fair,” Vukicevic said, as quoted by the state Tanjug news agency. “Experience tells us that the citizens have given their trust to those who most deserve it, who are most capable of leading state poli cies of this honorable and dignified na tion.” Tens of thousands of people hit the streets Monday night in-Belgrade and elsewhere across Serbia to cele brate what the opposition and much of the international community has said was a stunning victory ;uid an end of Milosevic’s 13-year autocratic rule. The United States has pledged to lift sanctions against Yugoslavia - which include blocking international bank loans, mi oil embaigo and denying visas to Yugoslav officials - once Milosevic accepts defeat. “We accept Milosevic as an in dicted war criminal. He belongs in The Hague. He doesn’t belong at the helm of the Yugoslav government,” said White House spokesman P.J. Crow ley. “There’s no way that Milosevic can claim a victory.” French Foreign Minister Hubert Vedrine, whose country currently holds the rotating European Union presi dency, on Tuesday urged the EU Com mission to take tlie necessriry measures to lift sanctions against Yugoslavia mid pledged support for the opposition. “Something lias happened widi this vote that will not stop. The hour of change has rung in Belgrade,” Vedrine said. Milosevic’s camp showed itself unprepared to give in, reportedly jam ming the last remaining independent Belgrade radio station - student Radio Index - during its live coverage of the opposition celebration. All other independent electronic media were banned by stale authori ties on the eve of elections last week. News Briefs ■ Two students critically injured in school shooting NEW ORLEANS (AP) - Gunfire erupted at a middle school Tuesday, crit ically injuring two students, authorities said. The shooting took place shortly before noon at Carter G. Woodson Mid dle School in uptown New Orleans, said David Bowser, a police spokesman. Both students appeared conscious when they were taken by ambulances to Charity Hospital, Bowser said. There was no immediate word on suspects. Bowser said there had been sev eral fights reported at the school in the past few weeks. It was unclear whether the shooting was related to the fights. More than 100 parents rushed to the school and lined up outside as officials let small groups enter the building to get their children. The two students were listed in crit ical condition, said hospital spokeswoman Jean Patterson. ■ GOP spent mil lions in states lean ing Democratic WASHINGTON (AP)- Besides giving millions to state parties in Ohio and Michi gan, the Republican National Commit tee also made seven-figure transfers last month to California and Washington state, both of which voted Democratic in recent presidential elections and where close races for seats in Congress are be ing waged this year. Republican officials said they’re . ' not willing to concede either state to Vice President A1 Gore, least of all Califor nia, the nation’s most populous state with one-fifth of the 270 electoral votes need ed to win the White House in Novem ber. But the spending also came in a month that began with Republican presidential nominee Geoige W. Bush ahead in the polls and GOP officials looking to force Gore to defend Democratic strongholds rather than allowing him to go on the of fensive. Polls now show a close race between Bush and Gore. ■ Gymnast stripped of gold after positive drug test SYDNEY, Australia (AP)-Andreea Raducan, the pint-sized Romanian gym nast whose looks and talent remind many of Olympian Nadia Comaneci, was stripped of her all-around gold medal Tuesday after testing positive for a banned drug. The Romanian team doctor who gave the 16-year-old Raducan the drug in two cold medicine pills was expelled from the games and suspended through the 2002 winter games in Salt Lake and 2004 summer games in Athens. Raducan took Nurofen, a common over-the-counter medicine, because she had “a bit of a fever and flu,” said Prince Alexandre de Merode, IOC drug chief. But the drug contains pseudoephedrine, which is on the IOC’s list of banned stint uianu». ■ Protests threaten money summit PRAGUE, Czech Republic (AP) - Brewing anti-globalization protests threat en to tarnish a so-far successful money summit where the world’s finance min isters managed to temporarily brake Eu rope’s sliding common currency and clip the wings of soaring oil prices. Worries about the euro and oil prices topped the agenda during the three days of policy-setting meetings that pre ceded Tuesday’s opening of the joint an nual meetings of the International Mon etary Fund and the World Bank. But conference goers were greeted with good news Monday, when markets rallied to their strong words about coordinated ef forts to push oil prices lower and their implied threat that rich nations might in tervene again to buy more euros and keep the currency buoyed. Oil prices fell, but the euro held firm after Friday’s central bank intervention to stop its worrisome slide.