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President Obama to Hold National Discussion on Health Care Makeover; Michael Jackson 2002 Will Located; Money Talk on CNN Radio; Memorial Planned at Jackson's Neverland Ranch; Hispanics, Blacks Face High Unemployment; States Trying to Avoid Shutdown

Aired July 01, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: Good morning, everyone. It is Wednesday, July 1st, and here are the top stories in the CNN NEWSROOM.

Congress on vacation, but the doctor is in. President Obama takes advantage of a legislative lull to sell you on health care changes.

Michael Jackson's will surfaces. Are others out there? Plus, his family prepares to take the singer's body to Neverland Ranch for public viewing.

Race and your job, why minorities face much higher unemployment rates than whites, and how to fix the problem.

Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

Fixing America's health care system. President Obama holds a national discussion this afternoon to sell you on a health care makeover. He is headed out to Virginia for a town hall.

CNN's White House correspondent Dan Lothian standing by for us.

And Dan, the president will be taking questions, I understand, via Facebook and Twitter.

Is that correct?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. You know, the president will make some opening remarks, we're told. We're not expecting anything groundbreaking here on health care reform, but what the White House is saying is that this the most interactive kind of discussion on health care to date.

As you pointed out, Facebook, also Youtube, and Twitter, as well. And there will be an audience there to throw some questions at the president.

The idea here, according to the White House, is to really get this national discussion going on health care, to hear from the public some of their concerns. At some of the other town halls that I have attended, you hear stories of people who can't afford health care insurance, others who have, you know, a mountain of bills because they're going through various illnesses. So, these are the kind of things that we could potentially hear at this town hall today -- Tony.

HARRIS: And Dan, we mentioned that Congress is out, but what is really going on here? Is this more than sending a message to Capitol Hill?

LOTHIAN: Well, it's twofold. I was talking to a senior administration official about this. And he said, really, this is the chance to get the voice of the American people during the process, as they're trying to come up with some kind of health care reform, not after the fact. But this official also pointed out that they really do hope that they get the attention of the folks up on Capitol Hill, who right now are trying to figure out the best way, the most cost- effective way to come up with some kind of health care reform.

As you know, it's going to cost around $1 trillion or so. The president is pushing a public plan.

A lot of resistance to that on Capitol Hill, because there's sense among Republicans and even some Democrats that this would hurt the private insurers. From the White House's perspective, they think that this will only create more competition and make these private insurers much stronger -- Tony.

HARRIS: All right. Our White House correspondent Dan Lothian for us.

Dan, appreciate it. Thank you.

We will continue the health care debate in the next hour of CNN NEWSROOM. I'll be talking live with Dr. James Rohack, who is president of the American Medical Association. Also Nancy Ann DeParle, who heads the White House Office of Health Reform.

What will your medical plan look like if the president's plan goes through? Can you still see your doctor, get your prescriptions?

Send us your questions, CNN.com/newsroom. The White House health reform director will join me live to answer your questions in the next hour of CNN NEWSROOM.

And we invite you to stay in the NEWSROOM for President Obama's live town hall meeting from Annandale, Virginia. It is scheduled to begin at 1:15 Eastern Time. And remember, you can participate on Facebook and Twitter.

State governments running out of money and facing possible shutdowns. The new fiscal year for most states starts today, but about a dozen still haven't balanced the books and approved a budget for the year.

As of yesterday, these states appeared to be in the worst shape. We're talking about Arizona and Pennsylvania. We'll have more on those in a second. California, of course, Indiana and Mississippi, all of them struggling to close billion-dollar budget gaps in an economy that has depleted state revenue. Early this morning, hours after the deadline had passed, Arizona's state legislature finally approved some parts of a proposed budget, but it is still unclear whether the governor will sign it. The legislature omitted a one-cent sales tax increase the governor labeled crucial for protecting against more cuts to services like education.

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JONATHAN PATON (R), ARIZONA STATE SENATE: We've done everything we could to get members on board for what she wants. It's been extremely difficult to do that because people just have a fundamental problem with a tax increase in the middle of a recession.

(END VIDEO CLIP)

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CHAD CAMPBELL (D), ARIZONA STATE SENATE: We are ready to sit down and negotiate if you want to talk about a real budget, a good budget for the state. Unfortunately, the budget we're looking at right now is not something we can support. It's a huge tax increase for the middle class.

(END VIDEO CLIP)

HARRIS: And without a budget this morning, state agencies are being forced to make do. Several state parks are closed, campers kicked out yesterday.

And in Pennsylvania, state workers have been told that they'll only be getting part of their salary for the next couple of weeks. And if the state still hasn't passed a budget by then, they'll essentially get IOUs.

Pennsylvania Governor Ed Rendell talked with CNN's Kiran Chetry this morning.

(BEGIN VIDEO CLIP)

KIRAN CHETRY, CNN ANCHOR: Your state was granted nearly $16 billion in federal stimulus money. Two billion dollars of that was supposed to help with the budget gap.

Why isn't that federal money helping more in these states like yours?

GOV. ED RENDELL (D), PENNSYLVANIA: I would add something. And without it, I think we'd have to see 15,000 to 20,000 additional layoffs across the state. Not just state workers, but county workers, municipal workers, because without that money, there'd be a shortfall all the way down the chain.

So, it's helped forestall a lot of layoffs. When the president says that he's retained or created X amount of jobs, believe me, without the stimulus money, there'd be massive layoffs. (END VIDEO CLIP)

HARRIS: We are keeping close eye on the budget situation, and we will have more for you later in the hour.

Well, Michael Jackson did have a will. One written in 2002 has been located. In it, Jackson's mother is named guardian of his three children, and the pop star's considerable assets are in a trust.

Now it will be up to a court to decide if it's valid. A Jackson family lawyer told CNN's Anderson Cooper there could be others.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, HOST, "ANDERSON COOPER 360": To your knowledge, is there more than one will?

BURT LEVITCH, JACKSON FAMILY ESTATE & TRUST LAWYER: Not to my knowledge, but this is an interesting cast of characters. And as has been said, Michael's business affairs were often in transition. And I would not be shocked to learn that there's another document out there. It's not something we're anticipating, but it could happen.

(END VIDEO CLIP)

HARRIS: And our Ted Rowlands is tracking these new developments in Encino, California.

Ted, a couple of things here. Anything more to add on the will today? And if you would, what are the other new developments in the investigation and maybe even Jackson's kids?

TED ROWLANDS, CNN CORRESPONDENT: Well, Tony, the new will that surfaced, one thing we know of that document is that Michael Jackson wanted his children to be cared for by his mother, Katherine. So that really does take part of that one half of the equation.

Jackson attorneys also say they do not think Debbie Rowe is going to get into this picture, so they are very happy that it seems to be solidified in that Michael's mother, Katherine, who is in the house behind us with the children, will remain in control of those kids and taking care of them. And they say that is the most important thing.

The financial side of it, you mentioned the one will. They're anticipating the possibility of more coming through, and we anticipate that will being made a public document today, being filed at some point today in Los Angeles court. And at that point, we'll get a better feel for exactly what's going on.

As to the investigation, you've got to keep in mind it's a death investigation, meaning the goal of the investigation is not to take someone away in handcuffs or go chase somebody down. That may come later, may not. The goal of this investigation is to try to come up with exactly why Michael Jackson died. And as that process continues, of course, the toxicology presumably is back, but the coroner is waiting for final definitive results before they're going to make that public.

Clearly, though, the family probably has a very good idea of what killed Michael Jackson. It could have been natural causes.

And there's a very good chance here, Tony, in all this talk about Michael using this drug or this drug, a very good chance they could come back and he wasn't using any drugs at the time of his death, especially when you look at those photos leading up to this death, rehearsing. I mean, the guy looks pretty fit, and a lot of people say he was fit.

HARRIS: Boy, I tell you what, given all the reporting so far, that would be a surprising development.

Ted Rowlands for us in Encino, California.

Ted, appreciate it. Thank you.

You know, lots of activity this morning at Jackson's Neverland Ranch. Jackson's body arrives tomorrow, and a public viewing scheduled for Friday. People are already lining up.

Later this hour, we will check in with Kara Finnstrom live at the ranch. And a reminder here. Be sure to watch CNN's "LARRY KING LIVE" tonight at 9:00 for the latest on the investigation.

Eight months after casting their ballots, the people of Minnesota finally have a senator.

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(WEATHER REPORT)

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HARRIS: Fourteen minutes after the hour. Welcome back, everyone, to the CNN NEWSROOM.

I'm Tony Harris.

The United States Senate will finally have a full bench. Democrat Al Franken has been certified as the winner of the disputed Minnesota Senate race. He plans a victory rally at 1:00 Eastern at Minnesota's state capital, almost eight full months after Election Day. Franken will likely be sworn in next week.

(BEGIN VIDEO CLIP)

SEN.-ELECT AL FRANKEN (D), MINNESOTA: I promise to do my best to work hard, to stand on principle when I believe I must. And, yes, to compromise when I believe that is in the best interests of the people of Minnesota.

(END VIDEO CLIP)

HARRIS: Republican incumbent Norm Coleman conceded after Minnesota's Supreme Court ruled against his election challenge.

(BEGIN VIDEO CLIP)

NORM COLEMAN (R), FORMER MINNESOTA SENATOR: Ours is a government of law, not men and women. And the Supreme Court of Minnesota has spoken. I respect its decision and I will abide by its result.

It's time for Minnesotans to come together under the leaders it has chosen and move forward. And I join all Minnesotans in congratulating our newest United States senator, Al Franken.

(END VIDEO CLIP)

HARRIS: Well, Senator Franken will give Democrats a 60th vote. That means Republicans lose the strategic advantage of a vote-blocking filibuster. Worth noting here, two Democrats, Ted Kennedy and Robert Byrd, are sidelined, for now, at least, by illness.

We drop in on Ali Velshi's radio show on Wednesdays to chat about the latest economic news. Something different today, and we like it.

Christine Romans sitting in for Ali on CNN Radio.

Christine, good to see you.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Nice to see you on the radio, Tony.

HARRIS: Yes. Christine, you know, a couple things I want to take up with you. I want to get to urban sprawl in a moment, but I'm wondering, are jobs sort of top of mind for your callers today? I would imagine they might be.

ROMANS: They are. They are. And we have to be very careful about saying the job situation is getting better. We're saying the job situation is getting less worse, maybe. That's what we're hoping for.

We're going to get a big jobs report tomorrow that's going to give us a better, clear indication of that. But, you know, it's a lagging indicator. I don't know how many time we can say it.

Even when the economy starts to recover, the unemployment rate is going to keep rising here. It's going to take a while for businesses to feel better, to start adding people to the rolls. So that is the big question mark over a recovery. You know, how does consumer confidence recover, how does housing recover if people are still losing jobs?

HARRIS: Yes.

ROMANS: So, they're losing jobs at a slower rate. I mean, it's not the mass, mass layoffs that it was before. We want to see if that continues.

HARRIS: Hey, Christine, are you at all settled in your mind on -- you mentioned two things there, two words there. You mention jobs and you mentioned recovery. Are you settled in your mind as to whether or not this recovery will actually produce jobs? Could this be a jobless recovery?

ROMANS: It really could. It really could, Tony. And that's the big fear, because the last recovery that we saw after a recession was also a jobless recovery, and wage growth didn't really kick in there.

You know, we had 52 or 53 months of jobs growth after the last recession, but it didn't keep pace really with what you usually see after a recession. So -- and wages certainly didn't keep up. So, we have -- you know, the w recovery, there is the W, recover, which -- there's the L, there's the U, there's the V-shaped recovery, all these different letters. You hope that it's not going to be an L or something that is -- that the economy goes down and just goes sideways and you don't have any jobs growth with it.

But that's going to depend on the investments that this government is making, and if they work -- if green energy works, if the stimulus works. It's going to depends on how well all this stuff works, whether they can rebuild parts of the economy to actually generate and grow jobs for the future.

HARRIS: Hey, I've got to tell you, Christine, one of the benefits for a lot of people of this recession is that it is slowing the rate of urban sprawl. OK? Folks see that in many respects as a positive. They're, in many cases, sick and tired of these planned communities and these single family homes, and all the additional lanes of traffic and highway development that has to go on to get those suburban folks back into the cities.

ROMANS: It's a real rejection I think of the McMansion life that we led for the last 15 years.

HARRIS: Yes.

ROMANS: You had a housing boom that puts job and building way out in the suburbs, and then the exurbs. We invented that phrase.

And now the latest census data showing you're totally right, Tony, that the cities are increasing -- New York, Chicago, New Orleans, for example, although that's a little different story. People are coming back after -- you know, three, four years after Katrina and Rita. But the cities are showing the growth more quickly than the suburbs because of all these things -- higher gas prices, jobs out in the suburbs, immigration, for example. The gateway cities are starting to keep new arrivals, instead of people leaving quickly to go out and populate the exurbs and the suburbs because the jobs related to housing just aren't there right now.

HARRIS: Yes. And let me get another quick one in here as we tee up more issues for your callers. And there's the number on the screen: 877-266-4189.

Is that correct, Christine?

ROMANS: That's it. You can also e-mail us at cnnradio@cnn.com. But we really love your calls.

HARRIS: What is going on with the credit card rates, Citi credit card rates?

ROMANS: Well, they're going up. Look, "The Financial Times," a great story this morning. Thirteen million to 15 million Citibank co- sponsored cards -- that's like Macy's cards, your Sears credit cards -- those rates going up sharply for people who weren't paying off the complete balance. Citigroup confirming, indeed, that it is raising interest rates on customers as part of its regular review of how risky your profile is.

Look, this is what the industry told us all along. Ahead of -- because of new rules to increase protections for consumers, it's probably going to mean higher interest rates for some people. You're already seeing it.

The trouble here is that Citigroup, a big chunk of it is owned by the American taxpayer. So that starts to make people in Congress a little angry when, ahead of new rules to protect consumers and the grace period before those rules go into effect, you know, they're raising rates on credit cards.

So you'll hear more about this. But I've got to tell you, if you've got one of those store-based cards, if you've got a credit card and you're not paying the minimum interest, or you're carrying a big balance, your rates are probably going up.

HARRIS: Right. Talk about the rub.

All right, Christine, once again, 877-266-4189.

Christine Romans on the radio today.

Christine, appreciate it. Thanks for your time.

ROMANS: Thanks, Tony. Bye. You're welcome.

HARRIS: And get a break repaying your student loan. Personal finance editor Gerri Willis and her "Top Tips" next, right here in the CNN NEWSROOM.

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HARRIS: Well, if you've got student loans, that monthly payment may get a little easier for you starting today.

CNN's personal finance editor Gerri Willis is here.

Gerri, good to see you.

If you would, tell us all about this new program.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, Tony. Yes, this is a very big deal. Look, if you're graduating, you've got the average amount of student loan debt, $23,000, maybe you can't find a job, hey, listen up. There's good news from the government today.

The government is going to begin offering a repayment plan that allows graduates to cut their monthly student loan payments. That's right.

Based on income -- the program is called Income-Based Repayment Plan -- it's available to people who took out federal loans or consolidated their loans using a federal loan. So, if you have all private loans, forget about it. You can't be a part of it.

Here are the benefits of the program.

As we said, it lowers your monthly payments. Now, the balance of your loan can even be forgiven if you make timely payments for 25 years. And if you're in public service for a decade, guess what? You can get loan forgiveness.

Of course, there are downsides, too, Tony. Most notably here, you're going to pay more because your interest -- the amount of interest you pay will go up because you're stretching out your payments. And also, you have to call all the time, every year, once a year, to tell them how much money you're making, what you're doing, so they can figure out how much help you're actually going to get. So you definitely want to do that.

HARRIS: Well, Gerri, how do you know if you actually qualify for income-sensitive payments?

WILLIS: Well, look, you qualify -- it's all about how much your student loan debt is compared to your income and your family size. And while your lender will perform the calculation to determine whether you're eligible, you can do it yourself by going to studentaid.ed.gov. That's the Department of Education's Web site. They have a little calculator there that's going to help you.

Now, what you do next, if you think you're eligible and you need the help, contact your lender who holds your student loans. It's that easy. They will probably ask you for some previous years' tax filings, but they will make the ultimate determination whether or not you can get help.

HARRIS: Boy, this last one gets a little tough. What if you can't afford to make any payment, Gerri?

WILLIS: Well, you know, the government has always had programs for people who can't make student loan payments. They defer your payments. Forbearance is another program.

You can either be part of the program and get help, or not part of the program and get help if you have no income at all. It really doesn't matter.

So, take steps. Pick up the phone, make a phone call today if you're having these problems, you don't have a job, you don't have income. You definitely want to get help out there, and there is help out there.

And here's something really important for student loan debt holders, a bit of good news, more good news. Interest rates on subsidized undergrad Stafford loans, it's now at 5.6 percent. And if you have an older variable rate Stafford loan, and you consolidate after today, your interest rate, Tony, two percent.

HARRIS: Two percent?

WILLIS: Two percent. Historic low.

And, of course, if you have any questions, send them to me at gerri@cnn.com. We love to hear from you, and we answer those questions right here every Friday.

HARRIS: Look, and here's where you have been consistent from day one here. You have always said if you're having problems with your debt obligations, pick up the phone and make a call. Don't get swallowed up by it.

WILLIS: Yes. And don't just sit at home and fuss and worry over it. You've really got to get out there, get some help, talk to the right people, because there is help out there.

HARRIS: That's good. Yes, Gerri. Appreciate it. Thank you.

WILLIS: My pleasure.

HARRIS: Don't reinvent the wheel and don't break the bank. One doctor's prescription for health care reform.

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HARRIS: As President Obama gets ready for his town hall meeting on health care, we asked one health care professional to share her solution to the health care crisis in 90 second or less. Here is Dr. Sujatha Reddy.

(BEGIN VIDEO CLIP)

DR. SUJATHA REDDY, GYNECOLOGIST: Here's my prescriptions to solve the health care crisis.

Well, first and foremost, I don't think we have to reinvent the wheel. For 200 million Americans, the current health care system has provided great quality health care, the best in the world for many years. So I think focusing on insuring the uninsured 45 to 46 million seems like a good place to start without breaking the bank. And from there, I think, you know, possibly mandating everyone have coverage purchase it from their employer or perhaps get it from a third party, maybe an insurance company fund where they have to participate to cover all uninsured people like we do for car insurance now, or maybe the government. Then I think we also have to have a bigger part of our health care responsibility on ourselves. Personal responsibility needs to be the cornerstone of where we go from here. A majority of our health care dollars are spent on chronic care. We need to start focusing on prevention.

We've got to all take a part of about not smoking, living an active life, you know, being an advocate for your health care, going to the doctor for regular check-ups. I think taking care of ourselves and being more proactive in our health is going to be a big part of it.

And I think another thing we can do is focus more on technology. In my office, for example, we have a completely electronic medical record. We're paperless. We even send our prescriptions to the pharmacy now by e-mail or fax by the Internet. So, technology's also going to help us eliminate a lot of waste and also eliminate duplication of services. We won't repeat tests when we don't know something's been done. And I think it will also give us a safer health care system because you'll know the patient's health care record right then and there.

(END VIDEO CLIP)

HARRIS: Pretty good, huh?

The president is preparing to leave the White House for Northern Virginia Community College. That's where he will hold his online town hall in just a couple of hours. President Obama wants to pitch his health care solution to the people and will field questions through the Internet. Anyone can participate, and you can watch the town hall on CNN. We are covering it beginning at 1:15 p.m. Eastern time.

What do you want to know about the president's plan? Send your questions to us at CNN.com/newsroom. The White House health reform director will join me to answer your questions. Yes, that is happening next hour in the NEWSROOM.

Megaretailer Wal-Mart is supporting the president's push for employer-mandated insurance. Read about it at CNNmoney.com.

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One of the best there, huh? "Human Nature."

Time for mourning. Michael Jackson's family getting Neverland in shape for an onslaught of grieving fans. Jackson's body will be moved there tomorrow for a public viewing on Friday. A family lawyer telling Larry King it is time to lay the star to rest and to do it with dignity.

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LONDELL MCMILLAN, JACKSON FAMILY ATTORNEY: I'm a little, somewhat concerned about statements made about the estates and wills when we should focus on Mr. Michael Jackson, focus on the loss that we have, focus on burying Mr. Jackson. Not focus on the estate and what he left to whom.

LARRY KING, CNN HOST, "LARRY KING LIVE": Are you a little worried about a zoo this weekend?

MCMILLAN: I'm worried about a zoo, and I think one of the things that we've attempted to do by our representation is to handle this with dignity. And I think the family has handled this relatively, just superbly and with dignity and class. People have come to Havenhurst. People have gone to his other properties. And they've been treated very well, and we're going to continue to do that.

KING: Is there any official word yet on what's going to take place, or not? All this still is...

MCMILLAN: All of this is still speculative. I ask people not to rush to judgment. Let's wait until announcements are made and...

KING: Got you.

MCMILLAN: ... just respect the family and remember his legacy.

(END VIDEO CLIP)

HARRIS: You know, I was just watching Kara Finnstrom's shot there. You really do have a flurry of activity there outside of the Neverland Ranch. Kara, what are you seeing?

KARA FINNSTROM, CNN CORRESPONDENT: Yes, right here, this is a huge landscaping truck. I mean, it's been like this all morning long, Tony. Lots of hustle and bustle. Everyone preparing for those anticipated memorial services this weekend. Lots of media here preparing for that.

Also want to give you a look at the two-lane country road that leads into Neverland, and you can see there's some 25, you know, plus (INAUDIBLE) trucks lining the road. There have been large trucks coming and going, a lot of these landscaping trucks, a lot of floral companies coming in and out.

Now, the details of what exactly is going to happen here this weekend still emerging. What we can tell you, Tony, is that on the record now, Los Angeles police, as well as the state highway patrol, saying they met with family members yesterday talking about potential plans for a memorial, but not releasing any details of that yet.

CNN has been reporting that a law-enforcement source has given us some information about what started to develop yesterday: plans for a 30-plus motorcade that will bring Michael Jackson's body from the Los Angeles area up here to the Neverland Ranch for both a public viewing and also a private memorial. The Jackson family themselves has not spoken out about this at all. Not sharing any details.

But, Tony, as you can see from all the activity going on here, this is a huge undertaking, lots of obstacles. Folks here within the community voicing some concerns about whether it's even safe. So, they must be dealing with a lot, and we don't have any details, you know, any specifics at this point. I want to let you hear a couple thoughts that we're hearing from people within the community.

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UNIDENTIFIED MALE: I have to admit, we really have, I have as far as my family is concerned, we have our reservations (INAUDIBLE). Lived here a long time, and to see it be suddenly invaded with people that are here for the viewing of Michael, that just seems strange.

UNIDENTIFIED FEMALE: We've already felt the impact because we've gotten busier and busier ever since Monday. So, a lot of people coming in and asking the same questions: "Have you heard? Is it true?" I don't know. But we're preparing for it, and it's really picked up, and we've been very busy. So, I'm happy about it.

(END VIDEO CLIP)

FINNSTROM: So, a lot of the businesses here preparing for the crowds that they are anticipating this weekend. There are not a lot of hotels out here, not a lot of restaurants, so they're kind of prepping for that.

And if we can pan over to the side, you know, Tom Larsen's (ph) going to try and give you a look here. Not sure how much we'll be able to show you, but there's a huge logjam here this morning. I mean, lots of folks trying to get in and out. Just gives you a feel for some of the logistics that are involved -- you can see a highway patrol vehicle over there -- you know, with trying to pull something like this off.

HARRIS: Look at all of that. Kara, help us here, because when this happens, when the motorcade makes its way from the Los Angeles area to the ranch, I'm anticipating there will be helicopters following it every mile of the way. How long of a trip is that from the Los Angeles area to the ranch?

FINNSTROM: That's about 130 miles. So, I mean, we're talking about a pretty good stretch there. And that also presents its own, you know, problems of logistics.

HARRIS: Yes.

FINNSTROM: Traffic concerns, you know. Also, concerns for safety and for the motorcade itself. So, all these different law- enforcement agencies, you know, have been told, we've been told have been working together, trying to figure all this out. But it will be interesting to see how this actually end up piecing together.

HARRIS: Yes. And any idea of a time when this will happen?

FINNSTROM: Well, the law-enforcement source that we were referring to earlier did tell us late Thursday morning the body would be brought here to Neverland Ranch. However, again, you know, this is a fluid situation and a lot of concerns and a lot of things that they're working with. So, we'll see.

HARRIS: OK. Kara Finnstrom for us. Kara, appreciate it. So, that's, I guess, in the afternoon, you're thinking, 2:00, 3:00 p.m. Eastern time. Kara, thank you.

Saying goodbye to another star we lost last week. Farrah Fawcett's friends and family gathered for the actress's funeral in Los Angeles yesterday. An iReporter captured these pictures of Fawcett's longtime partner, actor Ryan O'Neal, escorting the casket to the hearse. I think we saw that shot just moments ago.

The service was closed to the media. Fawcett's "Charlie's Angels" co-star, Kate Jackson, also attended. Fawcett died at age 62 after battling cancer off and on for three years. Her son, Redmond O'Neal, was temporarily released from jail to attend his mother's funeral. O'Neal is jailed on a felony drug conviction.

You know, there are huge differences in jobless rates across the country, and race has a lot to do with it.

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HARRIS: Jobs, more than 400,000 of them were lost last month, but our Christine Romans reports some groups are hit harder than others by unemployment.

ROMANS (voice-over): A bitter recession has laid bare some ugly statistics, more ugly for some than others. Here they are. Asians have the lowest unemployment rate, only 6.7 percent. Whites are next, 8.6 percent. Hispanic unemployment tops 12.7 percent. And for blacks, almost 15 percent, the highest since the 1980s.

Nicole Mason studies race and jobs at New York University.

C. NICOLE MASON, NEW YORK UNIVERSITY, WAGNER GRADUATE SCHOOL: When we look at those numbers, it translates directly into money to pay their mortgage...

ROMANS (on camera): Right.

MASON: Food, you know, their ability to get health care, provide child care. All these things are really -- these are the things that are behind the numbers that we really...

ROMANS: There's been a recession for these groups long before this recession.

MASON: Yes.

ROMANS (voice-over): How long? Since the Labor Department started keeping those records in the 1970s. Black unemployment topped 20 percent in the 1983 recession, and the only time the gap between races narrowed was during the huge jobs boom of the 1990s. And now, joblessness is rising again for everyone. William Rogers was chief economist in the Clinton Labor Department.

WILLIAM ROGERS, FORMER CHIEF ECONOMIST, CLINTON LABOR DEPARTMENT: There's been a chronic 2-to-1 difference between black and white unemployment for several decades.

ROMANS: Economists have long been troubled by the question: Why?

ROGERS: Their rates are higher for a variety of reasons, from having lower levels of education, receiving less training, also facing difficult -- more challenges in terms of getting to the jobs. And then another issue is getting early job experience.

ROMANS: And how do we fix it?

MASON: When we look at reasons for this, we have to look at, you know, issues related to structural and institutional racism. We can look at the high levels of incarceration for black men. Black men not being allowed access to jobs with opportunities for career advancement, jobs that have -- you know, pay higher wages.

ROMANS: Over the past decade, millions of manufacturing jobs have been lost, eliminating one rung of the ladder to the middle class.

Christine Romans, CNN, New York.

(END VIDEOTAPE)

HARRIS: Again, CNN will examine what it really means to be black in America. Watch stories of people stepping up, taking charge and creating solutions. The documentary "BLACK IN AMERICA 2" premiers July 22nd and the 23rd only on CNN.

Our iReporters are joining the conversation about what it means to be black in America. Producer Tyson Wheatley from CNN.com's iReport desk joins us with a look at what people are saying. What are we hearing, Tyson?

TYSON WHEATLEY, CNN.COM PRODUCER: Well, Tony, what does it mean to be black in America? That conversation is under way in a big way at ireport.com right now. And I want to start very quickly with a response from iReport Desire Grover. Listen to what she has to say.

(BEGIN VIDEO CLIP)

DESIRE GROVER, IREPORTER: My dark skin was not a choice. I also don't get to choose how other Americans respond to my dark skin. And despite how I would love to be regarded simply as a human being, the fact is, other human beings just won't allow it.

So, whenever I have a chance, I do my best to make my identity clear. I'm not a (INAUDIBLE), I'm not a spook, I'm not a "darky," and I'm not a Huxtable or an Obama. I'm simply an African-American. But I still prefer being addressed by my first name.

(END VIDEO CLIP)

WHEATLEY: All right, Tony. Just a -- that's a short sampling. That video, in fact, is actually getting a lot of comments right now.

HARRIS: It's strong. WHEATLEY: And we invite you to join that conversation. You know, there are so many ways that you, our CNN viewers, can get involved through ireport.com. And we're tackling several topics, including black education, black leadership, urban farming, even black hair.

And for the past several weeks, we have been asking iReporters to share their family narrative to tell us where their family's American journey began and where it is today. You're looking at some family photos shared by Eric Jackson of Valdosta, Georgia. He was able to trace his mother's family line, the Millers, all the way back to the distant ancestor named Sophie (ph) Miller, who was born in the early 1800s, captured in Africa, brought on a ship and sold to a slave owner in Savannah, Georgia.

He also shares the story of an ancestor who migrated to Liberia with hundreds of other freed slaves after the Civil War and the struggle his great-great-grandfather had becoming a landowner in southern Georgia.

Some truly compelling stories there, Tony. And at CNN.com, what we've done is, we've taken some of these family narratives, and we've added them to this interactive that we have here, and it's basically telling the story of black migration in the U.S.

It's very fascinating, and it really is empowered by your contributions. So, we invite you to join the conversation. And it's easy to get started. Just go to CNN.com/black in America.

HARRIS: That is terrific. That is really terrific.

WHEATLEY: Yes, fantastic.

HARRIS: Tyson, thanks.

Improving your view of the world. It is now just a click away.

(COMMERCIAL BREAK)

HARRIS: Earth like you've never seen it before. A new project from NASA gives us an unprecedented picture of our planet Earth. Rob Marciano is joining us. Josh Levs is here to show us the new view. Boy, this was the hit of our morning meeting, Josh.

JOSH LEVS, CNN CORRESPONDENT: It's really cool. And do you know what, it's one of the stories on dot-com right now.

HARRIS: OK. Not surprised.

LEVS: I love when there's just cool stuff that you don't see coming that (INAUDIBLE).

HARRIS: And Rob should have been at that morning meeting, by the way.

LEVS: Yes, Rob, where were you? ROB MARCIANO, AMS METEOROLOGIST: I should have -- I'm very busy. And, you know, if it's free, then I'm not interested.

(LAUGHTER)

MARCIANO: What have you got, Josh? I'm sure it's cooler than what I have.

LEVS: Oh, man, let's zoom in before people start to realize it is. But you want to check it out. Go right to CNN.com. You can't miss it.

But check that out. It's so cool. This is -- here's what they did. NASA worked together with one of the ministries in Japan. They stitched together 1.3 million satellite images at Death Valley in California of these ultraspecific views of different parts of earth, right? They kind of smushed them together so you get one complete picture.

Now, we're looking at part of Bhutan right here. They also put it together into a video so you can watch as we scale over part of California here.

And what they do is, as they're going, they tell you specific landmarks to watch out for. They could show you specific blocks of mountains, even specific highways all along the way. It's all up there at nasa.gov. Ninety-nine percent of the earth. How about that, Rob? Not too bad, huh? Come on.

MARCIANO: That's sweet.

HARRIS: That's good-looking stuff.

LEVS: Thank you. This is all I'm saying.

HARRIS: Yes, it's good.

LEVS: Yes. One of the top stories right now on CNN.com. Just click on it. We've got all the links for you right there.

HARRIS: What do you have up there, Rob?

MARCIANO: Well, now I'm not even going to show you this, because this is like, you know, playing with cartoons, you know, the stuff that we have here. So, as soon as you can integrate that into our weather system, Josh, then you and I can be friends again, OK?

LEVS: Oh, man.

HARRIS: Very nice.

MARCIANO: Is that why you brought me in here, Tony, just to show me up?

HARRIS: I thought there was something different that was about to happen. LEVS: How often do we get to do that.

HARRIS: But, sorry, Doctor.

MARCIANO: All right, guys. Josh, that is sweet. I appreciate it. Always love that new technology. This is the old stuff.

(LAUGHTER)

MARCIANO: Earthquake in Greece, just south of Crete, 6.4. I showed you that earlier today. Just felt some rumblings across the old city there.

(WEATHER REPORT)

HARRIS: We are integrating. We are making sure that we download all of that new -- I promise you, brother, there was a different plan hatched earlier. All right, Rob, thank you.

MARCIANO: All right, man. See you.

HARRIS: Here's what we're working on for next hour here in the NEWSROOM. Vowing to fight on. An Iranian opposition leader is refusing to recognize a government led by President Ahmadinejad. CNN's Reza Sayah is at the Iran desk with reaction from the government.

Plus, a sit-down interview with the president of the American Medical Association. What he thinks about the government-sponsored health care plan.

And check this out. What's on the other side of this Twitter link? Could it be pornography? That is all coming up in the next hour of CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: You know, roughly half a dozen states are racing against the clock to get their budgets passed as lawmakers frantically try to avoid a total government shutdown. Susan Lisovicz is at the New York Stock Exchange with more on which states are down to the wire and the consequences they face. Good to see you, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Good to see you, Tony. Well, state revenues have been evaporating in this recession. That has many local governments facing difficult budget decisions, and sometimes that results in stalemates.

California, Mississippi, Illinois, Pennsylvania and Connecticut missed their state deadlines, while Ohio, Arizona and Indiana were each able to reach eleventh-hour agreements late yesterday. It's pretty typical for things to come down to the last minute, Tony. As of Monday afternoon, 32 of the 46 states that had fiscal years that ended yesterday still were at an impasse. Most of them were able to come to agreements, but not all -- Tony.

HARRIS: Yes. Susan, what's the biggest source of disagreement?

LISOVICZ: Well, it's not surprising, Tony, that it revolves around taxes.

HARRIS: Sure.

LISOVICZ: I mean, that's -- the states are lacking taxes, whether it's from companies or individuals, because of this recession. So, the focus is on whether they should be raised in order to bridge the budget gaps. California Governor Arnold Schwarzenegger says he won't raise taxes beyond what's already been proposed, and that Democrats should just forget about it.

Well, Democrats are in the majority in the Legislature, and one of the things about California, Tony, is that it requires a supermajority. So, imagine a massive budget -- their budget exceeds a trillion dollars, and it requires two-thirds agreement to pass the massive budget. So, it's problematic. And you have, of course, a Republican governor -- Tony.

HARRIS: How do you get yourself as a state in this condition? But the gridlock, you just mentioned it. What happens to the people who work for the states that missed their deadlines?

LISOVICZ: Well, they're going to feel it very quickly. In Pennsylvania, Tony, state workers will receive only partial pay on July 17th, and July 24th, paychecks will then be completely withheld until a deal is reached. Governor Ed Rendell, however, says that a group of banks and credit unions have agreed to offer the nearly 70,000 state employees their low- or no-interest loans and lines of credit.

And in California, there will be IOUs issued to state contractors, welfare recipients and low-income seniors who rely on state services. Last time I checked, a landlord does not take an IOU. Mr. Harris, let me just give you a quick run of the numbers here. The Dow, the Nasdaq, S&P 500, all starting the month of July on a nice note here, all up at least 1 percent -- Tony.

HARRIS: That is awesome snark! Very good, very good Susan. See you in a couple minutes. Thanks.

LISOVICZ: You got it.