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Explosion Rocks Jacksonville Chemical Plant; Changing Credit Scores
Aired December 19, 2007 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: Forget about the Fed. When it comes to your money, your credit, your financial solvency, FICO is the name to know. What is FICO? Well, straight ahead, news you should know about a change in the FICO formula.
MELISSA LONG, CNN ANCHOR: Well, holiday traditions -- it has become a tradition on Capitol Hill, pork for the holidays. And wait until you hear how your government is spending your money in the new year.
Hello, I'm Melissa Long here at the CNN Center in Atlanta, in today for Kyra Phillips.
LEMON: And I'm Don Lemon. You're in the CNN NEWSROOM.
LONG: This afternoon, we are following a developing story. It's a breaking news story out of Jacksonville, Florida.
You can see live pictures courtesy of our of affiliate WJXT of an explosion and a subsequent fire at a chemical plant.
Let's bring in one of our local reporters there with our affiliate WJXT. That's Dan Leveton, who is on the line for us.
And, Dan, we have been trying to tell whether it was a power plant fire, a fire at a chemical plant. We understand now it's a chemical plant. What can you tell us about that?
DAN LEVETON, WJXT REPORTER: Yes, that appears to be the case, Melissa.
What we have been able to found out so far is this happened about an hour, a little over an hour ago now. When we first started coming to the scene, we were probably 20 miles away and we could see this thick black plume of smoke just heading straight into the air.
And if you see the picture now, if it's still live, that has not changed one bit in an hour. So that tells you what is burning. And, again, as you said, the preliminary reports are that this could be a chemical fire. I can tell you it's not at the JAE plant. That's the Jacksonville Electric Authority. It's not at their planet. It's just a little bit to the west of that plant.
But it's an area that is heavy industrialized, a lot of businesses, some new businesses there. As far as exactly what's burning, we're still trying to get that from JSO, Jacksonville Sheriff's Office, and also the Jacksonville Fire Rescue Department.
But they're so busy right now rushing to the scene. On the way here, we saw ladder trucks. We saw EOC people. We saw command center materials going this way. We saw one after another after another rescue vehicles from Jacksonville Fire and Rescue Department just coming to the scene and leaving the scene.
I guess our hopes now are that nothing as far as injuries happened that was serious. But as far as the fire itself, we're coming on a major interstate that goes just south of where this fire is. You could see some flames in the air. And we did see a fireball one time when we were about to do a live report.
So, it is very serious. It is still burning very heavily. As far as the smoke and any danger to health in this area -- again, there are some residential areas in this general vicinity -- and right now it appears that the smoke is heading north and to the east, so it's away from the main part of Jacksonville, and is going more towards Nassau County and towards Fernandina Beach, which is to the north and east.
But that's the very latest from here.
LONG: OK.
LEVETON: We're still trying to get some exact details before we can get back to you guys.
LONG: I understand.
Dan, you mentioned you were driving. From about 20 miles away, you could see that thick plume of smoke. I have also heard that people that are closer to the location of that chemical plant could feel their homes and their cars rattle.
LEVETON: Right.
We have heard -- we have gotten several calls from people to our station that have talked to us that said, yes, they felt this thing when it boomed. And from looking at the smoke and from looking at the fire when we were close to it or close enough, you could tell that something serious had happened.
And this just wasn't that started with a small fire. It had to start with something very serious, and that's what the people told us, that they're -- again, they're not necessarily really close to here, because there are some homes in the vicinity, but heavily populated areas are not around here, but people probably were close enough to really feel something.
LONG: OK. An industrial area again, but with some residential nooks not far from there.
Dan Leveton from our affiliate WJXT -- Dan, thanks so much for the update. Appreciate it.
LEVETON: OK. OK.
(CROSSTALK)
LONG: And also don't forget we rely on our I-Reporters during times, of course, of breaking news. If you happen to be in the area, have your camera handy, have your cell phone handy, do capture the news, send it in to us here at CNN.com. You can do it through the Web site, through the cell phone as well. But please do not ever compromise your safety when capturing the news in your community.
LEMON: To other news now.
A drive into the mountains of Northern California to search for the perfect Christmas tree, well, it turns into a desperate search- and-rescue mission in horrible weather; 38-year-old Frederick Dominguez, his 12- and 18-year-old sons and 15-year-old daughter left Sunday dressed in jeans, light jackets, and sneakers.
Lisa Sams called authorities when she hadn't heard from her family by Monday night.
(BEGIN VIDEO CLIP)
LISA SAMS, MOTHER OF MISSING KIDS: My heart hurts. I just want to find my kids and bring them home, I love them and that I'm praying for them, and that I know that God will bring them home.
(END VIDEO CLIP)
LEMON: Searchers have found the family's truck, but that's all. Complicating the search, snow and plenty of it, anywhere from two to six feet in the past two days.
(BEGIN VIDEO CLIP)
STEVE ROWE, PARADISE, CALIFORNIA, POLICE DEPARTMENT: The conditions are pretty -- were pretty bad. The visibility was very low. Plus, the terrain is very steep and hilly in that particular area, heavily wooded. So, it's been a difficult search for the people that have been out there.
(END VIDEO CLIP)
LEMON: Another storm is due in the area tonight.
LONG: We are continuing again to follow that chemical plant explosion, the subsequent fire in the Jacksonville area, live right there, a picture from our affiliate WLTV. We have been requiring of course on our local affiliates.
And now we want to check in with a reporter from Bridget -- excuse me -- her name is Bridget Murphy. She's with "The Florida Times-Union."
What can you tell us, Bridget? BRIDGET MURPHY, "THE FLORIDA TIMES-UNION": Well, I can tell you I'm about as close to the disaster as we can get at this point. I have been here for about an hour.
I was able to talk to some of the victims who were in a warehouse directly across the street when this disaster happened. My sources inside the rescue effort are telling me exclusively right now that we have at least two people confirmed dead. Firefighters have made some rescues and have gone in and gotten at least one person.
But from the people who were inside the warehouse across the street, they told me, shaking and coughing, that it would really be a miracle for anyone to come out alive. We have got helicopters flying overhead. And I apologize if I lose you. It's a little crazy out here right now.
(CROSSTALK)
LONG: Bridget, a moment ago, you mentioned again two deaths, according to your sources. It's the first time we are hearing that big development.
You said they were very close to the site of the explosion. What did they tell you it was like, and do we know what chemicals may have been involved?
MURPHY: I don't know the chemicals that were involved, but I can tell you I spoke to someone who did an 18-month tour in Vietnam.
He came out of there shaking and he told me -- quote -- "It was like napalm in the morning." Honestly, the looks on these gentlemen's faces, tough, blue-collar industrial workers shaken to the core, no doubt about it. They were across the street in a warehouse. They described to me a hissing noise and then a percussion that just spread through their warehouse, like a sound wave that knocked them to the ground as it passed. They said the ceiling peeled off their warehouse partially and they had trees and steel poles flying into where they were.
So, this people across the street. I talked to a truck driver who was driving by at the time, tried to do whatever he could to rescue people. He and a few other drivers took fire extinguishers from their trucks. And he actually ran into a trailer that was located right next to the chemical plant to see if they could find anyone, but he said it was just a mess of debris and there was not much that they could do.
He spoke to the fire chief as he was on his way out, and he said, just make sure you search in there for anyone.
LONG: Amazing description again of the hissing noise, the sound wave, and the ceiling peeling off, and the looks on these faces of the men who were coming out of that chemical plant.
Help me to understand also the area where this is taking place, what types of precautions are in place for those chemical plants. And of course again just tell me what the scene is like right now, because our pictures are from such a distance.
MURPHY: Sure.
Well, I can tell you it's a very industrial area located on the waterfront in north Jacksonville. There are people who live within a few miles of this area. The Red Cross has opened a shelter at one of the local elementary school for people that are being evacuated.
I spoke to some people who lived close. A gentleman who lives five miles away said their power flickered on and off, and then they felt an explosion. We're talking five miles away. So, this has some far-reaching effects.
Downtown Jacksonville is about, I would say, about 15 miles away. You could see the smoke plume almost immediately. And as I was coming up on the disaster a short time later, I could see flames, you know, at the tops of the trees, several stories high. We're talking trees at least 10 stories high.
LONG: Bridget, one other thing I want to talk to you about before we wrap up -- again, you were the first person to tell us again of the two possible deaths related to this explosion. Where did you get that information from?
MURPHY: That's coming from my sources inside the rescue scene.
LONG: OK.
Bridget Murphy again with "The Florida Times-Union" talking about possible deaths there on the scene. Again, there are reports of deaths there at that chemical explosion.
Bridget, thanks so much for that great detail. Appreciate it.
(CROSSTALK)
LONG: Really helped us to better understand exactly what is taking place there in the fire and the -- likely the chaos that's taking place inside that chemical area.
LEMON: Yes. And when she said that, yes, this appears to be a lot more serious than we thought. Obviously, from the flames and the smoke that we have been seeing from this story, we knew that it was serious, not exactly sure what chemicals might be in the air, because we're hearing that it is in fact a chemical plant now from sources on the ground, and, of course, the reporter there from "The Florida Times-Union" saying that she's getting from her sources that two people have died in this chemical plant and there have been evacuations there.
LONG: And it's a very industrial area. There's a power plant nearby. And that was the original speculation initially, that it was in fact the power plant. But now they are reporting that it is in fact a chemical plant.
(CROSSTALK) LEMON: And look at this. This is new video coming into the CNN NEWSROOM. This is tape driving on the interstate.
If we could get some guidance as to exactly what interstate this is near Jacksonville, this Jacksonville, Florida, but new video of this chemical plant explosion. And we are learning here in the CNN NEWSROOM just moments ago that two people have died in all of this.
And, you can see there, from these first shots on the ground, this is what the reporters who are on the ground are likely seeing, and as people pass by here -- passing by on the interstate, Melissa, probably not even realizing the dire situation that's happening here.
This black smoke has been pouring here. We have been looking at it for about an hour here. People are saying that it shook their homes and their businesses and their cars miles and miles away.
This is the scene in Jacksonville, Florida, right now at a chemical plant explosion.
The CNN NEWSROOM continues with details on this developing story right after this.
(COMMERCIAL BREAK)
LEMON: Well, forget about the Fed. When it comes to your money, your credit, your financial solvency, FICO is a name you need to know. Straight ahead, news you should know about the change. There's going to be a change in the FICO formula.
(COMMERCIAL BREAK)
LEMON: All right. You're looking at new video now coming in from Jacksonville, Florida, of a chemical plant explosion happening there.
Now, here's what we have learned just from people we have spoken to a short while ago. According to a reporter on the scene, sources are telling her that two people have died in this explosion -- this all happening about an hour ago at this chemical plant in Jacksonville, Florida.
And you can see there the video shot just moments ago of when this thing was raging, still going now, flames at the bottom, huge plumes of black smoke at the top, again, this all happening, Jacksonville, Florida. We're not exactly sure the name of the plant, but we saw some video.
This is I-95 right here, cars going by the plant very close to the highway. Since it is a chemical plant, not exactly sure what is in the air. Hazmat teams on the scene here, and the plant and the surrounding area all evacuated. Again, we're getting reports of two people died. As soon as we get new information on this developing story, we will bring it to you here in the CNN NEWSROOM.
LONG: Well, like it or not, your credit score could be changing over the next few months, regardless of how many Christmas presents you're paying for with plastic.
Fair Isaac -- that's the company behind your credit score -- is using some new math, and that FICO -- or FICO -- score, depending on how you say it, is how lenders determine whether you're credit worthy, say, for a mortgage or a car loan, and what interest rate you pay.
So, why the changes now? And what could it all mean for you? That's most important, right?
Personal finance editor Gerri Willis joins us now live from New York with some great advice.
And, Gerri, first of all, just this new system will change the way that credit scores are calculated. How will it do that?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right. That's exactly right, Melissa.
You know, your FICO score is your financial identity. And they are going to recalculate these. It's bring your score up a little bit in all likelihood. But here are some of the provisions. First of all, it stops authorized users from using your card.
OK. So, if you gave a card to your kids, to your spouse, and said, hey, you can use this, I will pay the bill, that ends right now, because it's been used badly by a bunch of scam artists out there. They're not going to allow that anymore. There will be higher penalties for late payments. So, if you're missing your credit card payments, watch out. You're going to get killed here.
There will be higher rewards for on-time payments, so that's good news for people who pay on time. And there will be more points to people who have different kinds of debt out there. So, if you have the mortgage, the credit cards, maybe you're paying off a student loan, that is all going to help you in the long run.
LONG: So, there's good credit, such as student loans, and then there's credit that's not so hot, like credit cards, as you say. So, people may want to say -- or people may be wondering, well, what can I do about this? Is there anything you can do?
WILLIS: Well, like I said, your credit score may go up a little bit. You may see that. So that's always good news.
But for people who have one of those authorized user cards, this is a real problem. This means you won't have a credit card. You're going to have to go out and establish your own credit history with your own credit cards. Make sure these folks know who you are, because, at the end of the day, lenders have to know who you are to give you loans.
Be sure to pay cards off on time. There's no excuse now for not getting that payment out immediately. Go on the Web. Sign up. Do it automatically.
And I know there's going to be a big temptation out there to collect a lot of credit cards. My advice here, don't use this as an excuse to get a bunch of cards you don't need. At the end of the day, it opens the door to, golly, identity theft, fraud. Now, don't get more cards than you need. And that should be two or three at the most.
LONG: Well, you mentioned collecting cards. And that does seem to happen, whether this time of year or any time of year. You may be tempted. You're offered 10 percent off, 15 percent...
WILLIS: That's right.
LONG: ... for that initial purchase. But when you apply for those store credit cards with high APRs, it really does hurt your credit rating.
WILLIS: That's right. But more cards under this plan won't hurt your credit rating as much.
LONG: Got it.
WILLIS: But I have to tell you, there are other reasons not to collect a bunch of credit cards. Yes, you get 10 percent or 15 percent on one gift this year, but you are going to have that credit card forever. It is going to be part of your credit score and your credit history.
You're much better off picking a card that really does you some good, maybe a cash rewards card, a cash value card. You know, put some thinking into the cards that you use, instead of just picking up the ones that are most convenient.
LONG: Some sound advice on the FICO score and the changes.
Gerri, thanks so much. And we will be watching your program this weekend.
WILLIS: Join us for "OPEN HOUSE" 9:30 a.m. on Saturday morning. We will be talking more about the mortgage meltdown. We have got a great conversation coming up with experts on that topic.
Thanks, Melissa.
LONG: Gerri, a pleasure. Thanks so much. Great advice.
WILLIS: Thank you.
LEMON: A Christmas feast of pork cooked up by Congress. Ready for holiday break? Lawmakers seek to slam through a huge budget bill.
And more on that developing story, that chemical plant explosion in Florida. We will speak to the manager of a Holiday Inn very close to this scene.
(COMMERCIAL BREAK)
LEMON: Want to update you now on our breaking news coming from Jacksonville, Florida.
This driving shot you're seeing now, I-95. And what you're seeing, that big smoke right there to the left of your screen, soon to be in the center of the screen, that is from a chemical plant explosion believed to be the T2 plant located in Jacksonville, Florida.
It is a -- judging from their Web site, looking at their Web site, they're saying they are the world's only supplier of Ecotane, a unique next-generation safe solvent technology, so chemicals being manufactured and used in the plant.
And there is an explosion here, so a very serious situation, possibly some toxic things in the air.
We want to get you to the ground now, and very close to the scene of this. The manager of the Holiday Inn near the site of this explosion, Kathy Jones, joins us on the phone.
Kathy, Ms. Jones, thank you for joining us.
We hear that this explosion rattled windows and buildings and cars miles away. Happen to you?
KATHY JONES, GENERAL MANAGER, HOLIDAY INN: It happened here, yes.
I think it was probably around 1:45, 1:50. I was standing at the front desk. And it sounded like -- I'm not sure -- a big explosion. And it blew off the front doors of the Holiday Inn. They were just hanging on the hinges. It didn't bust anything or break the glass, but it blew the doors off.
LEMON: It blew them off?
JONES: Yes.
LEMON: And you're two miles away?
JONES: Correct.
LEMON: What did you do?
JONES: We put them back on.
(LAUGHTER)
LEMON: Besides that. I mean, what did you do? What was your reaction? Good answer, though.
JONES: Well, I mean, it was scary. I mean, it jolted everyone. We had a gentleman on the elevator at the time, and he said it jolted the entire elevator. The lights went off in the elevator and it jolted him.
He was fine, but, you know, that's how strong it was. People in the hotel felt it also. It jolted them also.
LEMON: Yes?
JONES: And that's two miles away.
LEMON: And you are two miles away.
Are you getting reports from anyone else anywhere in the area? You have got these big doors that blew off. No one in your area was injured or had to be taken away, right, because of any injuries...
(CROSSTALK)
JONES: No. They -- no.
LEMON: Yes?
JONES: No.
LEMON: What are you telling your people there at the hotel?
JONES: Well, we have a lot of guests checking in. And they have evacuated a lot of area in the surrounding area, nothing to us yet, because we're, like I said, about two miles away.
But they have evacuated a lot of the businesses in the immediate area, which is, you know, not very far from us. They have not told us if we will evacuate. But the guests are concerned, because they see this big black smoke out here, which is very visible from the hotel.
LEMON: I would imagine they are concerned.
Hey, so, you're in this area, and I imagine you have been there for a while since you're the general manager of this hotel. Tell us about the area and about these plants and what have you. Have you ever experienced anything like this?
JONES: No.
LEMON: No, not at all?
JONES: No, nothing like this here.
LEMON: Any concern because of the plants in the area that you have had?
JONES: No.
LEMON: No? So you're OK?
JONES: I'm OK.
(CROSSTALK)
JONES: The smell of the smoke out here is getting a little strong now. And I'm not sure what it is. They haven't told us to evacuate, but it is getting pretty strong out hire.
LEMON: Yes.
Well, listen, we're glad that you're OK. We're glad that you were able to put your doors back on.
(LAUGHTER)
LEMON: But, in all seriousness, though, we are hearing, Ms. Jones, that two people have died in this. Thank you very much, by the way, for joining us in the CNN NEWSROOM.
Take care. OK?
JONES: Thank you. You're very welcome.
LEMON: OK.
So, the latest reports -- that's obviously the general manager there, Melissa, from the hotel, who is saying that the doors -- she had these huge doors blown really off the hinges. They didn't fall down or at least...
(CROSSTALK)
LONG: And, yet, she's two miles away.
(CROSSTALK)
LONG: Two miles from that industrial...
(CROSSTALK)
LEMON: And, again, this is, what, hydrocarbon in nature? The black smoke would equal that, that's what we're hearing, because there are gasoline additives possibly be manufactured at this chemical plant.
Again, we're getting information from our sources there on the ground that this is the T2 chemical plant in Jacksonville, Florida.
LONG: We will continue to follow this story for you, give you any updates as soon as we get them.
(BUSINESS REPORT)
LEMON: Well, everyone knows what happened after Hurricane Katrina, but what about Hurricane Rita? Is it the same song, different verse?
(COMMERCIAL BREAK)
LEMON: All right, officials in Florida just held an impromptu news conference with reporters who that are on the scene here.
Tom Francis, the public information officer for Jacksonville Fire and Rescue spoke at this press conference. Let's take a listen.
TOM FRANCIS, JACKSONVILLE FIRE & RESCUE SPOKESMAN: The biggest concern that we had initially was to make sure that we were able to initiate these rescue procedures for any of the individuals trapped in this literally hellish inferno -- there's no other way to describe it -- and at the same time not jeopardize any of our rescue workers and firefighters that are involved in this particular evolution. Those are the two main concerns that we had.
The hierarchy has always been, of course, life and property. Right now -- before I came here -- we were concerned with life. And now, with the situation looking the way that it is, we'll have to see what the update is.
UNIDENTIFIED MALE: It looks like the smoke has slowed a bit.
(CROSSTALK)
QUESTION: ...go back in there and try to look for these (INAUDIBLE).
FRANCIS: Well, that -- that I don't know. That I don't know. That's what I have to find out when I get back to command.
QUESTION: You've said...
QUESTION: Tom, five were taken to the hospital?
FRANCIS: Yes.
QUESTION: And three missing reported?
FRANCIS: Well, initially we had six that were missing, but we found three of those.
QUESTION: The three (INAUDIBLE)...
FRANCIS: OK. So three are still missing. Here again...
(CROSSTALK)
FRANCIS: Here again, as far as that information is concerned, what I can't elaborate on because of the simple fact that the coordination of the rescue efforts and bringing those individuals out and over to the rescue units for subsequent triage and transport is still an ongoing evolution here. So I have to go back and find out what kind of information is now available.
QUESTION: (INAUDIBLE).
FRANCIS: I don't know. I just know the last thing that I heard was of the six individuals that were missing, three were discovered.
QUESTION: Tony, you said that this was call T2 (INAUDIBLE) -- can you tell us...
FRANCIS: Yes, T2 -- T2...
QUESTION: ...what kind of a company? What kind of chemical is this?
FRANCIS: I have no idea. Like I said earlier, unknown chemicals.
QUESTION: Are you using foam or water?
FRANCIS: As I said earlier, we are still cooling down the tanks -- which is using water, foam and dry chemical right here at the scene. And with that, I'm going to go ahead and excuse myself. You've got enough stuff to get going. And I should be back, hopefully, in a...
QUESTION: People are being evacuated right, though?
LEMON: OK. They're using water, foam and, as he said, dry chemicals on this. The reason they're doing that, obviously, this is a chemical fire. What they're trying to say there -- T2 Labs is the name of this chemical plant. And on their Web site they say this is the world's best gasoline performance additive. And if they make a gasoline additive, obviously, that's why they're using foam. And this could possibly be toxic.
You also heard him mention there -- it was Tom Francis, who is the public information officer for Jacksonville Fire and Rescue. He also mentioned that initially six people were missing. And he said they found three and now three people are still missing. And according to one of the reporters here on the ground, two people have been killed. This spokesperson did not confirm that. But, obviously, a very chaotic situation happening there that we're going to continue to follow right now.
LONG: There's a local print reporter there, Bridget Murphy, with the "Florida Times-Union," who told us earlier that said she had spoken with some sources that were very close to the site of the explosion. They confirmed to her that two people were killed.
Again, we're still working on that development.
Jacqui Jeras is tracking this for us from the Weather Center. Of course, they're trying to put it out with water, foam and dry chemicals. And, of course, the weather can affect their efforts -- Jacqui.
JACQUI JERAS, ATS METEOROLOGIST: Absolutely. And the good news is -- and you can really see it, too, from those pictures, Melissa, is that the smoke plume is very vertical. So it's really growing up, which is a good indicator that the winds haven't been all that strong.
But we're getting enough particles in the air from this explosion that we're actually detecting it now on our Doppler radar out of Jacksonville. So here you can see -- this is the St. John's River as it moves through the area. This is the 295 loop that goes around Jacksonville. Here's I-95 right there, that goes through town. And this is the area that we're talking about. And you can kind of see how it's pushing up toward the less populated areas, on up toward the north and east. So those winds here, we've been tracking them over the last couple of hours. They've been averaging between five and 10 miles per hour out of the southwest, moving toward the north and east. So any chemical would be pulling away from the town -- Melissa?
LONG: Jacqui, thanks so much.
And, again, good news again that you were explaining that the direction of the smoke is really indicative of just how strong or how weak the winds are right now.
JERAS: Absolutely.
LONG: Jacqui Jeras, thanks so much.
LEMON: Everybody knows what happened after Hurricane Katrina. But what about Hurricane Rita? Is it the same song, but a different verse? We'll find out.
(COMMERCIAL BREAK)
LEMON: A $550 billion budget bill Congress is set to pass runs more than 3,000 pages. Not light reading and not light on pork, with almost 9,000 earmarks. How does that compare with the past budgets?
Shockingly, Democrats and Republicans are on two different opinions about this. We're going to ask Ryan Alexander. She is the president of Taxpayers for Common Sense, an independent budget watchdog.
We're talking about 3,000 pages. I grabbed this. This is 500 pages just from the -- what we put in the printer here. So, a lot more than that. That is a lot of reading.
How do you get through that? How do you exactly know what's in all of that? Can anybody read every single thing -- every single line item in this?
RYAN ALEXANDER, PRESIDENT, TAXPAYERS FOR COMMON SENSE: I think it's safe to say that members of Congress voted on this bill without reading it. It was made public at midnight and on Monday morning, basically, at the very early hours of Monday morning, and the House of Representatives voted on it later that night.
It's, you know, 3,500 pages long and it's 3,500 pages of technical reading. So that's one of our biggest problems with this bill, is that it was done in a way that there's no way that people knew exactly what they were voting on. And that's a big problem.
LEMON: And then it was done at night. I mean is there something about that? I know they often work into the night. But when you're talking about a huge budget bill this way, people are concerned that at the last minute, someone may try to sneak something in. Is that a legitimate concern and has it happened here? ALEXANDER: It is a legitimate concern. There are some earmarks that were added in this final appropriations bill that weren't in the House or the Senate versions before them. There was an $8.8 million earmark for a rural preparedness consortium in Kentucky that was suggested by -- requested by Representative Rodgers that was not in the House bill. It was not in the Senate bill. But it showed up in the final bill. There were several earmarks that increased in size from the -- from whichever their original bill was, the House or the Senate.
LEMON: Ryan, and talk to us about this, because, you know, there's lots of earmarks, lots of pet projects in here. Tell us exactly what some of the more interesting ones are. And did it seem fair that they may be trying to put these in?
ALEXANDER: Well, you know, one of our big points in all of this is, you know, this is a 3,500-page bill and there's 9,000 earmarks. We're still going through to make sure we know everything about them.
LEMON: So you don't know...
ALEXANDER: But there are definitely...
LEMON: You still don't know everything?
ALEXANDER: We're still -- we still don't know everything. And I'm pretty sure nobody in Congress knows everything, either.
LEMON: Oh.
ALEXANDER: You know, but there are definitely good examples of how the process is broken.
LEMON: Yes.
I want to get -- I want to get your response to Senator Robert C. Byrd, who's a Democrat from West Virginia. He is the chairman on this omnibus appropriations bill. We want to play for you what he said yesterday and get your comment on it.
ALEXANDER: Sure.
(BEGIN VIDEO CLIP)
SEN. ROBERT BYRD (D), WEST VIRGINIA: This consolidated appropriations bill contains an unprecedented level of transparency and accountability for member requested projects and earmarks. The total dollars that are earmarked is reduced -- hear me now -- by 43 percent. That ain't chicken feed.
(END VIDEO CLIP)
(LAUGHTER)
LEMON: Is he right, that ain't chicken feed? ALEXANDER: Well, he's right that we have an unprecedented level of transparency. We have more information than we've ever had before. We know the names of every earmark or of the members who requested every earmark and a description of those earmarks. But I've got to take issue with him on the 42 percent number.
LEMON: Yes.
Real quickly, because I want to -- I want the viewers to get something out of this, especially since you are, you know, sort a tax watchdog for us. What does this mean for us? How can this be fixed and corrected so that taxpayers don't have to pay and that we're not subject to all of this stuff?
ALEXANDER: Well, I think, you know, the public pressure in the last election cycle about the concerns about corruption, the concerns about how our tax dollars were being spent, is what led to the improvements we've seen this year -- the increased transparency. And, even though I don't think it's a 40 percent reduction, there was a reduction. There are fewer earmarks this year and they are -- they add up to fewer dollars. And that's progress.
LEMON: Yes.
ALEXANDER: To make sure that we continue to see that progress, I think it's important that voters let their members of Congress know that this is important, that they want to make sure that, you know, with so many competing demands on our tax dollars, the decisions are being made based on priorities and being made based on, you know, project merit rather than political muscle.
LEMON: Yes.
ALEXANDER: And with 9,000 earmarks, it's hard to say that that's happening.
LEMON: Being aware -- aware of what the politicians are doing, and holding them accountable.
ALEXANDER: Right.
LEMON: OK, thank you very much. Ryan Alexander, Taxpayers for Common Sense, an independent budget watchdog. Have a very happy holiday season.
ALEXANDER: You, too. Thank you very much.
LEMON: And we just played that comment from Senator Byrd a minute ago, the chair of the Senate Appropriations Committee. And we're working to get a statement from the House Appropriations Committee, as well.
LONG: We have heard plenty about the aftermath of Hurricane Katrina -- all the problems, setbacks and rebuilding. But what about the aftermath of Rita -- which hit Texas about a month later?
CNN's Randi Kaye is Keeping Them Honest -- Randi.
RANDI KAYE, CNN CORRESPONDENT: Hi there, Melissa.
First, the folks in New Orleans waiting and now the people in Texas are waiting. It's their turn. Now, it's not all the state's fault. The largest chunk of this federal money didn't actually reach Texas until this year. But the state did get $43 million -- million dollars -- in May of 2006.
So you've got to wonder, where is that cash? Well, we've learned, as of September, only 13 families had received homes out of more than 4,000 requesting them. It turns out most of the money the state received last year went toward administration instead of building houses. Go figure.
We met so many frustrated homeowners on our trip to Texas. And here is just a bit of our interview with one of them.
(BEGIN VIDEO CLIP)
KAYE (voice-over): The numbers are staggering. After Hurricane Rita, nearly 500 million federal dollars targeted for housing and infrastructure repair were sent to Texas. But only a fraction, $1.1 million, has actually been spent on rebuilding homes. That's less than 1/10 of 1 percent.
HELENA SAUNDERS: This is my little house.
KAYE: This 69-year-old grandmother from Sabine Pass has been living in this FEMA trailer since the storm.
(on camera): So your house used to be right out there?
SAUNDERS: Yes. Yes. Yes.
KAYE: Wow!
SAUNDERS: It used to be right out there in the front.
KAYE: Helena Saunders can't afford to rebuild on her own. In all this time, she hasn't gotten a single dollar from the state.
(END VIDEO CLIP)
KAYE: Hard to believe. I asked the state why the delay? It puts the blame on the federal government and all of its rules the state has to work through, such as environment concerns and historical preservation clearances -- Melissa.
LONG: You scratch your head, saying how can this happen? Only $1.1 million to the rebuilding effort right there. You mentioned earlier the administrative costs. How many people do they have working on these applications? Are they short-staffed?
KAYE: They sure are. Really, they don't have enough people, and that's part of the problem. They actually have part-time employees working on these applications, in addition to some full-time employees. But those full-time employees are still doing their regular jobs, so they're not devoting all of their attention to this issue.
I asked the guy at the housing authority, wouldn't you want someone working on your case full-time if you had lost your house so you can get back home? And now they have about $270 million more that they got this year, in April, that they still haven't started distributing.
LONG: Amazing. And, of course, much more of this story tonight. Randi, thank you. Randi, again, will have much of her story tonight on "ANDERSON COOPER 360," 10:00 p.m. Right here on CNN.
LEMON: Your kids love teenaged TV star Jamie Lynn Spears. Now she is pregnant. So how do you explain that to your children? We'll get some advice.
(COMMERCIAL BREAK)
LONG: Straight ahead in THE SITUATION ROOM, Republican presidential candidate Rudy Giuliani sits down for an interview with our own Wolf Blitzer.
LEMON: Oh, he certainly does. And it's something you won't want to miss.
Wolf joins us now from Columbia, Missouri -- Wolf, what will the focus of this interview be about?
WOLF BLITZER, CNN ANCHOR: Well, we're going to try to better understand what Rudy Giuliani would be like if -- if -- it's a huge if right now -- if he became the next president of the United States. And I want to try go through some of the major issues, substantive issues, whether foreign policy, national security issues, some of the domestic issues, and try to pinpoint exactly where he stands, what he would do, who he would bring in, those kinds of questions. It's a good opportunity to speak with all the presidential candidates. I'm looking forward to speaking to Rudy Giuliani out here in Missouri.
This is an important state for his strategy, as you know, guys, because he's assuming he's not necessarily going to win in Iowa or New Hampshire or South Carolina. He's hoping some of his rivals sort of divide and conquer up there. And what he's really counting on is doing extremely well in Florida at the end of January and then doing extremely well on Super Tuesday, February 5th, in big states like New York and California, New Jersey -- some of those other big states.
So he's got a lot of strategy going. And normally it doesn't work. But this year, because it's so compressed, this whole schedule, maybe it will. You never know.
LONG: Compressed is a good word for it.
LEMON: Yes.
LONG: Thanks so much, Wolf. LEMON: Wolf, we like your ride behind you back there. Safe driving.
BLITZER: Thank you.
LONG: Yes, the Election Express vehicle. It's very impressive.
Of course, you can watch Wolf Blitzer's interview with Rudy Giuliani straight ahead in "THE SITUATION ROOM," 4:00 Eastern, something you'll see only on CNN.
LEMON: And move aside Britney Spears. Your little sister is stealing your spotlight. Sixteen-year-old Jamie Lynn Spears is pregnant. The star of the Nickelodeon 'tween hit "Zoey 101" tells "OK! Magazine" she was in total shock when she found out. She says the father is her long time boyfriend Casey Aldridge.
Earlier in the NEWSROOM, Dr. Judy Kuriansky, a clinical psychologist, joined us to help parents talk to kids about the teen star's pregnancy.
(BEGIN VIDEO CLIP)
DR. JUDY KURIANSKY, CLINICAL PSYCHOLOGIST:
This is a lesson for parents to talk about safe sex. What happens is that there are three reasons why parents are afraid to bring up this subject. One is that they're afraid. They don't know what to say. Second, they're afraid their own feelings and their own background. They may be ashamed or embarrassed about it.
LEMON: Right.
KURIANSKY: And, third, they're afraid if they talk to their kids about it, they're going to make them go out and do it. But research shows that is not true. It's the opposite. A study just even proved that and I know that from years of talking to kids.
LEMON: OK. OK, doctor, we're running out of time and I want to get to a lot of things here. I don't want to beat up on her. What about the guy? He wasn't using protection, as well.
KURIANSKY: Well, exactly. And that's a huge responsibility for guys. And it's a lesson --
LEMON: And he's only 18.
KURIANSKY: And it's a lesson for everyone. And parents should not do the ostrich phenomenon of sticking their heads in the sand and not talking to their kids. They should take the opportunity, not pretend that well, oh, maybe my kids won't find out. They will be talking about it in school. So you ask them questions. What have you heard about this? What are you going to do about this in your own life?
LEMON: OK...
KURIANSKY: What kind of decisions will you make about this? And start the conversation now that it's in the news.
LEMON: OK.
(END VIDEO CLIP)
KING: Kuriansky says now is not the time to be a friend to your children. Instead, act like a parent.
We want to talk now about Donald Trump. He may have coined the famous phrase "you're fired," but who were the most infamous firees in 2007? A list you don't want to be on. Next, you're fired.
(COMMERCIAL BREAK)
LONG: Almost 4:00 in New York and the bell is just about to ring.
LEMON: Stephanie Elam is standing by with a final look at the trading day -- hey, Steph.
STEPHANIE ELAM, CNN CORRESPONDENT: Hello, Melissa and Don.
So, here's the deal. Challenger Gray & Christmas is out with its top 10 most unbelievable workplace stories of 2007. So we decided to focus on the stories of how folks got fired for some of their antics.
Let's start with a London underground announcer who was fired for recording spoof messages on her Web site. She reminded Americans that they were talking too loudly. And bored males -- stop giving the eyes to the females on the train.
Then there was the Cartoon Network CEO who resigned after a botched ad campaign for a show that was mistakenly taken for a possible terrorist attack in Boston. Do you remember that one, guys?
LONG: Who can forget?
LEMON: Oh, yes.
LONG: Oh, that was costly. Absolutely.
LEMON: Oh, yes.
ELAM: Yes. That was a little bit of a problem there.
LONG: A bad (INAUDIBLE).
ELAM: Then there's the Iowa office worker who got the ax for keeping a 300-page, single spaced journal on a work computer, writing about how she avoided work by looking busy at the desktop.
LONG: Think of the wasted creativity there.
ELAM: Yes. I think she went on to sue for unemployment benefits, too.
LEMON: Did she get them? We don't know, right? ELAM: No, I don't think she did.
(CROSSTALK)
ELAM: Yes, I don't think she did.
LEMON: Wow! That's something to write about.
ELAM: I don't know, there's maybe something to learn from on that one. I'm not quite sure. No, no.
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