Return to Transcripts main page

CNN Live Today

Labor Dept.'s New OT Figures; Nat'l. Intel Dir. Gets Even Greater Power?; Ret. USAF Col. Quits Bush Campaign; Money Tips for Young People

Aired August 23, 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.


BETTY NGUYEN, CNN ANCHOR: Good morning, everyone, from the CNN Headquarters in Atlanta. I'm Betty Nguyen, in for Daryn Kagan.
Now in the news -- renewed violence has flared overnight in Najaf, an Iraqi city that's been embroiled in weeks of fighting. Explosions and gunfire have surrounded the Imam Ali Mosque, where hundreds of rebel militia fighters have remained a standoff against U.S.-backed Iraqi forces. A delegation of Shiia authorities is expected to arrive and assume custody of the holy site.

An American journalist is freed nine days after being taken hostage and threatened with death unless U.S. forces left Najaf. Thirty-six-year-old Micah Garen says he was well treated by his captors, and thanked the intervention of rebel cleric Muqtada al-Sadr for helping secure his release.

Now to Capitol Hill. More hearings are underway this hour on the 9/11 Commission's Report. The House Financial Services Committee is focusing on terrorist funding, while the House Judiciary Committee opens an oversight hearing. The hearings coincide with a sweeping new proposal to create a new intelligence service. In a few minutes we'll go to Capitol Hill for a full report.

And rainy weather has come to the aid of Oregon firefighters. They've now managed to contain about a quarter of the Bland Mountain Fire near Roseburg. It's burned more than 3,600 acres. Rain has also stifled fire outbreaks in New Mexico and Arizona.

Well, if you depend on overtime to supplement your paycheck, you need to know about changes that go into effect today. But a warning, the more you know, the more confused you may become. The Labor Department says about 1.3 million workers are newly eligible for overtime pay. While 107,000 other workers will lose eligibility.

But those numbers conflict with the Economic Policy Institute, a nonprofit think tank. That group says 400,000 Americans will gain eligibility while six million others will lose it.

So, to help us sort all of this out, we turn now to CNN's Louise Schiavone, who is outside the Labor Department headquarters in Washington.

Hopefully you can sort all of these numbers for us. It seems a bit confusing for everyone reading them. LOUISE SCHIAVONE, CNN CORRESPONDENT: That's right, Betty, and good morning. You know, these rules were drafted to clarify existing regulations. But as you said, it seems like they've only sparked a fresh debate about who wins and who loses.

(BEGIN VIDEOTAPE)

(voice-over): James Ware is a sous chef at a big Washington hotel. He worries about the new overtime rules.

JAMES WARE, SOUS CHEF: If I didn't have the overtime, my income would be cut at least by a quarter or better.

SCHIAVONE: His big concern, if he becomes a non-union chef, the new rules might cost him 10 hours a week of overtime pay.

WARE: All managers work a 10-hour shift. And unlike the non- union managers, we get paid overtime.

SCHIAVONE: The Labor Department says its clarifying complex and outdated federal overtime rules. As of today, among those guaranteed overtime wage protections, all hourly workers and anyone earning no more than $23,660 annually.

VICTORIA LIPNIC, ASSIST. SECY. OF LABOR: That will result in about another 1.3 million people getting overtime who don't have it today. And we also think that will strengthen overtime protection for about another 6.7 million people.

SCHIAVONE: But it's not that clear. While Labor officials predict that almost no one earning less than $100,000 will lose their overtime privileges, they admit that 100,000 workers earning more than that could be hit. Labor advocates predict that as many as six million workers will find themselves fighting the new regulations due in large part to new management descriptions.

ROSS EISENBREY, ECONOMIC POLICY INST.: This is going to be a mess, because they've said it doesn't matter what degree you have. What matters is what level of knowledge you have. And that's a very hard thing to test. The Department of Labor, for example, doesn't have people who can decide whether a cook has the same skills as somebody who graduated from a culinary art school.

SCHIAVONE: The new rules specify that regardless of annual pay, most blue-collar workers, like plumbers and carpenters along with police and firefighters, are guaranteed overtime pay.

(END VIDEOTAPE)

SCHIAVONE (on camera): Betty, for a year, Democrats have stood by to block any new regulations that would take overtime pay away from workers who currently have it. But in an election year, it's very difficult to get anything done. And this issue is no exception -- Betty.

NGUYEN: No doubt. We're looking at it right here, a lot of pages to read. And on top of that, this was created in a way to prevent litigation lawsuits. But with all this confusion, are we going to see more of those lawsuits?

SCHIAVONE: Well, the hope had been all along, especially among the business sector, that it would actually bring about a decline in lawsuits. And it may well, because it creates a situation where certain categories are definitely clarified.

What is going to happen for business is that there's going to be $1.1 billion in clerical adjustments that have to be made. And then another $375 million business is going to wind up paying for people getting the overtime. Still a lot of clarifying to do -- Betty.

NGUYEN: Definitely. Louise Schiavone, thank you very much.

Well, if you want more information on the new overtime rules, check out the Department of Labor's web site, the address is www.dol.gov.

There's a plan to give a National Intelligence Director even greater power than proposed by the 9/11 Commission, and that's being floated on Capitol Hill. Senate Intelligence Committee Chairman Pat Roberts says he's coming out with his plan now, because he feels the White House may not fully embrace intelligence reforms. And because he's concerned about delays.

(BEGIN VIDEO CLIP)

SEN. PAT ROBERTS (R-KS), CHMN., INTELLIGENCE CMTE.: Well, we think it's real reform. And we think it's good for national security. And what we did is we stood back from the trees and said, all right, what are the national threats that face our country today, either asymmetrical or what will happen down the road?

And we didn't pay any attention to turf. We didn't pay any attention to boxes. We didn't pay any attention to, say, the agencies. And what we have proposed is a National Intelligence Service with a National Intelligence Director that has real line item budget authority and personnel authority.

So, we think it's a good plan.

(END VIDEO CLIP)

NGUYEN: We want to go now to Capitol Hill and CNN's congressional correspondent Ed Henry with much more on this.

Hi there, Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Betty. You're right. This plan from Senator Pat Roberts does go further than the 9/11 Commission's blueprint. The major reason, and the major example of how it goes much further than the 9/11 Commission, is that he basically wants to dismantle the CIA into three pieces.

It will then be left with an Office of Clandestine Services -- dealing with human spying -- an Office of National Assessment, and also an Office of Technical Support.

That is drawing some criticism obviously from the CIA itself. It does not want to change that radically. Also, as you mentioned, Senator Roberts is talking about a very strong National Intelligence Director with real budget authority.

And while Democrats in general have embraced that concept, we're also hearing a lot of flack from Democrats who feel that they were left out of the loop on the details of how the CIA would be restructured.

Here is Democratic Senator Carl Levin.

(BEGIN VIDEO CLIP)

SEN. CARL LEVIN (D-MI), ARMED SERVICES CMTE.: I believe it's a mistake to lay down a proposal that only has the support of members of one party. We need to have bipartisan approaches, I believe. And there's going to be a 9/11 bill, which is going to incorporate the recommendations of the 9/11 Commission. It's going to be a bipartisan Bill, which will be put together by McCain and Lieberman.

And I think it's better to start with a bipartisan bill and take it from there. And I hope they'll do that when we get back, and that we'll do it promptly.

(END VIDEO CLIP)

HENRY: In fact, Senator Roberts is known for working on a bipartisan basis with the top Democrat on his Intelligence Committee, Jay Rockefeller of West Virginia. But Senator Rockefeller put out a statement.

He is reacting with a bit of criticism, saying that he believes "scattering the CIA at such a crucial time would be a severe mistake." Some concern from jay Rockefeller. Again, a little bit of departure from what we've seen from Senator Roberts from dealing with his own committee.

But I think he wants to lay out a strong marker. There has been a lot of talk this summer about reform, not just at the White House, but on Capitol Hill with all these hearings that we've seen. But Senator Roberts wants to lay down a strong marker that he wants real reform, as he mentioned, not a half measure.

He's also getting flack from allies of the Pentagon who are not happy that the Pentagon is going to lose turf, will lose budget authority and will lose agencies like the National Security Agency.

But it's very important to point out, Betty, that this is one of many proposals that will be floating around. Again, Senator Roberts laying down a marker, but there's far from any consensus at this point. And this is clearly not the last we've heard of it. So, this plan to dismantle the CIA is not necessarily going to go through. This is very early in the process -- Betty.

NGUYEN: All right. CNN's Ed Henry, thank you very much.

Well, the controversy over John Kerry's Vietnam War record is still hovering over the current presidential race. Kerry's campaign is releasing a new ad today, accusing President Bush for using the Swift Boat Veterans for Truth as a front group.

The ad calls on the president to denounce the group's smear campaign and concentrate on the issue. The Bush campaign has repeatedly described Kerry's war record as honorable but has rejected the Kerry campaign's request to disavow the swift boat group's ads.

A former Senate colleague of John Kerry is calling on him to apologize for past testimonies about alleged atrocities during the Vietnam War. Bob Dole tells CNN, Kerry may have himself to blame for the current controversy.

(BEGIN VIDEO CLIP)

BOB DOLE (R-KS), FMR. SENATOR, WWII VETERAN: Maybe he should apologize to all the other 2.5 million veterans who served. He wasn't the only one in Vietnam. And here's a -- you know, a good guy, good friend, I respect his record. But three Purple Hearts and never bled that I know of. I mean, they're all superficial wounds. Three Purple Hearts and you're out.

I think Senator Kerry needs to talk about his Senate record, which is pretty thin. That's probably why he's talking about his war record, which is pretty confused.

(END VIDEO CLIP)

NGUYEN: A retired Air Force colonel, who appears in the swift boat group's latest ad, has quit the Bush/Cheney campaign. Ken Cordier was an unpaid adviser on veteran's issues. The Bush campaign said it did not know Cordier was in that ad.

Meanwhile, President Bush is hosting his top advisers at his Texas ranch today, with U.S. troop strength in Iraq at the top of the agenda.

CNN White House correspondent Suzanne Malveaux joins us now with the story.

Good morning, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Betty. We expect to hear from President Bush and his defense team in about 90 minutes or so, when they go before reporters. Probably they'll take some questions.

This morning, a very important morning for the president as he meets with his top military officials. Not only the president, but also Vice President Dick Cheney, Secretary Rumsfeld, the chairman of the Joint Chiefs of Staff, just to name a few.

Now, what they'll be doing is talking about military priorities. What we've been told by White House officials, they will talk about the realignment of the military, that plan to bring home some 70,000 U.S. troops, perhaps as early as 2006.

Also, of course, that controversial plan by Senator Pat Roberts to reform the intelligence. Just what does that mean in terms of the break-up or the makeup of the CIA in the future? As well as the training of Iraqi troops. And perhaps even some of those threats from Iran, Iraq and North Korea, when it comes to their nuclear weapons programs.

Now, Betty, as you know of course, this comes at a critical time for the president. This is a time when his campaign is trying to convince American voters that he has done the right thing by Iraq, that he is handling the war on terror, and that he is also very strong when it comes to homeland security.

This at a time, of course, when you're looking at almost 1,000 U.S. troops who've been killed inside of Iraq, and also a military that is tremendously stretched across the country -- Betty.

NGUYEN: Suzanne, any indication as to whether the president's going to be speaking with reporters today about these discussions that are going on in Crawford?

MALVEAUX: We expect in about 90 minutes the president, as well as Secretary Rumsfeld and his defense team, will go before the cameras. They'll make opening statements and they'll take a few questions we anticipate. This is part of an annual assessment of what the military looks like, what they're planning for ahead.

And as you know, this comes at a critical time when they try to figure out how to realign some of those bases, bring some of those soldiers home. And at the same time, deal with some 150,000 U.S. troops that are still serving in Iraq and Afghanistan.

NGUYEN: CNN's Suzanne Malveaux, thank you.

In prison for alleged war crimes, tribunals begin for four prisoners detained at Guantanamo Bay. The trials will be open to the media. But critics say the proceedings still are not fair.

Plus, she was the other woman. Now Scott Peterson's attorney will work to discredit her testimony. A live report from outside the Redwood City courthouse.

Oh, yes. And later, from fringe spectacle to mainstream attraction, the definitive history of surf, skate and snowboarding. That's coming up on CNN LIVE TODAY.

(COMMERCIAL BREAK)

NGUYEN: Here's what's on the docket today in our look at "Legal Briefs."

In Santa Maria, California, a pretrial hearing in the Michael Jackson molestation case resumes in about three hours from now. The prosecution and defense are battling it out over secret evidence that could be crucial in the case against the pop star. Jackson's trial is scheduled to begin on January 31.

In north Georgia, a crematory operator who left more than 300 bodies piled up on his property faces a civil suit in court today. Brent Marsh is being sued by 1,700 relatives of those whose bodies were left untreated and neglected. Now, attorneys admit it won't be easy to collect monetary damages from a man who is too poor to afford his own lawyer.

Scott Peterson's former mistress faces cross-examination today in his double murder trial.

CNN's Rusty Dornin has a preview from Redwood City, California. Good morning to you, Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Betty, you know, so much of this case has been argued behind closed doors, away from the eyes and ears of not only the jury, but spectators and of course, the news media. We expect that to be the case somewhat today. And we're not expecting to hear anything about what prompted the delay -- the very sudden delay last week.

A source close to the case does tell CNN it concerns a defense request to use additional tapes. Now, if you remember, the prosecutors used 43 tapes that they played in court, that were recorded in Amber Frey's home in cooperation with police.

But there were also hundreds of other calls that were not used and played in court that were part of Amber Frey's part in the case. But also police were wiretapping Scott Peterson's phones as well. And there are hundreds of calls on there.

We understand from the sources that the judge has agreed to allow the use of the tapes only if Amber Frey responds directly to Geragos' question about those tapes. In other words, if Mark Geragos asks her a question, if she said something and she says no, and he says well, wait a minute. I have this tape where you said this, then they would be allowed to play it.

Now, of course, Amber Frey's attorney has said that she has been very nervous about this cross-examination, and really had herself steeled last week. Very unnerving that the whole thing was delayed. But that she is back in town and ready to go forth this morning.

We are expecting a short delay before she takes the stand. Apparently there will be an out-of-order witness that will testify, and then it will be Amber Frey's turn to face Mark Geragos -- Betty.

NGUYEN: And we'll see how Geragos plans to do this, because he can be seen as an aggressive prosecutor.

All right. CNN's Rusty Dornin, thank you.

Expecting an onslaught of demonstrators, Republican convention organizers brace for that onslaught following them to New York City. And many young people are declaring bankruptcy. You can help your kids avoid this trend with a little help from our very own Gerri Willis.

Hi, Gerri.

GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Hi, Betty. You've got to train those kids early. We're going to show you how when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

NGUYEN: Well, it's never too early to begin teaching your children about money. It could even protect them from an early brush with bankruptcy. And no one wants that.

CNN-FN personal finance editor Gerri Willis joins us today with the "Top Five Tips" on this subject.

Good morning to you.

WILLIS: Hey, Betty, good to see you. Tip No. 1, it's all about the allowance, the art of the allowance. Most parents use that, the allowance, to teach their kids about money. But I've got to tell you, just handing the money every week isn't going to do it.

You've got to be careful about how you dole it out. You want to make sure you're teaching them about how work and pay are related. But it can be tricky. You want to avoid an entitlement mentality.

(BEGIN VIDEO CLIP)

NEALE GODFREY, CHILDRENS FINANCIAL NETWORK: I believe in the work for pay system. You're teaching them the natural consequences of money. The way you get money is you earn it.

Now, there are two types of chores within the household. There are the citizens of the household chores, where you don't get paid. My kids have to keep the room free of breeding diseases, and there's no payment. When I ask them to do something, they better not turn around and say how much?

But the work for pay chores are over and above that.

(END VIDEO CLIP)

WILLIS: So, Tip No. 2, you also want to teach them to bank it. And starting as early as age five, it makes sense to open a savings account for your child. That way you can teach them how putting money away and letting it sit for a while will let it grow.

You can go over the statements each month with them. And it makes a lot of sense to do it online. Because like it's not, your child is going to do all their financial work on the web.

NGUYEN: Oh, yes. They're such techies these days. Well, let's talk about stocks. Is it too early as a child to teach them about stocks?

WILLIS: I think age 10 is probably a great place to start. And it's easy enough to do. You just find a company or a product that your child really relates to. So, if they love Disney, you might buy them shares of Disney. If they have an iPod, you might buy them shares of Apple. This way your child connects the product and the stock. You can start teaching them about the stock market.

One place on the web to go, oneshare.com will frame your stock certificate and send it out for you, and will tell you more about how to teach your children about stocks.

NGUYEN: But should you give your child a credit card? I know a lot of parents really ponder that.

WILLIS: Well, you know -- you know, face it; your kid's going to be asking for a credit card very young indeed. Certainly by the age of 12 or 13, they're going to want to take your credit card to the mall. But there's probably a better way to do it.

Think about a cash card. Now, this looks like a credit card. It smells like a credit card. But they can only charge so much on it, the amount you've already put on that credit card -- or cash card. It has a limit.

And that's a great way to start. Because your child can start seeing how credit works without really exposing you to a lot of debt.

NGUYEN: What about just cold hard cash? Is that even better because they can see it go away as they spend things?

WILLIS: Exactly. Cold hard cash is one way to go. But I've got to tell you, I love these cash cards. They really make a lot of sense. Particularly as your child gets older and they're starting to learn about what's going on.

One other tip here. You know, there's no spenders' ed. out there for kids. If you want your child to know about money, you have to teach them yourself. One great way to do it, a couple of web sites I want to share here: themint.org.; moneyinstructor.com.

You know, at the end of the day, one interesting number that we've found out there, median credit card debt for kids in college right now, if they have a credit card, $3,400. Now, if you have to pay that off with the money from your first job, you'll be paying a long, long time. So teach those kids early.

NGUYEN: It's not good especially if you have college loans to boot. OK. Gerri Willis, thank you.

WILLIS: Thank you, Betty.

NGUYEN: Well, the Cubs, they are having a pretty good season on the road. But now things are crumbling for them at home. And sports that are be becoming as mainstream as baseball. But instead of a bat, you need a board. The definitive history of surf, skate, and snowboarding, that's just ahead.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired August 23, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: Good morning, everyone, from the CNN Headquarters in Atlanta. I'm Betty Nguyen, in for Daryn Kagan.
Now in the news -- renewed violence has flared overnight in Najaf, an Iraqi city that's been embroiled in weeks of fighting. Explosions and gunfire have surrounded the Imam Ali Mosque, where hundreds of rebel militia fighters have remained a standoff against U.S.-backed Iraqi forces. A delegation of Shiia authorities is expected to arrive and assume custody of the holy site.

An American journalist is freed nine days after being taken hostage and threatened with death unless U.S. forces left Najaf. Thirty-six-year-old Micah Garen says he was well treated by his captors, and thanked the intervention of rebel cleric Muqtada al-Sadr for helping secure his release.

Now to Capitol Hill. More hearings are underway this hour on the 9/11 Commission's Report. The House Financial Services Committee is focusing on terrorist funding, while the House Judiciary Committee opens an oversight hearing. The hearings coincide with a sweeping new proposal to create a new intelligence service. In a few minutes we'll go to Capitol Hill for a full report.

And rainy weather has come to the aid of Oregon firefighters. They've now managed to contain about a quarter of the Bland Mountain Fire near Roseburg. It's burned more than 3,600 acres. Rain has also stifled fire outbreaks in New Mexico and Arizona.

Well, if you depend on overtime to supplement your paycheck, you need to know about changes that go into effect today. But a warning, the more you know, the more confused you may become. The Labor Department says about 1.3 million workers are newly eligible for overtime pay. While 107,000 other workers will lose eligibility.

But those numbers conflict with the Economic Policy Institute, a nonprofit think tank. That group says 400,000 Americans will gain eligibility while six million others will lose it.

So, to help us sort all of this out, we turn now to CNN's Louise Schiavone, who is outside the Labor Department headquarters in Washington.

Hopefully you can sort all of these numbers for us. It seems a bit confusing for everyone reading them. LOUISE SCHIAVONE, CNN CORRESPONDENT: That's right, Betty, and good morning. You know, these rules were drafted to clarify existing regulations. But as you said, it seems like they've only sparked a fresh debate about who wins and who loses.

(BEGIN VIDEOTAPE)

(voice-over): James Ware is a sous chef at a big Washington hotel. He worries about the new overtime rules.

JAMES WARE, SOUS CHEF: If I didn't have the overtime, my income would be cut at least by a quarter or better.

SCHIAVONE: His big concern, if he becomes a non-union chef, the new rules might cost him 10 hours a week of overtime pay.

WARE: All managers work a 10-hour shift. And unlike the non- union managers, we get paid overtime.

SCHIAVONE: The Labor Department says its clarifying complex and outdated federal overtime rules. As of today, among those guaranteed overtime wage protections, all hourly workers and anyone earning no more than $23,660 annually.

VICTORIA LIPNIC, ASSIST. SECY. OF LABOR: That will result in about another 1.3 million people getting overtime who don't have it today. And we also think that will strengthen overtime protection for about another 6.7 million people.

SCHIAVONE: But it's not that clear. While Labor officials predict that almost no one earning less than $100,000 will lose their overtime privileges, they admit that 100,000 workers earning more than that could be hit. Labor advocates predict that as many as six million workers will find themselves fighting the new regulations due in large part to new management descriptions.

ROSS EISENBREY, ECONOMIC POLICY INST.: This is going to be a mess, because they've said it doesn't matter what degree you have. What matters is what level of knowledge you have. And that's a very hard thing to test. The Department of Labor, for example, doesn't have people who can decide whether a cook has the same skills as somebody who graduated from a culinary art school.

SCHIAVONE: The new rules specify that regardless of annual pay, most blue-collar workers, like plumbers and carpenters along with police and firefighters, are guaranteed overtime pay.

(END VIDEOTAPE)

SCHIAVONE (on camera): Betty, for a year, Democrats have stood by to block any new regulations that would take overtime pay away from workers who currently have it. But in an election year, it's very difficult to get anything done. And this issue is no exception -- Betty.

NGUYEN: No doubt. We're looking at it right here, a lot of pages to read. And on top of that, this was created in a way to prevent litigation lawsuits. But with all this confusion, are we going to see more of those lawsuits?

SCHIAVONE: Well, the hope had been all along, especially among the business sector, that it would actually bring about a decline in lawsuits. And it may well, because it creates a situation where certain categories are definitely clarified.

What is going to happen for business is that there's going to be $1.1 billion in clerical adjustments that have to be made. And then another $375 million business is going to wind up paying for people getting the overtime. Still a lot of clarifying to do -- Betty.

NGUYEN: Definitely. Louise Schiavone, thank you very much.

Well, if you want more information on the new overtime rules, check out the Department of Labor's web site, the address is www.dol.gov.

There's a plan to give a National Intelligence Director even greater power than proposed by the 9/11 Commission, and that's being floated on Capitol Hill. Senate Intelligence Committee Chairman Pat Roberts says he's coming out with his plan now, because he feels the White House may not fully embrace intelligence reforms. And because he's concerned about delays.

(BEGIN VIDEO CLIP)

SEN. PAT ROBERTS (R-KS), CHMN., INTELLIGENCE CMTE.: Well, we think it's real reform. And we think it's good for national security. And what we did is we stood back from the trees and said, all right, what are the national threats that face our country today, either asymmetrical or what will happen down the road?

And we didn't pay any attention to turf. We didn't pay any attention to boxes. We didn't pay any attention to, say, the agencies. And what we have proposed is a National Intelligence Service with a National Intelligence Director that has real line item budget authority and personnel authority.

So, we think it's a good plan.

(END VIDEO CLIP)

NGUYEN: We want to go now to Capitol Hill and CNN's congressional correspondent Ed Henry with much more on this.

Hi there, Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Betty. You're right. This plan from Senator Pat Roberts does go further than the 9/11 Commission's blueprint. The major reason, and the major example of how it goes much further than the 9/11 Commission, is that he basically wants to dismantle the CIA into three pieces.

It will then be left with an Office of Clandestine Services -- dealing with human spying -- an Office of National Assessment, and also an Office of Technical Support.

That is drawing some criticism obviously from the CIA itself. It does not want to change that radically. Also, as you mentioned, Senator Roberts is talking about a very strong National Intelligence Director with real budget authority.

And while Democrats in general have embraced that concept, we're also hearing a lot of flack from Democrats who feel that they were left out of the loop on the details of how the CIA would be restructured.

Here is Democratic Senator Carl Levin.

(BEGIN VIDEO CLIP)

SEN. CARL LEVIN (D-MI), ARMED SERVICES CMTE.: I believe it's a mistake to lay down a proposal that only has the support of members of one party. We need to have bipartisan approaches, I believe. And there's going to be a 9/11 bill, which is going to incorporate the recommendations of the 9/11 Commission. It's going to be a bipartisan Bill, which will be put together by McCain and Lieberman.

And I think it's better to start with a bipartisan bill and take it from there. And I hope they'll do that when we get back, and that we'll do it promptly.

(END VIDEO CLIP)

HENRY: In fact, Senator Roberts is known for working on a bipartisan basis with the top Democrat on his Intelligence Committee, Jay Rockefeller of West Virginia. But Senator Rockefeller put out a statement.

He is reacting with a bit of criticism, saying that he believes "scattering the CIA at such a crucial time would be a severe mistake." Some concern from jay Rockefeller. Again, a little bit of departure from what we've seen from Senator Roberts from dealing with his own committee.

But I think he wants to lay out a strong marker. There has been a lot of talk this summer about reform, not just at the White House, but on Capitol Hill with all these hearings that we've seen. But Senator Roberts wants to lay down a strong marker that he wants real reform, as he mentioned, not a half measure.

He's also getting flack from allies of the Pentagon who are not happy that the Pentagon is going to lose turf, will lose budget authority and will lose agencies like the National Security Agency.

But it's very important to point out, Betty, that this is one of many proposals that will be floating around. Again, Senator Roberts laying down a marker, but there's far from any consensus at this point. And this is clearly not the last we've heard of it. So, this plan to dismantle the CIA is not necessarily going to go through. This is very early in the process -- Betty.

NGUYEN: All right. CNN's Ed Henry, thank you very much.

Well, the controversy over John Kerry's Vietnam War record is still hovering over the current presidential race. Kerry's campaign is releasing a new ad today, accusing President Bush for using the Swift Boat Veterans for Truth as a front group.

The ad calls on the president to denounce the group's smear campaign and concentrate on the issue. The Bush campaign has repeatedly described Kerry's war record as honorable but has rejected the Kerry campaign's request to disavow the swift boat group's ads.

A former Senate colleague of John Kerry is calling on him to apologize for past testimonies about alleged atrocities during the Vietnam War. Bob Dole tells CNN, Kerry may have himself to blame for the current controversy.

(BEGIN VIDEO CLIP)

BOB DOLE (R-KS), FMR. SENATOR, WWII VETERAN: Maybe he should apologize to all the other 2.5 million veterans who served. He wasn't the only one in Vietnam. And here's a -- you know, a good guy, good friend, I respect his record. But three Purple Hearts and never bled that I know of. I mean, they're all superficial wounds. Three Purple Hearts and you're out.

I think Senator Kerry needs to talk about his Senate record, which is pretty thin. That's probably why he's talking about his war record, which is pretty confused.

(END VIDEO CLIP)

NGUYEN: A retired Air Force colonel, who appears in the swift boat group's latest ad, has quit the Bush/Cheney campaign. Ken Cordier was an unpaid adviser on veteran's issues. The Bush campaign said it did not know Cordier was in that ad.

Meanwhile, President Bush is hosting his top advisers at his Texas ranch today, with U.S. troop strength in Iraq at the top of the agenda.

CNN White House correspondent Suzanne Malveaux joins us now with the story.

Good morning, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Betty. We expect to hear from President Bush and his defense team in about 90 minutes or so, when they go before reporters. Probably they'll take some questions.

This morning, a very important morning for the president as he meets with his top military officials. Not only the president, but also Vice President Dick Cheney, Secretary Rumsfeld, the chairman of the Joint Chiefs of Staff, just to name a few.

Now, what they'll be doing is talking about military priorities. What we've been told by White House officials, they will talk about the realignment of the military, that plan to bring home some 70,000 U.S. troops, perhaps as early as 2006.

Also, of course, that controversial plan by Senator Pat Roberts to reform the intelligence. Just what does that mean in terms of the break-up or the makeup of the CIA in the future? As well as the training of Iraqi troops. And perhaps even some of those threats from Iran, Iraq and North Korea, when it comes to their nuclear weapons programs.

Now, Betty, as you know of course, this comes at a critical time for the president. This is a time when his campaign is trying to convince American voters that he has done the right thing by Iraq, that he is handling the war on terror, and that he is also very strong when it comes to homeland security.

This at a time, of course, when you're looking at almost 1,000 U.S. troops who've been killed inside of Iraq, and also a military that is tremendously stretched across the country -- Betty.

NGUYEN: Suzanne, any indication as to whether the president's going to be speaking with reporters today about these discussions that are going on in Crawford?

MALVEAUX: We expect in about 90 minutes the president, as well as Secretary Rumsfeld and his defense team, will go before the cameras. They'll make opening statements and they'll take a few questions we anticipate. This is part of an annual assessment of what the military looks like, what they're planning for ahead.

And as you know, this comes at a critical time when they try to figure out how to realign some of those bases, bring some of those soldiers home. And at the same time, deal with some 150,000 U.S. troops that are still serving in Iraq and Afghanistan.

NGUYEN: CNN's Suzanne Malveaux, thank you.

In prison for alleged war crimes, tribunals begin for four prisoners detained at Guantanamo Bay. The trials will be open to the media. But critics say the proceedings still are not fair.

Plus, she was the other woman. Now Scott Peterson's attorney will work to discredit her testimony. A live report from outside the Redwood City courthouse.

Oh, yes. And later, from fringe spectacle to mainstream attraction, the definitive history of surf, skate and snowboarding. That's coming up on CNN LIVE TODAY.

(COMMERCIAL BREAK)

NGUYEN: Here's what's on the docket today in our look at "Legal Briefs."

In Santa Maria, California, a pretrial hearing in the Michael Jackson molestation case resumes in about three hours from now. The prosecution and defense are battling it out over secret evidence that could be crucial in the case against the pop star. Jackson's trial is scheduled to begin on January 31.

In north Georgia, a crematory operator who left more than 300 bodies piled up on his property faces a civil suit in court today. Brent Marsh is being sued by 1,700 relatives of those whose bodies were left untreated and neglected. Now, attorneys admit it won't be easy to collect monetary damages from a man who is too poor to afford his own lawyer.

Scott Peterson's former mistress faces cross-examination today in his double murder trial.

CNN's Rusty Dornin has a preview from Redwood City, California. Good morning to you, Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Betty, you know, so much of this case has been argued behind closed doors, away from the eyes and ears of not only the jury, but spectators and of course, the news media. We expect that to be the case somewhat today. And we're not expecting to hear anything about what prompted the delay -- the very sudden delay last week.

A source close to the case does tell CNN it concerns a defense request to use additional tapes. Now, if you remember, the prosecutors used 43 tapes that they played in court, that were recorded in Amber Frey's home in cooperation with police.

But there were also hundreds of other calls that were not used and played in court that were part of Amber Frey's part in the case. But also police were wiretapping Scott Peterson's phones as well. And there are hundreds of calls on there.

We understand from the sources that the judge has agreed to allow the use of the tapes only if Amber Frey responds directly to Geragos' question about those tapes. In other words, if Mark Geragos asks her a question, if she said something and she says no, and he says well, wait a minute. I have this tape where you said this, then they would be allowed to play it.

Now, of course, Amber Frey's attorney has said that she has been very nervous about this cross-examination, and really had herself steeled last week. Very unnerving that the whole thing was delayed. But that she is back in town and ready to go forth this morning.

We are expecting a short delay before she takes the stand. Apparently there will be an out-of-order witness that will testify, and then it will be Amber Frey's turn to face Mark Geragos -- Betty.

NGUYEN: And we'll see how Geragos plans to do this, because he can be seen as an aggressive prosecutor.

All right. CNN's Rusty Dornin, thank you.

Expecting an onslaught of demonstrators, Republican convention organizers brace for that onslaught following them to New York City. And many young people are declaring bankruptcy. You can help your kids avoid this trend with a little help from our very own Gerri Willis.

Hi, Gerri.

GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Hi, Betty. You've got to train those kids early. We're going to show you how when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

NGUYEN: Well, it's never too early to begin teaching your children about money. It could even protect them from an early brush with bankruptcy. And no one wants that.

CNN-FN personal finance editor Gerri Willis joins us today with the "Top Five Tips" on this subject.

Good morning to you.

WILLIS: Hey, Betty, good to see you. Tip No. 1, it's all about the allowance, the art of the allowance. Most parents use that, the allowance, to teach their kids about money. But I've got to tell you, just handing the money every week isn't going to do it.

You've got to be careful about how you dole it out. You want to make sure you're teaching them about how work and pay are related. But it can be tricky. You want to avoid an entitlement mentality.

(BEGIN VIDEO CLIP)

NEALE GODFREY, CHILDRENS FINANCIAL NETWORK: I believe in the work for pay system. You're teaching them the natural consequences of money. The way you get money is you earn it.

Now, there are two types of chores within the household. There are the citizens of the household chores, where you don't get paid. My kids have to keep the room free of breeding diseases, and there's no payment. When I ask them to do something, they better not turn around and say how much?

But the work for pay chores are over and above that.

(END VIDEO CLIP)

WILLIS: So, Tip No. 2, you also want to teach them to bank it. And starting as early as age five, it makes sense to open a savings account for your child. That way you can teach them how putting money away and letting it sit for a while will let it grow.

You can go over the statements each month with them. And it makes a lot of sense to do it online. Because like it's not, your child is going to do all their financial work on the web.

NGUYEN: Oh, yes. They're such techies these days. Well, let's talk about stocks. Is it too early as a child to teach them about stocks?

WILLIS: I think age 10 is probably a great place to start. And it's easy enough to do. You just find a company or a product that your child really relates to. So, if they love Disney, you might buy them shares of Disney. If they have an iPod, you might buy them shares of Apple. This way your child connects the product and the stock. You can start teaching them about the stock market.

One place on the web to go, oneshare.com will frame your stock certificate and send it out for you, and will tell you more about how to teach your children about stocks.

NGUYEN: But should you give your child a credit card? I know a lot of parents really ponder that.

WILLIS: Well, you know -- you know, face it; your kid's going to be asking for a credit card very young indeed. Certainly by the age of 12 or 13, they're going to want to take your credit card to the mall. But there's probably a better way to do it.

Think about a cash card. Now, this looks like a credit card. It smells like a credit card. But they can only charge so much on it, the amount you've already put on that credit card -- or cash card. It has a limit.

And that's a great way to start. Because your child can start seeing how credit works without really exposing you to a lot of debt.

NGUYEN: What about just cold hard cash? Is that even better because they can see it go away as they spend things?

WILLIS: Exactly. Cold hard cash is one way to go. But I've got to tell you, I love these cash cards. They really make a lot of sense. Particularly as your child gets older and they're starting to learn about what's going on.

One other tip here. You know, there's no spenders' ed. out there for kids. If you want your child to know about money, you have to teach them yourself. One great way to do it, a couple of web sites I want to share here: themint.org.; moneyinstructor.com.

You know, at the end of the day, one interesting number that we've found out there, median credit card debt for kids in college right now, if they have a credit card, $3,400. Now, if you have to pay that off with the money from your first job, you'll be paying a long, long time. So teach those kids early.

NGUYEN: It's not good especially if you have college loans to boot. OK. Gerri Willis, thank you.

WILLIS: Thank you, Betty.

NGUYEN: Well, the Cubs, they are having a pretty good season on the road. But now things are crumbling for them at home. And sports that are be becoming as mainstream as baseball. But instead of a bat, you need a board. The definitive history of surf, skate, and snowboarding, that's just ahead.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com