Falling home sales hurt state's income

Olympia

A cooling housing market helped cut about $132 million from the state's expected income, dropping the government's total surplus to less than $1.4 billion as Gov. Christine Gregoire and lawmakers prepare to update the state budget.

ChangMook Sohn, the state's chief economist, said Thursday the income drop was the first substantial setback in quarterly revenue projections in about four years.

With Thursday's lower forecast, that market softening seems to have finally applied some brakes to Washington's economy — an event that state budget leaders have been expecting for some time. Most of the lower forecast was caused by shrinking real-estate excise-tax collections, Sohn said.

Olympia

5 anti-war protesters arrested at Port

Five anti-war protesters were arrested Thursday after trying to block the movement of military equipment out of the Port of Olympia.

Several semi-trucks moved at least a dozen military vehicles, including Stryker vehicles used in Iraq, out of the port and back to the Fort Lewis throughout the day without incident. In the afternoon, five protesters sat down in the intersection in front of the port and were pepper-sprayed by police before being arrested.

Seattle

UW conduct rules apply off-campus

University of Washington students caught disturbing the peace in an area north of campus that includes Greek Row now will be subject to university discipline.

Previously, the Student Conduct Code had applied only to on-campus violations. But the UW Board of Regents voted Thursday to extend the code to the "North of 45th" area for public-nuisance violations such as excessive noise, theft, property destruction, urinating in public and criminal trespass.

In addition, students found physically harming or abusing others anywhere off-campus now will be subject to on-campus discipline.

Everett

School teacher fired over newspaper

A journalism teacher in the Everett School District has been fired after the district said she helped students publish an underground newspaper using school resources and during school hours. Kay Powers, 65, was notified by the district Nov. 2 that she had been fired after a five-month probe.

Powers, who has taught English at Cascade High School for 22 years, was placed on paid leave June 1 after one of her students was suspended for downloading newspaper files from a school computer.

The student newspaper was being published off-campus in support of a lawsuit brought by Everett High School students who argued that school administrators did not have the right to review their newspaper before publication. A federal judge sided with the district.

Powers has asked for an administrative hearing to appeal her termination.

Alaska

Wal-Mart defends crab packaging

In a statement released Thursday, Wal-Mart has defended its sale of Russian crab in a box that prominently features a famous Alaska skipper — Sig Hansen — and his vessel, the F/V Nothwestern.

"The product in question is supplied to Wal-Mart Stores Inc. by Global Fishing. While the boxes feature a front picture of the Northwestern and the signature of 'Capt. Sig,' the crab is identified as a product of Russia, packed in the United States," according to the statement released by Jennifer Spall, a senior manager of public affairs.

The statement is in response to calls from state Rep. John Harris, R-Valdez, for an investigation into what he alleged was fraudulent marketing.

Hansen, who gained fame fishing off Alaska on the Discovery Channel's "Deadliest Catch," is lending his name and vessel image to Russian crab.

Seattle Times staff and news services