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White House aide resigns over

photo-op in N.Y.

WASHINGTON (AP) " A top White House aide resigned Friday for his role in Air Force One's $328,835 photo-op flyover above New York City that sparked panic and flashbacks to the Sept. 11 terrorist attacks.

Louis Caldera said the controversy had made it impossible for him to effectively lead the White House Military Office. "Moreover, it has become a distraction in the important work you are doing as president," Caldera said in his resignation letter to President Barack Obama.

The sight of the huge passenger jet and an F-16 fighter plane flying past the Statue of Liberty and the lower Manhattan financial district sent panicked office workers streaming into the streets on April 27. Obama said it would not happen again.

Caldera's office approved the photo-op, which cost $35,000 in fuel alone for the plane and two jet fighter escorts. The Air Force estimated the photo shoot cost taxpayers $328,835.

Unemployment system not a safety net, Obama says

WASHINGTON (AP) " President Barack Obama wants unemployment insurance to become a stepping stone for future work by making it easier to enroll in school or job training.

Whether he succeeds will depend on the willingness of states and colleges to change the rules.

People who have been laid off and want to go back to school often have to give up their monthly unemployment checks. And if they decide to return to school, they often don't qualify for federal aid because eligibility is based upon the previous year's income.

Under rule changes Obama outlined Friday, the Labor Department will ask states to make exceptions during economic downturns so that the unemployed can keep their benefits if they go to community college or pursue other education or training.

State governments, not Washington, decide who is eligible for unemployment, and they generally require anyone collecting assistance to be actively looking for work. That can complicate plans to attend school.

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