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List of Tight Races Grows Shorter As Election Day Nears, Both Missouri's Candidates Campaigning Hard; He Said, He Said: Male Escort Accuses Evangelical Leader of Long-Term Sexual Relationship

Aired November 03, 2006 - 10:00   ET

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

HEIDI COLLINS, CNN ANCHOR: Good morning everybody, I'm Heidi Collins.
TONY HARRIS, CNN ANCHOR: And I'm Tony Harris for this second in THE NEWSROOM this morning and stay informed.

Here's what's on the rundown, scandal growing in Colorado. Prominent evangelical leader Ted Haggard and allegations involving a gay male prostitute.

COLLINS: A formidable militia with a powerful leader. A closer look at the Mahdi Army and its impact on the mission in Iraq.

HARRIS: And a White House counselor Dan Bartlett in THE NEWSROOM to talk Iraq, the economy and the other big issues that will come into play on election day.

It is Friday, November 3rd. You are in THE NEWSROOM.

COLLINS: Charts, diagrams, equations, how to make a nuclear bomb. Did the U.S. government post too many of Iraq's old nuclear secrets on the Internet? Our senior Pentagon correspondent Jamie McIntyre looking into this story, joins us now. Jamie, what's up with this?

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well this is a question of whether the U.S. government was too forthcoming in disclosing documents from the regime of Saddam Hussein. Many were posted on a website at the U.S. military website from Fort Leavenworth, Kansas, part of the Iraq Document Project, which makes all of these documents available to scholars.

A push for this disclosure was made by some people who felt that perhaps the government wasn't doing a good enough job in analyzing them. But in response to questions from the "New York Times," the director of national intelligence offices has now suspended access to the website while they're reviewing the content. The "New York Times" said that weapons experts they talked to suggested that these documents revealed too much about how to make an atomic bomb, and in result, the office of the director of national intelligence gave the following statement.

It said, while strict criteria had already been established to govern posted documents, the material currently on the website, as well as the procedures used to post new documents, will be carefully monitored before the sight becomes available again. Spokesman for the DNI office told CNN that the first they heard of this was when the "New York Times" contacted them late yesterday, and that they took immediate action to suspend the site while they reviewed what was on it.

The "New York Times" says it has talked about experts -- talked to experts who said that these documents went way too far in explaining the problems that Iraq had in trying to develop nuclear weapons and the ways to get around them. So, there's a review going on, and the Office of National Intelligence is going to make a determination of whether these documents should be put back on the site, redacted or not put on at all.

COLLINS: Wow, you can certainly see how it could be an issue of national security, but I'm a little confused still. The governmental allowed for this website to be set up. They established criteria, as we saw in the statement, but they were not sure at that time of what types of documents exactly were going to be posted?

MCINTYRE: Well, up until the time the "New York Times" contacted the Director of National Intelligence Office they felt that all of the material had been screened and was appropriate for release. But the "New York Times" provided some of the documents, and when government experts looked at them they said, well, wait a minute, this might be too much. We better take immediate action.

The one thing they're also looking into is the "New York Times" reported that questions have been raised about these documents for weeks, perhaps even months, and that no action had been taken. They said they are not aware of that, but they are looking into that as well

COLLINS: All right and I know you will continue to follow it for us. Jamie McIntyre at the Pentagon. Thank you, Jamie.

On the road and on the march to Tuesday's midterm elections. President Bush stumps for Republican candidates in Missouri and Iowa today. It extends his cross country blitz in states that supported his reelection two years ago, but today the focus clearly on the party's future balance of power.

CNN White House correspondent Elaine Quijano traveling with the president. She joins us from Springfield, Missouri. An awful lot going on in that state, Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Absolutely. Here in the state of Missouri, Heidi, the race for the Senate could not be any closer. Republican Senator Jim Talent in a neck and neck contest right now with his Democratic challenger Claire McCaskill. So we are going to see the president, as he did yesterday, try to rally the GOP faithful here in the state of Missouri.

In this state, an issue that has been front and center, and one that's actually on the state ballot, is the issue of embryonic stem cell research. Now specifically, the measure is called amendment two and it's a proposal to protect all forms of embryonic stem cell research allowed under federal law. Now Senator Talent opposes the measure because he says that it would allow for the destruction of human embryos.

His opponent, Claire McCaskill supports it because she says it's about finding cures in order to save people's lives. Now McCaskill has gotten some high profile help in making her argument. Of course, that ad by Michael J. Fox, who suffers from Parkinson's, sparked controversy, but also, of course, was also a very high profile endorsement.

Today, of course, Senator Talent is going to be a getting a high profile endorsement of his own. President Bush set to speak here within the hour. He's going to be making a couple of stops here in Springfield and also moving on to Joplin, Missouri. President Bush and Jim Talent see eye to eye, pretty much, on this issue of embryonic stem cell research. In fact, back in September the president used his veto pen for the first time to veto a measure that would have expanded federal funding of embryonic stem cell research. Conservatives applauded, but even moderate Republicans voicing their displeasure though, an example of just how divisive this issue is.

At the same time, President Bush, it was back in 2001, he was the first president ever to authorize federal funds for embryonic stem cell research on existing lines. It's a highly charged, highly emotional, very complex debate and it will be interesting, Heidi, to hear what the president has to say about it. We should also mention the president expected to tout the latest job numbers, 92,000 jobs created in October. Heidi?

COLLINS: All right, Elaine Quijano, thank you.

HARRIS: Too close to call, that's the outlook in race after race across the country, and as the final weekend of campaigning begins, it's an all-out ground war to get out the vote on Tuesday.

CNN's Bob Franken reports.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN CORRESPONDENT (voice-over): In some cases, they're taking money from one pocket and putting it into others. Republicans withholding resources, for instance, from Ohio Senator Mike Dewine, who has fallen behind. By contrast, both sides are sparing no expense in Missouri's Senate race, where incumbent Jim Talent is in a fight truly too close to call.

In Montana, where the GOP's Conrad Burns is in a battle for his political life, President Bush tried to help Thursday. In Virginia, where the incumbent George Allen is still neck and neck with the Democrat, in spite of one campaign blunder after another. And Tennessee, where the crucial race is sometimes clouded by the issue of race. And in the battle for the House, Democrats need 15 seats to take control. And they're spreading their wealth and hopes to a growing number of district, as many as 60 now gearing up for a final push, including this one here in Ohio, a genuine tossup.

REP. DEBORAH PRYCE (R), OHIO: I'm Deborah Pryce and this is my message.

MARY JO KILROY (D), OHIO CONG. CANDIDATE: I'm Mary Jo Kilroy. That's where I stand, and why I approved this message.

FRANKEN: But this goes way beyond the TV ads. Here, there and everywhere, the ground war is spreading.

UNIDENTIFIED MALE: Well thanks again. We appreciate your support and you have a good day.

UNIDENTIFIED FEMALE: This is a Democratic household.

FRANKEN: Supporters of Democratic candidates, like Mary Jo Kilroy here, are going door to door, trying to keep step with the Republicans and their highly successful 72-hour program to get out the vote.

KILROY: All of us together can counteract this 72-hour program the Republicans are always bragging about.

UNIDENTIFIED FEMALE: We'll need you another couple of nights.

FRANKEN: It has made a big difference for GOP candidates across the country, like Deborah Pryce.

PRYCE: We have the mechanism on the ground. We have it all locked and loaded. We just need to get the people to do the job.

FRANKEN: Much of that job is done out of sight, in direct mail centers and in phone banks. They're calling from both parties.

UNIDENTIFIED FEMALE: Can we count on you for some volunteer time to help elect Mary Jo Kilroy?

FRANKEN: And one of the most interesting races of all is the one taking place in the West Palm Beach, Florida district, that used to be a lock for the GOP's Mark Foley, the same Mark Foley whose e-mail scandal is causing problems for Republicans everywhere. A nearly $2 million GOP cash infusion on behalf of the write-in replacement seems to have paid off. Incredibly, it's now a tossup.

(END VIDEOTAPE)

HARRIS: CNN is your election 2006 headquarters, with the best political team on television. Tuesday night, CNN's special election coverage begins at 7:00 Eastern, with Wolf Blitzer, Anderson Cooper, Paula Zahn, Lou Dobbs, the races, the results, the ramifications, it all begins Tuesday night, right here at 7:00 on CNN.

COLLINS: A high profile pastor, highly explosive allegations. He is accused in a gay sex scandal. The Reverend Ted Haggard has temporarily stepped down from the pulpit of his 14,000 member Colorado church. The acting pastor says Haggard has admitted to some indiscretion but not to all of the allegations against him. The accusations made by a former gay male prostitute. He says he went public because of Haggard's support for a constitutional amendment to ban same sex marriage in Colorado.

(BEGIN VIDEO CLIP)

MIKE JONES, ACCUSER/MALE ESCORT: People may look at me and what I have done as immoral, but I think I had to do the moral thing in my mind and that is expose someone who is preaching one thing, but doing the opposite behind everybody's back.

(END VIDEO CLIP)

COLLINS: Before he stepped down, Haggard denied the allegations and here is what he said in an interview.

(BEGIN VIDEO CLIP)

REV. TED HAGGARD, NEW LIFE CHURCH: I have never had a gay relationship with anybody. And I'm steady with my wife. I'm faithful to my wife. And so I don't know if this is election year politics or if this has to do with the marriage amendment or -- or what it is.

(END VIDEO CLIP)

COLLINS: Haggard also resigned as president of the National Association of Evangelicals. The attorney for his church tells the "Denver Post" Haggard's resignation is in no way an admission of his guilt, but is in keeping with church policy.

The man making the allegations against reverend Haggard gave an interview to a Denver radio station this morning. Also during the KHOW interview, an examiner administered a polygraph to Mike Jones, the accuser, and said the test showed some deception. Jones asked for the test himself.

(BEGIN VIDEO CLIP)

JONES: I want to get back and not have everything thrown at me. Let's look at what Ted had Haggard has said, right?

UNIDENTIFIED MALE: I could play it.

JONES: Yes, I mean, OK, I know a lot of people are probably cheering that I failed this polygraph, but that -- you know what, fine. Look at what Ted Haggard said when he was approached. He said -- he denied everything. He denied even knowing me. I mean, at the very least even knowing me.

UNIDENTIFIED MALE: This is that moment.

UNIDENTIFIED FEMALE: Do you know Mike Jones?

HAGGARD: No, I do not know Mike Jones.

UNIDENTIFIED FEMALE: Do you know --

(END VIDEO CLIP) HARRIS: He preaches to tens of thousands, but the Reverend Ted Haggard's influence extends far beyond his Colorado pulpit to the national stage. Here's a profile of the pastor. He is 50 years old, married and the father of five children. Until his decision to step down temporarily, Haggard served as senior pastor of the New Life Church in Colorado Springs. He started the church in 1985. It has since grown to 14,000 members.

As head of the National Association of Evangelicals, Haggard participated in weekly conference calls with White House staffers. He has also campaigned against same-sex marriage and lobbied Congress for conservative Supreme Court justices. Religion and politics, more on the evangelical movement and the stunning allegations against one of its former leaders. Our faith and values correspondent Delia Gallagher joins us ahead in THE NEWSROOM.

COLLINS: A formidable militia with a powerful leader and they've taken aim at U.S. troops. A closer look at the Mahdi army and its impact on the mission now in Iraq. That's ahead in THE NEWSROOM.

HARRIS: Job security, both in the workplace and maybe in Washington. New numbers out this morning on the nation's unemployment rate. Looks good, will it help members of Congress keep their jobs? A White House insider joins us in THE NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: We want to take you straight to the Show Me State. President Bush about to come to the podium here, likely going to be talking -- anybody happen to see him? Likely going to be talking about this new jobs report that came out, five-year low for unemployment rate, 4.4%. And as we have heard, the Republican agenda remains Iraq and the economy. I'm sure he will be talking about this today. This is Senator Jim Talent, of course, as you see at the podium now. We will continue to watch it for you.

HARRIS: Iran flexes its military muscle again. Iranian media report the country has successfully test fired three new models of long range missiles in the Persian Gulf. Now the commander of Iran's Revolutionary Guard boasts the entire Gulf region is, quote, under our control. Iranian television showed footage of the missiles being fired from warships and mobile launching pads on the Gulf shore.

COLLINS: In Gaza a standoff ends. Israel Defense Forces say Palestinian militants, who were holed up in a Mosque, escaped after a crowd of women formed a human shield. Israel says it killed two gunmen who were hiding among the women. Palestinian medical sources say two women were killed, ten others wounded. The Mosque became the focus of fighting on Thursday, after gunmen went there to seek refuge from Israeli troops, who had been trying to stop rocket from being fired into Israel.

HARRIS: Former Israeli Prime Minister Ariel Sharon in intensive care this hour. Doctors say he was transferred earlier today after a general weakening of his condition. A hospital spokesman says Sharon is being treated for an infection affecting his heart. His condition stable. The former Israeli leader suffered a massive stroke in January and has been in a coma ever since.

Another top U.S. official makes an unannounced visit to Iraq. National Intelligence Director John Negroponte is in Baghdad for meetings with Prime Minister Nouri al Maliki. The rebuilding of Iraq's military and Iraq's security problems on the agenda. Negroponte's trip comes on the heels of a visit earlier this week by National Security Adviser Stephen Hadley. Both visits come amid spiraling violence and after Iraqi leaders complained about U.S. tactics in the country. Five more American troops have been killed in Iraq. The military says three soldiers and one Marine died Thursday as a result of enemy action. Another soldier died in a non-combat related incident.

And there was more violence in the Iraqi capital. Police say 56 bullet-riddled bodies were found in Baghdad. Some of the bodies showed signs of torture.

COLLINS: It is an army of shadow, the Mahdi militia, ruling Baghdad's Sadr City, ready to take on American troops. CNN's Michael Ware with more now on that army and its powerful leader.

(BEGIN VIDEOTAPE)

MICHAEL WARE, CNN CORRESPONDENT (voice-over): Sadr City is a sprawling slum, an estimated 2 1/2 million people, almost half the population of Baghdad, controlled not by the Iraqi government or the U.S. military, but by these men. They are the Mahdi Army, followers of this man, Muqtada al Sadr, a powerful, anti-American Shia cleric.

MUQTADA AL SADR, SHIITE CLERIC: Who is going to protect Iraq? America protect Iraq? May god damn America.

WARE: His militia is a potent force, brazen in his propaganda videos, vocal in his demonstrations denouncing America, and discreet, militia men in civilian clothes at Sadr City checkpoints, searching for car bombs and Sunni insurgents. U.S. military intelligence estimates the Mahdi Army has as many as 7,000 fighters. It credits the militia with at least 15 special forces companies, eight intelligence companies, religious courts that regularly order executions, and several punishment committees, units acting both as internal investigators and anti-Sunni death squads.

And that's not all. Muqtada al Sadr controls 30 seats in parliament, four government ministries, and wields considerable influence over Iraq's prime minister. Opponents claim that has enabled the Mahdi Army to hold America's whole mission in Iraq hostage, politically and militarily, turning Sadr City into a virtual no-go zone for American soldiers.

And now perhaps it holds an American literally hostage. The missing U.S. soldier, specialist Ahmed al al-Taayie, the U.S. certain he's been abducted, with strong intelligence the Mahdi Army has him. Two thousand GIs are searching for him, with one killed and eight wound in the process. The U.S. sealed off the Mahdi Militia's Sadr City stronghold for more than a week, but the clampdown didn't last. So, how did Muqtada al Sadr become so powerful? To understand, for weeks CNN has been visiting Sadr City, where the Mahdi Army's control is absolute. No negotiation with the Americans, a popular position here. But while the Mahdi Army is formidable, it is not a monolith, with factions split, as hard liners push for even more attacks against U.S. forces.

On the street, unity, as the militia, using Lebanon's Hezbollah as a model, delivers services, over-seeing government fuel ration cards at gas stations. Security, even signing for the death at Friday prayers, and with the apparent capture of a U.S. soldier, another parallel to Hezbollah. One senior U.S. officer wonders if the kidnapping is an attempt to echo the capture of two Israelis that sparked July's war in Lebanon, an ominous suggestion, given how Muqtada's and his loyalists are flexing their muscle in Sadr City and across Iraq.

Michael Ware, CNN, Baghdad.

(END VIDEOTAPE)

HARRIS: Job security, both in the workplace and maybe in Washington. New numbers out this morning on the nation's unemployment rate. Will it help members of Congress keep their jobs? A White House insider joins us straight ahead in THE NEWSROOM.

COLLINS: Religion and politics, the stunning allegations against evangelical leader Ted Haggard. We will talk about it. Our faith and values correspondent Delia Gallagher joining us, coming up right here in THE NEWSROOM.

And Gerri Willis joining us as well. Good morning to you, Gerri.

GERRI WILLIS, CNN ANCHOR: Hi there Heidi. What do you do if debt collectors are knocking at your door about money you don't even owe? I'll have the answer to that and other questions after the break. Top Tips is next.

(COMMERCIAL BREAK)

(MARKET REPORT)

GERRI WILIS, CNN FINANCIAL CORRESPONDENT, CNN NEWSROOM: So if you have questions that you want to send to us, send your e-mails to Toptips@com. We are happy to answer them right here every Friday, and we love to hear from you.

TONY HARRIS, CNN ANCHOR, CNN NEWSROOM: Great, great questions this week. Gerri, have a great weekend.

WILLIS: You, too, sir. ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins and Tony Harris.

HEIDI COLLINS, CNN ANCHOR, CNN NEWSROOM: Show down in the Show- Me state. President Bush on the campaign trail this morning, some live pictures now. He is stumping for the Republican Senate candidate in Missouri. Jim Talent, one of the most closely watched races in the nation. It may all come down to middle ground and middle class voters. CNN's Senior Political Correspondent Candy Crowley reports from St. Louis.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT, CNN AMERICAN MORNING (voice over): In St. Louis at the Goody Goody Diner, Democrat Claire McCaskill is running for the U.S. Senate is courting her base.

CLAIRE MCCASKILL, (D) CONGRESSIONAL CANDIDATE: Nice to see you. Thank you.

CROWLEY: These are urban voters, reliably Democratic but there are not enough of them to win an election

MCCASKILL: We've invested a lot of time in rural Missouri, you know, Democrats in the state for too long have thought that, well, don't go to the country because you get on defense and there's no point, and we can do enough in the cities to make up for the margins in the country.

CROWLEY: Small towns and rural areas have not been friendly turf for most Democrats. Rural voters gave George Bush a 19-point edge over John Kerry. Springfield, Missouri, Outstate, as they call it, is strong Republican country. David Lutz voted twice for George Bush.

UNIDENTIFIED MALE: But if the Democrats went so far to the left, then we started -- I started to vote much more Republican and so on. And now it's just to me the pendulum has kind of swung past me, gone the other way. It's -- I'm trying to just get in the middle.

CROWLEY: Lutz plans to vote for McCaskill, the Democrat. And so will his Republican wife.

ELLEN MCLEAN, MISSOURI VOTER: They're not representing me and they keep moving further right. And there's simply nowhere to go. I don't know where a moderate is supposed to go.

CROWLEY: This is an "huh-oh" for Republican Senator Jim Talent who needs to keep his base intact and get them to the polls.

SEN. JIM TALENT, (R) MISSOURI: I believe in the dignity and value of life at all stages. I strongly supported the ban on partial birth abortions. My opponent opposed it.

(APPLAUSE)

CROWLEY: A stem cell research initiative on the ballot complicates Talent's task. It my bring out his conservative Christian voters, but it might prompt his business community voters, more moderate and pro stem cell, to pull the lever for McCaskill.

Talent splits the difference, saying he opposes the initiative but others should make up their own minds, but basically he avoids the topic, turning to more tried and true subjects.

TALENT: Marriage, I think, is a relationship between a man and a woman.

CROWLEY: In five stops through southeastern Missouri, Talent mentioned same-sex marriage and abortion in most of them, reaching out the base with what he calls common sense Missouri values.

(On camera): The Talent campaign says is it has a turnout operation on steroids, McCaskill says she has bells and whistles, too, but is depending on something more basic. She believes voters here are ready for change. Candy Crowley, CNN, St. Louis.

(END VIDEOTAPE)

COLLINS: CNN "Prime Time" next Tuesday, beginning at 7:00 p.m. Eastern. Wolf Blitzer, Anderson Cooper, Paula Zahn and Lou Dobbs lead the best political team on television. As your votes are counted, we will have all the race results beginning Tuesday night at 7 o'clock.

Then CNN's election night coverage continues with a special edition of "Larry King Live" from LA, at midnight Eastern. Hear from winners and losers all across the country, plus expert analysis from the best political team on television. Larry staying up late for that one.

For the latest breaking political news, check for updates throughout the day on the CNN political ticker at cnn.com. Some of those races so tight it will be important to keep checking in.

HARRIS: Absolutely.

A million -- a million, count them, reasons to vote. Arizona voters could get a shot at some big bucks. Will it get people to the polls or cheapen the process? We'll talk to the man behind the mission in the NEWSROOM.

COLLINS: See if he has extra money for us.

HARRIS: Yeah.

COLLINS: Meanwhile, religion and politics, stunning allegations against evangelical leader Ted Haggard. We're going to be talking about it with our Faith and Values Correspondent Delia Gallagher. She will be joining us ahead in the NEWSROOM.

HARRIS: Job security, both in the workplace and maybe in Washington. New numbers out this morning on the nation's unemployment rate. Will it help members of Congress keep their jobs? A White House insider, Dan Bartlett, don't tell anyone -- tell everyone -- coming up in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: A high profile pastor, highly explosive allegations. He's accused in a gay sex scandal. The Reverend Ted Haggard has temporarily stepped down from the pulpit of his 14,000 member Colorado church. The acting pastor says Haggard has admitted to some indiscretion, but not to all of the allegations against him.

The accusations were made by a former gay male prostitute. He says he went public because of Haggard's support for a constitutional amendment to ban same-sex marriage in Colorado.

MIKE JONES, ACCUSER, MALE ESCORT: People may look at me and what I've done as immoral, but I think I had to do the moral thing, in my mind. And that is expose someone who is preaching one thing but doing the opposite behind everybody's back.

(END VIDEO CLIP)

HARRIS: Now before he stepped down, Haggard denied the allegations. Here's what he had to say in an interview.

(BEGIN VIDEO CLIP)

REV. TED HAGGARD, NEW LIFE CHURCH: I have never had a gay relationship with anybody. And I -- I'm steady with my wife. I'm faithful to my wife. And so I don't know if this is election-year politics or if this has to do with the marriage amendment or, or what it is.

(END VIDEO CLIP)

HARRIS: Haggard also resigned as president of the National Association of Evangelicals. The attorney for his church tells the "Denver Post" Haggard's resignation is in no way an admission of guilt, but is in keeping with church policy.

COLLINS: The man making the allegations against Reverend Haggard gave an interview to a Denver radio station this morning. Also during the KHOW interview, an examiner administered a polygraph to Mike Jones and said the test showed some deception.

JONES: I want to get back and not have everything thrown at me. Let's look at what Ted Haggard has said. All right?

UNIDENTIFIED MALE: I can play it. (INAUDIBLE)

JONES: Yeah. I know a lot of people are probably cheering that I failed this polygraph, but you know what? Fine. But look at what Ted Haggard said when he was approached.

He denied everything. He denied even knowing me. I mean, at the very least even knowing me.

UNIDENTIFIED MALE: This is that interview. UNIDENTIFIED FEMALE: Do you know Mike Jones?

HAGGARD: No, I do not know Mike Jones.

(END VIDEO CLIP)

COLLINS: We should note the doctor says he would like to administrator the polygraph again, because Jones was exhausted at the time he took the test.

Let's get some more perspective on the accusations against Reverend Haggard and the possible impact. Joining us now from New York, our Faith & Values Correspondent Delia Gallagher.

Delia, we know that Mr. Haggard has stepped down, he was the leader of the National Association of Evangelicals. But is this not, sort of protocol, if you will?

DELIA GALLAGHER, CNN FAITH & VALUES CORRESPONDENT, CNN NEWSROOM: Yes, in a certain sense, the NAE is a kind of large umbrella group for a lot of evangelical churches throughout the country. And it's a sign of the sort of high esteem in which Ted Haggard is held within that community, that he's the president of it.

But he is also very importantly, at the grass roots level, a very big leader for evangelicals. He has the church out there in Colorado Springs, which has grown by leaps and bounds. He was named "Time" magazine's one of the top most influential evangelical leaders. So, while he's not really a household name, amongst the evangelical community he is a very, very important figure.

COLLINS: And also that church that you mentioned in Colorado Springs, the New Life Church, that he was in charge of, the associate senior pastor, a man by the name of Reverend Ross Parsley, we have seen some of his take on this. He is saying there is some truth to the allegations, but certainly there's not been an admission to all of these indiscretions.

GALLAGHER: This is definitely part of the problem, Heidi, because whilst the community, when those allegations were first made, by Mike Jones really rallied behind Ted Haggard, the fact now that this interim pastor has come out and said well, there were some indiscretions. Some of this is true. Adds to the shock and the anticipation on the part of that community at New Life Church and on the part of evangelicals across the nation as to what exactly is going on.

Because there was some accusations in the beginning that this was politically motivated, the timing of this just before the elections, when Colorado has two questions on their ballot about gay marriage. And Ted Haggard, of course, was a strong proponent against gay marriage, and an outspoken one. So there was a lot of question whether this was politically motivated.

But now that you have an interim pastor who comes out and says he has admitted to some of this, not to all of it -- let's keep in mind the allegations involve sex and drug use, so whatever those specific references about these indiscretions, he is saying something is true. So certainly for the community and for the evangelical community at large, it's a tough day.

COLLINS: Yeah, so you seem to have the political side of the story, the possible political side of the story. And then, the religious side of the story as well. So it gets confusing.

Do you think, interesting to talk about this vote on same-sex marriage, Colorado being one of the eight states that is going to have this on the ballot coming up on Tuesday. When we saw Governor Jim McGreevey come out in New Jersey, he was also against same-sex marriage, seemed like he got some support from the gay and lesbian community, not what we're seeing as of yet, in this situation.

GALLAGHER: No, and I think the questions that people are asking about the vote on Tuesday, at least in terms of evangelical voters, I think they're fairly clear where they stand on the question of gay marriage, regardless of what their leaders are doing in their personal life. That's what I've heard from many of them.

So, while it will be interesting to see whether it keeps them from going to polls or so on, I don't know that it would necessarily change their vote. What it does do is sort of put a whole other question to people's minds about leadership in the evangelical community.

And, you know, evangelicals, Heidi, have an idea of accountability. They have accountability pastors and people are encouraged to go to this person and tell them what their moral challenges are -- and including pastors. So, it's very interesting to see that, you know, they have a high bar for their standards of behavior. All of this, of course, keeping in mind that Ted Haggard has still denied any wrongdoing.

COLLINS: Right. Right. So, we, of course, will continue to watch this story and see if we learn any more about it today, which I bet we will. Delia Gallagher, thanks for your insight on this one.

GALLAGHER Thank you.

HARRIS: Has Christmas come early for congressional Republicans? New numbers this morning show last month's unemployment rate fell to its lowest level in five years? Well, that's reassurance of a strong labor market. And it comes just four days before critical midterm elections. Let's get the view from the Bush administration. Joining us now is White House Counselor Dan Bartlett.

Good to see you. Good morning, sir.

DAN BARTLETT, WHITE HOUSE COUNSELOR: Good morning. How are you doing?

HARRIS: Outstanding, sir.

BARTLETT: Not as well as America's workers, though. HARRIS: Well, I'm about to ask you for your reaction on these new numbers, a five-year low in unemployment, 4.4 percent. What are your thoughts?

BARTLETT: It's quite remarkable. I mean, just take the last three months alone, 470,000 jobs created by America's employers. And the fact of the matter is 4.4 percent unemployment, as you said, the lowest in five and a half years. It's a remarkable report and shows the resiliency of this economy.

And it demonstrates that economic policies that rely upon keeping taxes low and restraining spending here in Washington are working. And I think that's one thing that will be a big debate as we go into the final stretch here on Tuesday afternoon.

HARRIS: Do you know with an absolute -- or believe -- with an absolute certainty that if Republicans (sic) gain control of the House, taxes will go up?

BARTLETT: Well, if Democrats take control.

HARRIS: If Democrats, sorry.

BARTLETT: They've made it very clear, it's in their own campaign position points. They don't market it as much as we do their behalf. But the fact of the matter is they say they're going to raise taxes. They don't want to extend the tax cuts. What will that do is make more people, the typical family of four, spending more than $2,000 apiece. That's a real choice.

HARRIS: So, Dan, why -- why would Democrats do that? Why would Democrats take a look at the economy, take a look at these job figures, why would they, if they were to win control of the House, why would they come in and raise taxes? Does that make sense?

BARTLETT: No, it doesn't. That's the fundamental point here. It's mind-boggling to think, not only with this prosperity, but the fact of the matter is there's a lot of Americans who are struggling to pay for college tuition or health care. And their answer is to raise taxes. The reason why they are doing it is because -- I think it's fundamentally within their DNA to spend money. They like to spend a lot of money. They have a huge appetite and they have to pay for it some way.

The only way they can pay for it, is what they will call is so- called just taxing the rich. The problem is they have a long record of taxing everybody when they do that. It's a fundamental choice here. They are more interested in the balanced -- balancing the ledger books here as opposed to the balance, the pocketbooks of the American people.

It's a clear choice. They have made their position clear, as you and I can tell it's a little bit confusing to think why they would want to do it, but that's their policy, that's their position and that's their record. HARRIS: What do you think of this analysis, the paper this morning, "The Washington Post"? It's from the Tax Policy Center. We're going to put up a full screen here to sort of lay it out for folks. This joint project of the Urban Institute and the Brookings Institution.

It's long-winded but what it does is it sort of takes a look at the tax policies and its impact on working families, and wealthier families. And it shows a big disparity as to the tax savings for working class families, at $747 for the year, and then the wealthier families, $7,000. I guess the question is, when you see those numbers, A, do you buy them? If you do, is this the best we can do for working families?

BARTLETT: Well, there's been -- that's a liberal organization who doesn't approve in tax relief as an economic policy. So I wouldn't be surprised that they would come out with a report that backs up their belief.

The fact of the matter is that the top ranks in our income strata are paying more as a percentage of taxes than they did before the tax relief went into enactment. But the proof is in the pudding. We can have theoretical debates here in Washington about whether it works or not. The bottom line is we have created more than 2 million jobs in the last year alone. We've had 470,000 jobs created in the last three months alone.

The economy is roaring. Americans are working. The Dow is at all- time highs. The facts are in. We can debate it all we want here, but Americans are feeling it and they're feeling by the fact they are working.

HARRIS: Are you surprised that you're not getting more of a bounce from these numbers?

BARTLETT: Not really. Because, you know, we're in the divided political climate right now, so many people are going to interpret things through the prism of their political affiliation. We're in the middle of a war, a very difficult war. And that, obviously, impacts the psyche of the American people.

We've had higher energy prices, for example. Another thing that, that kind of dampens your mood when it comes to the overall look on the economy. But the fact of the matter is it is a good economy and at the end of the day when people go into the ballot boxes on Tuesday, and they cast a vote, we're -- they're going to have that little debate you and I did about tax cuts. Like I said, I think the proof is in the pudding.

HARRIS: Dan, a couple quick questions on Iraq. And I apologize for this because you can't answer these quickly. But let's give it a go. Is it frustrating that after the president's been out talking about Iraq, speech after speech, making the case that you get a result like you do in "The New York Times"/CBS News poll that says 69 percent of those who were asked to respond to the question, does the president have a plan, the answer is -- no. What are they not hearing or believing?

BARTLETT: It's not as much about what they are hearing from the president as much as what they are seeing on their TV screens. The month of October was a very difficult month. And the fact that we lost a little over 100 of our own troops. The part they are not seeing is we have been on the offense and more than 1500 of the enemy have either been killed or captured. That's an important statistic for the American people to understand.

But it is a very tough fight there. And what the American people want to know, and I think we're a big difference that you can find in that polling data, you just cited, is that most Americans don't want to leave before the job is done. They want to make sure we can win. That's exactly where the president's mindset is. We are constantly adjusting our tactics to make sure we are going to prevail on Iraq. But it's a tough fight right now. I think that's what you're seeing. People are anxious about it.

HARRIS: What are your thoughts on the Ted Haggard story this morning?

BARTLETT: Well, as anybody would think, these type of revelations are shocking and disgraceful, if they turn out to be true. I think it's important that we do find out exactly what it is right and what is wrong here, and get to the bottom of it.

HARRIS: OK. Dan, thanks for your time. We're about to loose you. You're window is closing rapidly. But thanks for your time this morning.

BARTLETT: No problem.

HARRIS: CNN "Prime Time" next Tuesday, beginning at 7:00 Eastern. Wolf Blitzer, Anderson Cooper, Paula Zahn and Lou Dobbs lead the best political team on television. As your votes are counted, the races, results, ramifications, Tuesday night beginning at 7:00 Eastern.

Then CNN's election night coverage continues with a special edition of "Larry King Live" from Los Angeles, midnight Eastern. Hear from winners and losers all across the country, plus expert analysis from the best political team on television.

Some steps forward, some steps back. What's really happening on the ground in Iraq. A reality check coming up in the NEWSROOM.

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COLLINS: Want to get this information quickly to you. There has been a change in the story that we told you about a little bit earlier today. We had told you about a U.S. soldier who was convicted in connection with the Abu Ghraib prison scandal. He was a dog handler there. We reported he was heading back with his unit to Iraq to help train Iraqi police. Jamie McIntyre standing by at the Pentagon with the latest development in this.

Jamie, what's going on?

JAMIE MCINTYRE, CNN PENTAGON CORRESPONDENT, CNN AMERICAN MORNING: Well, Heidi, this is one of those cases where upon further review it was decided this is not such a good idea. Sergeant Santos Cardona was, in fact, convicted of using his dog to threaten detainees. He served his sentence 90 days of hard labor. He's paying off his fine, that's the rate of $600 a month for 12 months. He's back in the Army with his unit which is being dispatched back to Iraq.

But once questions were raised about whether he should go, the Army said, actually, maybe not such a good idea to send him there. He could be a target for insurgents. That could put his fellow soldiers at risk, so he's going to stay in Kuwait while they decide what to do with him.

They say he still wants to serve in the Army. He has served his time so he should be able to continue to serve as a soldier, but not in Iraq. And by the way, they say that he was not scheduled to train Iraqi police forces. His duties had not yet been determined, until he was sent to the country.

But now he's not going to be going. He's going to stay in Kuwait for the time being.

COLLINS: All right. Thank you for the clarification on that. Jamie McIntyre from the Pentagon.

HARRIS: Five straight down days for the Dow. We need to close the week for an up note. So far, so good, although this is probably flat. We will check in on Wall Street. The New York Stock Exchange, Cheryl Casino. You are in the NEWSROOM.

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COLLINS: Cheryl Casone joining us now from the New York Stock Exchange to tell us how the market is doing.

Good morning to you, Cheryl.

CHERYL CASONE, CNN FINANCIAL CORRESPONDENT, NEWSROOM: Good morning, there.

You know, investors are on Wall Street initially are applauding that news in the early going on the jobs report, as you were mentioning earlier, but stocks actually little changed right now. We kind of have a flat market going on now. The Dow industrials are up barely here, about 4 points or so. We are riding a five-session losing streak, hoping to end that one today.

The Nasdaq composite in the red slightly as well. That is the latest from Wall Street right now. More from the NEWSROOM straight ahead. You are watching CNN, the most trusted name in news.

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