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Rick Gates, the key prosecution witness in the tax and fraud trial of former Trump campaign chairman Paul Manafort, testified Monday he had committed crimes alongside and at the direction of his former partner -- and had also stolen from Manafort himself.In stunning testimony at Manafort's trial on tax and fraud charges, Gates stated he and Manafort had 15 foreign accounts they did not report to the federal government, and knew it was illegal. Gates said he did not submit the required forms "at Mr. Manafort's direction."Gates then admitted that he also turned the tables on Manafort -- cheating him out of "several hundred thousand" dollars by submitting false expense reports that were paid out of some of the undisclosed foreign bank accounts in Cyprus.The testimony from Gates, a former adviser to Donald Trump, comes after reaching a plea deal with special counsel Robert Mueller earlier this year to testify against his former partner in a lucrative international political consulting firm.Manafort stared directly at Gates as he read aloud the details of his plea agreement, which could see him receive a reduced sentence, at the direction of a prosecution lawyer.Gates did not make eye contact with Manafort as he took the stand wearing a yellow tie and navy blue suit.Prosecutors allege that Manafort financed a lavish lifestyle featuring sumptuous residences and extravagant wardrobes by using millions of dollars in profits that he hid from tax authorities then turned to bank fraud when his income started to dry up. Manafort has pleaded not guilty to all charges.  1595

SACRAMENTO, Calif. (AP) — California lawmakers and Gov. Gavin Newsom broadly agree on a proposed 3 billion state budget that would spend more on immigrants and the poor by expanding tax credits, health care and child care.But they're still debating how far those program expansions should go and how best to pay for them.They're now in the final days of negotiations ahead of a June 15 deadline for lawmakers to approve the budget or stop getting paid.California law requires legislation to be in print for 72 hours before lawmakers take a vote, which means any deal would have to be struck by Wednesday.TAX CREDITNewsom wants to spend roughly 0 million to expand a tax credit program for low-income people with children under the age of 6. The program is known as the earned income tax credit, but Newsom prefers to call it a "cost-of-living refund."His plan would increase the credit to ,000 a year and allow more people to access it. He wants the state to pay it out on a monthly basis, something no state has won federal approval to do.He acknowledged it might not happen this year if California can't win approval from the Trump administration.The Senate and Assembly want to expand the credit even further by allowing people living in the country illegally to claim it. Newsom has suggested that would be too expensive.TAX LAW CHANGESTo pay for a tax credit expansion, Newsom wants California to adopt some of the changes to the federal tax code signed in 2017 by President Donald Trump. California is one of three states that haven't yet conformed.Newsom wants to generate about billion a year through changes that would mostly raise taxes on businesses. Lawmakers have not included the changes in their version of the budget and want to use existing tax dollars to cover the expanded program. State officials have predicted a surplus of .5 billion.Changing the tax code would require a two-thirds vote in each chamber, and many lawmakers are skittish to approve a tax increase.Newsom tried to ease those concerns by getting the head of the California Taxpayers Association to publicly declare his organization is neutral on the proposal.HEALTH CARE FOR IMMIGRANTSCalifornia Democrats say they want to reduce the state's uninsured rate to zero, a goal that would require opening Medicaid — the joint federal and state health insurance program for the poor and disabled — to people living in the country illegally.Newsom's proposal would do that for adults 19 to 25. The state Senate went a step further and expanded the plan to include people 65 and older.Newsom opposes the Senate plan, saying it puts too much pressure on the general fund.INDIVIDUAL MANDATENewsom wants to spend nearly 0 million to make California the first state to expand subsidies for premiums under the federal health care law to people who make at least six times the U.S. poverty level.That would make a family of four earning up to 0,600 a year eligible for help.To pay for it, Newsom wants to tax people who don't have health insurance.The Senate wants to double Newsom's proposed spending to expand subsidies for people making less than twice the federal poverty limit. They already get help from the federal government and the state Senate's proposal would also give them state dollars.The Senate proposal also calls for keeping the tax on the uninsured, but it does not tie that money to subsidies.HEALTH PROVIDER TAXA health provider tax would affect companies that manage the California Medicaid program. Those companies, called managed care organizations, pay a tax for every person they enroll.The tax could bring the state about .8 billion next year, but it's set to expire June 30.California would need permission from the Trump administration to extend the tax. Newsom is not sure that will happen, so he did not include the money in his budget proposal. The state Senate and Assembly did.DRINKING WATERActivists say more than 1 million Californians don't have clean drinking water.Newsom wants to impose a 95-cent tax on most monthly residential water bills, as well as fees on dairies, animal farms and fertilizer sellers, to help water districts pay for improvements and boost supplies.The Senate has rejected the tax that Newsom estimates would generate 4 million a year. The Senate does want to clean up water systems and would use existing money to do it.The Assembly says lawmakers should delay action until later in the year.DIAPER AND TAMPON TAXNewsom and the Senate want to exempt diapers, tampons and other menstrual hygiene products from the state sales tax for two years. Assembly lawmakers say the tax exemption should last a decade.PAID FAMILY LEAVENewsom and the Senate want to expand paid family leave from six weeks to eight weeks, beginning July 1, 2020. The Assembly did not put the expansion in its budget proposal, preferring to debate the issue later this year. 4911

SACRAMENTO, Calif. (AP) — California’s unemployment rate fell to a new record low of 3.9% in October.The California Employment Development Department says the state added 23,600 nonfarm payroll jobs during the month.The previous record low was 4% set in September.The department says October’s gains extend California’s record jobs expansion to 116 months. 364

ROCHESTER HILLS, Michigan — A Michigan man is accused of trying to kill a teen after the boy allegedly knocked on his door for directions.Jeff Zeigler, 53, a former Detroit firefighter, is charged with assault with intent to murder over the incident.Lee Kolozsvary, a long-time friend of Zeigler's says he's blown away by the allegations and thinks he was just trying to scare away the teen at the door.During a hearing on Friday, Zeigler said the public isn't hearing the whole store.Brennan Walker, 14, got lost on his way to school without a phone after missing the bus."I guess I put my hand up, I don't really remember, and I started to run," Walker said. "I looked back behind me and I saw him aiming at me and I turned back. I turned back and I heard the gunshot."Walker's family said the thought he was trying to break in. It was all caught on security video.Kolozsvary says he doesn't think Zeigler had any intent to kill."The Jeff Zeigler I know, he's a good guy," Kolozsvary said. "I know what kind of family man he is and I don't think he had any malice whatsoever toward that young man except for the protection of his home." 1156

SACRAMENTO, Calif. (AP) — California voters on Tuesday rejected a ballot measure that would have capped dialysis clinics' profits in an effort to improve patient care.Proposition 8 would have limited profits for dialysis clinics that provide vital treatment for people whose kidneys don't work properly.The measure was the most expensive initiative on the 2018 ballot in California, generating more than 0 million in campaign contributions. A health care workers union, Service Employees International Union-United Healthcare Workers West, funded the million supporting campaign. Dialysis companies contributed more than 1 million to kill the initiative.The union argued Proposition 8 would stop the dialysis companies from cutting corners to make money and force them to invest more of their revenue into patient care. Supporters say the profit-hungry companies don't adequately clean clinics and overwork staff.Dialysis providers say the measure was actually a tactic to pressure the dialysis companies to let workers unionize and would have forced clinics to close. They say most California clinics provide high quality care.Dialysis companies' effort to kill the measure was the most expensive campaign on one side of a ballot initiative in the U.S. since at least 2002. Most of that money came from the two largest dialysis companies operating in California: Denver-based DaVita Inc. and Germany-based Fresenius Medical Care.The measure would have barred dialysis clinics from charging patients more than 115 percent of what providers spend on patient care and quality improvement. If clinics exceeded that limit, they would have to provide rebates or pay penalties.Although the measure didn't spell out exactly which expenses counted toward the limit, dialysis companies argued critical management expenses would be classified as profits and bankrupt clinics.RELATED CONTENT 1898