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New York Lieutenant Governor David Paterson Holds News Conference; From Rivals to Allies: Giuliani Campaigns for McCain; Economic Jitters for Many Americans

Aired March 13, 2008 - 14:00   ET

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

BRIANNA KEILAR, CNN ANCHOR: A week ago, who had ever heard of David Paterson outside of New York? Not even he could have imagined that come Monday, he'll be governor of a state still shaken by scandal.
DON LEMON, CNN ANCHOR: But before he steps into New York's highest office, he'll step into the glare of a news conference. You see that. They're getting ready live now right there in Albany. We're going to have it for you here, all here, right here in the CNN NEWSROOM.

Hello, everyone. I'm Don Lemon, live in the CNN World Headquarters here in Atlanta.

KEILAR: And I'm Brianna Keilar. Kyra Phillips is still on assignment in Iraq.

Well, there you go -- 53-years-old. Probably didn't have any idea that he would become governor, and he'll be the first African- American governor of the state of New York.

We're talking about David Paterson, and a press conference is about to begin in Albany. You see it there. Folks setting up. People getting ready for it.

David Paterson to step up to those microphones in just a few minutes to talk about that, and possibly, possibly about the controversy. It's all going to happen. And as soon as it begins, we'll bring it right here to you in the CNN NEWSROOM.

In the meantime, Brianna has some other breaking news for you.

KEILAR: Yes. Want to tell you about a significant move by the automaker Chrysler. Chrysler announcing that it will close down operations for two weeks this summer in July, the week of July 7 and the week of July 14. This is the first time that Chrysler has undertaken a company-wide shutdown.

Now, Chrysler reps downplaying that this is a cost savings move. Saying that this is really an existing industry practice. Two other auto companies have done it.

But again, this is the first time that Chrysler has undertaken a company-wide shutdown. And certainly things aren't rosy at Chrysler. The company has been offering early retirement packages to some employees.

So, again, a significant move by the automaker. Chrysler announcing that it's going to shut down company-wide operations for two weeks in July.

And you probably already know this, but it's been a very bad week to buy gas. Today marks the third day in a row the average price of regular unleaded has hit a record. The latest, ouch, $3.26 a gallon.

And no new home foreclosure records, but today we learned the February rate was 60 percent higher than a year ago. It was down just a hair, though, from January.

But get a load of that Dow. This uptick is all the more impressive considering the triple-digit plunge at the opening bell. We'll hit the heights. We're going to plumb the depths of all the developments that affect your bottom line.

LEMON: Meantime, we have some other developing news. And this one is on a sad note. We've been talking about Eve Carson. She was a study body president. And now there's a statement from UNC Chapel Hill, from the president there, telling us -- it's from Duke University, sorry.

And they were talking about another student killed, and they said: "We welcome the news that the Durham and Chapel Hill Police Department have in the murder of Eve Carson" -- that we have been telling you about. Arrested, "... a second suspect. Someone who has also been charged in the murder of our graduate student here several weeks ago. Our campus community deeply mourns the tragic deaths of these two outstanding young people, and our thoughts are with their families today."

There was word -- here's the difference here, because we've been talking about both -- one student, Eve Carson. But it has also been found out lately that there was another victim that I need to point out here.

There was an Indian student, and now they are releasing this statement from Duke saying that they are -- that's a picture of the victim there. And I want to make sure that I get this name correct.

I think it's Abhijit Mahato -- Abhijit Mahato. And, again, I'm going to read the statement just to make it clear for all of our viewers. And this statement is from Duke.

It says: "We welcome the news that the Durham and Chapel Hill police department have in the murder of Eve Carson arrested a second suspect. A second suspect, someone who also has been charged in the murder of our graduate student Abhijit Mahato several weeks ago. Our campus community deeply mourns the tragic deaths of these two outstanding young people and our thoughts are with their families today."

Sad news. We've been getting a lot of news on college campuses about students who have been murdered or found dead, and we wanted to get that to you, official statement from Duke University.

KEILAR: And we are awaiting a press conference at this hour from Lieutenant Governor David Paterson of New York. Of course, he is the man who is going to be taking over on Monday as the governor of New York in the wake of the Eliot Spitzer sex scandal.

So, you can see there, the press gathered round. This is in Albany, New York, the capital of New York. So, we're just waiting here for Lieutenant Governor David Paterson to address the press. And as soon as he does that, we're going to be bringing it to you live.

Well, what do you do about Michigan and Florida? This is the nail-biting, hand-wringing issue for Democrats. Now possible movement on the deadlock. Florida's Democratic Party is proposing a combination mail-in and in-person primary on June 3. Of course, it's going to have to get the blessing of the Democratic National Committee, as well as the Clinton and Obama campaigns.

(BEGIN VIDEO CLIP)

HOWARD DEAN, DNC CHAIRMAN: Once you're halfway or three-quarters of the way down the track, as we are in this race, to go back and change something, that makes it -- that's a big deal. So, this is going to be -- require some delicacy and some diplomacy.

But, look, the issue here is do we want to be united at the convention? If we want to be united at the convention, we ought to try to fix this problem now and not wait until the convention.

(END VIDEO CLIP)

KEILAR: Michigan's Democratic Party still trying to figure out what to do about a possible revote there. Both states were stripped of their Democratic delegates for breaking the rules and moving up their primaries.

Finally, something the last three major presidential candidates agree on. How about that? Democrats Hillary Clinton and Barack Obama and Republican John McCain, they're off the trail. They're back at work today in the Senate.

In the spotlight, pork barrel spending. A Senate plan would put a one-year moratorium on funding for pet projects known as earmarks. And McCain, Obama and Clinton all support this ban. However, key senators on both sides, Democrats and Republicans, oppose the ban, and aides predict that it will fail. Supporters hoping that it only gets...

LEMON: Let's go now to Albany, in New York, and Paterson is speaking now, David Paterson, who is going to be the new governor of New York.

(APPLAUSE)

LT. GOV. DAVID PATERSON (D), NEW YORK: Thank you very much. If most of you weren't being paid, I'd be flattered by that. (LAUGHTER)

This has been a very sad few days in the history of New York. And for me, it's been sadder. My heart goes out to Eliot Spitzer, his wife Silda, his three daughters, his parents. I know them all. They're friends of mine.

Last summer his parents actually had my wife Michelle and I up to lunch one day, and we used to call them our other family. Probably because we've gotten kind of tired of our own family. But in all seriousness, it's a very difficult time for them. They're in my prayers.

I did not get to this position in the way that most people have, in the way that most people would want. But I made a commitment when I gave my word to Governor Spitzer in January of 2006, when I left as the Democratic senate leader to be his running mate, that I would be prepared, if an event I had to assume authority.

I am prepared. And on Monday, at 1:00 p.m., I will have the oath of office administered to me in the assembly chamber. Most of you are invited.

(LAUGHTER)

And we will -- at this point it is time to get back to the business of the state. I promised the governor yesterday that I would commit myself to the people of this great state, that we would have stability and continuity in those challenges that lie ahead. Now we have to get New York back on track.

I have met with the speaker of the assembly. I will be meeting later with the majority leader of the senate. I met yesterday with the comptroller. And I will meet tomorrow with the attorney general of the state of New York. I will meet with agency heads, with commissioners, with the budget director, and with legislators. We will all commit ourselves in a bipartisan way to building a relationship that will restore the public trust in our government.

Let me be very clear about this. There may be a five-day transition period, but we are hard at work at this moment, putting together a budget that will help New York to thrive. This weekend, I will have high-end executive officials in my office hammering out the details of this budget.

We cannot afford to waste another second. We have a budget that's due and a deadline to meet. We share this responsibility with the legislature, and I look forward to working with all of them.

If you have any questions, I will answer them at this time.

QUESTION: Governor, this is Joe Mahoney (ph) from "The Daily News."

Regarding the policies of your predecessor, can you tell us whether or not you're going to (OFF-MIC)? (LAUGHTER)

QUESTION: You can take the first part.

PATERSON: Oh, the first part.

(LAUGHTER)

PATERSON: Oh sure. That was congestion pricing.

On congestion pricing, we're taking a look at it. On violent killers, we're taking a look at it. Actually, I do have a serious concern on that issue, Joe, that the newspaper raised.

And on the issue of campaign financing, it was something that I fought for as a member of the senate minority in our reform agenda that goes back in to the '90s. And we want to not dictate campaign finance. We want to really persuade legislators that it really is the root of a lot of the dysfunction that we have in Albany -- in other words, the overfinancing of campaigns.

Obviously, there has to be fundraising. It's a necessary function. But we'd like to come to some consensus with the two legislative bodies about curtailing it to a degree.

QUESTION: (OFF-MIC)

PATERSON: Well, it's so comprehensive, and it has evolved and changed and mutated at different points. And at this point, this is the reason I'm going to be here this weekend.

Actually, it's the reason that I put my inauguration back, my swearing in. This was not the governor. This was my idea. I wanted not to spend today being sworn in or speaking or in any way celebrating. I wanted to come in here, meet with the legislative leaders, get back to work on some of those points where I need to be updated as to where the budget process is right now.

Do that for a few days, and then I'd like to be sworn in, in the assembly chamber at 1:00 on Monday, with the senate and the assembly present, with the judges of the court of appeals, bringing the whole government together, because that is the only way we're going to have progress.

LEMON: And as we stand by and monitor this press conference with David Paterson, obviously this is a little bit inside baseball, talking about the budget there in New York exactly what he's planning to do. But it was very interesting for him to talk about why he pushed back -- it was his idea to push back the swearing-in ceremony because he wanted to meet with legislative leaders so that when he was sworn in -- or is sworn in on Monday, that he hits the ground running.

And just a little bit. Let's go back full screen to him. And I'm going to, Brianna, talk about this man's background just a little bit. Because we were both here looking at his background. You know, obviously he's legally blind. We've been talking about it. But then finishing the New York City Marathon in 1999. He has certainly accomplished a lot.

And by doing this, by stepping in as governor, he is the first African-American governor of New York State, and also the first person, if you want to put it this way, a disability, really, to hold such a high office. People have been comparing him to Roosevelt as well.

KEILAR: And you see, he sort of started the whole news conference with some levity there. He came in to applause, and he said, "If most of you weren't getting paid, I'd be flattered by that."

LEMON: Yes.

KEILAR: And of course everyone kind of chuckled. But he's coming in, in this pretty difficult time, because there's a lot of tension there in New York State politics. Soon to be former Governor Eliot Spitzer, obviously known for his abrasive style, and sort of patching up some of those wounds there between folks in Albany. That's going to be part of Paterson's job come Monday.

LEMON: Yes. Absolutely.

And very interesting with that, he also talked about Eliot Spitzer's family. And we heard the former mayor, David Dinkins, talk about that yesterday, how he really felt sad, especially for the parents of Eliot Spitzer who were so proud of him. And then, of course, his family, his immediate family, his children. And his wife as well.

So, as David Paterson continues, as I'm listening in one ear, to talk about the budget and to talk about finance reform in New York City, we're going to bring in our Deb Feyerick, who is following this as well and listening in on this press conference.

Deb, very interesting how -- some levity here, because it's been so serious in Albany and so serious, all the news coming out of this. And he's talking about working on both sides of the aisle, and many people are saying he definitely has the personality to do it.

DEBORAH FEYERICK, CNN CORRESPONDENT: Absolutely, Don. And you can see even the way he set the opening for this press conference, making a joke. And the impression is he's really going to sort of calm down Albany.

He has been there for more than 20 years as a state senator. And then as a leader there, the first African-American lieutenant governor, the first African-American governor come Monday. And even his style, very different from that of Eliot Spitzer's.

You could see, he said, "I delayed being sworn in until Monday because I wanted to meet with everybody." That is very, very different.

Eliot Spitzer was really criticized for sort of coming in there, both guns blazing, saying he was going to reform Albany. He was going to wipe out, you know, what appeared to be corruption or things that weren't going right, and restore integrity, and that insulted a lot of people up in Albany who had the sense, who is this guy who's coming in?

Paterson, very, very different. He is known as a bridge builder. You know, you talk about him being legally blind, but this is a man who is debriefed by his aides in very lengthy e-mails -- I'm sorry messages, voice messages sometimes so that he can listen to them, absorb everything that's being said, and then make decisions. He's very thoughtful. Very nice.

You know, I've met him a couple of times. And he's very, very personable and very, very approachable. And I think he's going to bring that style to Albany at a critical time.

They are negotiating the budget right now. He knows that. And I think he tried to assure New Yorkers that that's what we're focused on. We have a deadline and we plan to meet that deadline, and just because I'm not sworn in for five days, he said, doesn't mean we're not all hard at work here. So, again, trying to reassure and establish an equilibrium and a balance that really hasn't been there for the last year and change.

LEMON: Deb Feyerick joining us in New York.

And, Deb, as you were talking, as I said, I'm listening on one ear to the press conference and also listening to you as well. You made some very valid points.

And if there's any consolation in all of this for the people of New York, as I'm listening here, they are talking about issues that affect New Yorkers -- raising the personal income tax, whether or not his ideology is the same as Governor Spitzer's.

So not really much talk in this press conference, Deb, about the scandal, but more about how they're going to get to the business of getting New York back in order.

FEYERICK: Absolutely. And he clearly pointed out, this is not a victory for him. He said, you know, it's a very sad day for New York, but it's even sadder for him personally, because he really does like the Spitzers.

And he said, you know, this is not the way he thought that he would ever be sworn into office as governor, but it's something that he had agreed to do. And he said, this isn't the way you plan these kinds of things. So, again, really kind of a nice guy. He's not jumping over the back of Eliot Spitzer.

LEMON: Right.

FEYERICK: He's reaching out a hand not only to Spitzer, saying, you're still my friend, but he's also looking to New Yorkers and saying, look, we're dealing with the issues now. Let's put this aside.

LEMON: Yes. Hey, Deb, we're up against the clock here. Deb Feyerick in New York. Thank you very much for that.

And as we continue to look at live pictures of this press conference in New York, success against all odds is really the only way that you can put it. The man who is about to take the reins of New York State, of the government there, he is legally blind. We'll find out more about David Paterson and the obstacles he and thousands of blind Americans face every single day.

KEILAR: And a Georgia senator has a plan to get the slumping housing market back on its feet. We'll hear what he has to say.

(COMMERCIAL BREAK)

KEILAR: Rudy Giuliani once campaigned to keep John McCain out of the White House. Now he's trying to get him into the White House.

The former New York mayor is on the trail today for the presumptive Republican nominee. And our Mary Snow joins us now from Camp Hill, Pennsylvania.

Hi, Mary.

MARY SNOW, CNN CORRESPONDENT: Hi there, Brianna.

You know, it's a pretty unusual day on the campaign trail. You were talking a little while ago about the fact that all the presidential candidates today are back in Washington, doing their day jobs. So Senator John McCain at the last minute had to not come here. And Rudy Giuliani, his former rival, is his substitute.

So, Giuliani, it's the first time we've really seen him out on the campaign trail in more than a month. Right after he dropped out of the race, after the Florida primary, he said he was endorsing Senator McCain. Today, he held a fundraiser here and spoke to reporters, saying that this was a commitment. Not only a labor of commitment, a labor of love for his friend, he said, John McCain. Trying to make the case that he would be strong on national security and on the economy.

But when it came time for questions, he was asked about his home state and Governor Eliot Spitzer having to resign. Here's what he had to say.

(BEGIN VIDEO CLIP)

RUDY GIULIANI (R), FMR. PRESIDENTIAL CANDIDATE: Well, I feel great sadness for the governor and for his family, for his children. He made the decision he believed was the right one, and I just pray for them.

(END VIDEO CLIP)

SNOW: And whether or not Eliot Spitzer should face charges, Giuliani said that's only a question that a prosecutor in office really could answer. As for his own future, he said -- he was asked about whether or not he would be interested in running for governor in the next available term.

He said he's not planning on running for anything. And he was also asked whether or not he'd be interested in the job of vice president. He said that is only something that can be answered if someone asks you, and he really didn't want to speculate.

He said, though, for the time being, in the past month, he's getting accustomed back to his private life and his own firm, and that he likes it. But, of course, he is expected to be out on the campaign trail more for Senator McCain -- Brianna.

KEILAR: And Mary Snow out on the campaign trail there in Camp Hill, Pennsylvania. Thanks for that.

And you can get all of the latest campaign news right at your fingertips. Check it out at CNNPolitics.com. Plus, you can also get analysis from the best political team on television. That, and more, right at CNNPolitics.com.

(NEWSBREAK)

(BUSINESS REPORT)

LEMON: We've been talking about issue number one, which is the economy. You know, the dollar falling. Oil prices still high. She said they're coming down, but they're still drive.

Do you drive?

KEILAR: I do.

LEMON: Remember the last time, what you paid to fill up?

KEILAR: I'm sort of lucky. I've been spending a lot of time in Atlanta over the last several weeks, but I went home and gassed up my car, I did one of these -- like, "Are you kidding me?"

LEMON: Seventy-five bucks for me. And...

KEILAR: Oh my goodness.

LEMON: ... I don't have any kids, or whatever. I can afford it. But a lot of people are talking about it. They're making a choice, Brianna, between buying gas or food. Gas or food, that's how bad it's getting.

KEILAR: Not a choice people should have to make.

LEMON: Yes. And we went down to talk to some folks right here in Atlanta to see what was on their minds. Obviously, this was issue number one for them.

(BEGIN VIDEOTAPE)

LEMON: So, listen, you heard about the -- you know about the economy. You know it's not so good. Food's higher, gas is higher. Are you cutting back on anything?

UNIDENTIFIED FEMALE: Food. I have to have gas to get to work.

LEMON: You're cutting back on food so that you can have gas?

UNIDENTIFIED FEMALE: Yes. I used to go out to eat every day. Now I have to economize. I drive an hour.

LEMON: You don't like these gas prices.

UNIDENTIFIED MALE: They're terrible. They're terrible. I lose sleep over these gas prices.

LEMON: Are you having to cut back on other things for gas?

UNIDENTIFIED FEMALE: Of course.

LEMON: Like what?

UNIDENTIFIED FEMALE: Like eating out and stuff like that.

LEMON: People are having to either, you know, decide between food and gas.

UNIDENTIFIED FEMALE: Yes, indeed. We're fixing to have to stay home and quit traveling because the gas is getting so high. We have a motor home and we use diesel in it, and it's getting out of our reach.

LEMON: Are you doing anything to watch your money in this economy?

UNIDENTIFIED MALE: Yes. You've got to cut -- you've got to cut back a little bit everywhere. I mean, you just have to be more -- more conscious of how you're spending your money, because the little things are adding up.

You know, just the other day I was just telling somebody, everybody's watching the price of the gas. How about the price for a gallon of milk? I've got two kids. You know, a gallon of milk was almost $5. And you see, you don't hear people complaining about a gallon of milk, but, you know, it's going up just like the price of gas is.

LEMON: You've got a family.

UNIDENTIFIED FEMALE: I do.

LEMON: Are you having to -- are you having to conserve? Are you watching one thing to pay for another? What are you doing?

UNIDENTIFIED FEMALE: Absolutely, yes. We're cutting back on everything. Cut coupons, look for specials in the grocery stores. Only drive when I absolutely have to with them. I have four kids so --

LEMON: Worst you've seen it?

UNIDENTIFIED FEMALE: It is. Well, yes, it is the worst.

LEMON: Why do you say that?

UNIDENTIFIED FEMALE: Because I've never in my life seen the gas prices as high as they or the economy as bad as it is, ever.

(END VIDEOTAPE)

LEMON: That's just a sampling from people here in Atlanta and obviously, as you know, it's the economy, stupid. And every single person we spoke to said they're hoping with this election they can get someone in there who can turn the economy around -- issue No. 1.

KEILAR: Yes, and it's also -- retail sales are down or they were down in February so, you know, people aren't out there buying what have you, cars, or even clothes or those luxury items. You put it off. You say, I can wait. But this milk being more expensive than gas, that's amazing.

LEMON: You got it.

KEILAR: And what is it going to take to put you in a new home? Would a five-figure tax break from the government do it? We're going to hear from the senator who thinks it's just what the housing market needs.

And not since Franklin Roosevelt has New York had a governor who's disabled. David Paterson, who takes the oath of office Monday, is legally blind. What does that mean? And how many Americans share his challenge?

(COMMERCIAL BREAK)

KEILAR: Hi there, I'm Brianna Keilar live at the CNN World Headquarters in Atlanta.

LEMON: And I'm Don Lemon.

You are in the CNN NEWSROOM.

Well, on Monday, David Paterson becomes New York's governor, the latest in a lifelong lifetime of challenges. When he was just three- months-old, an infection left him totally blind in his left eye, and with very limited sight in his right eye.

That didn't stop him from getting a law degree and entering politics and of course, rising to the level where he is here now. Our medical correspondent, Elizabeth Cohen, is here with what it means to be legally blind.

Elizabeth, people who are not blind don't accomplish what he's accomplished. It's amazing.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: He's an amazing man, there's no question. There's no question.

LEMON: But there are challenges.

COHEN: There are challenges, but a lot of people think legally blind means completely blind. And that's not always true.

Let's talk a minute about what legally blind means. The definition is that someone needs things to be ten times larger in order to see them. And I know that sounds like a weird way to say things. But if you -- if a person with good vision can see it, magnify it by ten times and the person still can't see it, that's legally blind.

So in other words, their vision would be 20/200 or less. Now -- I was going to say Governor Paterson, almost Governor Paterson, has said that he can read -- he can actually see things that are put up close to his face and can read for short periods of time, but really his aides read to him most of the time.

It's interesting, he told "The New York Times" if you watched me walk around my house, you wouldn't think that I was blind. In other words, that he has learned how to get around very well in familiar surroundings -- 1.3 Americans are legally blind. And so this is a large category of people.

LEMON: And it's very interesting, it's almost the same, you know, obviously this is much more serious for him, but it's almost the same -- you get used to some place, like you move around your house at night in the dark because you sort of know where everything is.

COHEN: Right.

LEMON: So you wouldn't think when he's at home --

COHEN: Most people would. I can't move around my house --

LEMON: Really?

COHEN: -- because I still bump into things. But I think most people are more coordinated than I am.

LEMON: Well figure -- when you have kids, you can't really do that.

COHEN: Right, you might trip over a child.

LEMON: OK. So you said -- I think you said three-months-old he became -- how did he become blind?

COHEN: Right. When he was three-months-old he developed an infection in his optic nerve. Now most of the time these infections in optic nerve that lead to blindness, and usually they don't lead to blindness, but usually this happens to adults; but it can also happen to children.

And it can happen from a variety of types of infections. For example, some people get cat scratch fever and other people get herpes. There are different kinds of both viral and bacterial infections that can attack the optic nerve.

LEMON: OK. So he's really managed -- we've said this -- to achieve a lot. I mean it's amazing, obviously. He's sitting on several things here, the first African-American governor of New York and the first person, obviously, who is legally blind. People are comparing him to Roosevelt. What other accomplishments -- marathon?

COHEN: Marathon. You and Brianna talked about that earlier. He also plays basketball. So he does all sorts of things that you wouldn't normally associate that a legally blind person does. Now, one of the reasons why people who have visual impairments are able to do more now than they were years ago, is that there's all sorts of technology to help.

For example, there are computers that will read the book to you. You think of, sort of, books on tapes. I know a lawyer who had all of his legal books in a form where they could be read on a computer. There are also computer programs that can blow up type so that it becomes huge. So there is more technology, more assistance out there than there used to be.

LEMON: Yes and it's -- he has such a sense of humor and ease about his personality. You saw it -- he -- in the press conference, you know, and it was, like, well, maybe, New York will get something accomplished so, yes.

COHEN: Right, right.

LEMON: Good for him. OK.

COHEN: OK.

LEMON: There he is stepping up to the microphone, we saw that a little bit earlier.

Elizabeth, we appreciate that insight and perspective.

COHEN: Thank you.

LEMON: Thank you.

KEILAR: We live in a world wide economy and the mortgage crisis, rising oil prices and also the decline are of the U.S. dollar are casting a wide shadow. We're getting reports in from CNN correspondents all over the world.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT: I'm Matthew Chance in Moscow.

As the global economy braces for ever-higher commodity prices, especially of oil, Russia's coffers are overflowing. This is the world's biggest energy producer, earning Russia nearly $1 billion a day in hard cash. It's the only industrialized economy that actually benefits from the high oil price.

But it may not last. Russian investors are increasingly concerned of global economic meltdown with slashed demand for oil and that eventually the boom Russia has been enjoying will come to an end.

ALESSIO VINCI, CNN CORRESPONDENT: I'm Alessio Vinci in Monti (ph), the heart of the shopping district here in Rome.

The weak dollar is grabbing economic headlines here, hurting and helping Italians at the same time. Those who work in the tourism industry, for example, expect fewer American tourists here this year compared to, say, a year ago. It has become a lot more expensive for them to travel here.

But in return, a lot more Italians are booking trips to the U.S., where the euros, compared to the value a year ago, is worth almost 20 percent more, a great deal for Italian shoppers going to the U.S.

(END VIDEOTAPE)

KEILAR: And we will have more international reaction from some of our other correspondents later in the NEWSROOM.

LEMON: Brace yourself if you need to fill up today. Gas prices are averaging, my goodness, almost $3.27 a gallon. That's according to AAA. That's up more than two cents from yesterday. It is a whopping 30 cents more than the price just a month ago. A note, a note, when you adjust gas prices for inflation, they're still a bit lower than the peak hit that was 27 years ago.

KEILAR: Does Congress have an addiction to pork?

(BEGIN VIDEO CLIP)

SEN. JIM DEMINT (R), SOUTH CAROLINA: When you got a problem, when you got an addiction, you have to agree you have a problem, and you have to get into rehab. Congress needs to get into rehab.

(END VIDEO CLIP)

KEILAR: That's Senator Demint spearheading an effort to do that. We're going to take a look at this fight over congressional earmarks.

(COMMERCIAL BREAK)

KEILAR: Leading our political ticker, apologies from Hillary Clinton. Speaking to a group of African-American newspaper publishers, Clinton said some of her husband's comments earlier this year, that were seen by some as racist, were not intended that way. And she said she's sorry if anyone was offended. Clinton also repudiated comments by supporter, Geraldine Ferraro, who said Barack Obama would not have made it this far if he were white.

LEMON: Republican John McCain is getting some help on the campaign trail from a former rival. Rudy Giuliani is stumping for McCain today in Pennsylvania. At a stop in Camp Hill, the former New York mayor also talked about the sex scandal swirling around New York's soon-to-be former governor, Eliot Spitzer.

(BEGIN VIDEO CLIP)

GIULIANI: Well, I feel great sadness for the governor and for his family, for his children. He made the decision he believed was the right one. And I just pray for them.

(END VIDEO CLIP)

LEMON: Pennsylvania holds its presidential primaries April 22.

KEILAR: Senator Robert Byrd is back in the Senate. The longest- serving senator in history returned to the chamber today to vote on the federal budget. The West Virginia Democrat's appearance surprised many of his colleagues, given his series of hospital stays after a fall at his Virginia home last month.

LEMON: It's called bringing home the bacon. Pet projects, so- called earmarks, otherwise known as pork. Now, a new battle is brewing in Washington.

Here's CNN's Kate Bolduan.

(BEGIN VIDEOTAPE)

DEMINT: Funding the world toilet summit for $13.5 million...

The study to determine if poultry litter can generate electricity -- $225,000...

Cowgirl hall of fame, $90,000...

Indoor rain forest, $50 million...

KATE BOLDUAN, CNN CORRESPONDENT: A long list of pet projects. Billions of dollars in so-called earmarks. Critics say they're a waste of taxpayer money and are calling for a for a one-year ban.

DEMINT: When you have a problem, when you have an addiction, you have to agree you have a problem and you need to get into rehab. Congress needs to get into rehab.

BOLDUAN: More than $18 billion went to nearly 13,000 congressional earmarks this year, according to budget watchdog group, Taxpayers for Common Sense. Opponents have tried before to curb earmark spending but now they say they have presidential politics on their side.

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: I want to eliminate this wasteful and outrageous earmark and pork barrel spending...

BOLDUAN: Senator John McCain is a longtime critic of earmarks. Senators Hillary Clinton and Barack Obama have recently signed on as well, even though they both have directed tens of millions of dollars in earmarks for their state. But even with that support, it's a shaping up to be a showdown in Congress. Opponents of the ban include powerful Democrats and Republicans.

SEN. JUDD GREGG (R), NEW HAMPSHIRE: I think an outright abolition of earmarks is an abolition of the authority of the Congress.

BOLDUAN: They also say anti-earmarkers only point out the worst abuses and a ban could throw out good projects along with the bad.

SEN. DICK DURBIN (D), MAJORITY WHIP: When it comes to projects around my state, and the rest of the nation, I don't think it's unreasonable for Congress to have some input in that discussion.

BOLDUAN: Democrats insist they've already slashed the number of earmarks since they took over Congress and require full disclosure of spending requests.

SEN. HARRY REID (D), MAJORITY LEADER: You have to list there's no conflict of interest, how much money, it's really in some detail.

BOLDUAN (on-camera): So what could a possible ban mean for tax payers? Well, some lawmakers say it's a way to regain their confidence in Congress, while others say it would mean the loss of thousands of home-state projects that law makers say are so critical to their communities.

Kate Bolduan, CNN, Capitol Hill.

(END VIDEOTAPE)

KEILAR: The Spitzer media circus. Our Jeanne Moos will show you the frenzy, sure to be a funny frenzy, in the streets of New York.

KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT: I'm Kareen Wynter in Hollywood.

One of the oldest rookies ever stepped to the plate today during Major League Baseball spring training. I'll tell you how Billy Crystal did in Yankee pinstripes. You don't want to miss this. That's next in the NEWSROOM.

(COMMERCIAL BREAK)

KEILAR: A California jury is beginning deliberations today in the $67 million lawsuit against two doctors who treated the late actor John Ritter. And Kareen Wynter has been following the case for us in Los Angeles.

I mean, that was so sad; he died so suddenly. I think everyone is still affected by it, Kareen.

WYNTER: Absolutely. And everyone anxious to see what the verdict will be in this trial. But, Brianna, no decision yet. Now, Ritter's sudden death in 2003, on the set of his ABC sitcom -- it was shocking. But his wife, actress Amy Yasbeck, she believes that if Ritter had been properly diagnosed when he arrived at the hospital, his life could have been saved. So she sued cardiologist Dr. Joseph Lee, who treated Ritter the day he died.

Ritter was told he was having a heart attack, but he was actually suffering from a torn aorta. Lee's attorney said that the doctor did the best he could with the information at hand. Another doctor also -- who is also being sued for missing the enlarged aorta during the body scan he conducted on Ritter in 2001.

Now, Yasbeck has already received $14 million from other settlements related to Ritter's death. Closing arguments were yesterday. And while we're expecting a verdict soon, there's no telling when the jury will make a decision here. But we're definitely on top of this.

KEILAR: And let's talk now about Harry Potter. I understand for all those Harry Potter fans out there, you've got some big news, right?

WYNTER: They're going to be blown away by this. Harry Potter fans can expect to get an extra movie here. That's right. The movie adaptations of J.K. Rowling's seven books have tried to be faithful to the written material. But, the last story "Harry Potter and the Deathly Hollows" clocked in at 759 pages.

So producers at Warner Brothers, one of our sister companies, they decided they needed to split the story into two films. And that's what they did. So both films will be shot at the same time and should include the same cast that has appeared in all the other films.

Now part one is expected to be released over the holidays in 2010, so you have a little bit of time there, to be followed by the second film in the summer of 2008. I bet so many people can't wait for this.

KEILAR: And one last thing that I want you to touch upon, and we don't usually get to talk about spring training during our entertainment segments, but you get to today, right?

WYNTER: We have something a little special for you. Today was a special day for comedian Billy Crystal. He took to the field in Yankee pinstripes for a spring training game, just about an hour ago.

This is footage from his workouts yesterday. The 59-year-old Crystal, he turns 60 tomorrow, by the way, played baseball in his younger days. He was given this amazing opportunity by the Yankees as a birthday present. Crystal was the designated hitter and he came to the plate to lead off the bottom of the first inning against the Pittsburgh Pirates.

And although Crystal hit one pitch foul, he was struck out. For the record, Pirates pitcher, Paul Maholm -- he didn't show Crystal any love, no mercy and threw him some very, very tough pitches. Ouch. As Crystal walked back to the dugouts, the fans including, Robin Williams, his pal, and the Yankees they all gave him a big standing ovation.

That at-bat will be his extent of the Yankees' career. He was pulled from the game. But he told the announcers during the broadcast that just stepping to the plate was an amazing feeling and something he would treasure. But I think he did OK.

KEILAR: Yes -- he didn't embarrass himself. But what fun. An amazing moment in a person's life. Very cool.

WYNTER: Yes.

KEILAR: All right. Kareen Wynter there in L.A for us. Thanks so much.

WYNTER: Thanks, Brianna.

LEMON: The Spitzer media circus. Our Jeanne Moos will show us the frenzy in the streets of New York.

(COMMERCIAL BREAK)

LEMON: OK. Combine a political sex scandal with the New York City media, and what do you get? You get a (AUDIO GAP)

Jeanne Moos, of course, is our ring master.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT: Take one governor, add some call girls, call a press conference so the governor can resign.

UNIDENTIFIED MALE: OK, I'll stand like this. How's this? One, two, three, four, five.

MOOS: And before he can clear his throat, the press is hooked.

UNIDENTIFIED MALE: Spitzer is walking out of his house right now.

MOOS: There was the obligatory O.J.-like chopper chase of the governor's motorcade. But the real traffic jam...

UNIDENTIFIED MALE: Move it back. You're not going to go in until I say.

UNIDENTIFIED FEMALE: Can you go to the back of the line?

MOOS: ... was at the entrance to the skyscraper...

UNIDENTIFIED FEMALE: Don't force your way in. No more stills, OK?

MOOS: ... where the press conference was held. UNIDENTIFIED FEMALE: I know, but we don't have enough room for everyone. We don't have enough room for everyone. That's the problem.

MOOS: Desperate press people waved their hands, held up their press passes and called out their names.

UNIDENTIFIED MALE: Our name on your list, Reuter's Television (ph).

UNIDENTIFIED FEMALE: We're the 15th largest paper in the country.

UNIDENTIFIED FEMALE: Size matters.

UNIDENTIFIED FEMALE: Size does matter.

MOOS: Tempers flared.

UNIDENTIFIED MALE: Folks, move it back. You're causing your own problems! You're a victim of your own circumstances.

MOOS: Sort of like a certain governor.

UNIDENTIFIED MALE: The worst press conference in my life -- 15 years cover press conference and I never see press conference like this.

UNIDENTIFIED MALE: Do you have a press pass?

UNIDENTIFIED FEMALE: Yes, I do.

UNIDENTIFIED FEMALE: Do you like keeping it? Do you like keeping your press pass?

MOOS: She does. Governor Spitzer slipped by the press on his way in.

UNIDENTIFIED FEMALE: He came to the secret entrance.

MOOS (on-camera): To the secret entrance? What do you think of this?

UNIDENTIFIED FEMALE: He's good at that.

MOOS (voice-over): She watched the press conference taking place 38 floors above on her little TV. It's not just any political story that attracts this kind of press.

(on-camera): "Access Hollywood."

(voice-over): Even Brazilian TV showed up.

UNIDENTIFIED MALE: Sex and politics is always good news.

MOOS: Especially for online T-shirt sellers at Cafe Press, from "Spitzer spent $80,000 on hookers and all I got was this lousy T- shirt" to, "Clinton/Spiter, for a good time in '09."

UNIDENTIFIED MALE: This is really fun. It's like Clinton all over again. How can we elect such low lives to public office?

UNIDENTIFIED FEMALE: I know New York is full of rats. Well this is the biggest rat that ever crawled in his hole.

UNIDENTIFIED MALE: The girl shipped in on Amtrak from New York to Washington? That's unbelievable! Left the door ajar, come on in, honey, I'll be back in a little while!

MOOS: Isn't anyone going to stick up to the governor?

UNIDENTIFIED FEMALE: Well, if he spent his own money, then it's between him and his wife.

MOOS: Which brings us to the last unanswered question shouted at the governor's wife....

UNIDENTIFIED FEMALE: Silda, are you leaving him?

MOOS: Some of the press got left at the door, covering a call girl scandal without being called on.

UNIDENTIFIED MALE: Look at me, please.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

KEILAR: It's a very bad week to be buying gas, and today makes the third day in a row the average price of regular unleaded has a hit a record.

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