1 of 2. U.S. President Barack Obama (3rd L) hugs Sarah Davino (L) and Mary Davino (2nd L), as he awards the Presidential Citizens Medal posthumously to their family member Rachel Davino, a teacher who gave her life in the Sandy Hook school shooting in Connecticut in December, in the East Room at the White House in Washington, February 15, 2013.

WASHINGTON | Fri Feb 15, 2013 2:53pm EST

WASHINGTON (Reuters) - President Barack Obama marked a poignant moment in his push to curb gun violence as he awarded presidential medals posthumously on Friday to six educators killed in the Newtown school massacre, saying they gave their lives to protect "the most innocent and helpless among us."

Consoling tearful relatives as they stepped on stage at the White House, Obama paid homage to the four teachers and two administrators killed in the December 14 shooting rampage at Sandy Hook Elementary School in Connecticut, a tragedy that sparked nationwide calls for tighter gun control laws.

Though Obama made no public mention of his gun-control drive, the solemn ceremony unfolded against the backdrop of vocal resistance from gun advocates and their supporters on Capitol Hill to any new restrictions. In private, however, the president was said to have assured victims' relatives: "We're really trying to get something done."

As Obama handed out the Presidential Citizens Medals, the nation's second-highest civilian honor, he focused on the slain women's courage. Twenty first-graders were also killed in the attack, which was carried out by 20-year-old Adam Lanza.

They came to school that morning with "no idea that evil was about to strike," Obama told the audience. "And when it did they could have taken shelter by themselves, they could have focused on their own safety, on their own well-being, but they didn't."

"They gave their lives to protect the precious children in their care and gave all they had for the most innocent and helpless among us. That's what we honor today."

Obama, who has called the day of the mass shooting the worst of his presidency, is moving swiftly to try to build momentum for gun control legislation. He even used his otherwise policy-heavy State of the Union address on Tuesday night to make an impassioned appeal for lawmakers to act.

But he faces an uphill battle against a powerful pro-gun lobby and a strong U.S. tradition of hunting and gun ownership. The right to bear arms is enshrined in the U.S. Constitution.

Principal Dawn Hochsprung, school psychologist Mary Sherlach and teachers Rachel D'Avino, Lauren Rousseau, Anne Marie Murphy and Victoria Soto were killed in the attack.

SPECIAL ATTENTION TO NEWTOWN FAMILIES

At the same time as Obama paid tribute to the Sandy Hook educators, he honored a dozen other Americans in fields that included child development, gay rights, military veterans assistance, immigrant outreach and helping disabled women. They were selected from among nearly 6,000 nominations.

But he gave special attention to the Newtown victims, wrapping mothers and daughters in his arms as the families stood one-by-one to accept the medals.

Hochsprung's mother wiped away tears as she was handed the award. The 47-year-old principal was shot dead reportedly when she sought to confront the shooter after hearing gunshots.

D'Avino's sister, Sarah, who recounted Obama's closed-door comment, said his meeting with the families contrasted with his visit to grief-stricken Newtown in December in the aftermath of the massacre, when he carefully avoided discussing the fraught politics of gun control.

"What he said today is that we're really trying for you," she told reporters after the ceremony in the East Room. Her 29-year-old sister provided behavioral therapy at the school.

D'Avino acknowledged the political hurdles but insisted they could be overcome.

"I don't think anyone is insinuating we're trying to take away every single gun in the country. But there is no reason this kid was able to fire off as many rounds as he did, in as little time as he did," she said. "Nobody is protecting their home with a Bushmaster and a 30-round clip, I'm sorry. They are not."

Sherlach's husband Bill blew a kiss toward the heavens and patted his heart as he stood with Obama. "There needs to be a number of things addressed - gun safety, mental health, school safety and parenting," he said later outside the White House.

With a packed second-term agenda that includes immigration reform and climate change, Obama - who has pledged to use the full power of his office to secure tougher gun laws - is seeking progress on the issue before painful memories of December's shooting fade from the public's consciousness.

His push for reinstatement of a ban on assault rifles is seen as possibly the toughest sell in a country where many Americans see gun control as an infringement of their rights.

Obama's call for criminal background checks for all gun buyers is seen having the best chance of winning over Republicans, but that proposal also faces opposition.

The influential National Rifle Association has launched a major advertising campaign against Obama's gun proposals and deployed its lobbyists in force on Capitol Hill.

(Additional reporting by Mark Felsenthal; Editing by Vicki Allen and David Brunnstrom)

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TALLAHASSEE | Thu Jan 31, 2013 6:40pm EST

TALLAHASSEE (Reuters) - Florida's Republican governor on Thursday proposed a hefty $4 billion hike in state spending in a budget plan that includes a $1.2 billion increase in school aid, cuts in business taxes, and relies on fatter state sales-tax collections.

Accompanied by teachers, business leaders and state employees, Gov. Rick Scott told reporters at the Capitol that his $74.2 billion spending plan for fiscal year 2013-14 illustrated economic recovery in Florida and tough budget decisions made by lawmakers over the last few years when revenues were faltering.

Buoyed by increases in sales-tax revenues, Scott's plan was the first since the 2008-09 budget cycle that did not include a sizeable revenue shortfall going into the legislative session set to begin in March.

Scott's proposal includes recommendations to lawmakers, who craft the state's spending plan ahead of the new budget year starting on July 1.

Florida's general revenue portion of the budget, a $27.1 billion pot used for discretionary spending, marks an increase of 4.7 percent over last year.

"This is further evidence that Florida's economy is back on track and growing again," Scott told reporters.

Other states, such as California, are also seeing increased revenues. Jerry Brown, California's Democratic governor, three weeks ago proposed a budget plan with the state's first surplus in a decade, but urged restraint in spending.

Some other governors are championing tax cuts, and in Texas on Tuesday, Republican Gov. Rick Perry recommended returning excess state revenue to taxpayers.

Florida's jobless rate stood at 8 percent in December, the best showing in four years for a state still battling back from the U.S. housing bust. But it still remains among the highest rates and above the national unemployment rate of 7.8 percent, according to federal government data. (For details, please see: here)

For business, Scott's plan calls for expanding the state sales-tax exemption on machinery and equipment used in manufacturing, a tax break expected to save 17,500 employers about $140 million a year.

On the education front, Scott seeks an across-the-board $2,500 raise for public school teachers as part of his proposed $1.2 billon of increases in K-12 education spending.

The plan drew praise from Florida's largest teachers union, whose members generally haven't seen raises in several years.

"We are happy the governor is recognizing and investing in Florida's high performing public schools," said Andy Ford, president of the Florida Education Association. "In most of Florida, our public schools are the largest employer."

The governor's proposal also includes $60 million for Everglades restoration and another $75 million for the state's environmental land buying program.

Scott sees a lean year for bonding. His budget blueprint includes about $750 million in transportation bonds, which are paid for by fuel tax revenues and do not affect the state's general revenue budget. The proposal does not include any bonding for school construction or environmental land purchases.

(Writing and additional reporting by Michael Connor in Miami; editing by Gunna Dickson)

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n">(Reuters) - It's been a turbulent period for charter schools in the United States, with financial analysts raising concerns about their stability and regulators in several states shutting down schools for poor performance.

The volatility has made it tough for startup schools to get financing.

But an unlikely source of new capital has emerged to fill the gap: foreign investors.

Wealthy individuals from as far away as China, Nigeria, Russia and Australia are spending tens of millions of dollars to build classrooms, libraries, basketball courts and science labs for American charter schools.

In Buffalo, New York, foreign funds paid for the Health Sciences Charter School to renovate a 19th-century orphanage into modern classrooms and computer labs. In Florence, Arizona, overseas investment is expected to finance a sixth campus for the booming chain of American Leadership Academy charter schools.

And in Florida, state business development officials say foreign investment in charter schools is poised to triple next year, to $90 million.

The reason? Under a federal program known as EB-5, wealthy foreigners can in effect buy U.S. immigration visas for themselves and their families by investing at least $500,000 in certain development projects. In the past two decades, much of the investment has gone into commercial real-estate projects, like luxury hotels, ski resorts and even gas stations.

Lately, however, enterprising brokers have seen a golden opportunity to match cash-starved charter schools with cash-flush foreigners in investment deals that benefit both.

"The demand is massive - massive - on the school side," said Greg Wing, an investment advisor. "On the investor side, it's massive, too."

Two years ago, Wing set up a venture called the Education Fund of America specifically to connect international investors with charter schools. He is currently arranging EB-5 funding for 11 schools across North Carolina, Utah and Arizona and says he has four more deals in the works.

And that's just the start, Wing says: "It's going to be explosive."

CREDIT CRUNCH

The charter school movement is somewhat controversial. Critics - led by teachers' unions - contend they divert much-needed funds from traditional public schools. Still, they have proved quite popular and now educate more than 2 million children in the United States.

Charter schools are publicly funded but privately run, sometimes by for-profit companies. They receive taxpayer dollars to educate each child who enrolls. Yet in most states, they get little or no public money to build classrooms, libraries and other facilities.

Well-established and successful chains of charter schools, such as KIPP, Green Dot or Achievement First, receive hefty support from philanthropic foundations and private donors. The chains can also tap into financing provided by an array of for-profit and non-profit investment funds created for that purpose.

But the charter school movement also includes hundreds of small, one-of-a-kind schools, often started by parents seeking a different educational environment for their children. Those mom-and-pop startups have always had a hard time securing funding to build their schools. Many have had to make do with makeshift classrooms in strip malls or church basements.

And lately, experts say, the credit crunch has worsened.

"It's a hard go," said Eric Hall, an attorney in Colorado Springs who advises charter school boards.

Last month, Fitch Ratings warned it was likely to downgrade bonds backed by charter schools because the sector is volatile and the schools are highly leveraged. Such risks mean charter-school debt is typically considered speculative, rather than investment grade, said Eric Kim, a director at Fitch Ratings.

Meanwhile, the IRS has signaled it plans closer scrutiny of charter schools' tax-exempt status if they rely on for-profit management companies to provide their classroom space and run their academic programs, Hall said. He sent his clients a long memo this summer warning that the stepped-up IRS oversight could put some at "significant risk."

If that weren't enough to make investors wary, several well-known charter schools have run into significant legal and fiscal hurdles in recent months.

Missouri regulators shut down six campuses run by Imagine Schools, one of the nation's largest for-profit charter chains, because of poor academic performance. A judge in California ruled that Aspire Public Schools, a large non-profit chain, hadn't secured the proper approval for six of its schools and would have to get permission from local boards of education to continue running them. Local officials yanked the charter of a high-achieving middle school in Georgia over concerns about mismanagement.

All told, about 15 percent of the 6,700 charter schools that have been launched in the United States in the past two decades have since closed, primarily because of financial troubles, according to the Center for Education Reform, which supports charter schools.

This fall alone, more than 150 established charter schools didn't open their doors to students.

Such volatility "will spook people, no doubt about it," said David Brain, chief executive officer of Entertainment Properties Trust, which has historically owned movie theaters but branched out to invest in charter schools, including the six that were shuttered in St. Louis.

Brain said the closures did not affect his company's bottom line and he remains convinced charter schools are a profitable sector. But even he's not ready to start backing untested startup schools.

Charter school administrators say they know that wariness all too well.

"Until you get that charter renewal that says you're doing good things" - typically after five years in operation - "banks won't even talk to you," said Hank Stopinski, principal of the Health Sciences Charter School in Buffalo. Without foreign investment, he said, "we would not have been able to do this project."

RECESSION-PROOF

The EB-5 program has drawn sharp criticism in the past. Some immigrant investors have lost both their money and their shot at U.S. citizenship when their American partners proved inept or corrupt. In the United States, critics have questioned the value of trading visas for scattershot investment. (link.reuters.com/cem33t)

Yet interest is surging. In the first nine months of this year, the government approved 3,000 petitions from foreigners seeking to participate in the program - nearly twice as many as were approved all last year, according to the Department of Homeland Security.

Charter schools have become particularly trendy because they are pitched as recession-proof.

An investor forum in China last spring, for instance, touted U.S. charter schools as a nearly fool-proof investment because they can count on a steady stream of government funding to stay afloat, according to a transcript posted on a Chinese website.

Arizona educator Holly Johnson, who runs three charter schools and plans to open a fourth next year, said she couldn't believe how easy it was to secure $4.5 million in funding from abroad.

"We didn't have to do anything at all," she said, other than open her schools to potential investors. They didn't ask many questions, she said. Their concern was more basic: "They wanted to come over and make sure it was real."

INNER SATISFACTION

Eager to join the rush, Ali Faisal devoted a day this week to touring charter schools in Arizona.

Faisal, 37, is a Pakistani citizen who now lives in Calgary, Canada. He runs a technology consulting business that works with oil and gas companies and says he is eager to expand to the United States. He figures the best way to do that is to get a green card.

And the best way to do that, he said, is the EB-5 program.

Participants can get a temporary visa by investing $500,000 to $1 million in a federally approved business. If the business creates or preserves at least 10 jobs in two years, the investor and his immediate family are eligible for permanent residency in the United States.

"It's a much easier path," Faisal said.

He decided to put his money in a charter school, he said, because that way he felt he'd be serving society as well as helping himself. The schools he saw impressed him with their rigorous science curriculum and he said he hoped his investment would help nurture a new generation of American entrepreneurs.

"Investing in some type of hotel," Faisal said, "will not give me that inner satisfaction."

(Reporting by Stephanie Simon in Denver; Additional reporting by Elizabeth Dilts in New York and Melanie Lee in Beijing; Editing by Jonathan Weber and Claudia Parsons)

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