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Top Official Gives Ultimatum to Muqtada Al Sadr and His Followers; In Florida, Hurricane-Ravaged Residents Trying to Cope Without Some Basic Necessities

Aired August 18, 2004 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


DARYN KAGAN, CNN ANCHOR: We'll get start here. We're at CNN headquarters in Atlanta. I'm Daryn Kagan. Let's check out the headlines now in the news.
A decisive battle is expected. Iraq's interim government says the clock is ticking on radical Shiite cleric Muqtada al Sadr and his supporters. And that the government is ready to launch a major offensive to regain Najaf. This, after al Sadr refused to meet with an Iraqi delegation hoping to end the standoff in the city. We'll have the latest in a few minutes.

In London, extremely tight security as eight terror suspects make their first appearance in court. U.S. officials say one of them is a senior al Qaeda operative. Among the charges, all eight face: conspiracy to murder and plotting to use toxic gases, or explosives in a terrorist act. The judge set a plea hearing for August 25.

Back here in the states, the political scandal in New Jersey takes yet another twist. A top political donor is expected to plead guilty in a New Jersey court about an hour from now. Among the accusations against Charles Kushner: conspiracy and hiring a prostitute to have sex with his brother-in-law, who was a government witness in a campaign contribution probe against Kushner. Kushner is a top fundraiser for embattled New Jersey Governor Jim McGreevey.

And in the business world, shares of Google could go for less than first projected. The company slashed the price range some 20 percent for its upcoming IPO. The price per share is now expected to small somewhere between 85 and $95. Google cites diminished demand for the stock. The moves come after the SEC declined to declare the IPO registration effective. More live reports on Google just ahead.

Meanwhile, we are keeping you informed. CNN is the most trusted name in news.

We are live all over the place this morning. Including John Kerry addressing Veterans of Foreign Wars convention in Cincinnati. This is two days after President Bush unveiled his military reorganization plan before the group. Kerry will tell the vets why he thinks the move is dangerous.

We are going to begin our hour in Iraq, where a top official has given an ultimatum to Muqtada al Sadr and his followers inside a Najaf mosque: surrender now or face a decisive battle.

Our John Vause is in Baghdad and has the latest developments.

John, hello.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Daryn. That warning coming from Iraq's interim defense minister. He says that the time for talk is now over, that military preparations to, quote, "liberate" the Imam Ali Mosque are now complete. And that this operation will be an example to all the gangs in Iraq in Fallujah, Mosul Basra and also in Samarra.

There has been sporadic fighting in Najaf in the last few hours. There were heavy clashes overnight, especially when a delegation from Baghdad arrived to try and peace -- try and negotiate peace with Muqtada al Sadr. The Shiite cleric refused to meet with them. He sent his aides out instead. The aides telling them that because of fighting it was too dangerous for a face-to-face meeting. And the aides, in fact, blamed the United States for the latest round of violence in Najaf.

Still despite that snub, some of the delegates say the meeting was, in fact, a success. They said they held positive talks with al Sadr's aides and they do hope to go back to Najaf in a day or two to try and meet directly, once again, with Muqtada al Sadr. But that may not be possible. Another statements coming out within the last few hour, this one from interim Iraqi prime minister saying that he will not sit back with, quote, "arms folded." That he will restore law and order not just in Najaf, but also around Iraq -- Daryn.

KAGAN: And meanwhile, what about this national political conference that's taking place there in Baghdad, John? Any progress on that and heading toward upcoming elections?

VAUSE: That's right, Daryn. This national conference was scheduled for three days. We're now into an unscheduled fourth day. They are finally getting around to holding elections for that interim assembly. So, 100-person council, which will oversee the interim Iraqi government in the lead-up to elections next year. They're now finally voting on that -- on those 100 people who will make up that body. Some controversy over the voting procedure, but it is finally under way. It's taking some, time but we are told it should be completed in the next few hours -- Daryn.

KAGAN: John Vause in Baghdad, thank you. More from you later in the morning.

Meanwhile, to Israel where Israeli forces struck the Gaza City home of a senior Hamas leader early today killing five people. The Hamas military commander Ahmed Jabari was wounded. Palestinian sources tell CNN that a missile was fired from an Israeli helicopter destroying the house. Hospital officials say that Jabari's son was among those killed. Sixteen people were wounded in the attack. Israeli officials say they'll continue to target Hamas leaders in an effort to stop terrorism.

The man, back here in the states, who accuses New Jersey Governor Jim McGreevey of sexual harassment says that he'll return to the state to, quote, "Make sure justice comes to light." But Golan Cipel isn't saying whether he'll pursue a lawsuit against the outgoing governor.

Our Deborah Feyerick has more on that story.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): If Golan Cipel thought he could slip away from New Jersey and the scandal enveloping the governor there, he was wrong. The Israel-born former aide to James McGreevey going home to a suburb outside Tel Aviv to his parents, and to a mob of waiting cameras, making his first televised statement.

GOLAN CIPEL, FMR. MCGREEVEY AIDE (through translator): I have had a very difficult time. I have come to Israel to be with my family at this time. I cannot expand on anything for legal reasons.

FEYERICK: One former colleague tells CNN, Cipel has been distraught since it came out he planned to file a sexual harassment suit against the governor. Cipel, through his lawyer, says he is straight and was subjected to repeated advances by McGreevey. Settlement talks between the two sides broke down Thursday, just hours before the governor announced he was gay and had had a consensual affair.

GOV. JAMES MCGREEVEY (D), NEW JERSEY: I have decided the right course of action is to resign.

FEYERICK: The sexual harassment suit appears to be on hold.

ALLEN LOWY, ATTORNEY FOR GOLAN CIPEL: Thursday when the governor resigned, I think my client in some way felt vindicated that the governor did own up to what he had done.

FEYERICK: On Tuesday, McGreevey was back running the state. First holding terrorism drills with federal officials. Then meeting with a man who will replace him, if he stays until November.

New Jersey Republicans and now Democrats are trying to force McGreevey out by September, so that special elections can be held to choose who will govern next. Those close to McGreevey vow he will not go without a fight.

MICAH RASMUSSEN, MCGREEVEY SPOKESMAN: To be quite blunt about it, if the last fight he has is with the party bosses, that's a fight that we're willing to have.

FEYERICK (on camera): Political fundraisers predicted that things would get worse for Governor McGreevey before getting better. CNN confirmed that one of the governor's top fundraisers will plead guilty Wednesday. The fundraiser under investigation for among other things, violating campaign contribution laws.

Deborah Feyerick, CNN, New York.

(END VIDEOTAPE) KAGAN: As for the New Jersey Governor McGreevey, he is facing more pressure to step down before his self-imposed deadline of November 15. Last week, as Deborah Feyerick was reporting, McGreevey announced that he was gay and admitted to an extra marital affair with a man, and said he would resign. Well, Senator Jon Corzine has been discussed being the Democratic candidate if a special election would be called.

The state's former Republican Governor Christy Todd Whitman talked about the question of when McGreevey should step down on "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

CHRISTINE TODD WHITMAN, FMR. NEW JERSEY GOVERNOR: I just think that Senator Corzine, whether he's intended this or not, is obviously the subject of all the speculation, as to what the Democrats want to do. I think he has an obligation to say I'm in or I'm out, I'm interested or not interested in this job. Because that I think will clear the field both on the Democrats side and it will give the Republicans some idea.

Right now, from the Republican perspective, there is no election except for 2005. So there is really no need to -- for the candidates to start gearing up.

(END VIDEO CLIP)

KAGAN: We move on now to Florida. That is where hurricane ravaged residents are trying to cope without some very basic necessities. Hundreds of thousands are still without power, tens of thousands still without homes. And their frustration following Hurricane Charley has led to some very tense moments between hurricane survivors and police.

Here now is Bob Franken.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Come on, man!

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): The Lee County sheriffs said his deputies had no choice but to temporarily incapacitate this man with a high-voltage taser gun. After police say he tried to run over officers who were preventing him from crossing their blockades at his Fort Myers Beach neighborhood.

UNIDENTIFIED POLICEMAN: You have violence can escalate. And it can escalate not just from there, but to other people. Once you get 20, 30, 40 people, now you've really got a problem.

FRANKEN: Attempts by CNN to locate the man for his comment have been unsuccessful. He was briefly jailed and is now charged with failure to obey a lawful command and resisting arrest without violence. UNIDENTIFIED MALE: Leave him alone, man. He's frustrated! FRANKEN: It was a case of frustration exploding into anger. Witnesses say the man, with his three children in his minivan, simply wanted to get back to his house. When he tried to move his van passed police, they tasered him and pulled him from the car. He was one of so many prevented from returning to their homes for safety reasons.

Structures that aren't destroyed are often unlivable, with no electric power for hundreds of thousands to refrigerate food and provide air conditioning in the intense summer heat. It all adds up to more and more heated tempers, supplies are often short, lines long for everyone. Patient is thick.

(on camera): Authorities say this desperate situation will remain for a long time. A very long time for people to control their anger.

Bob Franken, CNN, Punta Gorda, Florida.

(END VIDEOTAPE)

KAGAN: And there's more natural disasters. These pictures are coming to us from Turkey, amazing pictures from Istanbul. Cars, even trucks submerged in water and some were even swept away, after heavy rains flooding the streets. Rescuers scrambling to rescue dozens of people who were stranded, they even got some boats out. More rain is expected today.

Adopting children with special needs.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I found the cage that was talked about, where they made some of the children sleep in that cage at night.

(END VIDEO CLIP)

KAGAN: Police say that a woman and her husband abused the children and it's not the first time that it happened.

And education is a hot button political issue. Today, we're taking another look at charter schools, and what some recent test scores show or don't show.

Later, do they think it was 1998? The pricing for Goggle's IPO comes under fire for being too high. Find out where the stock is expected to trade on its first day.

(COMMERCIAL BREAK)

KAGAN: President Bush is heading out this hour on a daylong campaign swing through the upper Midwest. He's going to visit two states that he almost won in 2000, and that polls say are now too close to call. The president will campaign across Wisconsin, his third trip this year with stops in Chippewa Falls and Saint Croix. And he winds up his trip in St. Paul, Minnesota. Our Paula Zahn is in Canton, Ohio with -- to host a town hall meeting tonight. It's called "THE UNDECIDED VOTE." Key officials of both campaigns will be there to answer questions. And be sure to e- mail your questions to cnn.com/paula, "PAULA ZAHN NOW, LIVE" at 8:00 Eastern tonight.

One important issue for voters is education at a time when there is talk of leaving no child behind. A new report suggests that charter schools might be doing that, not be doing as well as regular public schools and teaching reading and math. Here is how one guest described the findings that you're looking at on the screen.

(BEGIN VIDEO CLIP)

BELLA ROSENBERG, AMERICAN FEDERATION OF TEACHERS: The deal with charter schools was that they would have less regulation in return for more accountability. Well, they have less regulation, but they also have less accountability. These are public dollars. These are school children. These are often vulnerable school children. They need to be accountable and start to shape up.

We're all in this together. All public schools are striving to do that. Charter schools can't be the exception.

(END VIDEO CLIP)

KAGAN: And those comments from Bella Rosenberg, she's with the American Federation of Teachers.

But there is a different point of view out there on charter schools and the current test scores. For that we're going to turn to Nina Reese. She is the deputy undersecretary of education for the Bush administration. She is joining us live from Washington.

Nina, good morning, thanks for being here with us.

NINA REESE, DEP. UNDERSECRETARY OF EDUCATION: Thanks, Daryn. Thanks for having me.

KAGAN: You look at the same test scores and you have different conclusions about what they show about charter schools.

REESE: Well, there are a couple of problems with the way the test scores were analyzed. First and foremost, most charter schools have only been in operation for about three years. So when you look at these types of test scores, they're not really telling you whether the charter schools are having an effect on student achievement; so much as that they're telling you that the students attending charter schools may not be as academically doing well, compared to their counterparts in public schools.

KAGAN: Right. But...

REESE: The other prob...

KAGAN: ... Ms. Rosenberg did say, in looking at this, that they did look at similar incomes, similar ethnicity. They tried to match up kids to their counterparts in public schools.

REESE: Well, again, I think she's wrong in saying that. Because most -- the average age of a charter school is about 3 years. So you're not looking at students who have been attending these schools for an extended period of time. The schools themselves haven't been around for a very long time.

KAGAN: So you're saying it's not -- just don't look at the kids, a kid who might have a similar profile. You're saying these schools need more time to prove that they really are going to do what they say they're going to do.

REESE: Absolutely.

KAGAN: Given more time...

REESE: And it...

KAGAN: What about the idea of looking at all charter schools as one big lump?

REESE: Well, that's another problem that we notice in looking at studies like this. Most states have different types of charter school laws. And within each state, depending on who is giving you the charter, the quality of the charter schools are going to be different. So it's not as easy as comparing, say McDonald's to Burger King. You're looking at different types of schools with different levels of autonomy and quality.

So a better study, in our view, is one that takes into account these different variables and follows the students in charter schools over time. and compares them similar students, perhaps in states that have different types of charter school laws. which is the kind of study that the Department of Education has launched.

Unfortunately, we're not going to see the results any time in the near future. So we are calling for more research on charter schools. We think it's too early to draw any conclusions based on the National Assessment of Educational Progress results that were released through this AFT report yesterday.

KAGAN: I hear what you're saying about time. And also about that the very idea of charter schools was to try something new. And to try to get at a problem that wasn't being solved in another way, especially when you go from community to community. But what about the question of accountability, Nina? How do you make these schools accountable? Because you just can't set the kids out there and have nobody watching their progress.

REESE: Well, the key thing that makes charter schools interesting and accountable is the fact that the entity that's giving them the charter, can end the charter at any point in time if they're not meeting the goals set out in the contract that they had signed. To date, we have about 311 charter schools that have been shut down for a variety of reasons, some of them financial, others academic. That kind of accountability is just one of those things that we think should be available across the board for any public, private or charter school around the country. And it's what makes the charter school idea an appealing one. if you're not doing well academically, if you're not fiscally accountable to the public, or if parents are not happy with the school, that charter school will not be able to stay open.

KAGAN: So who is to decide if a child -- if a school is doing well academically? if you're not going to look at test scores like this, what is the standard?

REESE: Well, the Chartering Authority, giving the charter, needs to track student progress. Also under the No Child Left Behind Act, all charter schools are held accountable to the same, exact standards that public schools are held accountable to. So the state and school district are going to have to determine if that school is doing well academically, offer information to parents.

but again, because these schools are schools of choice, they have that added flexibility for parents that other schools don't have. which is that parents can, at any point in time, remove their children out of these schools and transfer them back to the public schools they were attending. or to other types of private schools, or move to another school district; so that element of choice is what makes them really so popular.

KAGAN: Got it, Nina Reese with the Department of Education. thanks for stopping by and giving us a different viewpoint.

REESE: Thank you.

KAGAN: Which we welcome here on CNN.

REESE: OK.

KAGAN: Thank you.

REESE: Thanks.

KAGAN: Getting in on Google. Straight ahead, a live report on trading for Google stock.

And for people fighting the daily budget demands, our Gerri Willis is helping you keep your money in your pocket. We like that.

GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Thanks, Daryn. You know, whether it's your back to school savings, or your telephone bill, we're going to show you how to save next on CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: Everyone loves a bargain. What you might not know, that many necessities you normally buy anyway, are often available at deep discounts. But you have to make an effort to find them. Well, no, not really. Not if you have Gerri Willis working for you, which we do, giving us some money-saving advice in today's "Top Five Tips."

Hi, Ger.

WILLIS: Hey, Daryn. Good to see you.

We're thinking about savings across the board today. No. 1, snag those back to school savings. You know, college is expensive enough without having to pay for pricey textbooks. Go to the web for help, a web site called cheaptextbooks.com. A great place to go to get savings; they troll the web for great prices and find them for you. Now, if you've got a kid in elementary school, maybe in middle school, go to wholesaledirectschoolsupply.com. This Web site will tell you about: scissors, paste, et cetera, stuff like that that's cheaper as well -- Daryn.

KAGAN: Let's move on to drugs, Gerri, because that is a great place to try to save money.

WILLIS: You know, prices here have been going up, up, up, people having to pay a ton for drugs. You need to shop around with pharmacies because can you pay hundreds of dollars difference depending on where you buy your drugs. So shop around and don't forget generics. There are a ton of really popular drugs that are coming out in generic form. So make sure you understand what you can get cheaper.

KAGAN: How about with your phone bill? Looks like they're going up.

WILLIS: Yes. Sprint, AT&T, MCI, you name it; these guys are charging you more and more for long distance. Now, you can see the numbers here. Check it out. They want you to focus on the per-minute costs. Hey, what you want to focus on is that monthly rate. You don't have to pay a monthly rate. There are no brand-name alternatives. A great place to go to find out about them, myrateplan.com.

KAGAN: Speaking of rates, how about insurance rates?

WILLIS: Insurance rates. You know, homeowners insurance, car insurance, you can get great savings. Let's talk for a second about car insurance. If you have a great driving record, you can get discounts on your insurance. Low annual mileage, you don't drive a lot, that's another reason to get discounts. Safety features, air bags will get you a break on costs too. And if you've got an older car, don't get that collision coverage because the payback isn't enough to make it make sense.

KAGAN: And finally, sorry Uncle Sam, but paying less on taxes, perhaps?

WILLIS: I'm talking about your real estate bill here.

KAGAN: Ah!

WILLIS: You know, your property tax on your home. Across the country, these local governments are hiking costs for people who own their own homes. You may have a problem with your tax bill that's in your favor. Check it out. About 60 percent of Americans are paying too much on their property taxes. Check out what's called Your Information Card at City Hall. Get a copy of it, make sure it's accurate and make sure that you're not paying too much for property tax -- Daryn.

KAGAN: All right, Gerri Willis, thank you.

WILLIS: Thank you.

KAGAN: See you in person this New York City later this week. OK?

WILLIS: All right. Yes.

KAGAN: Looking forward to that.

We have a lot more news to get to today. John Kerry speaks to veterans today, and takes aim at the president's plan to redeploy thousands of troops. We'll bring you his speech live.

Also, taking a big plunge at the Olympics. Check out this guy. he is not part of a synchronized swimming team, I'll tell you that. But I will tell you what he's doing later on CNN LIVE TODAY.

(COMMERCIAL BREAK)

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Aired August 18, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: We'll get start here. We're at CNN headquarters in Atlanta. I'm Daryn Kagan. Let's check out the headlines now in the news.
A decisive battle is expected. Iraq's interim government says the clock is ticking on radical Shiite cleric Muqtada al Sadr and his supporters. And that the government is ready to launch a major offensive to regain Najaf. This, after al Sadr refused to meet with an Iraqi delegation hoping to end the standoff in the city. We'll have the latest in a few minutes.

In London, extremely tight security as eight terror suspects make their first appearance in court. U.S. officials say one of them is a senior al Qaeda operative. Among the charges, all eight face: conspiracy to murder and plotting to use toxic gases, or explosives in a terrorist act. The judge set a plea hearing for August 25.

Back here in the states, the political scandal in New Jersey takes yet another twist. A top political donor is expected to plead guilty in a New Jersey court about an hour from now. Among the accusations against Charles Kushner: conspiracy and hiring a prostitute to have sex with his brother-in-law, who was a government witness in a campaign contribution probe against Kushner. Kushner is a top fundraiser for embattled New Jersey Governor Jim McGreevey.

And in the business world, shares of Google could go for less than first projected. The company slashed the price range some 20 percent for its upcoming IPO. The price per share is now expected to small somewhere between 85 and $95. Google cites diminished demand for the stock. The moves come after the SEC declined to declare the IPO registration effective. More live reports on Google just ahead.

Meanwhile, we are keeping you informed. CNN is the most trusted name in news.

We are live all over the place this morning. Including John Kerry addressing Veterans of Foreign Wars convention in Cincinnati. This is two days after President Bush unveiled his military reorganization plan before the group. Kerry will tell the vets why he thinks the move is dangerous.

We are going to begin our hour in Iraq, where a top official has given an ultimatum to Muqtada al Sadr and his followers inside a Najaf mosque: surrender now or face a decisive battle.

Our John Vause is in Baghdad and has the latest developments.

John, hello.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Daryn. That warning coming from Iraq's interim defense minister. He says that the time for talk is now over, that military preparations to, quote, "liberate" the Imam Ali Mosque are now complete. And that this operation will be an example to all the gangs in Iraq in Fallujah, Mosul Basra and also in Samarra.

There has been sporadic fighting in Najaf in the last few hours. There were heavy clashes overnight, especially when a delegation from Baghdad arrived to try and peace -- try and negotiate peace with Muqtada al Sadr. The Shiite cleric refused to meet with them. He sent his aides out instead. The aides telling them that because of fighting it was too dangerous for a face-to-face meeting. And the aides, in fact, blamed the United States for the latest round of violence in Najaf.

Still despite that snub, some of the delegates say the meeting was, in fact, a success. They said they held positive talks with al Sadr's aides and they do hope to go back to Najaf in a day or two to try and meet directly, once again, with Muqtada al Sadr. But that may not be possible. Another statements coming out within the last few hour, this one from interim Iraqi prime minister saying that he will not sit back with, quote, "arms folded." That he will restore law and order not just in Najaf, but also around Iraq -- Daryn.

KAGAN: And meanwhile, what about this national political conference that's taking place there in Baghdad, John? Any progress on that and heading toward upcoming elections?

VAUSE: That's right, Daryn. This national conference was scheduled for three days. We're now into an unscheduled fourth day. They are finally getting around to holding elections for that interim assembly. So, 100-person council, which will oversee the interim Iraqi government in the lead-up to elections next year. They're now finally voting on that -- on those 100 people who will make up that body. Some controversy over the voting procedure, but it is finally under way. It's taking some, time but we are told it should be completed in the next few hours -- Daryn.

KAGAN: John Vause in Baghdad, thank you. More from you later in the morning.

Meanwhile, to Israel where Israeli forces struck the Gaza City home of a senior Hamas leader early today killing five people. The Hamas military commander Ahmed Jabari was wounded. Palestinian sources tell CNN that a missile was fired from an Israeli helicopter destroying the house. Hospital officials say that Jabari's son was among those killed. Sixteen people were wounded in the attack. Israeli officials say they'll continue to target Hamas leaders in an effort to stop terrorism.

The man, back here in the states, who accuses New Jersey Governor Jim McGreevey of sexual harassment says that he'll return to the state to, quote, "Make sure justice comes to light." But Golan Cipel isn't saying whether he'll pursue a lawsuit against the outgoing governor.

Our Deborah Feyerick has more on that story.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): If Golan Cipel thought he could slip away from New Jersey and the scandal enveloping the governor there, he was wrong. The Israel-born former aide to James McGreevey going home to a suburb outside Tel Aviv to his parents, and to a mob of waiting cameras, making his first televised statement.

GOLAN CIPEL, FMR. MCGREEVEY AIDE (through translator): I have had a very difficult time. I have come to Israel to be with my family at this time. I cannot expand on anything for legal reasons.

FEYERICK: One former colleague tells CNN, Cipel has been distraught since it came out he planned to file a sexual harassment suit against the governor. Cipel, through his lawyer, says he is straight and was subjected to repeated advances by McGreevey. Settlement talks between the two sides broke down Thursday, just hours before the governor announced he was gay and had had a consensual affair.

GOV. JAMES MCGREEVEY (D), NEW JERSEY: I have decided the right course of action is to resign.

FEYERICK: The sexual harassment suit appears to be on hold.

ALLEN LOWY, ATTORNEY FOR GOLAN CIPEL: Thursday when the governor resigned, I think my client in some way felt vindicated that the governor did own up to what he had done.

FEYERICK: On Tuesday, McGreevey was back running the state. First holding terrorism drills with federal officials. Then meeting with a man who will replace him, if he stays until November.

New Jersey Republicans and now Democrats are trying to force McGreevey out by September, so that special elections can be held to choose who will govern next. Those close to McGreevey vow he will not go without a fight.

MICAH RASMUSSEN, MCGREEVEY SPOKESMAN: To be quite blunt about it, if the last fight he has is with the party bosses, that's a fight that we're willing to have.

FEYERICK (on camera): Political fundraisers predicted that things would get worse for Governor McGreevey before getting better. CNN confirmed that one of the governor's top fundraisers will plead guilty Wednesday. The fundraiser under investigation for among other things, violating campaign contribution laws.

Deborah Feyerick, CNN, New York.

(END VIDEOTAPE) KAGAN: As for the New Jersey Governor McGreevey, he is facing more pressure to step down before his self-imposed deadline of November 15. Last week, as Deborah Feyerick was reporting, McGreevey announced that he was gay and admitted to an extra marital affair with a man, and said he would resign. Well, Senator Jon Corzine has been discussed being the Democratic candidate if a special election would be called.

The state's former Republican Governor Christy Todd Whitman talked about the question of when McGreevey should step down on "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

CHRISTINE TODD WHITMAN, FMR. NEW JERSEY GOVERNOR: I just think that Senator Corzine, whether he's intended this or not, is obviously the subject of all the speculation, as to what the Democrats want to do. I think he has an obligation to say I'm in or I'm out, I'm interested or not interested in this job. Because that I think will clear the field both on the Democrats side and it will give the Republicans some idea.

Right now, from the Republican perspective, there is no election except for 2005. So there is really no need to -- for the candidates to start gearing up.

(END VIDEO CLIP)

KAGAN: We move on now to Florida. That is where hurricane ravaged residents are trying to cope without some very basic necessities. Hundreds of thousands are still without power, tens of thousands still without homes. And their frustration following Hurricane Charley has led to some very tense moments between hurricane survivors and police.

Here now is Bob Franken.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Come on, man!

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): The Lee County sheriffs said his deputies had no choice but to temporarily incapacitate this man with a high-voltage taser gun. After police say he tried to run over officers who were preventing him from crossing their blockades at his Fort Myers Beach neighborhood.

UNIDENTIFIED POLICEMAN: You have violence can escalate. And it can escalate not just from there, but to other people. Once you get 20, 30, 40 people, now you've really got a problem.

FRANKEN: Attempts by CNN to locate the man for his comment have been unsuccessful. He was briefly jailed and is now charged with failure to obey a lawful command and resisting arrest without violence. UNIDENTIFIED MALE: Leave him alone, man. He's frustrated! FRANKEN: It was a case of frustration exploding into anger. Witnesses say the man, with his three children in his minivan, simply wanted to get back to his house. When he tried to move his van passed police, they tasered him and pulled him from the car. He was one of so many prevented from returning to their homes for safety reasons.

Structures that aren't destroyed are often unlivable, with no electric power for hundreds of thousands to refrigerate food and provide air conditioning in the intense summer heat. It all adds up to more and more heated tempers, supplies are often short, lines long for everyone. Patient is thick.

(on camera): Authorities say this desperate situation will remain for a long time. A very long time for people to control their anger.

Bob Franken, CNN, Punta Gorda, Florida.

(END VIDEOTAPE)

KAGAN: And there's more natural disasters. These pictures are coming to us from Turkey, amazing pictures from Istanbul. Cars, even trucks submerged in water and some were even swept away, after heavy rains flooding the streets. Rescuers scrambling to rescue dozens of people who were stranded, they even got some boats out. More rain is expected today.

Adopting children with special needs.

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UNIDENTIFIED MALE: I found the cage that was talked about, where they made some of the children sleep in that cage at night.

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KAGAN: Police say that a woman and her husband abused the children and it's not the first time that it happened.

And education is a hot button political issue. Today, we're taking another look at charter schools, and what some recent test scores show or don't show.

Later, do they think it was 1998? The pricing for Goggle's IPO comes under fire for being too high. Find out where the stock is expected to trade on its first day.

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KAGAN: President Bush is heading out this hour on a daylong campaign swing through the upper Midwest. He's going to visit two states that he almost won in 2000, and that polls say are now too close to call. The president will campaign across Wisconsin, his third trip this year with stops in Chippewa Falls and Saint Croix. And he winds up his trip in St. Paul, Minnesota. Our Paula Zahn is in Canton, Ohio with -- to host a town hall meeting tonight. It's called "THE UNDECIDED VOTE." Key officials of both campaigns will be there to answer questions. And be sure to e- mail your questions to cnn.com/paula, "PAULA ZAHN NOW, LIVE" at 8:00 Eastern tonight.

One important issue for voters is education at a time when there is talk of leaving no child behind. A new report suggests that charter schools might be doing that, not be doing as well as regular public schools and teaching reading and math. Here is how one guest described the findings that you're looking at on the screen.

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BELLA ROSENBERG, AMERICAN FEDERATION OF TEACHERS: The deal with charter schools was that they would have less regulation in return for more accountability. Well, they have less regulation, but they also have less accountability. These are public dollars. These are school children. These are often vulnerable school children. They need to be accountable and start to shape up.

We're all in this together. All public schools are striving to do that. Charter schools can't be the exception.

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KAGAN: And those comments from Bella Rosenberg, she's with the American Federation of Teachers.

But there is a different point of view out there on charter schools and the current test scores. For that we're going to turn to Nina Reese. She is the deputy undersecretary of education for the Bush administration. She is joining us live from Washington.

Nina, good morning, thanks for being here with us.

NINA REESE, DEP. UNDERSECRETARY OF EDUCATION: Thanks, Daryn. Thanks for having me.

KAGAN: You look at the same test scores and you have different conclusions about what they show about charter schools.

REESE: Well, there are a couple of problems with the way the test scores were analyzed. First and foremost, most charter schools have only been in operation for about three years. So when you look at these types of test scores, they're not really telling you whether the charter schools are having an effect on student achievement; so much as that they're telling you that the students attending charter schools may not be as academically doing well, compared to their counterparts in public schools.

KAGAN: Right. But...

REESE: The other prob...

KAGAN: ... Ms. Rosenberg did say, in looking at this, that they did look at similar incomes, similar ethnicity. They tried to match up kids to their counterparts in public schools.

REESE: Well, again, I think she's wrong in saying that. Because most -- the average age of a charter school is about 3 years. So you're not looking at students who have been attending these schools for an extended period of time. The schools themselves haven't been around for a very long time.

KAGAN: So you're saying it's not -- just don't look at the kids, a kid who might have a similar profile. You're saying these schools need more time to prove that they really are going to do what they say they're going to do.

REESE: Absolutely.

KAGAN: Given more time...

REESE: And it...

KAGAN: What about the idea of looking at all charter schools as one big lump?

REESE: Well, that's another problem that we notice in looking at studies like this. Most states have different types of charter school laws. And within each state, depending on who is giving you the charter, the quality of the charter schools are going to be different. So it's not as easy as comparing, say McDonald's to Burger King. You're looking at different types of schools with different levels of autonomy and quality.

So a better study, in our view, is one that takes into account these different variables and follows the students in charter schools over time. and compares them similar students, perhaps in states that have different types of charter school laws. which is the kind of study that the Department of Education has launched.

Unfortunately, we're not going to see the results any time in the near future. So we are calling for more research on charter schools. We think it's too early to draw any conclusions based on the National Assessment of Educational Progress results that were released through this AFT report yesterday.

KAGAN: I hear what you're saying about time. And also about that the very idea of charter schools was to try something new. And to try to get at a problem that wasn't being solved in another way, especially when you go from community to community. But what about the question of accountability, Nina? How do you make these schools accountable? Because you just can't set the kids out there and have nobody watching their progress.

REESE: Well, the key thing that makes charter schools interesting and accountable is the fact that the entity that's giving them the charter, can end the charter at any point in time if they're not meeting the goals set out in the contract that they had signed. To date, we have about 311 charter schools that have been shut down for a variety of reasons, some of them financial, others academic. That kind of accountability is just one of those things that we think should be available across the board for any public, private or charter school around the country. And it's what makes the charter school idea an appealing one. if you're not doing well academically, if you're not fiscally accountable to the public, or if parents are not happy with the school, that charter school will not be able to stay open.

KAGAN: So who is to decide if a child -- if a school is doing well academically? if you're not going to look at test scores like this, what is the standard?

REESE: Well, the Chartering Authority, giving the charter, needs to track student progress. Also under the No Child Left Behind Act, all charter schools are held accountable to the same, exact standards that public schools are held accountable to. So the state and school district are going to have to determine if that school is doing well academically, offer information to parents.

but again, because these schools are schools of choice, they have that added flexibility for parents that other schools don't have. which is that parents can, at any point in time, remove their children out of these schools and transfer them back to the public schools they were attending. or to other types of private schools, or move to another school district; so that element of choice is what makes them really so popular.

KAGAN: Got it, Nina Reese with the Department of Education. thanks for stopping by and giving us a different viewpoint.

REESE: Thank you.

KAGAN: Which we welcome here on CNN.

REESE: OK.

KAGAN: Thank you.

REESE: Thanks.

KAGAN: Getting in on Google. Straight ahead, a live report on trading for Google stock.

And for people fighting the daily budget demands, our Gerri Willis is helping you keep your money in your pocket. We like that.

GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Thanks, Daryn. You know, whether it's your back to school savings, or your telephone bill, we're going to show you how to save next on CNN LIVE TODAY.

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KAGAN: Everyone loves a bargain. What you might not know, that many necessities you normally buy anyway, are often available at deep discounts. But you have to make an effort to find them. Well, no, not really. Not if you have Gerri Willis working for you, which we do, giving us some money-saving advice in today's "Top Five Tips."

Hi, Ger.

WILLIS: Hey, Daryn. Good to see you.

We're thinking about savings across the board today. No. 1, snag those back to school savings. You know, college is expensive enough without having to pay for pricey textbooks. Go to the web for help, a web site called cheaptextbooks.com. A great place to go to get savings; they troll the web for great prices and find them for you. Now, if you've got a kid in elementary school, maybe in middle school, go to wholesaledirectschoolsupply.com. This Web site will tell you about: scissors, paste, et cetera, stuff like that that's cheaper as well -- Daryn.

KAGAN: Let's move on to drugs, Gerri, because that is a great place to try to save money.

WILLIS: You know, prices here have been going up, up, up, people having to pay a ton for drugs. You need to shop around with pharmacies because can you pay hundreds of dollars difference depending on where you buy your drugs. So shop around and don't forget generics. There are a ton of really popular drugs that are coming out in generic form. So make sure you understand what you can get cheaper.

KAGAN: How about with your phone bill? Looks like they're going up.

WILLIS: Yes. Sprint, AT&T, MCI, you name it; these guys are charging you more and more for long distance. Now, you can see the numbers here. Check it out. They want you to focus on the per-minute costs. Hey, what you want to focus on is that monthly rate. You don't have to pay a monthly rate. There are no brand-name alternatives. A great place to go to find out about them, myrateplan.com.

KAGAN: Speaking of rates, how about insurance rates?

WILLIS: Insurance rates. You know, homeowners insurance, car insurance, you can get great savings. Let's talk for a second about car insurance. If you have a great driving record, you can get discounts on your insurance. Low annual mileage, you don't drive a lot, that's another reason to get discounts. Safety features, air bags will get you a break on costs too. And if you've got an older car, don't get that collision coverage because the payback isn't enough to make it make sense.

KAGAN: And finally, sorry Uncle Sam, but paying less on taxes, perhaps?

WILLIS: I'm talking about your real estate bill here.

KAGAN: Ah!

WILLIS: You know, your property tax on your home. Across the country, these local governments are hiking costs for people who own their own homes. You may have a problem with your tax bill that's in your favor. Check it out. About 60 percent of Americans are paying too much on their property taxes. Check out what's called Your Information Card at City Hall. Get a copy of it, make sure it's accurate and make sure that you're not paying too much for property tax -- Daryn.

KAGAN: All right, Gerri Willis, thank you.

WILLIS: Thank you.

KAGAN: See you in person this New York City later this week. OK?

WILLIS: All right. Yes.

KAGAN: Looking forward to that.

We have a lot more news to get to today. John Kerry speaks to veterans today, and takes aim at the president's plan to redeploy thousands of troops. We'll bring you his speech live.

Also, taking a big plunge at the Olympics. Check out this guy. he is not part of a synchronized swimming team, I'll tell you that. But I will tell you what he's doing later on CNN LIVE TODAY.

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