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American Morning

EPA and B.P. Butt Heads; Oil Cleanup Response Frustrates Gulf Communities; Charged For Recording Cops; World Markets Sink; High Cost of College; "Don't Ask, Don't Tell" Repeal Compromise Proposed in Congress; Businesses Hurt in Phoenix Due to Immigration Law Boycotts; Dealing with Juvenile Arthritis

Aired May 25, 2010 - 08:00   ET

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


KIRAN CHETRY, CNN ANCHOR: Good morning to you. It's Tuesday, the 25th of May. Thanks for being with us on this AMERICAN MORNING. I'm Kiran Chetry.

JOHN ROBERTS, CNN ANCHOR: Good morning to you. I'm John Roberts. Good to have you with us.

Here are the big stories we'll be telling you about in the next 15 minutes.

The EPA and BP in a big dispute over dispersants, the oil giant defying the Feds, continuing to use the chemical Corexit to break up the oil slick in the gulf. The EPA says it's too toxic, again demanding that BP immediately cut back.

CHETRY: Also, across the globe right now, a lot of red arrows, unfortunately. World markets are taking big dives. Dow futures are way down right now. So, are the bears are back for a little while on Wall Street? Christine Romans with the preview -- coming up.

ROBERTS: The White House, Democrats on the Hill, and possibly the Pentagon, all on board with a plan to repeal "don't ask, don't tell." A look ahead at a possible timeline and just what this could mean for the future of the military. We're live at the Pentagon coming right up.

And the amFIX blog is up and running. Join the live conversation going on right now. Just go to CNN.com/amFIX.

CHETRY: Well, first, it was an order. When that was defied, it became a request. But no matter how the EPA delivers the message, it's apparently not being heard.

This morning, B.P. is still refusing to cut back on the chemical dispersant Corexit, still spraying tens of thousands of gallons of the product into the Gulf to try to break up the massive oil slick.

ROBERTS: Rob Marciano is live in Venice, Louisiana, this morning where wildlife and livelihoods are slowly being destroyed. But we begin with Ed Lavandera, he's live in New Orleans this morning.

And, Ed, it seems that B.P. is determined to play by its own rules here when it comes to dealing with this disaster.

ED LAVANDERA, CNN CORRESPONDENT: Well, that's what a lot of critics are saying right now. You know, the background here is that over the last week, the EPA had given B.P. a 72-hour window, three days, to essentially change the dispersant it was using in the Gulf of Mexico or explain why it didn't do that.

So, over the weekend, B.P. officials had given the EPA a detailed letter explaining why they wouldn't do that. It didn't go over very well with officials over at the EPA, who kind of felt that B.P. was essentially just trying to justify its use of the chemical dispersant Corexit. Well, basically, what we have here right now is a standoff between scientists at the EPA and the B.P. scientists.

Everyone kind of agrees that there is about five or six dispersants that could be used in the situation. And everyone agrees, really, John and Kiran, that the use of dispersants is a tradeoff. You either use the dispersants or you face the threat of more oil coming onshore.

So, that's why you see the Coast Guard and the joint command that is battling in this response say that they opted for the use of dispersants. But of those dispersants that are viable options at this point, Corexit is believed to be the most toxic based on what they know right now. So, that's what's causing a lot of consternation over at the EPA right now.

CHETRY: Yes. And we spoke with Carol Browner earlier who, you know, was with the administration advising about energy. And she said that they're going to continue doing tests. They're not going to take B.P.'s word for it.

But is the EPA responding to B.P.'s argument that it should stick with using this dispersant?

LAVANDERA: Well, the standoff really is kind of at a stalemate right now. Essentially, what the EPA has said is that they are ordering B.P. to cut back dramatically on the use of dispersants. So far, more than 700,000 gallons of these chemicals have been dropped into the Gulf of Mexico, on the surface and also at the direct site of the oil leak.

EPA is saying that B.P. needs to cut back by at least 50 percent. So, that's how they've responded to B.P.'s letter, if you will. In the meantime, the EPA says their own scientists will continue doing monitoring and testing of the toxicity of these chemicals. And they reserve the right to come back and actually even cut off the use of these dispersants in the coming days.

ROBERTS: And, Ed, where does Corexit rank in terms of toxicity among the viable options of dispersants that are out there? You know, we've heard of this other dispersant called Sea Brat 4. But the argument is that by B.P. is that it reduces into something called nonylphenol which is toxic to fish.

So, which is the more toxic, which is better? Is there any way to know?

LAVANDERA: Well, what we've heard repeatedly from the scientists that are -- or the EPA officials who say, look, we just don't know how this stuff is reacting at a mile under water, which is really kind of the main focus of where it is -- of where it's being treated. So that was B.P.'s response and kind of criticism of Sea Brat 4.

Interestingly enough, you might remember the story we've reported on. B.P. actually ordered 100,000 gallons of this chemical dispersant back on May 4th, almost four -- almost a month ago. And that shipment of dispersants is still sitting in an industrial park outside of Houston, Texas. So, they have since kind of backtracked on that. And they're saying that they now have those problems with it.

But the EPA says they're still looking at it.

What everyone seems to agree is that, none, look -- none of these are good options. That no one really wants to use dispersants in the water. But it's the reality of the situation.

ROBERTS: Ed Lavandera for us this morning -- Ed, thanks so much.

On day 36 of the disaster in the Gulf, 20 percent of the fisheries in the region have now been shut down. One hundred and fifty miles of coastline is now directly impacted by the spill. Birds, sensitive marshes, livelihoods, all are being lost.

CHETRY: Our Rob Marciano joins us live from Venice, Louisiana.

We're also seeing more fallout from this environmental and economic catastrophe. And you've really tapped into some of the frustration that the locals are feeling about how the cleanup is being handled as well.

ROB MARCIANO, AMS METEOROLOGIST: Yes, you know, a lot of the residents here telling me, not since Hurricane Katrina have they witnessed such a bureaucratic mess basically. And they are very, very frustrated. And the difference between this and Katrina is that some of the damage that's being done to the wetlands, a lot of that is going to be long-term, if not permanent.

So, this is the bread and butter of this community. And to say that fishermen or residents here are frustrated, well, that's an understatement. They want action.

(BEGIN VIDEOTAPE)

BRANDON BALLAY, CHARTER FISHING BOAT CAPTAIN: Everything down here lives and starts their whole life cycle inside of these canes. Once they're dead, they are gone. They're not going to grow back.

MARCIANO (voice-over): Wetland grass now covered with oil makes running a fishing charter boat tough business here in Venice, Louisiana. Brandon Ballay is worried about his livelihood. But also across the Mississippi Delta, it's a way of life.

BALLAY: Now, we're mad at B.P., because basically, you know, I guess, they're dropping, you know? That they were supposed to catch it and they were supposed to plug it. Forget about giving me some money, you know, save my estuary, save my home.

MARCIANO: This environmental disaster has already affected generations.

DAVE BALLAY, FOUNDER, VENICE MARINA: But here's another example. This man catches bait for the recreation of fishermen. He's out of business.

MARCIANO: Brandon's father, Dave Ballay, worked in oil rigs in the Gulf as a young man and later built this marina in 1985. All the people here somehow depend on the oil business.

(on camera): Those oil rigs out there, I mean, that's the hand that feeds this community. How frustrating is it that they've killed part of this community?

D. BALLAY: It's very frustrating because almost every one of us, almost every family in Louisiana, has a cousin, an uncle, a brother or a wife that works in the oil industry. There are so many things that are related to the oil industry. So, we're mad. We're mad that it happened.

We're not mad at the oil industry. We're mad at that one individual or that one company that made that mistake.

MARCIANO: Over two weeks ago, Plaquemines Parish proposed a plan to build sand barriers across 80 miles of sensitive shoreline. Meanwhile, oil has already hit some of those wetlands. And still, that plan goes unapproved.

BILLY NUNGUSSER, PRESIDENT, PLAQUEMINES PARISH: We will start laying the groundwork in protecting the coastline. If they got a better plan, tell me one.

MARCIANO (voice-over): Plaquemines Parish president, Billy Nungesser, believes the Coast Guard commander is holding up approval of his plan.

NUNGUSSER: Now, let me tell you something: one man in Washington can say, "You can't do it in six months." That's cheap talk. Show me some proof. I will stand toe to toe with him any day and prove him wrong.

But you know what? He worked his way up through the Coast Guard and he has the floor and the decision-making. Shame on him.

They ought to be prosecuted. And I don't care if they are in the Coast Guard, the Corps of Engineers or B.P. They let this coastline be destroyed.

(END VIDEOTAPE)

MARCIANO: Admiral Thad Allen of the Coast Guard has told CNN that he's working closely with the Army Corps of Engineers. They hope to have a decision soon.

But it's the timeline that's the problem. They think it will be more six to 12 months. It seems like a long time away. But as a lot of people here point out, and the obvious is, is that oil spill, even if they cap it tomorrow successfully, that oil is going to be floating around in the Gulf for quite some time and washing up on these sensitive shorelines.

So, these people here are just looking for any solution that comes quickly. They don't want to wait for tomorrow or beyond -- Kiran, John.

CHETRY: All right. Rob, thanks so much.

Beginning tomorrow on AMERICAN MORNING, I will be reporting live from Grand Isle, Louisiana, a bit away from where Rob is in Venice, as B.P. prepares to deploy its top kill operation. It's an attempt, the latest attempt to stop the oil leak from the bottom of the Gulf. And we're going to be following all of that for you tomorrow, starting at 6:00 Eastern here on AMERICAN MORNING.

ROBERTS: Checking other stories new this morning.

We're already seeing the makings of another dismal day on Wall Street. World markets and futures are down on worries of the global economy's health. Is it just a correction or are the bears back for a while? Christine Romans is "Minding Your Business" in just a few minutes.

CHETRY: Also, for the first time since World War II, Britain is operating under the rule of a coalition government. Queen Elizabeth is opening a parliamentary session this morning for the 56th time during her reign. David Cameron now heads up a government that was born of a compromise between Conservatives and Liberal Democrats.

ROBERTS: And stormy weather again in the forecast today across the Midwest. The cluster of tornadoes left the trail of damage from the Dakotas to Texas yesterday. No injuries though, thankfully, reported. The storms did damage buildings though and knock down trees and power lines.

Let's get a quick check of this morning's weather forecast. Bonnie Schneider at the extreme weather forecast for us.

Hi, Bonnie.

BONNIE SCHNEIDER, AMS METEOROLOGIST: Good morning, John and Kiran.

We are actually checking the Tropics. I know it's not quite hurricane season, but there is a system that bears watching out in the Atlantic. It will affect the Atlantic coastline for today, bringing some rain in coastal areas, as well as beach erosion with some wind and waves.

Now, this system is breaking up a bit. It's a lot less impressive than it was yesterday. So, we don't think it will turn into the first named storm of the season. And that, of course, would be Alex.

Looking at the U.S. mainland, wow, talk about extreme weather. We have seen incredible record highs as far north as Michigan. Marquette, Michigan, climbed to 91 degrees yesterday. And I have to tell you, the heat will soar once again today. The hot temperatures on the eastern half of the country and the really cold ones in the western half, with low temperatures dropping down into the 30s overnight, some record lows on Washington State.

I'll talk more about the extreme weather in the forecast for today coming up -- John.

ROBERTS: Thanks, Bonnie. We'll see you again soon.

CHETRY: Thanks, Bonnie.

Well, coming up next on the Most News in the Morning, a motorcyclist made this video -- you're going to see in a second, there you -- when he was stopped by a state trooper. Now, he's facing possibly five years in prison. Carol Costello comes along to explain what happened.

(COMMERCIAL BREAK)

(MUSIC PLAYING)

ROBERTS: It's 14 minutes after the hour.

A man in Maryland could go to jail because he videotaped a traffic stop with a camera on his motorcycle helmet. Now, police say he was driving recklessly.

CHETRY: Yes. And then when he was pulled over, a plainclothes officer in an unmarked car already had his gun drawn. The big crime here, though, police say, is that the camera on the motorcyclist's helmet violated a state wiretapping law.

Carol Costello joins us with the "AM Original" this morning.

You remember the Maryland state wiretapping law, right? There's Linda Tripp and Monica Lewinsky back in the day.

CAROL COSTELLO, CNN CORRESPONDENT: Yes. That memory is clear in my mind.

You know, the strange thing about this story, though, Kiran, is who has a -- who has a camera mounted on their motorcycle helmet? I guess that's the thing to do these days. Who knows?

The American Civil Liberties Union is calling this case an extremely dangerous act of police retaliation. It boils down to this: Do you have a right to use your personal camera to record audio and video of someone -- in this case, a police officer making an arrest -- without their consent.

What if he asks you to stop recording him and what if you don't? For one Maryland -- one Maryland man did not stop the tape and he could spend five years behind bars.

Listen to this: Maryland state police tell me Anthony Graber was driving his motorcycle 100 miles per hour down I-95. Not only that, he was popping wheelies. A trooper in plainclothes driving an unmarked car pulled him over, gun drawn. Graber had that camera mounted on his helmet and it recorded this, watch.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Get off the motorcycle. Get off the motorcycle. State police.

(END VIDEO CLIP)

COSTELLO: Graber was cited for traffic violations. Okay by him. But he was upset the officer pulled a gun although it appears the gun was not pointed at him and the state police officer neglected for five seconds to identify himself as a cop. So Graber posted his helmet cam video, audio included, on Youtube and the next thing he knew, police served a warrant, they came to his house and threatened to arrest him.

(BEGIN VIDEO CLIP)

ANTHONY GRABER, MOTORCYCLIST: They come in and they take all of my computers, they took two computers, and two laptops and my camera. They were going to arrest me.

(END VIDEO CLIP)

COSTELLO: They didn't arrest him then but he has been charged with illegal wiretapping. Maryland is a two-party consent state which means if one party asks you not to record his voice, then you can't record his voice. The Harper County Maryland prosecutor or State's Attorney as they call it in Maryland said he had no choice. It is the law. The state's attorney suspects Graber had that camera on his helmet to capture himself inciting a police officer all to post a gotcha on Youtube.

The American Civil Liberties Union has another view, who calls this malicious prosecution. Graber, it says, was on a public street. The officer could clearly see the camera mounted on his helmet. As a citizen, Graber has a right to record video and audio of anything he wants if he is on a public street. The initial court proceedings begin on June 1st unless, Kiran and John, the ACLU convinces the Harper County State's Attorney to drop the charges.

ROBERTS: So, what does the law say about the recording? Because, if we as a news organization are out there on the streets with our cameras. It doesn't matter if people tell us to turn off our cameras. We don't have to.

COSTELLO: That is what I always thought. But, the State's Attorney says, you know, Maryland has one of the most stringent wiretapping laws in the nation. State's Attorneys says if the officer asked this guy to stop recording, he should have stopped recording audio. You can shoot all the video you want. But in Maryland, it's the audio portion.

CHETRY: And I also wonder if it will come up as to whether or not, I mean, as John was referring to, a camera, if you are holding a news gathering camera, you can see that it is a camera, about whether or not this was considered a hidden camera, that the officer didn't know that the filming was happening or is that not part of it?

COSTELLO: Well, he could say that. But, if you saw the camera, I am not sure if you saw the camera. But Graber's helmet, you could clearly see a little camera mounted on top of the helmet.

ROBERTS: Didn't the cop tell to him stop recording?

COSTELLO: Yes. He must have noticed the camera.

ROBERTS: He must have noticed the camera, right?

COSTELLO: Well, all of this will come out in court if the case goes to court.

ROBERTS: Interesting test there.

CHETRY: Or we could hold it right here.

ROBERTS: The moral of the story is, don't go 100 miles an hour down I-95 popping wheelies on your motorcycle.

COSTELLO: You know, we are forgetting that part. Because he was crazy driving down that highway. 100 miles per hour, and he admits it. He admits he deserved to be cited. He admits he deserves to pay the fine. He just didn't want to have a gun on him.

CHETRY: Did the police answer why he jumped out of the car, the undercover car with a gun? That could have ended badly too.

COSTELLO: Well, he wasn't pointing the gun at him. He had -- the state police officer had the gun, you know, at his side. He wasn't, you know, pointing the gun at Graber. And then after five seconds, he said he was a state police officer and he put the gun away and then things proceed smoothly from there.

ROBERTS: Well, the guy was obviously behaving in a reckless fashion. The cop was probably well within his rights to react the way he did. But, you know, it would be interesting to watch this as a test case for, you know, wiretapping and freedom of speech and all that. Great story. COSTELLO: Absolutely. If you want to comment, all of you out there, the story is posted on our blog right now, cnn.com/amfix. If you want to comment, please feel free. We enjoy the conversation.

ROBERTS: You bet. Thanks, Carol. Next on the Most News in the Morning, shaping up to be another troubling day on Wall Street. Christine Romans with a look at what we can expect when the market opens. Coming up next.

(COMMERCIAL BREAK)

ROBERTS: Twenty-two minutes after the hour. Christine Romans here "Minding Your Business." Looks like it is going to be another down day on Wall Street.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Down, down, down. 180 points down now for the Dow futures.

ROBERTS: Not as bad as it was.

ROMANS: Not as bad as it was two hours ago. But still, we are looking at Asian markets that are rattled by saber rattling on the Korean peninsula. That is the newest reaso-de-shour (ph). Whether or not it is the only reason the world markets are so risk averse, that is up for debate. But, the Nikkei, the Hang Seng, the FTSE, all down here.

I wanted to tell you a little bit, I want to show you the wild ride that we have been on here in the United States. All of these things are happening. European banks. You have got now trouble in the Korean peninsula. I wanted to show you here what happened. From October, 2007, the record high in stocks, down to March, 2009, remember that, that was a 57 percent decline. You see that, you see how far down stocks went. And then, there was an 80 percent rally over the next year, right? And now, we have come off 12 percent.

So, the whole world is risk-averse about U.S. stocks. And why is that? Because we have been all over the map in just two years driven by so many of these macroeconomic problems around the world. So, even as we are seeing things start to look a little bit better here in the U.S., corporate profits are coming back, good housing number yesterday, economists are saying there is a probably a recovery, it doesn't matter. Everyone is talking about Europe. Everyone is talking about Asia. And we are looking for a rough road here today.

CHETRY: Christine, thanks so much. Meanwhile, on the Most News in the Morning, an American Dream turns into a nightmare. A graduate regretting his decision to get a degree from NYU. It left him hundreds of thousands of dollars in debt at a time when the job market ended up showing him a pink slip.

(COMMERCIAL BREAK)

ROBERTS: Well, time for an "A.M. Original" now, something that you will see only on AMERICAN MORNING. A new study suggests that job prospects for this year's college grads have improved slightly. CHETRY: Well, that is a little bit of good news, though. But, students are overwhelmed with debt after getting that diploma and that is a big problem for many. Alina Cho is here with the second part of her series, The High Cost of College. You have a cautionary tale for people who choose one of the schools that are considered the brand name, or the name brand, as you call it, over perhaps a state school.

ALINA CHO, CNN CORRESPONDENT: Listen, I mean, you know, back when we were in college, it seemed expensive then, right? I mean, now, it is like astronomical. Hundreds of thousands of dollars. We do have a test case for a high school salutatorian, Ryan Derosky. There was really no question that he would go to that dream school, New York University, name brand. Bur certainly expensive and it cost him. Now, he is nearly $300,000 in debt and he is not alone.

(BEGIN VIDEOTAPE)

CHO (voice-over): As a graduate of prestigious New York University, Ryan Derosky thought his business degree would be a ticket to financial security. But today, he lives above a gas station, in an apartment he shares with three others. He commutes two hours each way every day from Pennsylvania to his job in Manhattan and back to stretch his budget. He says he can't afford any other way, strapped by sky-high college debt.

CHO (on camera): You talk about the American dream.

RYAN DEROSKY, NYU STUDENT: Yes. It has almost become an American nightmare.

CHO (voice-over): Call it a $275,000 nightmare, what Ryan took out in student loans plus interest for four years at his university. At this rate, 24-year-old Ryan will be almost 50 before his loans are paid off?

CHO (on camera): You had an offer of a full scholarship?

DEROSKY: Yes.

CHO: And then you had NYU, as an option, which was so much more expensive?

DEROSKY: Yes.

CHO: So, why?

DEROSKY: In my opinion, NYU was a better school, it was right in the middle of Manhattan. I thought it would provide me better opportunities after I graduated.

CHO: Did you have any idea how much it was going to cost?

DEROSKY: Honestly, no. I mean, I had done the math but when you are 18 and you know, you are about to move into New York City, it is just like, who cares? It is paid for. I will worry about it later. CHO: So, after four years here at NYU, Ryan did get a job. But soon after, just as the economy was collapsing, he was laid off. What's worse, right about the time that he got his pink slip, Ryan also got his first bill for his student loans.

DEROSKY: I believe it is $1,020 or something like that.

CHO: What did you think at that point?

DEROSKY: I freaked out.

CHO (voice-over): He is not alone. Two-thirds of bachelor's degree recipients graduate with an average of $23,000 in debt, that is up 50 percent since 1996. And then, there is this.

JACQUES STEINBERG, "THE NEW YORK TIMES" EDUCATION REPORTER: Fewer than half the kids who will start a four-year degree program will end up graduating, even in six years. And that's a staggering number of kids who are spending a lot of money.

CHO: As for Ryan, in the two years since he graduated, he has paid down $12,000, about 4% of what he owes. Debt he calls both daunting and depressing.

CHO (on camera): Do you regret your decision?

DEROSKY: Yes, I do. I look at the amount of money that I have to pay back. It is the money I would be using to fulfill my American dream. I would like to, you know, get my own house one day, get married, possibly start a family. Right now, I don't see that as part of my future. You know, my future right now is debt. It is almost devastating in some cases.

CHO: You do have a degree?

DEROSKY: Yes, I do have a degree. That's a positive point, yes.

(END VIDEOTAPE)

CHO: You know, to be clear, Ryan does not blame NYU for his college debt. He blames himself for making the choice. And he believes that the economic downturn certainly played a role. NYU tells CNN, it's advice for prospective students, plan ahead, college is an investment. People need to save for it.

Also, they say, guys, if you are in default, make sure you contact your lender. That's a given. Of course, try to contact NYU's career center. They say they are here to help.

You hear Jack Steinberg from the "New York Times" say, less than half, a little more than a third take five or more years to graduate. You are tacking on at least $35,000.

ROBERTS: And $50,000 a year at NYU.

CHO: For someone like Ryan, he said, he can't get a car without a co-signer or an apartment.

ROBERTS: The scholarship was looking pretty good in the rear- view mirror. Alina, thanks so much.

CHO: You bet.

ROBERTS: Top stories, the House could vote on a package of tax cuts. It also includes a big tax hike on big oil. The $200 billion measure extends jobless benefits and health insurance subsidies for the unemployed while quadrupling the tax on a barrel of oil. The tax could raise $11 billion over the next ten years and be used for cleaning up spills.

CHETRY: The U.S. is trying to keep the crisis between North and South Korea from boiling over. The Obama administration condemning the North for sinking a South Korean naval ship but stopping it short of call teeing an act of war. Meanwhile, global markets continue to sell off because of the rising tensions between the Koreas.

ROBERTS: And Queen Elizabeth says Britain's new coalition government will make the economy a priority. The monarch formerly opened the new parliamentary session for the 56th time during her reign. This is Britain's the first coalition government since World War II, a result of a pact between the conservative party and the Liberal Democrats after elections three weeks ago failed to produce a majority winner.

CHETRY: Lawmakers on the hill, president Obama, possibly the Pentagon coming together on a deal to repeal "don't ask don't tell."

ROBERTS: Members of Congress have a plan laid out, and now the ball is in the military's court. Our Barbara Starr is joining us live from the Pentagon this morning to break it all down. Is this actually going to lead to a repeal, Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: By all accounts, it just may, John. Good morning, John and Kiran. Military officials tell us that they expect perhaps the first vote on Capitol Hill as soon as Thursday on this compromise plan.

How it breaks down is this. What the Congress is talking about is voting on repealing "don't ask, don't tell," the ban on gays and lesbians openly serving in the military. But, and it's a huge but, They won't implement it until the military says that it is ready, that the implementation plan, the repeal would not impact military readiness, that they are ready to move ahead.

And of course, the Pentagon is planning to take the rest of the year to survey the troops and find out what they think about this. This has been the promise they have made.

This compromise will allow them to fulfill the promise, go to the troops, get their views and come back with an opinion rendered by the Joint Chiefs of Staff, and then and only then would this repeal, if it is voted on, go into effect. John, Kiran. CHETRY: Why is Congress pushing for this vote now if they are allowing the military to take its time before a repeal would be in place?

STARR: Politics on Capitol Hill, first, foremost, and always. The Democrats looking at the election landscape for Congress and believing that that landscape will change with the next round of elections, that they will not have the votes even remotely to make this happen, that this might be their best chance while the Democrats are in the clear majority.

But what they have to do is assure the conservative Democrats like Senator Webb of Virginia who are very pro-military that the vote will be OK, that it will still come with the military saying they can go ahead and implement this, that it will only be done with military agreement. John, Kiran?

ROBERTS: Barbara Starr from the Pentagon, thanks so much.

Coming up next on the Most News in the Morning, boycotting Phoenix. Arizona's tough new immigration laws, some critics call it racist. It could be costing the city of Phoenix tens of millions of dollars. The mayor doesn't like that one bit. We'll talk to mayor Phil Gordon coming up next. It's 35 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Lawsuits and boycotts are piling up against Arizona and it's new immigration law. In Phoenix alone, the mayor says it could cost the city $90 million in tourism and hotel and convention business lost.

Mayor Phil Gordon is fighting the state immigration law. He joins us live from Phoenix this morning. Mayor Gordon, good to see you again. And $90 million, that's an awful lot. What are you seeing in terms of cancellations or people who are a little hinky about going to Phoenix?

MAYOR PHIL GORDON, (D) PHOENIX: Well, unfortunately it is more than a little. We have lost about 12 conventions in the Valley, most of those in Phoenix, national conventions, including just one yesterday unfortunately for next year, the National Minorities Association.

We have had a lot of people cancel their reservations. Yesterday alone at one of the resorts, I was there. They had a 4,000 room cancellation from one big company.

Just loss of the convention and the hotel rooms that we expect now based on the notices we've received would equal about $90 million to the state and to the city. That doesn't count the loss of jobs, the loss of businesses, small businesses and large businesses.

ROBERTS: Let me ask you about the jobs, because it's no secret how hard the city of Phoenix has been hit by this recession, particularly in the housing market -- home values have decreased by more than a half, and 50 percent of home sales were foreclosures.

You had some good news the last couple of months. You have been adding in the leisure and tourism industry, 5,000 jobs in April. Are you concerned that these boycotts and this lack of convention business may see those numbers turn around when it comes to employment?

GORDON: More than concerned. Unfortunately, the small businesses now have started to question whether they should be hiring. Large hotels are now starting to look at lay-offs. The travel industry -- companies from Arizona that aren't able to sell their goods in California, the multiplying effect of retail stores not having visitors.

Most of our revenue, about 60 percent comes from the sales tax from the hotel rooms and the car rentals and the stores. So certainly for a city that had the most job losses and the biggest foreclosures, this is just an economic disaster in the happening.

ROBERTS: The last time we talked, Mr. Mayor, which wasn't long after the bill was signed into law, or maybe it might have been before the bill was signed into law, you said that you were going to, you tried, at least, to get city council to get on board of a lawsuit opposing the bill. You couldn't do that. You told me you were going to try to file as an individual. That didn't happen. What's going on with that? What happened?

GORDON: One, I am still working with the D.C. constitutional attorneys and the local attorneys. But there have been five lawsuits filed to date. Plus, I believe the justice department, hopefully, is very close to filing.

There are some constitutional issues as to who has standing and timing. But the lawsuits, I have been asking for injunctions, including from police officers.

I think people are starting to realize what this bill is doing both economically and what it is not doing in terms of securing our border and the safety issues. So support has been dropping.

Certainly, the economic boycotts which punish everybody and not only immigrants but citizens, small businesses, children, we're hoping to get the law stopped before it goes into effect so that these businesses and companies and conventions won't boycott Arizona.

ROBERTS: You have actually taken some personal heat for your opposition to this bill. You are now under 24/7 protection?

GORDON: I am. There have been some national and local, more than some, death threats and, you know, security issues.

But, you know, first of all, we have a great police department. Secondly, you know, I would hope my grandpa would be proud that, you know, standing up for the right thing. This really is about civil rights. We have to protect everybody's rights. That's what this country was founded on. You know, I just believe that, in the end, while this will be a dark moment in our history, we will get through it. We should just get Congress to act, and that would solve all these issues.

ROBERTS: Let me ask you about that. The last time we talked, you were pretty confident that either a legal challenge or action by the federal government or Congress would turn back this law before it is implemented the beginning of July.

But since then, it seems there is a lot of support for a measure like this. A lot of other states are considering it. And there have been some pretty high profile cases there in the state of Arizona where appellate courts have held up what were thought to be very controversial immigration measures.

So are you still confident that this will be repealed?

GORDON: I am. First of all, in discussions with both government attorneys and private attorneys, there have been the five lawsuits started to be consolidated in federal court.

This law is completely different than the laws that have happened before. There are so many constitutional issues, so much vagueness. And most importantly, in terms of what we are supposed to do, even if it is legal, by not defining it allows this law to be challenged on vagueness.

ROBERTS: Mayor Phil Gordon, we'll keep on watching this very closely. It's obviously an issue of great national concern, and good luck to you on getting some of the business back. We appreciate you coming in this morning.

GORDON: Thank you very much.

CHETRY: It's 43 minutes past the hour. Bonnie Schneider will be along in just a moment with the morning's travel forecast right after the break.

(COMMERCIAL BREAK)

CHETRY: Pretty shot this morning in Denver, Colorado where it is 46 degrees and a little bit later, 72 and sunny. What a gorgeous place to be today.

Right now, it's 46 minutes past the hour. We're going to check this morning's weather headlines. Bonnie Schneider is in the CNN weather center.

Wouldn't we all love to be in Denver? Look at that.

BONNIE SCHNEIDER, AMS METEOROLOGIST: Yes, nice and cool start to the morning, Kiran and John.

But you know it's still windy in Denver and definitely, caused some travel delays yesterday. I think the wind will a little bit better out west today than yesterday. But it's still stormy out there and we're getting some strong thunderstorms through Kansas and Oklahoma City right now.

So if you're just heading out this morning, you will have to deal with some downpours of rain and frequent lightning strikes. Not just there but southward all the way to northern sections of Texas and western Oklahoma throughout the day. Severe storms are in the forecast.

So this means the winds will pick up. And we will see those frequent downpours throughout the day. In advance of the system, notice the warmer air coming up from the south. So it is just going to be hot and humid across much of the southeast and the Gulf Coast.

But speaking of temperatures, some incredible extremes have been occurring over the past few days. St. Louis climbed to 92 degrees. We had record highs in Wisconsin and Michigan also, in the '90s, that's 15 degrees above normal for this time of the year. And also warm throughout much of the south.

Now, this milder air is heading to the northeast. That's why it's already feeling kind of balmy in New York this morning. By contrast, the record low temperatures across much of the northwest persist, so we have low temperatures in Washington State all the way down into the 30s. So highs today will be in the 80s and 90s to the east and cool out west; San Francisco only a high temperature of 64 degrees so, definitely some changes out there in the forecast.

And for those of you that are heading out and doing some traveling, you are going to encounter some travel trouble spots. We have some delays out there in the New York area due to some haze and low clouds. You'll also find delays in San Francisco due to rain and cloud coverage.

So give yourself a little extra time at the airport. The wind may slow you down in cities like Las Vegas and in Torino (ph). But overall, I think the weather is looking pretty good for travel considering this is a vacation week for many people. Back to you.

CHETRY: Sounds good, Bonnie Schneider for us, thanks so much.

And new this morning, tabloid celebrity, Lindsay Lohan, has a new wardrobe accessory; a California judge ordering her to wear an alcohol-monitoring anklet until her next hearing in July. She also has to take random drug and alcohol tests in L.A. putting her plans to film a movie in Texas on hold. All of this because Lohan missed a mandatory probation hearing last week; she was in France at the Cannes Film Festival and claims that her passport was stolen.

ROBERTS: Twenty-three years old, and some people remarking this morning she looks more like she's 40.

Sir Paul McCartney will be honored next week at a star-studded White House event. McCartney will be just the first person to receive the Gershwin Prize. The popular song from the Library of Congress, the Jonas Brothers, Faith Hill, Stevie Wonder and Gerry Seinfeld are some of the stars who are scheduled to perform. The concert from McCartney will be televised in July on PBS.

CHETRY: Well, Wal-Mart is slashing the price of Apple's 16 Gig 3G iPhone, just in time to launch the new one. At least Apple is going to be that. They are slashing the price to $97 starting today. It's down about $100 from the normal price. The move is feeding the growing speculation that Apple is getting ready to release a new iPhone next month. The phone, the prototype may or may not have accidentally have been left in a bar in Cupertino (ph). And so I guess, we'll know soon enough whether or not the 4G version is -- was the one they claim they found.

ROBERTS: And if they did come out with the new one, let's hope it has a better battery.

CHETRY: Better battery and a flash for the camera and a ceramic backing.

ROBERTS: Well, start with a better battery.

CHETRY: Don't ask for much.

ROBERTS: Something that no parent ever expects to hear, "Your child has arthritis." Why are some kids having to worry about hip surgery so early in life? Our Dr. Sanjay Gupta has a "Fit Nation" update coming right up.

It is 10 minutes now to the top of the hour.

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CHETRY: Fifty-three minutes past the hour.

It's a diagnosis that as a parent you probably never expect to hear about your child, that they have arthritis. Doctors say we're learning more about juvenile arthritis, how to treat it and even ways to prevent it. There are even some things that parents can do, and the most important is to keep your child active.

Our Dr. Sanjay Gupta has today's "Fit Nation" report.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: There area a lot of pieces to put together and I still don't think I have put them all together. I haven't got it all figured out.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): Isabella Brown Solar seems like your typical 7-year-old.

ISABELLA BROWN SOLAR, 7-YEAR-OLD WITH JUVENILE ARTHRITIS: I like to run around and play with my friends and just have fun.

GUPTA: But along with that fun, sometimes comes pain.

SOLAR: I don't really know when I overdo it. I only know after like sometimes the next day.

GUPTA: When she was just 12 months old, Isabella was diagnosed with juvenile arthritis.

DR. SHEILA ANGELES-HAN, PEDIATRIC RHEUMATOLOGIST: These are children who have joint pain, joint swelling and limitations. Some sub types will have it more prevalent in female especially those who are younger and in boys when they are older.

GUPTA: Now 12, Zach Jamison was just six and an avid baseball player when he was diagnosed. He is recovering from hip surgery but eventually he's going to need a hip replacement.

ZACH JAMISON, 12-YEAR-OLD WITH JUVENILE ARTHRITIS: It's in both my hips and some days the left is worse and some days, the right is worse. And when the pain gets really bad, it radiates and it goes down to my knees.

GUPTA: Eye inflammation is sometimes a part of the disease. There are often no symptoms so regular exams are crucial.

ANGELES-HAN: Ongoing eye inflammation can lead to cataracts, glaucoma, visual loss and even blindness.

GUPTA: Treatments include anti-inflammatory drugs, pain relievers; medications to suppress the immune system to control the arthritis. Being active is also key.

ANGELES-HAN: The most important thing is to prevent progression of the arthritis so that you don't have damage down the lines.

GUPTA: Preventing, slowing damage, one step at a time.

Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

CHETRY: If you would like to find out more, head to our Web site to see our expanded Fit Nation reports. Follow iReporters as they battle stress, lose weight and try to get themselves in good health. The site is also loaded with some great tips for you, all of it at cnn.com/fitnation.

Fifty-six minutes past the hour.

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ROBERTS: Nice shot of Central Park this morning. It's going to be a beautiful day in New York. up to 80 degrees. But you are going to be going where it is even hotter and steamier than New York City.

CHETRY: Oh, yes. Look, we are headed to Grand Isle to anchor and to do some reporting out there on this oil spill continued, 36 days now. But tomorrow is going to be a crucial day as they try this -- yet another method to try to stop the flow and kill the well. So we're going to see how that goes tomorrow. Meantime yes, it is going to be quite hot out there. I believe 88 degrees for a high today. And of course, everybody outside working and trying their best to at least minimize the damage on the Gulf Coast.

ROBERTS: Yes. And tomorrow, what they are going to try to do, if everything goes right and they got the engineering, is to pump heavy drilling mud into that hole to try to suppress the oil with the weight of that mud and then if they can get it down, inject concrete and seal the well back up. Maybe even at the same time shoot some junk inside that blowout preventer and try to stop the whole thing up.

Potentially risky operation but a 60-70 percent chance that it might work according to the oil company, so we'll see how that goes. Travel safely.

CHETRY: Thank you so much.

And thanks for being with us this morning. We will see you back here 6:00 a.m. tomorrow.

Meantime the news (AUDIO GAP).