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No Cost of Living Increase for Social Security; HHS Monitors Swine Flu from "War Room"; Taliban Control Appears to Move South; Unemployed Get 8-Week Audition; Number of Homeless Families Growing
Aired May 04, 2009 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Checking stories happening right now. Students at a New York City private school are returning to classes today one week after 45 cases of the H1N1 virus were confirmed there. Despite the school's reopening, health officials say swine flu cases have not peaked yet in the United States.
Police in Florida say a man shot and killed his wife and two of their children before killing himself. Another child, a 13-year-old, was able to escape while the father fired at him. He was not injured. Investigators believe a domestic disturbance led to last night's shooting.
And President Obama this morning unveiling a plan to change the tax code. The reforms are aimed at closing loopholes for overseas tax havens and ending business tax incentives for creating jobs overseas. The administration says the changes could raise at least $210 billion over the next 10 years.
A suicide bombing in Afghanistan killed seven people including a town mayor. The bomb went off today in a province in eastern Afghanistan. Three bodyguards, three civilians were also killed.
The tax laws may soon be changing for you or your employer. Next hour, President Obama is expected to announce plans to close loopholes for companies and eliminate tax shelters for individuals. And you can bet not everybody is going to be happy with these changes. Changes are sure to stir some anger.
CNN's White House correspondent Suzanne Malveaux is there now with a preview. And Christine Romans of the CNN Money team breaks down the changes and gives us the bottom line.
Let's begin our coverage this morning with White House correspondent Suzanne Malveaux.
So Suzanne, what flaws does the Obama administration see with the current tax code in place right now?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well Heidi, senior administration officials say there are a lot of flaws with the international tax code because essentially it is costing you and I and other taxpayers billions of dollars here. That there's ways of companies escaping the kinds of taxes they should be paying for and that this is costing Americans jobs. What you're going to hear from the president, we heard it from senior administration officials briefing us earlier, is that he is going to call for cutting out some of those tax incentives for those corporations, for those companies who actually do business overseas.
He is also going to call for closing those loopholes in the tax code that allows for these kind of tax havens, if you will. There are companies, Heidi, that are doing things completely legal, within the tax code, within the law itself, that senior administration officials say allows them to hide subsidiaries that are overseas and escape paying U.S. tax dollars. They say that is no longer acceptable.
There are also individuals, they say, who breaking the law by creating accounts overseas to hide their own money. Now, what is the government going to do about this? Well, we're going to hear from the president. He's talking about 800 additional IRS employees to crack down on all of this. They are making the case here that they're going to be able to raise, they're bringing, $210 billion over the next 10 years.
Heidi, this is a very controversial proposal. More than 200 opposition letters already sent to Congress. This is all about your philosophy. What do you believe? If the companies - if this helps or hurts them. Does it create jobs here at home by actually changing the tax code, the international tax law? This is something that the administration is really going to be fighting for. And it's a tough, tough fight for some of these corporations that are fighting back, Heidi.
COLLINS: Yes, no question. Because as you already said, we have people who are following the law, then those who are a little sketchy. So we'll be following that very closely here. Also I want to give you a chance to show us some of those pictures, Suzanne, of the Obamas heading out on the town this weekend?
MALVEAUX: Yes. As a matter of fact, it was a rare moment that we saw. People are calling this the first date of his presidency. The first couple going out. They initially, what you're seeing, the pictures here, obviously back at the White House taking a stroll hand in hand on the south lawn. Earlier they went out to dinner at a Citronella Restaurant in Georgetown. Several hundred people, Heidi, gathered outside just to take a glimpse to see them.
COLLINS: Wow.
MALVEAUX: One woman on a bull horn saying you know we're so glad you're here. So obviously a lot of excitement. And you know, different kinds of pictures that we get to see the first couple. This really capturing the moment, if you will, over the weekend.
COLLINS: The picture we just saw, they didn't look very happy. Maybe they were tired.
MALVEAUX: I don't know. A lot of work to be done. I imagine it's hard to be under the spotlight, the gaze, all the time, 24/7, clearly. COLLINS: The spotlight and the bullhorn. All right. Suzanne Malveaux in front of the White House for us. Appreciate it. Thank you, Suzanne.
MALVEAUX: Sure.
COLLINS: As I mentioned, President Obama wants to overhaul international tax codes. But for those of us who aren't stashing any money in offshore accounts, will it make a difference? Go no live now to Christine Romans in New York for more on that.
Yes, it's a good question. We keep mentioning people who are following the law and those who are kind of maybe bending it a tad?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, there's two separate issues here. They're trying to close a tax loophole for big multinational corporations. And then the other is to crack down on these tax havens which have now - for wealthy individuals which have been found to be illegal. So two kind of different issues wrapped up in the same kind of international tax code. And let me tell you about the company part of this.
Already this morning you're seeing people who are advocates for corporate America and people who advise corporate America and Washington on how the other does business are showing alarm about this. One person telling me this is a way for Obama to pay for his programs at the expense of the job creators, the wealth creators and the innovators. So that's a very kind of shot across the bow about a fight that's about to come.
The president setting up for a bitter fight with corporate America against this. Look at what the U.S. Chamber of Commerce has said in a letter to the president about this. "This would hamper the global competitiveness of U.S. companies, impeded growth of the U.S. economy and results in the loss of jobs at home."
So let me put it to you very clearly here. The White House is going to tell us that what they're trying to do is really crack down on this egregious tax loophole that allows billions of dollars to go to these companies so they can create jobs overseas and actually offshore and outsource American jobs. And corporate America is going to tell you, no, this is actually going to cause the loss, potentially, of U.S. jobs and competitiveness at home.
So they're going to use...
COLLINS: So which is it?
ROMANS: Well, we just don't know, quite frankly. And I want to even bring in a third way, that having covered outsourcing for so many years, Heidi.
COLLINS: Yes, I know you have.
ROMANS: I can tell you that, you know, taxes are just one part of the equation for why jobs go where they go. The most important part of the equation is wages. If there's a 30-cent wage someplace else in the world, they can easily be gotten and a job can easily be outsourced, frankly companies do it.
COLLINS: Right.
ROMANS: All kinds of different companies. So taxes are one part of it. But the number one reason why companies outsource jobs, frankly, is because it's very cheap to do it because of wages. And that's the number one reason. I don't think you're going to hear much about that today. You're going to hear about taxes.
COLLINS: Right.
ROMANS: It's a big fight about taxes, and it's not simple. You know, the American tax code is so complicated. But the White House is trying to simplify it a little bit, close these what many say are egregious abuses of tax havens for wealthy individuals, but also close this tax hole for big companies that are allowed to make money overseas and be taxed at one rate, then when that money comes back, they want to - they want it to be taxed as well. It's a little complicated. I'm probably not explaining it very clearly. It's a big fight setting up. It's all going to come down to who says it's going to help American jobs.
COLLINS: And you know what? If people don't understand, I have a feeling that they're going to hear an awful lot more about this. Because we have heard how controversial it already is.
ROMANS: It is very controversial. It's complicated and controversial and we'll keep following it for you.
COLLINS: All right. Very good. CNN's Christine Romans of our Money Team. Thank you, Christine.
And in fact, we're going to hear more on the president's plan for Wall Street and tax reform. He will talk about those issues about an hour from now. We, of course, we'll bring it to you live just as soon as it happens.
Hey, quickly, let's check out the Dow. We like to look only when it's good. No, kidding. Dow Jones Industrial National Average up 156 right now. Almost at 8400. That's a nice little rally. We, of course, will stay on top of those numbers for you as well. About 40 minutes into the trading day now.
Still on the topic of your money, this is a big week for economic reports that offer new measures of the economy. Just minutes ago we learned pending home sales rose from February to March. The index tracked signed contracts to purchase existing homes.
Now, the National Association of Realtors says the index has risen for two straight months after hitting a record low in January. There is also good news in construction spending. The government says after five straight declines, spending made a surprising rebound of three-tenths of one percent. Also, this just in now. Mexico City's mayor announced just a short time ago the flu alert has been lowered in the capital. That's cafes, museums, libraries they are going to be reopening this week. So as soon as we get more details on that, we of course, we'll bring it right to you. Information out of Mexico now.
And more on the very latest of the swine flu outbreak right here at home. There are now 30 states reporting cases. In all, that comes to 226 cases including the Mexican child who died last week in Texas.
New York City's mayor, Michael Bloomberg, has new numbers on swine flu cases as well. He says there are now 73 confirmed cases there. And six probable cases. Many of those cases have been traced back to one single point. And that is St. Francis Preparatory School in Queens, New York.
Today the doors have reopened and the classes are back up and running. CNN's Deborah Feyerick is joining us now from there with the very lateSt. How is the morning looking, Deb?
DEBORAH FEYERICK, CNN CORRESPONDENT: Well, it's cold, it's drizzly, it's gray. And a big truck is about to pull up behind us. We can tell you a lot of students were very happy to be back at school after this 10-day break. It wasn't really a break because a lot of the students said they got more home work over the last week than they have prior to that.
Again, teachers trying to keep the kids busy and trying to keep the kids at home. The teen said they were a little bit nervous about coming back. One girl said she was embarrassed by all the attention. Another carried sanitizing wipes all to return back today.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I'm not that nervous. Everything's clean.
UNIDENTIFIED FEMALE: I'm a little nervous. Not going to lie. Scared. I mean they sanitized the building but I'm definitely nervous.
UNIDENTIFIED MALE: I'm definitely confident that I don't think anyone's sick. I'm glad that we're back in school to see each other again.
(END VIDEO CLIP)
FEYERICK: And as you know, St. Francis Preparatory is where the majority of New York's confirmed swine flu cases came from. 45 out of what the mayor is now saying is a total of 73 cases. The majority all linked to this particular school. And officials do believe that hundreds more became ill just because of the contact and because no one had identified it very quickly.
Now, the principal did send a warning to the students, saying it's very important to remain vigilant so as not to reinfect the school. The mayor today was asked whether, in fact, perhaps they were being too cautious by closing the school down.
(BEGIN VIDEO CLIP)
MAYOR MICHAEL BLOOMBERG, NEW YORK CITY, NEW YORK: Natural reaction is to worry about your children's health and then your own health. And I understand that. I think it's the job of government to put things in perspective, provide a calming influence, and that will take place if people feel that government is doing what they do.
(END VIDEO CLIP)
FEYERICK: And other schools are being closed. Primarily just to tamp down on any sort of quick spread of this illness. The principal and other health officials believe St. Francis Prep acted the way it should have given the epidemic - Heidi.
COLLINS: All right. Very good. Deb Feyerick for us in New York City. Thank you, Deb.
In South Florida now, swine flu concerns have closed at least five more schools. The latest focus, Miami-Dade county and Hillsborough county in the Tampa area. Health officials say there are three confirmed cases and 15 probable cases of swine flu. Cleaning is under way and the schools probably won't reopen before Wednesday at the earliest.
Here's the latest now on the global view for you. Mexico and the U.S. are among the 20 nations with confirmed cases. Across the world, there are now 985 cases. There have been 25 deaths in Mexico. One Mexican child died while receiving treatment in the United States.
Some good news from Mexico this morning though about the swine flu outbreak. But still you may want to think twice about celebrating. We'll tell you why you may still want to stay on alert.
The aftermath of a severe thunderstorm in the Dallas area, high winds ripping the roof off the Cowboys practice field. Rob Marciano will tell us where the storms are heading today.
ROB MARCIANO, AMS METEOROLOGIST: Yes, we're already over the weekend, not only Texas but Louisiana, Mississippi, Alabama and Georgia got hammered with damaging winds and those storms are refiring again. A tornado watch in effect. We'll tell you where in just a little bit. CNN NEWSROOM with Heidi Collins comes right back.
(COMMERCIAL BREAK)
COLLINS: Rob Marciano standing by in the severe weather center. Because Rob, we have some stuff to talk about here. Tornado warnings.
(WEATHER REPORT)
COLLINS: One of the powerful thunderstorms over the weekend ripped the roof right off the Dallas Cowboys' practice field. Three people have serious injuries. One of them is permanently paralyzed.
Brandon Gage takes us inside as it was happening.
(BEGIN VIDEOTAPE)
BRANDON GAGE, CNN CORRESPONDENT (voice-over): Amazing images from Dallas television station, WFAA. The NFL's Dallas Cowboys were in the middle of a practice session for their first-year players. A violent thunderstorm with high winds shook the walls of the air supported canopy and everyone inside fled.
Listen to this team employee describe his experience.
MICKEY SPAGNOLA, DALLASCOWBOYS.COM: The wind was blowing so hard when we opened the door, it was like the wind was sucking us back in and we couldn't get out the door.
GAGE: Not everyone was lucky enough to escape the wreckage unscathed. Despite the terrifying images, officials say this was a case of things that were done right.
DR. PAUL PEPE, DALLAS COUNTY, EMS: The immediate reactions here not only the police and fire and EMS crews and fire department, but also the organization itself, the Cowboys organization, their prompt action I think prevented a lot of the problems that we could have had.
GAGE: Dozens of players, coaches and support staff were inside the structure when it went down. The National Weather Service says wind gusts were as much as 60 miles an hour when the canopy went down.
(END VIDEOTAPE)
COLLINS: Some pretty incredible pictures there. The team does not have any events lined up for today. The next time they're scheduled to meet in Valley Ranch is May 19th.
Some good news from Mexico this morning about the swine flu outbreak. But still you may want to think twice about celebrating. We'll tell you why you may still want to stay on alert, and what you can expect.
(COMMERCIAL BREAK)
COLLINS: The Mexican government says there are signs the swine flu outbreak may have peaked. According to some experts, don't throw away those masks just yet. The worst of it could still be coming.
(BEGIN VIDEO CLIP)
GEORGE HARTL, SPOKESPERSON, WORLD HEALTH ORGANIZATION: In 1918, that pandemic started out as a very mild case of disease in the spring of 1918. The virus almost completely or cases of the disease almost completely disappeared over the summer. Only to reappear in the autumn of 1918 with the vengeance with which we all know. So even though we might be seeing only mild cases now, we cannot say what will happen in the future.
(END VIDEO CLIP) COLLINS: And joining me right now, our senior medical correspondent, Elizabeth Cohen. So as we just heard from W.H.O., what happens if history decides to repeat itself here?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Well, hopefully it'll be tamer this time because hopefully we will have a vaccine. Obviously just in general we know a lot more about how to treat influenza now than we did in 1918. But I want to emphasize that this whole question of will H1N1 come back in the fall, it's a big if.
COLLINS: Yes.
COHEN: I've spoken to experts who are pretty convinced it's going to come back and it could be even worse. I've spoken to others who say you know it might come back but it might come back and not be anything to really get too worried about.
COLLINS: OK.
COHEN: Nobody has a crystal ball. That's the problem here.
COLLINS: Yes. Exactly.
Even with all the science behind it. You'd think we'd be able to do something. But really you've talked with the highest experts and there's just no way to know.
COHEN: You can't predict the future.
COLLINS: Yes. Absolutely. So all right, health officials in Mexico say they're seeing a decline in cases. What about here in the U.S.?
COHEN: Here, they're not seeing a decline in cases. And CDC's Dr. Anne Schuchat was very clear yesterday in a press conference. She said we're on the upswing.
COLLINS: Right.
COHEN: Expect to see more illnesses, expect to see deaths. So she was very clear about that. That they started before we did so they're going to hit their peak before we did.
COLLINS: All right. So you mentioned the vaccine already. What are our chances of having one in time, in case - because we talked a lot about this virus, I should say, coming in waves. It is possible that it could come back up and even be more - stronger, more deadly.
COHEN: Right.
COLLINS: Will we have a vaccine by then, whatever that is.
COHEN: Right. Exactly. That's why they're working so hard on getting it done. Vaccines can not be done instantly. You have to grow them in eggs. And it's not an easy thing to do but the hope is, according to the experts that I've been talking to, that they could have one, let's say, in like four to six months. Which gets you to the fall.
So they're working hard to make that happen. They're trying to grow what's called the seed stock so that they can -
COLLINS: Right.
COHEN: So the CDC can give that to the pharmaceutical companies so they can start production as soon as possible.
COLLINS: And it really is a fascinating process. We were talking about it in our meeting this morning, the growing of a virus and trying to make an antiviral and all of that.
It's a fascinating and old process. They're still using the same technology they were using 50 years ago. So there's been a lot of outcry for, hey, can we think of a faster way to do this that doesn't involve chickens and eggs?
COLLINS: Yes, no kidding. All right. Our senior medical correspondent, I almost called Sanjay Gupta.
COHEN: We look a lot alike. Right. But I'm honored, thank you.
COLLINS: Thank you very much.
The swine flu backlash. Today visitation is suspended at all California prisons. The reason, a prison inmate in Imperial County is being tested now for the H1N1 virus. That prisoner and his cell mate are being kept isolated. Prison officials say their symptoms appear to be mild.
Billionaire Warren Buffett knows a thing or two about money. And he's got an upbeat outlook on where the economy is heading. We'll tell you all about his predictions.
(COMMERCIAL BREAK)
ANNOUCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: It could mean some serious changes for you or the company you work for. President Obama announcing reforms to international tax codes today. He wants to end overseas tax loopholes and keep jobs here in the United States. Treasury secretary Timothy Geithner will join the president for the event. We will bring it to you live next hour.
He's a billionaire whom some call the oracle of Omaha. And when he makes predictions on the economy, people tend to listen. CNN money.com's Poppy Harlow talked to Warren Buffett about what he sees in our economic future.
(BEGIN VIDEOTAPE)
POPPY HARLOW, CNNMONEY.COM CORRESPONDENT (voice-over): Reassuring words on the state of the global economy coming from Omaha, Nebraska. WARREN BUFFETT, CEO, BERKSHIRE HATHAWAY, INC.: It isn't Pearl Harbor anymore.
HARLOW: But Warren Buffett cautions, the economy remains in peril and a time line for recovery remains vague.
BUFFETT: Our economy back in September was like finding a friend of yours in quicksand up to his chest and he's going down. And we threw a rope out to him. And he ties it around himself. You hook it to a car and yank him out. Now you're probably going to dislocate a couple of shoulders. I mean, you can't do it without some pain involved. But the important thing was to get out of the quicksand and we got out of the quicksand.
HARLOW: This tell-it-like-it-is candor is why 35,000 shareholders gathered in Omaha, Nebraska, for the Berkshire Hathaway annual meeting Saturday. Buffett answered any and all questions.
UNIDENTIFIED MALE: I want to hear really what - what he sees and what's going to happen to his companies, what actually they're doing to help their companies do better.
UNIDENTIFIED FEMALE: I want to know what he thinks the real estate market's going to recover. If we've seen the bottom.
HARLOW: Buffett sounded off on these issues and others while giving the current administration credit for its efforts to revive the economy.
BUFFETT: We're doing the right thing. And I tip my hat to the administration.
HARLOW (on camera): To be sure, like most publicly traded companies, Buffett's Berkshire Hathaway has taken a hit. A shares of Berkshire, the parent company of everything from Dairy Queen to GEICO have fallen 31 percent from a year ago. But still, the world turns to Warren Buffett for his wisdom, which he delivers with his typical Midwestern wit.
BUFFETT: We were all at a party. It was kind of like Cinderella at the ball. I mean, it was a lot of fun.
I got the real thing here. What else have we got? Well, I like this the best.
HARLOW: He may be called the Oracle of Omaha, but even Buffett admits he can't predict the future. He says the greatest risk beyond the horizon remains the one we cannot see.
Poppy Harlow, CNNMoney.com, Omaha, Nebraska.
(END VIDEOTAPE)
COLLINS: And this reminder now. The president is talking about Wall Street and tax reform in about half an hour. We're going to bring that to you live when it happens. Millions of Americans rely heavily on monthly Social Security checks. But it may be more difficult to stretch them to meet basic needs in the next few years because they aren't expected to show a cost of living increase. Susan Lisovicz is on the floor of the New York Stock Exchange now with more details on this. Hi there, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi.
It's called COLA. We're not talking about soda. We're talking about cost of living adjustments. And they have been increasing for the 50 million Americans who receive Social Security benefits every year or every month, I should say.
But that will change. That will change next year and the following year. There will be no increase. And after that, we're talking about estimates of two percent growth. Compare that to a nearly six percent boost in cost of living for this year. This is coming, by the way, from the Congressional Budget Office -- Heidi.
COLLINS: Yes, and as you say, older Americans have got a lot of these cost of living adjustments for three decades or so. Why not this year? What's different about everything?
LISOVICZ: Well, there's one big thing that's happening with this recession. And that we have seen inflation become a nonfactor. We all have experienced the pleasure of seeing sharply lower energy prices. Whether it's gasoline, heating your home, cooling your home, that is a fact, that is very much at work here.
But, remember, energy is just one part of our cost of living. Many other things, including health care, have increased. So, we're also talking about clothing, food, yes, those have gone up. So, this is something that I think a lot of older Americans will be working to stretch these paychecks -- Heidi.
COLLINS: I bet. What about funding for Medicare? That's obviously another major concern for older Americans.
LISOVICZ: And this is very interesting, Heidi, because Medicare and Social Security increases have generally worked in lockstep. They have increased. Medicare B, Medicare B premiums, won't increase. Those cover doctors visits. There is a small percentage of those that could actually see a premium increase. But they will not see an increase with -- even if their Social Security increases don't materialize.
So, that is something to watch out for, and that is something I think we're going to hear a lot of grumbling about, yes, that your health care expenses continue to go up, but your premiums will not go with it.
One thing we are seeing move higher today, Heidi? Stock prices.
COLLINS: Yes.
LISOVICZ: They got a boost at the top of the hour. I don't know if you were aware that we got pending home sales. They were expected to remain flat. Up 3 percent.
COLLINS: Yes.
LISOVICZ: A good gauge of future activity. Little signs of life in that battered housing market. I don't think anybody's saying that, you know, we're out of the woods yet.
COLLINS: Sure.
LISOVICZ: But, hey, it's nice to see. And you're seeing a very nice rally. Triple-digit gains for the Dow right now and the Nasdaq as well. Nice way to start the trading week -- Heidi.
COLLINS: Yes. Good job, Susan. We'll come back and talk to you again if it keeps going this rate.
LISOVICZ: Working my magic for you, Heidi.
COLLINS: Yes, all right. Thanks so much.
LISOVICZ: You're welcome.
COLLINS: It is the most famous wardrobe malfunction in history. Now the Janet Jackson incident is headed back for more legal review. The Supreme Court, yes, Supreme Court, has ordered a federal appeals court to re-examine its ruling in favor of CBS. Now, last year the network successfully fought a $550,000 fine for the breast-baring incident during the 2004 Super Bowl. The Supreme Court wants an appeals court to consider reinstating the fine because the claim that the half-second shot was fleeting may no longer be a valid legal argument. The story goes on.
He switched parties. Well, today, Senator Arlen Specter must answer to his constituents. The now-Democrat Specter is holding a town hall meeting in Hershey, Pennsylvania, this hour. Specter had been a Republican since 1965, but said his moderate views threatened his re-election bid next year. CNN's Dana Bash is at the town hall, and we will check in with her just a little bit later.
Two-time presidential candidate John Edwards says he is cooperating now with a federal investigation looking into how he spent his campaign funds. His political action committee doled out more than $100,000 to a production company run by Rielle Hunter, a woman he admitted he'd had an affair with. Edwards says he's confident no money was spent improperly.
More now on the weekend's soggy weather. A Mississippi woman died after a tree fell on her outside of her home. Another person was also injured. Heavy winds also caused damage to at least five homes.
In Alabama, severe thunderstorms there knocked out power for thousands of people. There was also extensive damage caused by possible tornadoes. Rob Marciano, very busy guy this morning in our severe weather center taking a look at that. And also, of course, what's happening today, Rob.
(WEATHER REPORT)
COLLINS: It's like a war room where the battle against the H1N1 virus is being fought. Few people get a look inside, but we've got your all-access pass.
(COMMERCIAL BREAK)
COLLINS: The U.S. military dealing with new cases of swine flu. A short time ago, we learned two more cases have been confirmed at the U.S. Marine base in Twentynine Palms, California. An interesting note here: The Marines had shown no symptoms but were tested because of another confirmed case there.
And from the Navy, federal health officials confirm one case of the H1N1 virus aboard the USS Dubuque. It is currently in port in San Diego, and the sick person has been taken ashore. At least 13 other personnel are considered probable cases and are awaiting test results.
It looks a lot like you'd expect a war room to look. But this battle isn't against a foreign power or a terrorist group. It's actually against the H1N1 virus. And John King takes us inside for a rare look.
(BEGIN VIDEOTAPE)
JOE LAMANA, OPERATIONS DUTY SECTION CHIEF, DEPARTMENT OF HEALTH AND HUMAN SERVICES: The SOC is the secretary's operation center. We have watch officers that are here 24 hours a day, 7 days a week. Our main job is to keep our leadership informed of what's going on. So, several times a day we have requirements to send our leadership, our senior leadership, various reports.
Unexpected would be if we get an urgent call from the Homeland Security Council or from the White House that they need information on, you know, current figures. So, there are times where those calls come in, and we need the information in a half hour. So, we have to stop what we're doing and try to feed that desire or that need.
We know that the information, the right information will get out eventually. We can't stop what we're doing to keep chasing every rumor. There's a lot of rumors out there. We almost live here during hurricane season.
So, from about July time frame until October, you'll probably find us in here all the time. And last year we were here pretty much 24 hours a day, 7 days a week from that point, you know, for about three months. So, any time there's an operation, we're here. Buffalo plane crash, we were in here. For the ice storms up in North Dakota and the flooding that was going on, we were in here.
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: And if I'm a governor, and I, say, need Tamiflu, is this where I call, or do I call the CDC?
LAMANA: Well, there's -- you can try calling here. We're eventually going to call up the CDC. So, between the CDC and us, we will coordinate that effort.
We don't want to make -- we don't give people a false sense of security. And we also don't want to give them the false -- a false feeling that everything is falling apart, either. Lessons learned. We're pretty knew at this right now. It's early on. We're collecting that data.
But I think it's too early to tell whether or not things are broken. I don't think they're broken. I think we're doing a good job, as best -- as good a job as we can do right now.
(END VIDEOTAPE)
COLLINS: We will get the latest on the international response to the H1N1 virus when the World Health Organization holds its briefing. That's coming up next hour.
A suicide bombing in Afghanistan kills seven people, including a town mayor. The bomb went off today in a province in eastern Afghanistan. Three bodyguards and three civilians were also killed.
Well, Pakistani forces fight Taliban militants in the country's northwest region today. There is concern over the Taliban's influence in cities to the south. CNN's Ivan Watson reports on a crackdown in the red-light district of Lahore.
(BEGIN VIDEOTAPE)
IVAN WATSON, CNN CORRESPONDENT (voice-over): This is a sight of Pakistan you rarely hear about in the news, the historic red-light district in Lahore. Legend has it Mogul emperors designated it as a place of entertainment for their soldiers centuries ago.
(on camera): We're in Lahore's red-light district, the neighborhood of narrow alley ways filled with brothels and places like this where women perform a centuries-old dance called the mudra (ph).
(voice-over): It's hot and steamy in this rat-infested room. Harmonium player Gulam Sarwhar (ph) has been performing like this for the last 50 years. But this art form is dying. A few months ago a judge in Lahore declared the mudra (ph) dance vulgar and banned it from being performed on stage. One local lawmaker says the provincial government is cracking down on immorality to appease violent, religious hardliners like the Taliban, who are extending their reach deeper into Pakistan.
Dancers aren't the only targets of the crackdown. Last week, a court banned this singer from recording new albums after a judge ruled her lyrics were also vulgar.
(on camera): Are your songs vulgar?
NOORA LAL, SINGER (through translator): Yes.
WATSON (voice-over): Noora Lal's defense? No one's forcing people to listen to her music. LAL: (SINGING)
WATSON: But there is one man in Lahore who defiantly mocks Pakistan's religious right: artist Iqbal Hussein. Hussein is Pakistan's most vocal defender of prostitutes. He documents their lives in paintings displayed in the house he grew up in. The artist was born in this red-light district, the fatherless son of a sex worker.
IQBAL HUSSEIN, PAINTER: And my mother was also a prostitute.
WATSON: His house still stands in the shadow of Lahore's biggest mosque. Hussein claims many Islamic hardliners who preach morality in Pakistan have long been the most enthusiastic visitors to the red- light district.
HUSSEIN: All going towards this area. They're not going to the mosque.
WATSON (on camera): They're going to the brothels.
HUSSEIN: Brothels. So.
WATSON (voice-over): No matter what happens to Pakistan, this child of the brothels predicts there will always be a market here for humanity's oldest profession.
Ivan Watson, CNN, Lahore, Pakistan.
(END VIDEOTAPE)
COLLINS: Out of work but still in the workplace. This is an eight-week audition for a job. And some companies are getting as much out of it as the workers.
(COMMERCIAL BREAK)
COLLINS: Something new to tell you about. I'm blogging, believe it or not. And we've got a new CNN NEWSROOM page to show you. So, talk to me. Check it out. Let me know what you think of the stories we're telling, and then leave me a comment about stories you would like to hear. Check it all out at CNN.com/newsroom.
Millions of unemployed Americans are hoping for a paycheck and asking for a chance. In one state, that opportunity can come in the form of an eight-week audition. It's a unique and innovative program that may help companies as much as the worker, in fact. CNN's Fredricka Whitfield explains.
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FREDRICKA WHITFIELD, CNN CORRESPONDENT (voice-over): Among the more than 6 million Americans out of work, Marcos Guzman is confidently auditioning for a full-time job with a Decatur, Georgia uniform sales company.
MARCOS GUZMAN, AUDITIONING FOR JOB: No jitters whatsoever.
WHITFIELD: Not the case initially when laid off in January.
GUZMAN: When you first hear it, and it's unexpected, you know, it's not a good feeling at all.
WHITFIELD: Guzman took the common next step.
GUZMAN: I went down to, you know, the unemployment office.
WHITFIELD: He overheard a conversation about the so-called Georgia Works program, an eight-week job audition of sorts with a select group of employers. This is how it works. The unemployed on audition for two months don't receive a single paycheck from the companies, but still draw unemployment checks from the state.
Finding the right store manager was the primary focus for Rosie Cecil, owner of DoMaRo Uniform Service. She says the state Labor Department's program relieved her of a lot of stress.
ROSIE CECIL, BUSINESS OWNER: Georgia Works is really good because they will kind of screen through those resumes that they get, and they'll submit the ones that they think are pertinent to you and your position.
WHITFIELD: This "audition for a job" concept is the brainchild of Georgia Department of Labor Commissioner Michael Thurmond, who started it more than five years ago. But in the last year, the recession has increased its popularity in-state.
MICHAEL THURMOND, GEORGIA LABOR COMMISSIONER: The crisis has deepened. Job seekers are feeling more desperate.
WHITFIELD: He says eight other states -- but won't reveal which ones -- have called for advice. The success rate? Impressive. The commissioner says 60 percent of the trainees get hired. Still, he understands skeptics' points of view.
THURMOND: They think that it's too good to be true, but it's not.
WHITFIELD: Back at the uniform shop, early signs of a good fit.
GUZMAN: And my mindset is taking a business and making it bigger than what it was. You know, everywhere I've gone, I've done that. And I'm anxious to do it here.
WHITFIELD: Within days, this small business owner and this recently laid off big corporate loan company employee hope to meet somewhere in the middle.
CECIL: I'm looking forward to Marcos being with us for quite some time.
WHITFIELD: Helping an enterprise grow while assisting one man get back on his feet. Fredricka Whitfield, CNN, Atlanta.
(END VIDEOTAPE)
COLLINS: It's that time of year. The Class of '09 facing the real world with some real worries. This Wednesday, we bring on the experts to answer your questions about financial aid, grants, loans, 529 plans and more. Starting right now, you can post your questions or comments. Just go to CNN.com/newsroom and then click on Heidi. And we'll try and answer your questions on the show on Wednesday.
Also this. President Obama announcing his ideas to stop what some call shady tax practices outside the U.S. It's happening in just a few minutes, and we are going to bring it to you live.
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COLLINS: In the Washington, D.C., area, the number of homeless families is up dramatically over last year, 15 percent. These are people who show us the new face of homelessness. Here now, CNN's Kate Bolduan.
(BEGIN VIDEOTAPE)
SHEILA WASH, HOMELESS MOTHER: Right on schedule.
KATE BOLDUAN, CNN CORRESPONDENT (voice-over): Every day just past 4:00, Sheila Wash meets her daughter, Sheleia (ph), as she arrives home from school.
SHEILA WASH: I brought you a jacket because I know it's cold.
SHELEIA (ph) WASH, DAUGHTER OF SHEILA WASH: Yes, it's really, really cold.
BOLDUAN: But every day is anything but a homecoming for the Wash family. Sheila and her two children are homeless. Have been since 2007 after Sheila lost her job with the government. The Washes are now living in this Washington, D.C., shelter.
SHEILA WASH: I just thank God that we have a roof over our head right now, you know. And you have to accept the things that come to you.
BOLDUAN: Their situation only made worse as the economic recession set in.
SHEILA WASH: Trying to find a job, it's been hard. And then now that a lot of people are being laid off, it's even harder, you know, trying to find a job when other people are looking for the same jobs.
BOLDUAN: The Washes are part of the changing face of homelessness. Not just individuals, but families. The D.C. region alone is reporting a 15 percent jump in homeless families since last year.
(on camera): What would you say to those people who don't understand this face of homelessness?
SHEILA WASH: I mean, you just can't judge a book by its cover. I mean, it's always a story behind a person less fortunate than you.
BOLDUAN (voice-over): School officials in Prince George's County, Maryland, where the Wash kids go to school, say a day doesn't go by without enrolling more children as homeless. Denise Ross (ph) handles outreach to homeless families.
DENISE ROSS (ph), PRINCE GEORGE'S COUNTY PUBLIC SCHOOLS: Some of them are embarrassed. Some of them are scared. Some of them are sad. Students who are displaced or homeless students feel that school is a safe haven. That's really -- they really want to come to school.
BOLDUAN: And school is the one source of stability Sheila Wash says they can count on right now. They're shopping for new uniforms with the help of school vouchers.
UNIDENTIFIED MALE: Yes.
SHEILA WASH: Teamwork.
BOLDUAN: However, they're facing another setback. Their current shelter is about to close. And the Washes don't know where they'll stay next. But one wish keeps them going.
SHELEIAH (ph) WASH: I pray that we wake up in the morning and my mom -- we get a house and everything that we wanted.
BOLDUAN: Kate Bolduan, CNN, Washington.
(END VIDEOTAPE)
COLLINS: I'm Heidi Collins. We are just minutes away from President Obama unveiling new reforms to the international tax code. We'll have that for you live as the CNN NEWSROOM continues with Melissa Long.
