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American Morning
Much More Money Needed for Iraq; Senate Debates Condoleezza Rice as Secretary of State
Aired January 25, 2005 - 07:00 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.
BILL HEMMER, CNN ANCHOR: Good morning. Much more American money needed for Iraq. The president now expected to ask Congress for another $80 billion.
And Iraq will be a heated subject today. The Senate debates Condoleezza Rice as secretary of state.
And going for gold. The Academy Award nominations are announced today. Will it be "Million Dollar Baby," or is Oscar falling hard for "Ray?" We'll find out live on this AMERICAN MORNING.
ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome everybody.
As the election draws near, how do military families deal with fears. We talk with a wife of a man serving in Iraq. Linda Tarsa e- mails her husband every day. We're going to ask her about the mood among the troops, and also here on the homefront as well.
HEMMER: Also this morning, the "New You Revolution" is back. Today we're following the Reverend Leigh Ann Raynor. Six months off of heart surgery, and now she's starting the doctor's exercise routine, and here's something interesting too for her. The reverend has not cooked a dinner for anyone else. They're cooking for her, though. Now she's on the spot there as well. So we'll talk about that this morning.
O'BRIEN: Interesting.
Good morning, Jack.
JACK CAFFERTY, CNN ANCHOR: Good morning, Soledad.
Should your boss be able to fire you for smoking? it's happening to people in Michigan, not for smoking on the job, not for even standing outside of the building smoking, smoking anywhere -- smoking on vacation, smoking in your house, smoking period. We'll take a look at a controversial -- what was that? Controversial idea in a moment. And I'm going to go kill the wild animal that just got loose here in our studio.
HEMMER: Yes, bring my gun.
CAFFERTY: What was that? O'BRIEN: Technical things happening.
That story has lawsuit all over it, I would think.
CAFFERTY: Not necessarily.
HEMMER: A lot of companies are doing this.
CAFFERTY: Health care costs are going through the roof. These companies are saying we're not going to provide health insurance if you're going to do this. If you work here, we have a right to expect that you be a healthy employee.
HEMMER: Running for cover, yes?
CAFFERTY: yes, absolutely.
I'm sure that, you know, the litigous crazy society we live in, they're lining up to file suits, but I'm not they win them. We'll see.
O'BRIEN: All right, Jack, thank you.
CAFFERTY: I'm going to go over there and that kill the bear.
O'BRIEN: Yes, yes, it's right over there, the bear.
Carol Costello is at the Time Warner Center in New York with a look at the stories now in the news.
Hey, Carol. Good morning.
CAROL COSTELLO, CNN ANCHOR: Actually I think that noise was an angry smoker.
Now in the news, good morning, everyone. Just days before the elections in Iraq, there is word this morning of fighting between insurgents and Iraqi police. According to the Associated Press, at least 11 policemen were killed in eastern Baghdad in various clashes. Now, earlier, a high ranking official in the justice ministry and his son were gunned down southeast of the capital city.
In Washington, President Bush is starting a two-day outreach to the African-American community. The president will discuss his second-term agenda with several black leaders at the White House this afternoon. He's scheduled to meet with Congressional Black Caucus leaders tomorrow.
Federal officials are reportedly questioning four suspected illegal immigrants after their plane was forced to land in San Antonio, Texas. According to the Associated Press, homeland security officials detained the group in connection with a possible smuggling operation involving Chinese nationals. There is no word on the plane's origin or where it was heading.
And the infamous pacers/pistons brawl will be playing out in a courtroom today. A Michigan judge has ordered five Indiana Pacers players and five Detroit Pistons fans to attend a pretrial hearing. Yes, they'll all be in the same room. One of the fans faces a felony charge for apparently hurling a chair during the November 19th fight. You of course remember that. The lawyer for one player says he expects today's courtroom is -- quote -- "going to be a zoo." And, Bill, I'm sure he's right.
HEMMER: Keep the beer away this time. Thank you, Carol.
A new developments from the White House this morning. Amid pre- election violence in Iraq, there is word the Bush administration needs $80 billion more for military operations there and in the country of Afghanistan.
Suzanne Malveaux starts our coverage from the White House this morning.
Good morning, Suzanne.
SUZANNE MALVEAUX, CNN CORRESPONDENT: Good morning, Bill.
Democrats have long complained they believe that the Bush administration has not been forthcoming in just the cost of the war on terror. It is no doubt this announcement as early as today, of course, will add more questions, perhaps even controversy, over that very issue, where are taxpayers' dollars going. Now congressional sources tell us that the Office of Management and Budget is expected to seek about $80 billion in new funding for military operations this year in Afghanistan and Iraq, making the total cost for both conflicts almost $300 billion to date.
The White House refusing to give numbers, still saying that they're working on a number of these things. Reuters reporting, however, the breakdown is possibly looking like this: $780 million to combat the Afghan drug trade, $1 to $2 billion for a new U.S. Baghdad embassy, $200 million in Palestinian aid, and $300 million increase in tsunami aid, bringing that up to $650 million.
Now the White House is formally going to submit the its fiscal 2006 budget in about two weeks or so, but, Bill, Democrats are wasting no time. Democratic leader Nancy Pelosi releasing a statement last night, saying that night she expects a full accounting from the White House -- Bill.
HEMMER: Suzanne Malveaux, likely to hear more about this today during the open debate in the Senate for Condoleezza Rice as well. Thanks for the update there at the White House.
Here's Soledad now with more.
O'BRIEN: Thank you.
We first introduced you to Linda Tarsa and her family back in December as part of our "Holiday Homefront" series. She appeared with her two children, David and Jessica. Linda's husband, Lieutenant Colonel Mike Tarsa, has been stationed with the U.S. Army in Baghdad since September.
So now, with the Iraqi elections days away, what do family members of those who are serving in the armed services feeling? Linda Tarsa joins us from Austin, Texas.
Linda, nice to see you again. Thanks for coming back to talk to us. Appreciate it.
I know that you e-mail your husband twice a day. What has he said about his role in the upcoming elections?
LINDA TARSA, HUSBAND SERVING IN IRAQ: Well, he's the chief of plans for the First Cavalry Division out of Fort Hood, Texas, so he's actually working, I guess, with planning how, you know, the army will assist the Iraqis and ensuring the election is a success.
O'BRIEN: So he'll be working in security and safety. How do you explain his role to your family, maybe specifically maybe your son, Danny, who's sort of old enough I think to understand a little bit of what's going on? What have you said to him?
TARSA: Well, because Mike is in the planning phase, it's nice for him to understand that his dad is really working, with not only the -- you know, with everybody over there to ensure the election is a success. So it's an honor and, you know, for Mike to see that, and for the kids to understand what an important role their dad's doing in the future of Iraq as a nation.
O'BRIEN: The reality, of course, is that there's violence there, and we are told, as I'm sure you're told as well, the violence will increase certainly as we get closer and closer to the election. How do you deal with that?
TARSA: It's scary. You know, and I know other spouses like myself whose husbands are in a more dangerous location are very scared. But we're hoping and we're praying that all of our soldiers will be safe. We can only hope for the best. We can't just sit in our houses and cry and worry and worry. We have to keep a positive outlook, and I think that's very important, especially in these next five days.
O'BRIEN: It hard for you to walk a middle ground? On one hand, you have your husband right in the middle of a lot of danger. On the other hand, he's got a very big mission, ensuring Democratic elections, bringing stability to a country. That is, to have a role in that I think is historic and important. How do you feel though about it?
TARSA: Well, obviously, I'm honored and proud of him and all the other soldiers that are over there doing such great work.
But, you know, it is scary being a spouse, you know, and our children are a little afraid. But he is there -- what they're doing over there is historic. They're doing something that is amazing -- rebuilding a nation, helping a nation elect the people that are going to form out their constitution; that's huge. And we're proud that he's doing -- that he's a part of that and he's doing such great work over there.
O'BRIEN: When did you expect to see him in person, face to face?
TARSA: Hopefully this spring. If everything goes well with the elections and the violence does not escalate, especially after the elections, then we're hoping for a spring reunion. So that will be nice to see him again.
O'BRIEN: We'll chat with you then when it happens.
Linda Tarsa, whose husband is serving in Iraq, thanks, Linda.
Today is the final day for Iraqi expatriates in the United States to register their vote to vote. They must travel to one of just five cities to sign up. Those cities are Nashville, Chicago, Detroit, Los Angeles and Washington.
HEMMER: We are still watching the weather this morning, Soledad. In Boston, another day of heavy digging after the weekend blizzard there. And parts of Massachusetts buried under three feet of snow. And everywhere, huge piles of plowed snow, some up to 15 feet tall. Officials say that is too much for their usual removal equipment to handle, and now forecasters are calling for more, and that says a lot in Massachusetts.
It also seems there is nowhere to hide from the cold. Freezing temperatures sweeping all the way to Florida yesterday, expected to continue today. A record low of 23 in Ocala. And in Miami, 42 degrees, a low not seen since 1960.
(WEATHER REPORT)
O'BRIEN: Guess what? It's time to start week two of the "New You Revolution." We're going check in with Reverend Leigh Ann Raynor. Remember her? We're going to ask her if she's still with the program, or if she's ready to call it quits.
HEMMER: Already?
O'BRIEN: Yes. Kind of early for that, right?
HEMMER: Also, out of the frying pan and into the fire. What will happen when the whole Senate takes on Condoleezza Rice's confirmation hearing? Today that debate begins.
O'BRIEN: And Hollywood announcing the Oscar nominees this morning. Is "Ray" the movie to beat? That's ahead on AMERICAN MORNING. Stay with us.
(COMMERCIAL BREAK)
HEMMER: U.S. senators have nine hours of today's session to debate President Bush's policy in Iraq. Democrats in the Senate asked for the debate. They say it's a necessary step before a vote to confirm Condoleezza Rice as secretary of state.
Ed Henry is watching things on Capitol Hill.
Ed, good morning there.
ED HENRY, CNN CORRESPONDENT: Good morning, Bill.
The Democratic decision to slow down the confirmation of Condoleezza Rice is a mixture of symbolism and substance. Symbolically, Democrats want to send a signal right at the beginning of the second term that they're not going to roll over for President Bush. Democrats have been stung, Democrats like Barbara Boxer, they've been stung by critics within their own party, saying that the Democratic leadership up on the Hill really did not stand up to President Bush in his first term. And substantively, Democrats say these nine hours of debate today on the Senate floor is their forum to highlight real policy differences with Condoleezza Rice, specifically on Iraq.
Republicans, though, say this is really just petty partisanship, the Democrats are playing politics with national security, and that that's very dangerous to slow down the elevation of a new secretary of state at a time of war.
Senate Majority Leader Bill Frist yesterday expressed frustration with the Democratic maneuvering, and said he hopes this is not a sign of obstructionism on a whole range of issues.
(BEGIN VIDEO CLIP)
SEN. BILL FRIST (R-TN), SENATE MAJORITY LEADER: I was a little disappointed. Well, they fight us tooth and nail our all our priorities. Certainly within their right to do so, but I hope that we continue, and will continue to reflect our desire, our willingness to work together. It's what I think -- I know the American people want. It doesn't mean don't sacrifice principles, and I expect the Democrats to fight us when their principles are different than ours, and that sort of fight is one that can be carried out in a civil way, and I look forward to doing that.
(END VIDEO CLIP)
HENRY: Republicans also say this is overkill, since Democrats had two days to grill Dr. Rice last week. The bottom line here is expect nine more hours of rhetoric, but tomorrow there will be a vote finally on Condoleezza Rice, and she will be easily confirmed by the Senate -- Bill.
HEMMER: Ed, this $80 billion that will be requested from the White House to fund Iraq, to fund Afghanistan, how much of that will be part of today's debate do you anticipate?
HENRY: I expect that to be a big part of the debate, because sources on both sides of the aisle up here say that the $80 billion, it could actually be much more than that. In fact, last week, Senator Joe Biden, at Condoleezza Rice's confirmation hearings, says he expects the number to be in the neighborhood $200 billion over the next year or so, and that this $80 billion may just be a down payment in terms of how much taxpayers have to shell out for the ongoing war wars in Iraq and Afghanistan. So you can bet that's going to be a big topic of discussion -- Bill.
HEMMER: Thanks, Ed. We'll we watching here. Ed Henry on Capitol Hill.
A bit later in our program today, we'll talk to one of the Senate's leading opponents of Condoleezza Rice and the war in Iraq. California Senator Barbara Boxer is our guest at 8:30 a.m. Eastern -- Soledad.
O'BRIEN: In Tucson, Arizona, a dramatic confrontation between police and a suspect who was shot 70-plus times with a nonlethal pepper gun. It started with police respond responding to a fight Saturday night. Officers ordered one suspect to get on the ground. The man, Gabriel Gandara, said he tried to comply, but the pepper balls just kept coming.
(BEGIN VIDEO CLIP)
GABRIEL GANDARA, PEPPER BALLED 70+ TIMES: They told me put your hands on your head, and then they told me, turn around, and when I was turning around, they kept shooting at me. I tried to lay down, they keep shooting at me. I'm not going to stand there and just take it.
ARDAN DEVINE, TUCSON POLICE DEPT.: The way the training is set up, is you apply and reassess, and then if necessary, you reapply, and you continue reapplying until you gain compliance.
(END VIDEO CLIP)
O'BRIEN: The suspect says he'd been drinking and that he's been hit with pepper ball rounds in other run-ins with police.
HEMMER: In about an hour, Soledad, we'll get the Academy Award nominations, and will see them live here on AMERICAN MORNING.
Sibilia Vargas first with a preview on this year's gold rush in California.
(BEGIN VIDEOTAPE)
SIBILIA VARGAS, CNN CORRESPONDENT (voice-over): "Million Dollar Baby" should figure prominently in Oscar's prize fight. The boxing drama looks certain to score nominations for best picture, director Clint Eastwood and actress Hilary Swank.
But for all of "Baby's" punch, it could be out-pointed by the "Aviator," the story of Howard Hughes.
LEONARDO DICAPRIO, ACTOR: He's one of those mythic men, one of those mysterious figures.
VARGAS: The biopic should pick up nominations for best picture, actor Leonardo Dicaprio, and a fifth directing nomination for Martin Scorsese. He's still looking for his first Oscar win.
The other film likely to wiggle its way to the best picture sweepstakes is "Sideways."
UNIDENTIFIED MALE: It's a little comedy we basically made for ourselves.
VARGAS: The big question, though, is whether last year's most talked about films draw best picture nominations, Mel Gibson's "The Passion of the Christ" and Michael Moore's anti-bush documentary "Fahrenheit 9/11."
In the lead acting categories, look for Johnny Depp to earn his second straight nomination. This time, for "Finding Neverland." He could be joined by "Hotel Rwanda's" Don Cheadle, and possibly "The Sea Inside's Javier Bardem. And Jamie Foxx is an almost certain nomination for "Ray." He's fresh from victory at the Golden Globes.'
JAMIE FOXX, ACTOR: I feel great. I feel great.
VARGAS: "Eternal Sunshine's" Kate Winslet has a shot at picking up the fourth nomination of her young career. Also in the hunt, fellow British actress Imelda Staunton of "Vera Drake." And "Annette Bening, who played a British actress in "Being Julia." If Bening and Swank are nominated, it would set up a rematch of 1999, when Swank won the Oscar for "Boys Don't Cry" over "America Beauty's Bening. A nice storyline for the media, but Swank isn't buying it.
HILARY SWANK, ACTRESS: I don't really see it as competition.
VARGAS: And Bening's just as philosophical.
ANNETTE BENING, ACTRESS: Whatever happens. It's just fun when you get recognized.
VARGAS: Silbia Vargas, CNN, Hollywood.
(END VIDEOTAPE)
HEMMER: Thank you, Sibila. As we mentioned before, keep it here for the nominations, coming out at 8:30 a.m. Eastern Time. We'll have them for you live out of Hollywood when they come down -- Soledad.
O'BRIEN: Speaking of movies, that looks like that's where the money is on Wall Street. Andy is "Minding Your Business." He's going to explain, coming up next on AMERICAN MORNING.
(COMMERCIAL BREAK)
O'BRIEN: Welcome back, everybody.
The DVD movie rental company Netflix is growing in leaps and bounds. Andy Serwer is here. He's "Minding Your Business" this morning.
Good news for them, obviously. ANDY SERWER, "FORTUNE" MAGAZINE: Good news for them, but not good news everyone else on Wall Street yesterday sadly, Soledad. We left off at 9:45 Eastern yesterday. The Dow was up about 20 points, ended up down about 20 points. Here we go again, the Nasdaq down 25 as well. That's more on a percentage basis. Techs obviously getting beaten up pretty good.
As far as year-to-date, it's not pretty, especially with the Nasdaq again, down almost 8 percent. And of course, if you extrapolate, which you don't want to do, it will be a horrible year, but it doesn't always work out that way.
Futures are up this morning, however. And it has a lot to do with the weather. When the market's following the weather, you know you're out of sorts. The weather is heating up in the Northeast, the price of oil is down, stock futures are up, kind of directionless trading. It is the fourth week in a row we've been down, the fourth day in a row, and we're looking for a turnaround this morning.
As Soledad mentioned, some good nice out of Netflix, the rental video, or DVDs of course what they rent through the mail. And the revenue is up about 77 percent. So that stock is up 15 percent.
O'BRIEN: Why?
SERWER: Because the business continues to grow, even though their competitors, Blockbuster moving into that business, they're still really growing strongly. People love to rent movies, and I guess that's kind of a relevant subject today, given that we have the Oscar nominations this nominations. I still haven't seen "Ray" yet.
CAFFERTY: If there's a God in heaven, Ray has to win all these awards. I mean, it's just a magnificent picture.
This rental thing, you don't have to get in your car in the three-foot snow like we had in New York and go to the rental store. It comes in the mail. You mark the things you want, they send them to you, put them in an envelope. The guy picks them up and takes them back.
Ray is a magnificent picture. It's just terrific.
HEMMER: Jamie Foxx wins best actor.
SERWER: You think so?
HEMMER: I don't know if that's film's going to win much after that.
CAFFERTY: Well, it ought to.
O'BRIEN: He's terrific.
HEMMER: Here's, Jack, what's happening?
CAFFERTY: Nothing. Back to you. (LAUGHTER)
SERWER: Gotcha.
O'BRIEN: I've waited a lifetime for a toss like that.
SERWER: Wow, he's got nothing to say.
HEMMER: Let me take it from here.
SERWER: News alert!
CAFFERTY: Years ago -- I don't if there's time to tell this story -- the eyewitness news team of Roger Grimsby and Bill Butel were the highest rated local newscast in New York, and Grimsby used to spend part of his time in a little joint across the street that had nothing to do with the TV news if you get my drift.
One night they go on for the 11:00, and Butel was a kind of an intense, serious guy, and they go on to do the news, and they come to Grimsby, and he said, good evening, the lead story's not ready -- Bill.
And you could see the blood drain from Butel's face.
SERWER: What was the name of the place across the street, because Andy and I need a place to go later.
CAFFERTY: Yes, you don't want to go. You're not old enough to get into a place like that.
HEMMER: You'd be surprised.
CAFFERTY: Four employees of a Michigan health benefits company have been fired for not taking a test that would determine whether they smoke cigarettes. The company instituted a policy January 1st that makes it a firing offense to smoke, even after hours or at home. Waco (ph) founder Howard Myers (ph) says he instituted the antismoking rule to protect his company from high health care costs. Michigan does not have strict smokers' rights laws, so the company's mandate is legal for now.
A recent study by the Society for Human Resource Management found 32 percent of U.S. employers offer stop-smoking programs, 12 percent prefer not to hire smokers, and 5 percent charge higher health care premiums for people who smoke. Here's the question, do companies have the right to fire employees for smoking? Am@CNN.com.
HEMMER: Policy probably bigger than you think actually, and I wonder how much they can save.
O'BRIEN: Two questions for you. What does Waco make? What do they do?
CAFFERTY: It's a health care administration company.
Did I say that? A Michigan health benefits company.
O'BRIEN: I'm sorry, did I miss that? You must have mumbled that; I didn't hear it. I'm kidding. I'm kidding.
CAFFERTY: What's the second question that I probably already answered?
O'BRIEN: Does this mean that people at the candy machine could potentially overweight...
CAFFERTY: Only if they're smoking the Hershey bars.
O'BRIEN: What about drinking? That's legal, and it's also bad for you.
CAFFERTY: All I know, kiddies, is what's in the little script thing that I just read here about the smoking. I don't know -- but I'm sure people will raise that. Maybe overweight people could be fired for eating.
SERWER: if you work at CNN, you can't drink -- never mind.
HEMMER: Academy Awards are out in an hour by the way. We'll see if your predictions are true. "90-Second Pop" in a special version this morning, coming your way in a moment here.
Does "Million Dollar Baby" have the knockout punch, or will "The Aviator" fly high. Plus, the surprises that might be in store this morning. The poppers make their predictions.
(COMMERCIAL BREAK)
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Aired January 25, 2005 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. Much more American money needed for Iraq. The president now expected to ask Congress for another $80 billion.
And Iraq will be a heated subject today. The Senate debates Condoleezza Rice as secretary of state.
And going for gold. The Academy Award nominations are announced today. Will it be "Million Dollar Baby," or is Oscar falling hard for "Ray?" We'll find out live on this AMERICAN MORNING.
ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome everybody.
As the election draws near, how do military families deal with fears. We talk with a wife of a man serving in Iraq. Linda Tarsa e- mails her husband every day. We're going to ask her about the mood among the troops, and also here on the homefront as well.
HEMMER: Also this morning, the "New You Revolution" is back. Today we're following the Reverend Leigh Ann Raynor. Six months off of heart surgery, and now she's starting the doctor's exercise routine, and here's something interesting too for her. The reverend has not cooked a dinner for anyone else. They're cooking for her, though. Now she's on the spot there as well. So we'll talk about that this morning.
O'BRIEN: Interesting.
Good morning, Jack.
JACK CAFFERTY, CNN ANCHOR: Good morning, Soledad.
Should your boss be able to fire you for smoking? it's happening to people in Michigan, not for smoking on the job, not for even standing outside of the building smoking, smoking anywhere -- smoking on vacation, smoking in your house, smoking period. We'll take a look at a controversial -- what was that? Controversial idea in a moment. And I'm going to go kill the wild animal that just got loose here in our studio.
HEMMER: Yes, bring my gun.
CAFFERTY: What was that? O'BRIEN: Technical things happening.
That story has lawsuit all over it, I would think.
CAFFERTY: Not necessarily.
HEMMER: A lot of companies are doing this.
CAFFERTY: Health care costs are going through the roof. These companies are saying we're not going to provide health insurance if you're going to do this. If you work here, we have a right to expect that you be a healthy employee.
HEMMER: Running for cover, yes?
CAFFERTY: yes, absolutely.
I'm sure that, you know, the litigous crazy society we live in, they're lining up to file suits, but I'm not they win them. We'll see.
O'BRIEN: All right, Jack, thank you.
CAFFERTY: I'm going to go over there and that kill the bear.
O'BRIEN: Yes, yes, it's right over there, the bear.
Carol Costello is at the Time Warner Center in New York with a look at the stories now in the news.
Hey, Carol. Good morning.
CAROL COSTELLO, CNN ANCHOR: Actually I think that noise was an angry smoker.
Now in the news, good morning, everyone. Just days before the elections in Iraq, there is word this morning of fighting between insurgents and Iraqi police. According to the Associated Press, at least 11 policemen were killed in eastern Baghdad in various clashes. Now, earlier, a high ranking official in the justice ministry and his son were gunned down southeast of the capital city.
In Washington, President Bush is starting a two-day outreach to the African-American community. The president will discuss his second-term agenda with several black leaders at the White House this afternoon. He's scheduled to meet with Congressional Black Caucus leaders tomorrow.
Federal officials are reportedly questioning four suspected illegal immigrants after their plane was forced to land in San Antonio, Texas. According to the Associated Press, homeland security officials detained the group in connection with a possible smuggling operation involving Chinese nationals. There is no word on the plane's origin or where it was heading.
And the infamous pacers/pistons brawl will be playing out in a courtroom today. A Michigan judge has ordered five Indiana Pacers players and five Detroit Pistons fans to attend a pretrial hearing. Yes, they'll all be in the same room. One of the fans faces a felony charge for apparently hurling a chair during the November 19th fight. You of course remember that. The lawyer for one player says he expects today's courtroom is -- quote -- "going to be a zoo." And, Bill, I'm sure he's right.
HEMMER: Keep the beer away this time. Thank you, Carol.
A new developments from the White House this morning. Amid pre- election violence in Iraq, there is word the Bush administration needs $80 billion more for military operations there and in the country of Afghanistan.
Suzanne Malveaux starts our coverage from the White House this morning.
Good morning, Suzanne.
SUZANNE MALVEAUX, CNN CORRESPONDENT: Good morning, Bill.
Democrats have long complained they believe that the Bush administration has not been forthcoming in just the cost of the war on terror. It is no doubt this announcement as early as today, of course, will add more questions, perhaps even controversy, over that very issue, where are taxpayers' dollars going. Now congressional sources tell us that the Office of Management and Budget is expected to seek about $80 billion in new funding for military operations this year in Afghanistan and Iraq, making the total cost for both conflicts almost $300 billion to date.
The White House refusing to give numbers, still saying that they're working on a number of these things. Reuters reporting, however, the breakdown is possibly looking like this: $780 million to combat the Afghan drug trade, $1 to $2 billion for a new U.S. Baghdad embassy, $200 million in Palestinian aid, and $300 million increase in tsunami aid, bringing that up to $650 million.
Now the White House is formally going to submit the its fiscal 2006 budget in about two weeks or so, but, Bill, Democrats are wasting no time. Democratic leader Nancy Pelosi releasing a statement last night, saying that night she expects a full accounting from the White House -- Bill.
HEMMER: Suzanne Malveaux, likely to hear more about this today during the open debate in the Senate for Condoleezza Rice as well. Thanks for the update there at the White House.
Here's Soledad now with more.
O'BRIEN: Thank you.
We first introduced you to Linda Tarsa and her family back in December as part of our "Holiday Homefront" series. She appeared with her two children, David and Jessica. Linda's husband, Lieutenant Colonel Mike Tarsa, has been stationed with the U.S. Army in Baghdad since September.
So now, with the Iraqi elections days away, what do family members of those who are serving in the armed services feeling? Linda Tarsa joins us from Austin, Texas.
Linda, nice to see you again. Thanks for coming back to talk to us. Appreciate it.
I know that you e-mail your husband twice a day. What has he said about his role in the upcoming elections?
LINDA TARSA, HUSBAND SERVING IN IRAQ: Well, he's the chief of plans for the First Cavalry Division out of Fort Hood, Texas, so he's actually working, I guess, with planning how, you know, the army will assist the Iraqis and ensuring the election is a success.
O'BRIEN: So he'll be working in security and safety. How do you explain his role to your family, maybe specifically maybe your son, Danny, who's sort of old enough I think to understand a little bit of what's going on? What have you said to him?
TARSA: Well, because Mike is in the planning phase, it's nice for him to understand that his dad is really working, with not only the -- you know, with everybody over there to ensure the election is a success. So it's an honor and, you know, for Mike to see that, and for the kids to understand what an important role their dad's doing in the future of Iraq as a nation.
O'BRIEN: The reality, of course, is that there's violence there, and we are told, as I'm sure you're told as well, the violence will increase certainly as we get closer and closer to the election. How do you deal with that?
TARSA: It's scary. You know, and I know other spouses like myself whose husbands are in a more dangerous location are very scared. But we're hoping and we're praying that all of our soldiers will be safe. We can only hope for the best. We can't just sit in our houses and cry and worry and worry. We have to keep a positive outlook, and I think that's very important, especially in these next five days.
O'BRIEN: It hard for you to walk a middle ground? On one hand, you have your husband right in the middle of a lot of danger. On the other hand, he's got a very big mission, ensuring Democratic elections, bringing stability to a country. That is, to have a role in that I think is historic and important. How do you feel though about it?
TARSA: Well, obviously, I'm honored and proud of him and all the other soldiers that are over there doing such great work.
But, you know, it is scary being a spouse, you know, and our children are a little afraid. But he is there -- what they're doing over there is historic. They're doing something that is amazing -- rebuilding a nation, helping a nation elect the people that are going to form out their constitution; that's huge. And we're proud that he's doing -- that he's a part of that and he's doing such great work over there.
O'BRIEN: When did you expect to see him in person, face to face?
TARSA: Hopefully this spring. If everything goes well with the elections and the violence does not escalate, especially after the elections, then we're hoping for a spring reunion. So that will be nice to see him again.
O'BRIEN: We'll chat with you then when it happens.
Linda Tarsa, whose husband is serving in Iraq, thanks, Linda.
Today is the final day for Iraqi expatriates in the United States to register their vote to vote. They must travel to one of just five cities to sign up. Those cities are Nashville, Chicago, Detroit, Los Angeles and Washington.
HEMMER: We are still watching the weather this morning, Soledad. In Boston, another day of heavy digging after the weekend blizzard there. And parts of Massachusetts buried under three feet of snow. And everywhere, huge piles of plowed snow, some up to 15 feet tall. Officials say that is too much for their usual removal equipment to handle, and now forecasters are calling for more, and that says a lot in Massachusetts.
It also seems there is nowhere to hide from the cold. Freezing temperatures sweeping all the way to Florida yesterday, expected to continue today. A record low of 23 in Ocala. And in Miami, 42 degrees, a low not seen since 1960.
(WEATHER REPORT)
O'BRIEN: Guess what? It's time to start week two of the "New You Revolution." We're going check in with Reverend Leigh Ann Raynor. Remember her? We're going to ask her if she's still with the program, or if she's ready to call it quits.
HEMMER: Already?
O'BRIEN: Yes. Kind of early for that, right?
HEMMER: Also, out of the frying pan and into the fire. What will happen when the whole Senate takes on Condoleezza Rice's confirmation hearing? Today that debate begins.
O'BRIEN: And Hollywood announcing the Oscar nominees this morning. Is "Ray" the movie to beat? That's ahead on AMERICAN MORNING. Stay with us.
(COMMERCIAL BREAK)
HEMMER: U.S. senators have nine hours of today's session to debate President Bush's policy in Iraq. Democrats in the Senate asked for the debate. They say it's a necessary step before a vote to confirm Condoleezza Rice as secretary of state.
Ed Henry is watching things on Capitol Hill.
Ed, good morning there.
ED HENRY, CNN CORRESPONDENT: Good morning, Bill.
The Democratic decision to slow down the confirmation of Condoleezza Rice is a mixture of symbolism and substance. Symbolically, Democrats want to send a signal right at the beginning of the second term that they're not going to roll over for President Bush. Democrats have been stung, Democrats like Barbara Boxer, they've been stung by critics within their own party, saying that the Democratic leadership up on the Hill really did not stand up to President Bush in his first term. And substantively, Democrats say these nine hours of debate today on the Senate floor is their forum to highlight real policy differences with Condoleezza Rice, specifically on Iraq.
Republicans, though, say this is really just petty partisanship, the Democrats are playing politics with national security, and that that's very dangerous to slow down the elevation of a new secretary of state at a time of war.
Senate Majority Leader Bill Frist yesterday expressed frustration with the Democratic maneuvering, and said he hopes this is not a sign of obstructionism on a whole range of issues.
(BEGIN VIDEO CLIP)
SEN. BILL FRIST (R-TN), SENATE MAJORITY LEADER: I was a little disappointed. Well, they fight us tooth and nail our all our priorities. Certainly within their right to do so, but I hope that we continue, and will continue to reflect our desire, our willingness to work together. It's what I think -- I know the American people want. It doesn't mean don't sacrifice principles, and I expect the Democrats to fight us when their principles are different than ours, and that sort of fight is one that can be carried out in a civil way, and I look forward to doing that.
(END VIDEO CLIP)
HENRY: Republicans also say this is overkill, since Democrats had two days to grill Dr. Rice last week. The bottom line here is expect nine more hours of rhetoric, but tomorrow there will be a vote finally on Condoleezza Rice, and she will be easily confirmed by the Senate -- Bill.
HEMMER: Ed, this $80 billion that will be requested from the White House to fund Iraq, to fund Afghanistan, how much of that will be part of today's debate do you anticipate?
HENRY: I expect that to be a big part of the debate, because sources on both sides of the aisle up here say that the $80 billion, it could actually be much more than that. In fact, last week, Senator Joe Biden, at Condoleezza Rice's confirmation hearings, says he expects the number to be in the neighborhood $200 billion over the next year or so, and that this $80 billion may just be a down payment in terms of how much taxpayers have to shell out for the ongoing war wars in Iraq and Afghanistan. So you can bet that's going to be a big topic of discussion -- Bill.
HEMMER: Thanks, Ed. We'll we watching here. Ed Henry on Capitol Hill.
A bit later in our program today, we'll talk to one of the Senate's leading opponents of Condoleezza Rice and the war in Iraq. California Senator Barbara Boxer is our guest at 8:30 a.m. Eastern -- Soledad.
O'BRIEN: In Tucson, Arizona, a dramatic confrontation between police and a suspect who was shot 70-plus times with a nonlethal pepper gun. It started with police respond responding to a fight Saturday night. Officers ordered one suspect to get on the ground. The man, Gabriel Gandara, said he tried to comply, but the pepper balls just kept coming.
(BEGIN VIDEO CLIP)
GABRIEL GANDARA, PEPPER BALLED 70+ TIMES: They told me put your hands on your head, and then they told me, turn around, and when I was turning around, they kept shooting at me. I tried to lay down, they keep shooting at me. I'm not going to stand there and just take it.
ARDAN DEVINE, TUCSON POLICE DEPT.: The way the training is set up, is you apply and reassess, and then if necessary, you reapply, and you continue reapplying until you gain compliance.
(END VIDEO CLIP)
O'BRIEN: The suspect says he'd been drinking and that he's been hit with pepper ball rounds in other run-ins with police.
HEMMER: In about an hour, Soledad, we'll get the Academy Award nominations, and will see them live here on AMERICAN MORNING.
Sibilia Vargas first with a preview on this year's gold rush in California.
(BEGIN VIDEOTAPE)
SIBILIA VARGAS, CNN CORRESPONDENT (voice-over): "Million Dollar Baby" should figure prominently in Oscar's prize fight. The boxing drama looks certain to score nominations for best picture, director Clint Eastwood and actress Hilary Swank.
But for all of "Baby's" punch, it could be out-pointed by the "Aviator," the story of Howard Hughes.
LEONARDO DICAPRIO, ACTOR: He's one of those mythic men, one of those mysterious figures.
VARGAS: The biopic should pick up nominations for best picture, actor Leonardo Dicaprio, and a fifth directing nomination for Martin Scorsese. He's still looking for his first Oscar win.
The other film likely to wiggle its way to the best picture sweepstakes is "Sideways."
UNIDENTIFIED MALE: It's a little comedy we basically made for ourselves.
VARGAS: The big question, though, is whether last year's most talked about films draw best picture nominations, Mel Gibson's "The Passion of the Christ" and Michael Moore's anti-bush documentary "Fahrenheit 9/11."
In the lead acting categories, look for Johnny Depp to earn his second straight nomination. This time, for "Finding Neverland." He could be joined by "Hotel Rwanda's" Don Cheadle, and possibly "The Sea Inside's Javier Bardem. And Jamie Foxx is an almost certain nomination for "Ray." He's fresh from victory at the Golden Globes.'
JAMIE FOXX, ACTOR: I feel great. I feel great.
VARGAS: "Eternal Sunshine's" Kate Winslet has a shot at picking up the fourth nomination of her young career. Also in the hunt, fellow British actress Imelda Staunton of "Vera Drake." And "Annette Bening, who played a British actress in "Being Julia." If Bening and Swank are nominated, it would set up a rematch of 1999, when Swank won the Oscar for "Boys Don't Cry" over "America Beauty's Bening. A nice storyline for the media, but Swank isn't buying it.
HILARY SWANK, ACTRESS: I don't really see it as competition.
VARGAS: And Bening's just as philosophical.
ANNETTE BENING, ACTRESS: Whatever happens. It's just fun when you get recognized.
VARGAS: Silbia Vargas, CNN, Hollywood.
(END VIDEOTAPE)
HEMMER: Thank you, Sibila. As we mentioned before, keep it here for the nominations, coming out at 8:30 a.m. Eastern Time. We'll have them for you live out of Hollywood when they come down -- Soledad.
O'BRIEN: Speaking of movies, that looks like that's where the money is on Wall Street. Andy is "Minding Your Business." He's going to explain, coming up next on AMERICAN MORNING.
(COMMERCIAL BREAK)
O'BRIEN: Welcome back, everybody.
The DVD movie rental company Netflix is growing in leaps and bounds. Andy Serwer is here. He's "Minding Your Business" this morning.
Good news for them, obviously. ANDY SERWER, "FORTUNE" MAGAZINE: Good news for them, but not good news everyone else on Wall Street yesterday sadly, Soledad. We left off at 9:45 Eastern yesterday. The Dow was up about 20 points, ended up down about 20 points. Here we go again, the Nasdaq down 25 as well. That's more on a percentage basis. Techs obviously getting beaten up pretty good.
As far as year-to-date, it's not pretty, especially with the Nasdaq again, down almost 8 percent. And of course, if you extrapolate, which you don't want to do, it will be a horrible year, but it doesn't always work out that way.
Futures are up this morning, however. And it has a lot to do with the weather. When the market's following the weather, you know you're out of sorts. The weather is heating up in the Northeast, the price of oil is down, stock futures are up, kind of directionless trading. It is the fourth week in a row we've been down, the fourth day in a row, and we're looking for a turnaround this morning.
As Soledad mentioned, some good nice out of Netflix, the rental video, or DVDs of course what they rent through the mail. And the revenue is up about 77 percent. So that stock is up 15 percent.
O'BRIEN: Why?
SERWER: Because the business continues to grow, even though their competitors, Blockbuster moving into that business, they're still really growing strongly. People love to rent movies, and I guess that's kind of a relevant subject today, given that we have the Oscar nominations this nominations. I still haven't seen "Ray" yet.
CAFFERTY: If there's a God in heaven, Ray has to win all these awards. I mean, it's just a magnificent picture.
This rental thing, you don't have to get in your car in the three-foot snow like we had in New York and go to the rental store. It comes in the mail. You mark the things you want, they send them to you, put them in an envelope. The guy picks them up and takes them back.
Ray is a magnificent picture. It's just terrific.
HEMMER: Jamie Foxx wins best actor.
SERWER: You think so?
HEMMER: I don't know if that's film's going to win much after that.
CAFFERTY: Well, it ought to.
O'BRIEN: He's terrific.
HEMMER: Here's, Jack, what's happening?
CAFFERTY: Nothing. Back to you. (LAUGHTER)
SERWER: Gotcha.
O'BRIEN: I've waited a lifetime for a toss like that.
SERWER: Wow, he's got nothing to say.
HEMMER: Let me take it from here.
SERWER: News alert!
CAFFERTY: Years ago -- I don't if there's time to tell this story -- the eyewitness news team of Roger Grimsby and Bill Butel were the highest rated local newscast in New York, and Grimsby used to spend part of his time in a little joint across the street that had nothing to do with the TV news if you get my drift.
One night they go on for the 11:00, and Butel was a kind of an intense, serious guy, and they go on to do the news, and they come to Grimsby, and he said, good evening, the lead story's not ready -- Bill.
And you could see the blood drain from Butel's face.
SERWER: What was the name of the place across the street, because Andy and I need a place to go later.
CAFFERTY: Yes, you don't want to go. You're not old enough to get into a place like that.
HEMMER: You'd be surprised.
CAFFERTY: Four employees of a Michigan health benefits company have been fired for not taking a test that would determine whether they smoke cigarettes. The company instituted a policy January 1st that makes it a firing offense to smoke, even after hours or at home. Waco (ph) founder Howard Myers (ph) says he instituted the antismoking rule to protect his company from high health care costs. Michigan does not have strict smokers' rights laws, so the company's mandate is legal for now.
A recent study by the Society for Human Resource Management found 32 percent of U.S. employers offer stop-smoking programs, 12 percent prefer not to hire smokers, and 5 percent charge higher health care premiums for people who smoke. Here's the question, do companies have the right to fire employees for smoking? Am@CNN.com.
HEMMER: Policy probably bigger than you think actually, and I wonder how much they can save.
O'BRIEN: Two questions for you. What does Waco make? What do they do?
CAFFERTY: It's a health care administration company.
Did I say that? A Michigan health benefits company.
O'BRIEN: I'm sorry, did I miss that? You must have mumbled that; I didn't hear it. I'm kidding. I'm kidding.
CAFFERTY: What's the second question that I probably already answered?
O'BRIEN: Does this mean that people at the candy machine could potentially overweight...
CAFFERTY: Only if they're smoking the Hershey bars.
O'BRIEN: What about drinking? That's legal, and it's also bad for you.
CAFFERTY: All I know, kiddies, is what's in the little script thing that I just read here about the smoking. I don't know -- but I'm sure people will raise that. Maybe overweight people could be fired for eating.
SERWER: if you work at CNN, you can't drink -- never mind.
HEMMER: Academy Awards are out in an hour by the way. We'll see if your predictions are true. "90-Second Pop" in a special version this morning, coming your way in a moment here.
Does "Million Dollar Baby" have the knockout punch, or will "The Aviator" fly high. Plus, the surprises that might be in store this morning. The poppers make their predictions.
(COMMERCIAL BREAK)
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