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Conservatives in Winter; Pulling Troops Out of Iraq; Storms Pound the South; From Foreclosure to Homelessness; Closing Gitmo

Aired February 28, 2009 - 15:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: All right, severe weather in the South, tornadoes on the ground already today. Conservatives looking for a presidential candidate to step up. And a journey to Gitmo. Two members of Congress share their experience. The next hour of the CNN NEWSROOM begins right now.

Hello again, everyone. I'm Fredricka Whitfield, and you're in the CNN NEWSROOM.

Socialism, deficits and taxes -- those are the grievances today as about 9,000 conservatives conclude a three-day meeting in Washington. The Conservative Political Action Conference, CPAC for short, is the nation's largest annual gathering of conservative activists. And the key issues at the conference, why conservatives lost in 2008 and how they can build for 2012.

CNN political editor Mark Preston is at the conference. So Mark, what are you hearing right now? Looks like a pretty huge turnout.

MARK PRESTON, CNN POLITICAL EDITOR: Yes, certainly is, Fredricka, 9,000 conservative grass roots activists. These are folks from across the country who are really invested in the party, invested in conservative principles. They're here talking about the rebirth of the Republican Party. They want to get back to their roots -- limited government, fiscal discipline and less taxes. And yes, Fred, they are looking ahead to the future.

Let's hear what conservative author Ann Coulter said earlier today.

(BEGIN VIDEO CLIP)

ANN COULTER, CONSERVATIVE COMMENTATOR: The big mantra of the Obama campaign was change, change. If he thinks people wanted change in 2008, wait until 2012!

(END VIDEO CLIP)

PRESTON: Well, I'll tell you what, as you can hear there, Fred, they're already talking about 2012. There will be a straw poll held later on today in about 90 minutes. We'll have it here at CNN. And what we will learn from that straw poll is right now, what are these conservative activists in this room -- what are they thinking about who should lead their party?

WHITFIELD: And let's talk about some of the people that they're thinking about because that's really what it boils down to. They're essentially doing a rather casual, I guess, polling or electing of some of the likely leaders come 2012. Who are some of the folks that they're thinking about?

PRESTON: Well, I'll tell you what, and we'll learn that in about 90 minutes, Fred. But really, some of the names I think that we'll hear from that will play prominently in this poll -- there's Newt Gingrich -- he is the former House Speaker from Georgia -- Sarah Palin -- she was the vice presidential nominee, of course, on the ticket last year -- Mitt Romney -- he ran for president -- Mike Huckabee, another person who ran for president. I think they will do very well in the straw poll.

And Fred, really, the climax of this whole conference will just be a little bit later -- you'll hear it live here on CNN -- Rush Limbaugh. Really the most influential talk show radio host in the country will address this conference, and you can hear that live at 5:00 o'clock.

WHITFIELD: OK. And he's had some pretty strong words about where he wants the Republican Party to go. And so CNN's going to be carrying him live as that keynote speaker there during the CPAC conference, Rush Limbaugh. All right, thanks so much, Mark. Appreciate it.

All right, let's talk a little bit more about other things going on in Washington involving President Obama. Well, he knows he's in for a fight, he says. He used his Saturday radio and Internet address to defend his record-breaking $3.6 trillion budget. The plan includes an initiative to fight global warming, a down payment on universal health care, and higher taxes on the wealthy. The president says he's ready to take on special interests to change the status quo.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I work for the American people. I didn't come here to do the same thing we've been doing or take small steps forward. I came to provide the sweeping change that this country demanded when it went to the polls in November.

(END VIDEO CLIP)

WHITFIELD: The Republican response, North Carolina senator Richard Burr, declared that the president's plan would explode the deficit.

(BEGIN VIDEO CLIP)

SEN. RICHARD BURR (R), NORTH CAROLINA: Every time Congress and the president spends a dollar, it's actually a dollar plus interest that our children and grandchildren will have to pay back. We must remind ourselves of this fact every single day. Unfortunately, Washington is in a state of denial. Our spending habits haven't gotten better. They've only gotten worse.

(END VIDEO CLIP)

WHITFIELD: Also on the president's agenda, Iraq. Yesterday, Mr. Obama announced his plan to pull the majority of U.S. troops out of Iraq by the end of August 2010. That's about two thirds of the 142,000 troops currently in Iraq. And up to 50,000 would stay behind to help with the draw-down. The plan got support on Capitol Hill from a somewhat unexpected source.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R-AZ), FMR PRESIDENTIAL CND: I believe the president's withdrawal is a reasonable one. I think the plan is reasonable. Given the gains in Iraq and the requirements to send additional troops to Afghanistan, together with the significant number of troops that will remain in Iraq and the president's willingness to reassess based on conditions on the ground, I am cautiously optimistic that the plan as laid out by the president can lead to success.

(END VIDEO CLIP)

WHITFIELD: And some leading Democrats actually expressed concern that the number of troops expected to remain is too large. Senate majority leader Harry Reid said the number is higher than he expected.

And Iraqi prime minister Nouri al Maliki says that Iraqi forces have actually proven their abilities and they're ready to assume full security responsibilities, he says, from U.S. troops. President Obama called al Maliki after announcing his troop withdrawal plan. The prime minister says they agreed the U.S. needs to provide more military equipment and weapons to help fight insurgents.

All right, so what do you want the president to do to make our country smarter, healthier, greener? Next hour, we talk about all of that in depth. Among our guests is former surgeon general Joycelyn Elders to talk about health care. Is the direction of universal health care the right direction? We'll break down President Obama's plans as it pertains to health care, education and the environment. Your comments and questions are welcome. Just e-mail us. Send them to Weekends@CNN.com and be sure to watch the next hour. We may use your question to help keep that conversation going.

All right, a powerful storm system -- we've been talking about it all afternoon -- is pounding much of the South with everything from tornadoes and flooding to snow even. The National Weather service says at least three tornadoes have actually touched down today in eastern Alabama, these scenes just hours ago in the town of Salem, near Auburn. A suspected twister downed trees and power lines and damaged several homes. It also damaged parts of the town's historic downtown area. It was one of two reported tornadoes in that county.

And another twister touched down in Tallahassee, damaging some homes and businesses and flipping cars simply upside-down. Right now, there are no reports of any serious injuries. Good news there.

All right, tornado watches and warnings have been popping up in several states throughout the South all day today. Jacqui Jeras has been keeping tabs on all of it.

And I know you warned earlier this really just might be the beginning.

JACQUI JERAS, CNN METEOROLOGIST: Yes. Well, it's the beginning because we're going to still see more severe storms, but we kind of have the one-two punch with this storm system because it's a slow mover, it's taking a southerly track. It's going to make its way offshore and then start to bring in moisture from the other way and hook up with some cold air coming in, along with a little "short wave trough," as we call it. And all these things are going to come together to spell one big ugly weekend really for a whole lot of people.

So the main thing you need to know right now is that the severe weather threat is ongoing across southern parts of Alabama, into southern Georgia and also into northern Florida. We think things are going to be winding down in Alabama here pretty shortly, but southern Georgia, then on into South Carolina is something to watch. And if you live in the Charleston area or you happen to be visiting there this weekend, be aware that some really heavy rain is coming into your neighborhood probably about 30-plus minutes from now. And we might see some isolated severe weather in that area.

Now, we haven't had much in terms of twisters in the last hour, hour-and-a-half, but we still are seeing this very intense line of severe weather from just south of Dothan, extending on up, oh, really towards the Statesboro area. We may see some damaging winds and some hail and a whole lot of lightning. In fact, we just got a report from earlier this morning that a woman was struck by lightning in Georgia and may possibly be injured. So you know, lightning is just as big of a problem as any other severe weather element that you're going to be dealing with.

Here's where that cold air is back behind the system. You're getting some nice snow in parts of Missouri, going to get real heavy in the boot-heel here in the upcoming hours, with two inches per hour. And there you can see the winter storm warnings bringing the snow as far south as northern parts of Mississippi. That's right, Tupelo, you could see a couple of inches of snow by tomorrow morning.

WHITFIELD: Wow, they might enjoy that. Of course, stay off the roads because, you know, places that are not used to driving in snow, you don't want to try it.

JERAS: That's right. It's a non-workday for many, so hopefully, they have some fun with it.

WHITFIELD: That's right. All right, thanks so much, Jacqui. Appreciate it.

All right, the home mortgage crisis and its countless victims -- most, if not all, believe they deserve a bail-out. But do they? We'll let you decide in a Special Investigations Unit report.

(COMMERCIAL BREAK) WHITFIELD: All right, the mortgage crisis could soon evolve into homelessness for one Maryland family. But when you hear the financial story that led to their predicament, you may come to the same conclusion that the banks have, that this is one foreclosure that can't be stopped. CNN Special Investigations Unit's Drew Griffin reports.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN CORRESPONDENT (voice-over): Every day Jeff Gray walks to his mailbox, he wonders, is this the day that final notice arrives, the day he and his family are finally kicked out of their home? But don't feel sorry for him just yet. It's complicated.

(on camera): Living rent-free for four years, right?

JEFF GRAY, HOME OWNER: Right.

GRIFFIN: So tell me why they should help you, at this point.

GRAY: When a human being goes through a crisis, a legitimate crisis, I believe that when it benefits them and the other individual, I believe that we should be able to work with each other and help each other out.

GRIFFIN (voice-over): Gray is now begging for help.

GRAY: I don't have no 10 grand at this time.

GRIFFIN: The day we met, he was on the phone with JPMorgan Chase, the bank that now owns the mortgage. The bank, he says, wants $10,000 in back payments before it will do anything.

(on camera): Jeff, if the sheriff knocks on the door, where are you going?

GRAY: Well, Drew, I tell you, if that happens, my family and I will be in the street. We don't have anywhere to go. And that would be a tragedy, if something like that occurred.

GRIFFIN (voice-over): When you hear how this tragedy unfolded, you may wonder why it hasn't already struck. Gray and his wife and two children have lived in this suburban Maryland home for 10 years, purchased in 1999 for $200,000. By 2005, the couple began seeing tougher times. The former Marine says he was laid off from a security job. His wife lost a big job and had to downsize her income. They ran up credit card bills.

It was all starting to close in until they saw what other people were doing, refinancing. In December of 2005, a loan officer from Multi-Fund of Columbus, Ohio, walked into this living room, sat down on this couch and showed Gray how he could pull equity out of his home. The paperwork is shocking. In 2005, Jeff Gray and his wife filed tax papers saying they made less than $8,000 a year. That same year, on his loan application that he signed for a $347,000 refi, Gray and his wife had a stated income of more than $13,000 a month. (on camera): Wait a minute. Wait a minute. Wait a minute. Your income was $7,900 a year?

GRAY: Yes, at that time.

GRIFFIN: And they inflated it on the paperwork to $13,000?

GRAY: Yes.

GRIFFIN: And for somehow, they loaned you $347,000?

GRAY: Yes.

GRIFFIN: Jeff, I've got to ask you, did that make sense to you at the time?

GRAY: Well, Drew, when I went back and looked at it -- like I said (INAUDIBLE) we were signing these, we was getting these real fast and we didn't know. We didn't pay any attention to it.

GRIFFIN (voice-over): Gray even initialed the papers that inflated his income. He initialed the papers clearly showing his monthly payment from day one would be $2,700. And he took the money. He can't remember if he even made one payment. The equity money from the loan, he says, was used to pay off credit card bills and isn't sure where the rest went.

He has had three foreclosure notices and has fought them off, filing personal bankruptcy. Now he wants a bail-out, a loan modification, anything to keep him in his home.

(on camera): We contacted Multi-Fund of Columbus, Ohio. The former owner, Gramm Montaguy (ph), told us over the phone that the company was no longer in business. Like other institutions, he said, we had difficulties. He was not interested in talking about Jeff Gray's loan, saying only that, The loans that we did fitted the guidelines at the time.

(voice-over): Gray's loan was eventually sold to EMC, a division of JPMorgan Chase. The Chase company also would not consent to an interview and told us it would not discuss individual loans. In a statement, a Chase spokesperson said, "While the company has avoided 330,000 foreclosures through loan modification, unfortunately, some borrowers are not able to stay in their homes because they simply can't afford the payments."

JPMorgan Chase got into some pretty bad mortgage loans, too. Some would say the company couldn't pay its own debts. And the federal government stepped in, giving Chase $25 billion in Troubled Asset Relief funds to stay afloat, some of which is being used to refinance troubled loans.

Back in Maryland, Jeff Gray says he knows his loan from Multi- Fund was a big mistake. He knows JPMorgan Chase made a big mistake buying it. And he knows he'll pay for the mistakes, his and the bank's, when he and his family are finally kicked out of their home. Drew Griffin, CNN, Laurel, Maryland.

(END VIDEOTAPE)

WHITFIELD: All right, so whether it's housing, that dilemma, education or health care, what's the prescription for America? What would you want President Obama to do to address all of these things? We've heard a little bit about his policy and some of the promises.

Josh Levs has been already fielding some of your e-mails because in the 4:00 o'clock Eastern hour, we're going to focus on all of those things, health care, education, energy. What are the solutions?

JOSH LEVS, CNN CORRESPONDENT: Yes, we know people have a lot of questions, right? I mean, these are major topics that came up on the campaign trail. Now it's time, in some ways, for the government to put the money where its mouth has been, right? We know a lot of you have a lot that you want to know about what this administration, what President Obama actually plans to do.

We've got some questions coming in to use. I've seen them already, lots of them coming in to our address, Weekends@CNN.com. I want to show you right now another way that you can send them, which is to FaceBook. I posted this at my page, Josh Levs CNN. These are the three major topics we're focusing on this afternoon: Education, health care, energy, environmental issues such as energy. Go ahead and post any questions you have there if you're on FaceBook or the Josh Levs CNN page. You'll see the discussion board. You can respond to what some other people have put there. And you know what? You've got a whole hour before we start.

So here's what we want you to do. Just give it some thought. What do you want to know, what do you want to see the president do and what do you want to know about his real plans? You know the guests we've got. Fred will be introducing them. They know pretty much what's being planned at this point and what's really being discussed on the ground. And Fred will take a very close look at all the questions we get. We're going to present a lot of them to these guests next hour, and we're going to get as many of them answered as we can.

WHITFIELD: Right. And we've got some powerful guests, real heavy hitters, including former surgeon general Joycelyn Elders. She's going to be talking about health care. And who knows it better than her in terms of from a practical standpoint, as well as a policy- driven standpoint? So she's going to be entertaining a lot of those questions and answering them, as well. Josh, we look forward to all that.

LEVS: You got it. Thanks, Fred.

WHITFIELD: All right, thanks so much. All right, 4:00 o'clock Eastern hour, so you won't miss that.

All right, meantime, President Obama has delivered the order on this -- closing Gitmo. So do you agree? In a couple of minutes, we're actually going to talk with two members of Congress who visited the U.S. prison in Cuba just this week. What they saw firsthand could help you decide, as well.

(COMMERCIAL BREAK)

WHITFIELD: A journey to the eye of a political storm, some members of Congress get a rare look inside the U.S. prison at Guantanamo Bay, Cuba. The visit was part of a campaign to show that prisoners held there are being treated humanely. Representatives Sheila Jackson Lee and Peter King were on that tour. Jackson Lee is a Democrat from Texas. King is a Republican from New York. Both joining me now. Good to see both of you.

REP. SHEILA JACKSON LEE (D), TEXAS: Thank you for having us.

WHITFIELD: I'm anxious to hear how eye-opening this journey was. So Representative Jackson Lee, was this your first time at Gitmo? If so, give me your impressions.

JACKSON LEE: No, it is not. I came first to Guantanamo Bay in the early stages of the detainees coming in, in 2003, in the early part -- 2002, I believe, in the early part of detainees starting to come in as we began the war in Afghanistan. So I've seen night and day changes, particularly with the accommodations. And certainly, I've been back since. I've watched an interrogation.

Now, in my return trip this past Monday, I've seen well qualified professional military personnel who should be commended and congratulated for the way that they're handling the detainees. There's no question about the treatment.

There is a question about the perception and what purpose we have and whether that purpose can be generated through other means. And I frankly believe with the president -- although as the attorney general said, it will be difficult to close Guantanamo Bay, I believe it can be closed and it can be closed safely and it also can be closed with the interests of the United States people...

WHITFIELD: OK, well, let's get...

JACKSON LEE: ... and national security.

WHITFIELD: Yes, let's get to the closing in a minute because, Representative King, I want to get your viewpoint on your impressions because there have been different arguments about Gitmo, whether it's about treatment, whether it's about the sole purpose of Gitmo, if it should be a place to have these enemy combatants. And isn't there also the argument you're only seeing what the U.S. Navy or what representatives want you to see at Gitmo? So do you feel like you got a full, complete, good picture of what that facility is all about?

REP. PETER KING (R), NEW YORK: Yes, I do. And I believe that the detainees at Guantanamo are treated better than most American prisoners in most American prisons and jails around the country. They get medical help. They get meals. They get -- all the religious observances are allowed. They get basically whatever they want. We saw some of the most hard-core detainees literally sun bathing, retirees at Palm Beach. And I think the president's made a serious mistakes in caving in to world opinion and to the left-wing base of his own party because...

WHITFIELD: So you don't like the idea of closing it down?

KING: Excuse me?

WHITFIELD: You do not like the idea of closing it down?

KING: No, I'm totally opposed to closing it down because we don't know where the detainees are going to go. We don't know what the legal consequences are. And we could be putting lives at risk without knowing where we're going. If the president was so intent on shutting it down, he should have at least come up with a plan first to determine what's going to happen to these detainees, what their legal rights are going to be. Are they going to be put into prisons on American soil? Are they going to be sent back to other countries which won't be able to secure them? So these are real...

WHITFIELD: And isn't it also an issue...

KING: ... issues, and there's reason to do it.

JACKSON LEE: Fredricka...

WHITFIELD: And isn't there also an issue, then -- Representative Lee, you could respond to this -- an issue that there are some countries where, if it does come to the point of closing Gitmo, some of their home base countries say, We don't even want them back. So what would you do with them?

JACKSON LEE: Well, let me say that I absolutely disagree with my good friend Congressman King from New York because the president has not precipitously closed Guantanamo Bay. He set up a task force that includes the secretary of defense, secretary of state, secretary of homeland security and the attorney general. Three of those committees are committees that I'm on and I have jurisdictional oversight. They are going to study this issue. And yes, there are...

WHITFIELD: And what's the timetable, then?

JACKSON LEE: There are prisoners...

WHITFIELD: How long are we talking?

JACKSON LEE: Well, we're talking about six months.

KING: One year.

JACKSON LEE: Those prisoners are, in fact, the ones that are having a difficult time returning to their homeland, will have a special consideration, in addition to the legal questions that have to do with enemy combatants, who some of them are just being detained to prevent them from going to the battlefield. Remember, those individuals are supposed to be released when the battle is over. There are some that are going to be tried criminally. WHITFIELD: But then how do you single...

JACKSON LEE: There is a plan. There is a plan.

WHITFIELD: How do you single those persons out? Because we're already talking about five, six years that some have been held at Gitmo...

JACKSON LEE: That's right.

WHITFIELD: ... and still there is some determination as to whether is indeed an enemy combatant, whether one is indeed a threat to the U.S. So whatever happened to the prosecutorial phase of all of this?

JACKSON LEE: Well, that has to be a process in place. As you well, know, there are military tribunals that are in process. The president has put a moratorium on those for a period of time. But let me say, Fredricka, the image of Guantanamo Bay is probably doing us more harm in both foreign policy and national security. We want to...

KING: Fredricka, I would like to come in here. The fact is -- Fredricka...

(CROSSTALK)

JACKSON LEE: We want to secure the American people.

WHITFIELD: OK...

JACKSON LEE: And frankly, this may not be the way to do it, but we will detain those individuals and find a way to do so in a spirit of preserving the national security.

(CROSSTALK)

WHITFIELD: OK, Representative King, respond to that.

KING: Yes, I have to get in here. First of all, the image is because of too many people in the United States, too many people in the media and too many uninformed international people have attacked Guantanamo, and enough people in our country haven't had the guts to defend it.

The fact is, Sheila went there. I went there. The institution is working and it does provide human rights. The president's own Pentagon review board said that it has. And it's irresponsible to set a termination date for a facility that's working when you don't know what you're going to do. If the president wants to say, yes, sometime in the future we'll shut it down, fine. But he has set a one-year termination date, but he has no idea where these prisoners are going to go.

The attorney general went down there, said it's a well run facility. The Pentagon went down at the president's request, said all human rights are being respected. And yet to satisfy this image in the world which has been put forth by uninformed people -- and unfortunately, our own government has not defended it enough, and the president in his state of the union -- when he equated Guantanamo...

WHITFIELD: So I wonder how it is...

(CROSSTALK)

JACKSON LEE: I don't think the president is being irresponsible.

WHITFIELD: How is it that you two witnessed the same thing at the very same time, but you walk away with very different views of the purpose, of the function of this facility?

JACKSON LEE: I don't think we have different views, Fredricka, on the great service of the United States military and the accommodations that have been given to these detainees and the very special attention that's given to protecting their human rights. I don't disagree on that. I saw it before and after.

What I'm disagreeing with, I don't believe the president is being irresponsible. There's not going to be an immediate release of these detainees. He is going to have a studious decision made by the leaders of his cabinet, who will look closely at how do you protect the rights of Americans, meaning in national security, and as well, provide a pathway, if you will, the right kind of pathway to hold detainees, to put them through military tribunals or other processes or find them -- or return them to their third countries.

WHITFIELD: And I...

JACKSON LEE: This has been a bad name for America, and we have a new day of foreign policy and national security. There are many ways to protect the American people, and we can do so...

KING: But you just said...

JACKSON LEE: ... in the spirit of providing a place for these detainees.

WHITFIELD: And I wonder if everyone in the end is going to be happy with these. We talk about the American people who need to be pleased by this decision, at the same time, the world community wants to be pleased by this decision, too, because it becomes everyone's problem, no matter what happens to what happens to these "enemy combatants."

JACKSON LEE: I don't think the president will do anything to undermine the national security of Americans. Not one thing.

KING: Fredricka -- Fredricka...

WHITFIELD: Representative King again, last word? Go ahead.

KING: And it's time to end the psycho babble here. The fact is the facility is working. Why should we be catering to changing an image when the image is being distorted? The fact is it's working. The men and women down there are working. The rights are being respected. So we're closing down a facility which is working to satisfy some image that European have made of us when it's untrue.

We should be defending what's right and doing what's right and standing by the men and women down there and not trying to find places for these people to go. A hundred of these prisoners, of these detainees, are of Yemen descent. Yemen is incapable of holding these people. That's a hundred people there that we have to worry about.

And what about the 9/11 masterminds that are there? Are they going to be tried on American soil, are they going to put in American prisons? What are we going to do with them? These are all issues we have to face because a precipitous decision was made to set an arbitrary deadline to shut down the facility.

(CROSSTALK)

JACKSON LEE: There's no final decision...

WHITFIELD: All issues to be addressed within six months to a year.

JACKSON LEE: There is no decision, Fredricka, about the U.S. courts. What Mr. King fails to mention is there are individuals who are detained who are in fact are ready to be released. And those assessments will be made by this task force. This precipitous decision...

(CROSSTALK)

KING: Why are we doing all this? Why are we doing all this Sheila? Sheila, why are we doing this?

JACKSON LEE: ...about how this is going to be resolved is premature. The president acknowledged he wants this to be done in the interest of the people of the United States, national security, foreign policy and justice. We have a right to take an assess of Guantanamo Bay and look at other options and we have a right to do so we can do a better job on behalf of the American people.

(CROSSTALK)

WHITFIELD: And exactly...

KING: And the easiest way to do that...

WHITFIELD: ...involving the white house as well, because, we're out of time, but this is an incredible discussion and we know this is why this has become such a tenuous situation involving GITMO because...

(CROSSTALK)

KING: The easiest way to protect America is keep Guantanamo open. That's the way to protect America.

(CROSSTALK)

WHITFIELD: ...still preconceived notions about what should be done to GITMO and your recent visit doesn't seem to have swayed either one of you about what should be taking place...

JACKSON LEE: Well, our hat is off to the United States military, who is doing a fabulous job and I believe they'll adhere to the policies the president of the United States who's going to be very careful in protecting...

(CROSSTALK)

KING: Right, right, even if those policies are wrong. Even if those policies are wrong, which they are in this case...

(CROSSTALK)

WHITFIELD: Representative Peter King, as well as, Sheila Jackson Lee, thanks so much from New York and as well as Texas, today. Thank you so much for the discussion. Appreciate it.

KING: Thank you.

JACKSON LEE: Thank you for having us.

WHITFIELD: OK. Well, aside from GITMO, there are other concerns that a lot of Americans have as well about education, about health care as well as energy. So, what exactly do you want the president to address first and how? How to make this country smarter, healthier and greener? We're talking about all of this in depth just roughly 30 minutes from now. Among our guest, a former Surgeon General, Jocelyn Elders will be joining us to talking about health care. We'll break down President Obama's plans, read your comments, get some of your questions answered, as well, via e-mail questions. So, send them our way, weekends@cnn.com, we'll get them on the air, as soon as possible. That's 30 minutes ahead.

(COMMERCIAL BREAK)

WHITFIELD: All right, 3:30, and here's what we're working on right now in the CNN NEWSROOM, let the budget debate begin. President Obama's address and the Republican response both focus on the president's $3.6 trillion budget plan. The president says it reflects the change the Americans voted for.

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), UNITED STATES PRESIDENT: This budget also reflects the stark reality of what we've inherited, a trillion dollar deficit, a financial crisis and a costly recession. Given this reality, we'll have to be more vigilant than ever in eliminating the programs we don't need in order to make room for the investments we do need. I promise to do this by going through the federal budget page- by-page and line-by-line. That's a process we've already begun. And I'm pleased to say we've already identified $2 trillion of deficit reductions over the next decade. SEN RICHARD BURR (R), NORTH CAROLINA; It seems that every morning, you pick up the newspaper, you're reading about another multibillion dollar government spending plan being proposed or even worse, passed. The numbers are so large and the deficits so staggering, it's difficult for the average person to imagine how much money we're really talking about.

(END VIDEO CLIP)

WHITFIELD: Well, you could probably guess you're going to hear a lot more about that debate in the weeks to come. We asked CNN senior White House correspondent, Ed Henry, to take a closer look at President Obama's budget for you.

(BEGIN VIDEOTAPE)

ED HENRY, CNN SR WHITE HOUSE CORRESPONDENT (voice-over): President Obama's new budget, the numbers are just staggering. So, we thought we'd use the Magic Wall here to dive in deep and try to break the numbers down in a way that makes sense for real people. How will it affect them on the big issues like health care, for example?

The president wants to spend $634 billion on health care, put it into a reserve fund so it can't be used for anything else. But how is he going to pay for it? Right here, reducing itemized deduction rate for families with incomes over $250,000, in the fine print. What does it mean? It means that right now if you're a couple making at least $250,000 a year and you have $10,000 in mortgage interest or charitable contributions, if you write it off, it gets written off at 35 percent, you get a deduction of $3,500. The president now, though, wants to cap it at 28 percent. So, your deduction would only be $2,800, meaning your tax liability goes up $700.

You do that all across the country with wealthy Americans, about five percent of Americans, according to the White House, that ends up being essentially over $300 billion in new revenue to help pay for health care reform, though they say that's just a down payment, it's going to cost more.

So, where are they going to get more money? Well, there's going to be at least another tax increase, at least another one. Right here, reinstate the 36 percent and 39.6 percent rate, again for taxpayers, a couple making over $250,000, individuals $200,000.

What does it mean in real terms? The Bush tax cuts will expire at the end of 2010. So, if you're benefiting from those tax cuts right now, in 2011, your taxes will essentially go up.

Also here, capital gains tax going up from 15 percent to 20 percent. How does it affect the big picture? Let's look at a very interesting chart, buried deep at the end of this whole report. And it really gives you a stark picture of the fiscal situation in this country, right now.

Let's use some color, too, so that we can get an idea and you can see the red ink, the deficit over here. I'm going to use red -- 2009. Despite the new taxes, the new revenue coming in and some spending cuts the president has in 2009, a budget deficit of $1.7 trillion. We've never seen something like that, Fred -- 2010, it's $1.1 trillion -- $912 billion. You get the idea?

It starts going down starkly in 2012 to $581 billion, but that's still real money, obviously. You keep going along the line, all the way to 2019, it projects that the deficit's going to be going back up again as more baby boomers retire, the government's expenditures keep going up -- $712 billion in 2019.

So, you get the idea. What the Republican attack is going to be now is they're going to say this is traditional tax and spend. We've heard this argument before. We're going to say the president is raising some taxes, as we pointed out, and also spends a lot more money.

The president's response is that this economy is not going to be rebuilt with a band-aid, that you can't just think about it in the short-term, that you got to think long-term, you're got to invest real money not just in health care, but also energy. He's got billions of dollars for renewable energy projects.

Also education, he's got $2.5 billion, for example, to make sure low-income students can go to college. More money for charter schools, so when you look at the fine print here, there's a lot of new money being spent. Republicans say too much, but the president says it's time to invest more money in this economy from top to bottom across the board.

So, you can see the clash of ideas between the two parties. This is going to be a real battle on Capitol Hill and it's going to be playing out over the next few months. It's going to be fascinating to watch -- Fred.

WHITFIELD: All right, thank you so much, Ed Henry. We're going to talk a lot more about the budget, what it means to you, how money is going to be spent. That's 20 minutes from now at the top of the hour. You don't want to miss that.

All right, on to some international news, now. Iraq to Myanmar to the Middle East, an astonishing 14 million people have fled their homes because of war or persecution. Only a small percentage of these refugees are ever resettled, by the way. This week's "CNN Hero" is helping legal refugees in the U.S. get back on their feet one family at a time.

(BEGIN VIDEOTAPE)

ANNOUNCER: This is "CNN Heroes."

UNIDENTIFIED MALE: We have an explosive in building number one. There's smoke all over the place. (INAUDIBLE)

CAROLYN MANNING, CNN HERO NOMINEE: My brother-in-law was killed in tower one on September 11. After September 11, I saw a picture of an Afghan family who had also lost a family member because of the Taliban and they had to flee their country. Our family has five kids. We lost a family member, too. We just naturally went from that to let's show the refugees that we welcome them.

My name is Carolyn Manning. And I started the "Welcome to America Project" to help refugees in Phoenix, Arizona.

How are you? You doing well.

The families that we help come from places where there has been war and genocide. And some refugees have never lived with indoor plumbing and they've never flushed a toilet.

All right, let's go.

The "Welcome to America Project" is the community, and it operates by community volunteers. My husband and I, many a time, have been out here pulling furniture and before work, after work, this is our life.

(BEGIN GRAPHIC)

Since 2001, Carolyn and her organization have provided furniture, clothing and support to over 550 refugee families in Arizona.

Source: WTAP

(END GRAPHIC)

UNIDENTIFIED MALE: Thank you very much for all your help.

MANNING: All right. Let's go on to the next family.

When they step foot in the United States, they have been invited here. I want the refugees to feel that this is their home.

Welcome to America.

(APPLAUSE)

And that's what America has been built on. It's our history. It's who we are. And they're a part of it.

ANNOUNCER: Tell us about your hero at cnn.com/heroes.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WHITFIELD: Severe weather is barreling through parts of the south, right now. The National Weather Service says at least three tornadoes have touched down in eastern Alabama and several homes were damaged, and one reportedly destroyed near Auburn, Alabama. And storms downed trees, as well, and power lines in nearby Lee County, Alabama.

Jacqui Jeras, in the Weather Center. Bad, bad stuff in Alabama and soon possibly in Georgia. I know that we felt it in Georgia, a lot of rain overnight. But you say it really could be more than that later.

JACQUI JERAS, CNN METEOROLOGIST: Absolutely. In fact, as I was walking over the National Weather Service just issued the winter weather advisory, which I've been waiting for them to do it all day. Come on, go with me, go with the snow, it's going to happen. I think it's going to happen tomorrow, you know, mid-dayish, noonish.

WHITFIELD: You're right about that snow.

JERAS: Yeah, that snow. Did I not say snow?

WHITFIELD: She's so excited.

JERAS: I know, I'm so excited. I'm so pathetic. Aren't I? Give me a couple inches of snow and it makes my day.

WHITFIELD: No, no, just kidding you. I like it.

(WEATHER REPORT)

WHITFIELD: OK, thanks so much, Jacqui, appreciate it.

JERAS: Getting on my sled.

WHITFIELD: I know you -- that's right, sharpen up those skates, too, while you're at it. Get those cross-country skis going.

JERAS: Whatever I can find.

WHITFIELD: All right. Thanks so much, Jacqui.

I know you're going to like this next segment coming up eventually, too. Energy or beer? How do you decide? We'll tell you what's on tap at a trendy new Atlanta development.

(COMMERCIAL BREAK)

WHITFIELD: OK, so there are plenty of opportunities to chill in midtown Atlanta, but developers of a new mixed use community had more than beer in mind when they served up a cold one. Our Reynolds Wolf explains in today's "Techno File."

(BEGIN VIDEOTAPE)

REYNOLDS WOLF, CNN NEWS CORRESPONDENT (voice-over): It looks like a brewery from the outside, but this length of sprawling pipes and tubing is actually the main source of green energy for Atlantic Station, a midtown Atlantic community. On the inside, the resemblance is clear, clean large pipes in a chilled warehouse. However, instead of frothy brews, this plant produces 7,500 tons of chilled water. So, why is water better than beer? Well, in this case, it provide as reliable air conditioning system that is 25 percent more efficient than a traditional system, and that can add up to a lot of green. Jason Byers from Veolia Energy, the group that runs the plant, demonstrated how two miles of pipes underneath Atlantic Station can produce clean energy which can lead to smart growth.

JASON BYARS, VEOLIA ENERGY: The greatest benefit of our service is the sustainable environmental features of it. We're able to by centralizing the production of chilled water capacity here at Veolia's plant, we're able to help Atlantic Station achieve its vision of a sustainable smart growth community here in Atlanta.

WOLF: And that can make a difference to both residents and visitors.

DIANA TOUSSAINT, SHOPPER: It would be good, it would have more tourists that visit here if they are green, more tourists would want to stay and be less pollution, you know. And it's good for our health, as well. So, yeah, go green.

WOLF: Atlantic Station vice president of real estate Brian Leary says the cooling system is part of a larger green initiative.

BRIAN LEARY, ATLANTIC STATION: The only energy provided the perfect partner to figure out a way to think out of the box, come up with a more efficient system where we can aggregate the entire load, build one central and efficient cooling plant to service the entire community of Atlantic Station.

WOLF: So, energy or beer, in Atlantic Station, they say yes to both. Reynolds Wolf, CNN, Atlanta.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WHITFIELD: A home rebuild by the ABC show "Extreme Makeover: Home Edition" is about to be foreclosed for a second time. The house near Atlanta hits the auction block on Tuesday. The owner owes $450,000. According to affiliate WSB, the construction company that built the house paid off the original mortgage, but the family took out a second loan to fund a business that then went bust.

Just how bad is the recession? A new store in New York's financial district gives us a clue. The store is called the "Free Store." Yeah, the "Free Store." And everything to you is free. That's right, the store is literally giving its merchandise away. Some customers can't believe it, others say it couldn't come too soon.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The funny thing is people don't want to just take, I mean, people have taken their hat off their heads.

UNIDENTIFIED MALE: We're paying for Citibank and we're paying for Wall Street, so it's nice to give something back.

(END VIDEO CLIP) WHITFIELD: All right, so what's the catch? The store owners say there isn't anything. They're actually both artists who came up with the idea as a public arts project.

All right, across the Hudson, a New Jersey Hyundai dealership has come up with a novel sales pitch. Buy an SUV, and get another new car for a buck.

(BEGIN VIDEO CLIP)

JOHN PERILLO, JR., LESTER GLENN HYUNDAI: To try it to reach for the top level, we have to move more metal. And one way to do that is by buying one and getting one free.

STEPHANIE KRAWCHECK, CUSTOMER: You only get one with the Buick, here you were getting two and you can't pass that up when you have a teenager going it drive.

(END VIDEO CLIP)

WHITFIELD: And, of course, there is a catch, sort of. Buyers have to spring for Hyundai's top of the line SUV, not just any SUV, but the top of the line one valued at $37,000. The dealer will then throw in an accent valued at just $13,500 for just a buck. Well, that still sounds like a pretty good deal.

All right, hello again, I'm Fredricka Whitfield, a special hour straight ahead. The president's prior priorities and America's, too.