Implications of college rating idea unknown

Education leaders are praising President Obama's proposal to tie federal aid to a college's value, but worry that creating a single rating system to measure that might be the wrong approach and might discourage students from going into low-paying careers after they graduate.

"It does make sense to link budget allocations to performance and results and not just to enrollment," said Richard M. Freeland, Massachusetts commissioner of higher education. "But I'm not sure one formula for all types of institutions in all regions of the country will make sense."

Under the president's proposal, the federal government would create a rating system by 2015 to guide students to colleges offering the best value based on average tuition, graduation rates, student debt burden, percentage of low- and middle-income students who receive loans, and graduates' earnings.

But Richard Doherty, president of the Association of Independent Colleges and Universities in Massachusetts, said using graduates' earnings as a criteria "builds in a perverse incentive" for students not to go into what are often low-paying professions, such as teaching and social work. And in order to improve graduation rates, colleges might be more selective about the students they admit.

Obama's proposal nevertheless could put pressure on colleges to hold down tuition and graduate more students because federal aid would depend on the value a school provides.

Over the past 30 years, average tuition and fees at four-year public colleges and universities have increased 257 percent in inflation-adjusted dollars, according to the College Board. Wages, meanwhile, have risen only 16 percent.

But Congress would have to authorize any shift in financial aid, and Republicans could try to block the president's proposal.

"Anytime you hear another edict from the Obama administration, you have to think twice," said Tim Buckley, a spokesman for the Massachusetts GOP. "Considering the disastrous implementation of Obamacare, members of Congress would be wise to doubt this program's usefulness. Trying to treat large public universities and small private colleges the same way is another one-size-fits-all solution that is sure to fail."

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Patrick Dempsey out of Tully's Coffee venture

SEATTLE — Actor Patrick Dempsey and his business partner in the venture that acquired Tully's Coffee out of bankruptcy have dissolved their partnership.

In a joint statement late Friday, the "Grey's Anatomy" star and California lawyer Michael Avenatti said their legal dispute has been fully resolved.

Court documents filed Aug. 20 in Dempsey's King County Superior Court lawsuit against Avenatti said the lawyer initially was the sole owner of Global Baristas LLC. The documents say Dempsey joined Global Baristas a short time later. The ownership group prevailed against other bidders including Starbucks in an auction of more than 40 Puget Sound-area Tully's stores.

Dubbed "McDreamy" on the TV hospital drama, Dempsey was the public face of the successful bid. He said Friday he was "happy to have been a part of the effort that brought awareness to the Tully's brand."

Avenatti spokeswoman Suzy Quinn says the lawyer, "with other investors and the Tully's management team," will continue operating the stores.

A report on the dispute was first carried in The Seattle Times.

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Lexus ES300h is total package

Although the Lexus ES300h and its brand mate the Toyota Camry Hybrid roll from the same engineers, it's remarkable how refreshingly different they are.

I had a chance to compare the two when my personal car was in the shop and the Toyota was the rental provided.

The Lexus is everything a Lexus should be — elegant, quiet, polished, well-appointed and technically advanced. The Camry is a good car in its own right but when the checklists were compared, and if you can swing the sticker price, I'd opt for the Lexus at every turn.

The cost-conscience shopper will get great value in the loaded $36,000 Camry Hybrid XLE but I'd dig deep and get the upscale Lexus sedan even with its higher base of $38,850. The level of craftsmanship and refinement in the Lexus is what separates the cars. We tested out at $46,070 with the bulk of the extra cost in the $2,625 navigation and backup camera package.

Let's start by sliding into the comfortable 10-way adjustable leather seats and grasping the bamboo and leather-trimmed steering wheel, all part of the $1,370 Luxury Package. A quick press of the start button begins the experience of driving this hybrid. If the steering wheel doesn't telescope to your preset and the infotainment screen doesn't illuminate, the car isn't running. It's so quiet in fact, I walked away from the car and wondered why the doors would not lock, only to realize that I had forgotten to shut the car off.

The soft touch leather, well-fitted plastic and bamboo trim extend through the cabin and the gentle curves create a comforting but not claustrophobic cabin. Lexus luxury extends to the passengers, too, as rear legroom and personal climate control make all very comfortable.

The ride is confident and secure and a quick turn of the console-mounted knob lets you select the best mode to drive in: ECO, Normal and Sport. Sport sets the steering response and acceleration to very aggressive and quick but decreases gas mileage. Normal is more passive yet with good engine response and ECO softens all for high mileage. I averaged more than 35 mpg while flipping through the modes, which was slightly less than the estimates but personal driving habits will influence final mileage.

Powered by a gasoline/electric motor that has been featured in Toyotas since the Prius was introduced and mated to a very smooth electronically controlled continuously variable transmission, the 200 total horsepower made acceleration response immediate and powerful.

The sweeping, ever-so-slightly aggressive lines are accented by feline-like projector bulb headlights and wraparound taillights. The spacious trunk accommodates plenty of luggage, so with excellent gas mileage, personal space and top-notch luxury, head for the highways. Lexus safety features are prominent and range from Smartstop Technology and parking assist to blind spot monitoring.

There are many fine hybrids on the market now, but if you desire an elegant car with an eye to the environment the Lexus is a great choice.

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The Ticker

UPS drops some spouses from health benefits plan

United Parcel Service Inc. is ending health insurance benefits for U.S. nonunion employees' spouses who can get coverage elsewhere.

UPS estimates that 15,000 of the 33,000 spouses it covers can get insurance from their own employer and will be dropped from the UPS plan. UPS cited the 2010 health care law promoted by President Obama for the change.

"Since the Affordable Care Act requires employers to provide affordable coverage, we believe your spouse should be covered by their own employer — just as UPS has a responsibility to offer coverage to you," the company said in a memo to employees.

Applications for jobless benefits rise

The number of Americans applying for unemployment benefits rose last week after reaching the lowest level in 5 1⁄2 years. But the broader trend suggests companies are laying off fewer workers and could step up hiring in the months ahead.

The Labor Department said yesterday that applications for first-time benefits rose 13,000 to a seasonally adjusted 336,000 in the week ending Aug. 17. That's up from 323,000 in the previous week, which was the lowest since Jan. 2008.

The four-week average, which smooths week to week fluctuations, fell by 2,250 to 330,500. That's the sixth straight decline and the lowest for the average since November 2007.

A & F reports 33% drop in profits

Abercrombie & Fitch is the latest retailer to catch a case of the teenage blues.

A&F's shares plummeted yesterday after the store chain reported a 33 percent drop in second-quarter profit and warned that business would get even worse in the current quarter, which includes the final stretch of the back-to-school selling period. The teen retailer's results missed analysts' estimates and its third-quarter earnings forecast came in well below Wall Street expectations.

The stock tumbled nearly 18 percent, or $8.27, to close at $38.53.

TODAY

 Commerce Department releases new home sales for July.

 451 Marketing announced that Susannah Grossman, left, has joined the 451 Marketing team as account executive. Grossman is responsible for planning and executing communications campaigns for many 451 Marketing clients, including Boston Chops, Deuxave, Puritan & Co. and 51 Lincoln.

 Comverse, a telecom business enablement company, announced that Andreas Herzog has been named to lead the Comverse Managed Services organization. Herzog brings deep knowledge and industry-recognized experience in all aspects of managed/transformation services.

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Back-to-school meets Santa Claus

Toys"R"Us and Walmart got a very early jump on the holiday shopping promotions machine this week — for Christmas, not Halloween — by announcing price-matching and layaway policies for the most important sales period of the year.

Their unseasonable entree is indicative of how much more competitive it will be this year for stores to attract consumers who are closely guarding their wallets.

"They're going to be out there marketing Christmas early — the creep is going to continue," said analyst Ken Perkins, of Swampscott's Retail Metrics. "Consumers are not seeing significant wage gains, so there's not a particularly large, growing pie of discretionary dollars to spend. We're seeing it in back-to-school, and I think we'll see it again in the holiday season."

As a result, retailers have to be pretty promotional to drive traffic and sales. Toys"R"Us expanded its in-store "price match guarantee" to include pricing from e-tailers such as Amazon, Walmart.com, Target.com and BestBuy.com.

"We want to take away any concerns our customers might have about maximizing their budgets," chief merchandising officer Richard Barry said in a statement.

The announcement came a month and a half earlier than Toys"R"Us' introduction of its price-matching program for brick-and-mortar competitors last October.

Walmart, meanwhile, will roll out its holiday layaway program earlier this year — on Sept. 14; Sept. 11 for Facebook fans — and will eliminate the $5 opening fee. It also increased the number of items available for layaway to 35,500, from 34,500.

"Times are tough and it's not easy for many Americans — they are watching every penny," chief merchandising and marketing officer Duncan Mac Naughton said in a statement. The company reinstated a $10 cancellation fee, however.

Walmart last week attributed softer-than-expected sales to cautious consumers. Its lower-income customers, in particular, are stressed by higher payroll taxes and gas prices, and they haven't benefited from a stronger jobs market or wage increases.

The beefed-up layaway program is a smart move that caters to a consumer trend, born of the Great Recession, of not wanting to accumulate debt, said Jon Hurst, president of the Retailers Association of Massachusetts. "Layaway is all about those early shoppers who want to ... lay aside some gifts without putting the whole cost on a credit card," he said. "If you're going to do a layaway program, you probably want to start announcing it and promoting it when the consumers are in the stores for back-to-school shopping. A lot of these types of holiday gifts are impulse buys."

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Five Hub homes that flew off the market

As interest rates creep up, demand for housing is still strong. Here is a look at several homes that sold in Boston last week. All of the properties sold within eight to 22 days and some properties sold for more than the asking price.

Unit 1 at 67 Green St. in Charlestown was listed for $479,000 and sold for $515,000. The one-bedroom-plus condo, close to Monument Square, has deeded parking that leads to a brick patio as well as the entrance. Inside the 1,175-square-foot condo is a gourmet kitchen featuring black granite countertops, custom maple cabinetry and stainless steel appliances. The open living room has a gas fireplace, hardwood floors and wooden shutters. Also included is central air and extra storage space. It was sold by Noel Atamian of Hammond Residential in 11 days.

Rene Rodriguez of Cabot and Co. sold Unit 2 at 608 Tremont St. in the South End for $604,000 — $65,000 over the $539,000 list price. The spacious two-bedroom condo plus study is centrally located at Tremont and Dartmouth streets. The 1,152-square-foot home has an open concept living and dining room featuring high ceilings, hardwood floors and a fireplace.

The galley style kitchen also has a separate wall oven. There is excellent closet space as well as an oversized bonus room that can function as a media room, library or den. It sold in eight days.

In Back Bay, the 997-square-foot home 80 Marlborough St., Unit 1, sold by the Ranco and DeAngelo team at Hammond Residential, went for the list price of $619,000. Located on the second block in Back Bay, the sprawling one bedroom features many special touches such as a separate office alcove, a private entrance and an exclusive-use brick patio. There are custom finishes throughout the condo, including top-of-the-line appliances, oversized crown moldings, wooden blinds, accent lighting and custom built closets. There is also central air, an alarm system, a private laundry and an extra-large master closet. It sold in 22 days.

On Beacon Hill at 36 Hancock St., Unit 1B was listed for $565,000 and sold for $570,000. The newly renovated two bedroom has an open design kitchen with a charming adjacent breakfast nook. The fireplaced living room has extensive built-in bookshelves, high ceilings and exposed brick.

The versatile 844-square-foot layout contains a beautifully renovated bath and is located in a professionally managed building on a desirable tree-lined street just steps to Whole Foods and the T. There is also a common roof deck in the building with panoramic views of Boston. It was sold by the Ivy Team at Keller Williams Realty. In the Moss Hill area of Jamaica Plain, located at 181 Moss Hill Road, is a four-bedroom, single-family home that was listed for $689,000 and sold for $688,000. The more than 2,000-square-foot home also includes three full bathrooms that have been newly renovated. The open floor plan highlights the oversized living room/dining room as well as the sun room and inground pool. This meticulously maintained home also has a master suite with new closet systems, central air conditioning, two fireplaces and a finished basement with a full bathroom. It was sold by Sarah Carroll of Coldwell Banker Residential Brokerage.

Jennifer Athas is a licensed real estate broker. Follow her on Twitter @Jenathas.

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Is Zuckerberg’s Internet mission too self-serving?

Granting Internet access to the 5 billion people worldwide who currently lack it is a moral imperative, but Mark Zuckerberg is not the right person for the job.

The Facebook CEO and founder gained gushing praise when he announced the formation of a business coalition to bring mobile Internet access to underdeveloped areas earlier this week. Zuckerberg posted a lengthy position paper late Tuesday declaring Internet access a fundamental human right as he announced the partnership, dubbed Internet.org, with Ericsson, Nokia, Samsung and the chipmaker Qualcomm. The group will focus on researching ways to make data cheaper and bring mobile technology to underserved parts of the world.

The problem is that Zuckerberg wants to be Bill Gates both during and after Microsoft. He wants to run the most powerful social networking platform on Earth and simultaneously become the world's foremost humanitarian. But he can't do both at once. Not credibly, at least. His position paper makes this all too clear. In it, Zuckerberg admits that Facebook has nearly reached its saturation point in the Western world, noting that fact was what sparked this quest. There are too few customers left. If he wants more, he has to create them.

The most eyebrow-raising part of Zuckerberg's white paper is a hypothetical he poses. He posits, without evidence, that if you asked people who have grown up in an undeveloped area whether they want a data plan, they won't know what a data plan is. But, he says, if you ask those same people whether they want Facebook access, "they're more likely to say yes."

He's not so much advocating for pure Internet access as he is saying that Facebook is to be the Internet. He undercuts his entire argument with these hints of indoctrination.

Zuckerberg's plan currently focuses on the mobile space. Think smartphones and tablets. It's no coincidence that this same area is where Facebook is most focused.

Zuckerberg is a noted philanthropist, as anyone worth $16 billion should be. He doesn't have bad intentions. But he suffers from a conflict of interest, and a bit of cluelessness. He has no idea what it took, for instance, for the One Laptop Per Child program to distribute Motorola Xoom tablets to 20 children in a remote village of Ethiopia. The day that Mark Zuckerberg travels from village to village and mudhut to mudhut interviewing parents and children with a translator, as OLPC did for weeks, is the day he'll start to be a real player in one of the most important humanitarian causes of our time.

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Gaming co. cuts its losses, looks to Plainville for slots

Penn National Gaming is looking to Plainville for a reprieve and a shot at the sole slots parlor license in the state, a Plainville town official said a day after voters in Tewksbury shot down the company's slots proposal there.

"There are discussions going on as we speak," Plainville Town Administrator Joe Fernandes told the Herald yesterday. "They're an applicant without a location and we're a location without an applicant."

Tewksbury residents rejected zoning changes Tuesday that would have allowed Penn National's $200 million slots parlor plan, which included a restaurant proposal by former BC star and CFL and NFL player Doug Flutie, to move forward.

Fernandes said the Pennsylvania company is in talks with the owners of Plainridge Racecourse, who were disqualified earlier this month from seeking the slots parlor license by the state Gaming Commission, citing systemic issues including a lack of attention to detail and interest in running a casino.

The owners of Plainridge are now exploring other options, including leasing or selling the property.

A spokesman for Plainridge declined to comment. A spokesman for Penn National declined to comment on talks about any new locations.

"Penn National is going to take a step back and take some time to determine what, if any, options they want to consider in Massachusetts," spokesman Will Keyser said.

Penn National is slated to go before the state Gaming Commission later this month for a suitability hearing to determine if it qualifies to move ahead with a slots proposal and Keyser said the company will continue with that process. Gaming Commission spokeswoman Elaine Driscoll said the commission has no problem holding the hearing if that 
is what Penn National wants to do.

Plainville has left the door open for another company to come in, deciding to go ahead with a town-wide referendum Sept. 10 despite the lack of a slots partner.

Driscoll said the town is welcome to find another partner.

"The gaming statute allows for a considerable amount of local control at this point in the process," she said.

Three other proposals have been qualified by the commission to move ahead on slots proposals — Raynham Park; Mass Gaming & Entertainment, a subsidiary of Rush Street Gaming; and PPE Casino Resorts, affiliated with Baltimore-based Cordish Cos.

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The Ticker

Staples' stock slumps on profit forecast cut

Staples Inc., the world's largest office supplies chain, slumped the most in more than two years after cutting its annual profit forecast because of declines in its retail and international business. The shares slid 15 percent to $14.27 at yesterday's close in New York for the largest drop since May 18, 2011. Staples has gained 25 percent this year, compared with a 15 percent increase for the Standard & Poor's 500 Index.

Fed seems on track to slow bond buys

The Federal Reserve appears on track to slow its bond purchases by the end of this year if the economy continues to improve. But it remains divided over the exact timing of the move. That's the message from the minutes of the Fed's July 30-31 meeting released yesterday.

A few policy makers said they wanted to assess more economic data before deciding when to scale back the central bank's $85 billion a month in Treasury and mortgage bond purchases. These policy makers "emphasized the importance of being patient," the minutes said.

Huff Post to end anonymous comments

The Huffington Post will end anonymous commenting on the site, Arianna Huffington told media in Boston yesterday. Citing an increase in malicious comments, she said the site, which has received 260 million comments since its inception, will make the change in mid-September.

"Trolls are just getting more and more aggressive and uglier and I just came from London where there are rape and death threats," she said.

TODAY

 Labor Department releases weekly jobless claims

 Freddie Mac, the mortgage company, releases weekly mortgage rates

 Gap Inc., Sears Holdings Corp. report quarterly financial results.

TOMORROW

 Commerce Department releases new home sales for July.

 TD Bank has named Theresa K. Conroy, left, as vice president, relationship manager, based in Boston. She is responsible for providing full-service solutions, including lending, cash management, deposits and foreign exchange to commercial banking customers in Greater Boston. Conroy has nine years of experience in commercial banking and lending. Previously, she served as a credit officer with Sovereign Bank/Santander in Boston.

 Wood Palace Kitchens, a premier cabinetry distributor representing select manufacturers and providing turnkey services for customers, announces the appointment of Barbara Spaulding as kitchen designer and sales representative. In this dual role, Spaulding works with customers to custom design their kitchens, in addition to developing new business.

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Report: Medical industry robust in Massachusetts

Massachusetts continues to lead the nation in R&D jobs and federal research funding per capita, though smaller biotech clusters in New York and Washington, D.C., are growing at faster rates, according to the Massachusetts Biotechnology Council's annual industry report.

In 2012, the state's biopharma industry added 365 jobs for a total of 56,462, including 27,883 in biotechnology research and development — more than in any other state.

From 2007-12, Massachusetts added 3,227 jobs in biotech research and development, second only to California's 4,304. But the Bay State's 13.1-percent growth over that period was outpaced by Washington's 53.8 percent, New York's 41.7 percent and California's 22.5 percent growth.

"It says we maintain a very strong position nationally and globally, but it does also raise questions about what's next," said Peter Abair, MassBio's director of economic and global affairs. "We need to consider what's going on in smaller clusters like D.C. and New York and see if we can learn from that."

In addition to the jobs the biopharma industry added, the medical device industry added 205 jobs last year for a total of 23,151, a figure that is closer to more than 70,000 if jobs at companies that manufacture components of medical devices are included, said Thomas Sommer, president of the Massachusetts Medical Device Industry Council.

"It's modest growth," Sommer said. "It reflects the fact that the industry is challenged by the 2.3 percent medical device excise tax that went into effect Jan. 1."

Only California and Minnesota employed more people in the medical device industry last year, with 74,377 people and 29,087 people, respectively, according to the MassBio report.

Massachusetts also trailed California in National Institutes of Health funding in 2012. California received $3.47 billion — more than any other state — while Massachusetts came in second with $2.56 billion.

On a per-capita basis, however, Massachusetts led all states by far, with $391 per person, compared to $93 in California. And half of the top 18 NIH-funded research hospitals are in the Bay State.

Venture investment in Massachusetts biotechs declined from an all-time high of $1.07 billion in 2011 to $838 million last year, or 21 percent of all U.S. venture capital. Nationally, venture investment in biotech declined 15 percent in 2012.

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