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Senate Bill to Vote on Concealed Weapons; Caring For The Uninsured; Tide Changing on Wall Street; The Education Gap Between Blacks and Whites; Passage of Health Care Reform By August Looks Unlikely; Death Row Inmate's Guilty Verdict Questioned

Aired July 22, 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: Here's some of the other stories we're watching. The NFL commissioner said the league will look into the case against Pittsburgh Steelers star quarterback. A woman has accused Ben Roethlisberger of raping her in a Lake Tahoe hotel last year. The athlete's lawyer denies the charges.

The air is getting a bit pungent in Canada's biggest city. Its been 30 days, an entire month, since garbage workers in Toronto went on strike. Still no sign of a compromise with the city.

In Australia, two hundred forty volunteers are rolling up their sleeves for a vaccine that will hopefully protect them against swine flu. This is the world's first human trials of the vaccine. Two drug makers said they hope to have enough initial results in by October so the government can distribute it to everyone.

We begin this hour with the battle over health care reform. The debate involves you and every other American, but it's being fought mostly in Washington. Facing more criticism, even from the president's fellow Democrats now. President Obama is taking his case direct three the American public in a primetime TV appearance.

White House correspondent Suzanne Malveaux is joining us with the very latest. Good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Heidi. White House aides said this is the best strategy, to put the president forward to talk directly to the American people. We are talking about the fourth primetime press conference in his first six months in office. We are going to see the president later today meeting with Iraq's prime minister, Nouri al-Maliki, to discuss the progress being made there.

But tonight, Heidi, it is all about health care reform.

(BEGIN VIDEO CLIP)

MALVEAUX (voice-over): President Barack Obama is raising the stakes. Using a primetime news conference to throw all his weight behind health care reform.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: But make no mistake, we are closer than ever before to the reform that the American people need and we're going to get the job done. MALVEAUX: Facing skeptical lawmakers, including members of his own party, the president's strategy consists of private arm twisting and public scolding.

OBAMA: Time and again we've heard excuses to delay and defeat reform.

MALVEAUX: Using his popularity and politicalcapital early in the game.

OBAMA: I don't want you to feel old.

MALVEAUX: With town halls, TV interviews and primetime aimed at building momentum and creating a sense of urgency to get health care legislation on his desk by mid-August.

OBAMA: We have traveled long and hard to reach this point, I know that we have further to go.

MALVEAUX: Some say a risky strategy.

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: I think from his point of view, there are many in the public who would like to hear from him and also just sitting down and negotiating out the plan. You know, what they look for is a leadership that says here's where we're going to go. Not a leadership that says I'm encouraging Congress to make more progress.

MALVEAUX: The effort comes amid recent polls showing approval for Mr. Obama's health care plan dropping below 50 percent and Americans now split over his handling of the economy. Republicans are seizing the moment.

MICHAEL STEELE, RNC CHAIRMAN: We want a fundamentally reoriented one-sixth of our economy in two weeks. That makes no logical sense to me.

(END VIDEOTAPE)

MALVEAUX: Heidi, one Of the thing that the White House has been actively involved in is trying to figure out who would actually be taxed, just how wealthy or how rich one would be in terms of that surtax to help out what health care reform costs. Democrats talking about people who made 280,000 plus dollars over a year or so. The White House engaged in looking at something that perhaps is a bit higher and making it more palatable for folks who are looking at that class, the middle class and the wealthy to determining who is actually going to pay for all of this.

COLLINS: OK. Very good. We know that tonight, this press conference that the president is holding is part of a sell job here. Is this likely the last one we'll see or are there going to be a lot more of them? Is this his last chance? What do you think?

MALVEAUX: Well, you know, he's going to be very much high exposure. We're talking about tonight, we're talking about tomorrow and takes the act on the road in northern Ohio. Likely this is just going to keep happening. This drumbeat because they believe that if you put him out there and talk directly to the American people, that this is an opportunity to really sell this. The timing of this, the high profile, certainly no mistake. What they were hoping for, Heidi, was that he would have sort of a good news announcement that he could bring forward today.

Obviously, he is going to be talking about some of the progress that is being made, but they recognize, as well, even the press secretary Robert Gibbs saying that after the August recess they're still going to have a lot of work to do when it comes to health care reform that this is really just the beginning of this.

COLLINS: Yes, sounds like it. All right. Our White House correspondent Suzanne Malveaux. Thanks, Suzanne.

MALVEAUX: Sure.

COLLINS: On Capitol Hill, Democrats know the clock is ticking and momentum may be slipping away. We get that view now from CNN's congressional correspondent Dana Bash.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Sometimes body language is more telling than words.

SEN. MAX BAUCUS (D), FINANCE CHAIRMAN: We're making significant headway. I'm probably more upbeat and optimistic about where we are now compared to earlier.

BASH: Senate Finance chairman Max Baucus wouldn't give details about why he's more upbeat about bipartisan health care talks, but Senate sources say negotiators are considering one new idea for a vexing problem, how to pay for costly health care reform. The president and other Democrats have nixed, imposing a new tax on some Americans employer-based health care benefits.

SEN. JOHN KERRY (D), MASSACHUSETTS: Health care plans that actually has transformative...

BASH: Now instead democratic senator John Kerry is proposing a tax on health insurance companies only on their high costs, so called Cadillac plans. Intrigued Senate negotiators say it could help with two goals. Paying for health coverage for more Americans and reducing medical costs.

SEN. KENT CONRAD (D), NORTH CAROLINA: Economists of every strife have told us this is one of the things that you need to do to bend the class curve in the right way to reduce over utilization.

BASH: The president isn't ruling out the idea and even raised it unsolicited in an interview with the "News Hour."

OBAMA: I haven't seen the details of this yet, but it may be an approach that, you know, doesn't put additional burdens on middle class families.

BASH: But some sources at labor unions helping block the idea of taxing employee-based benefits tell CNN they also oppose a tax on insurance companies, even if it is strictly targeting the most expensive health plan.

(on camera): Democrats here on Capitol Hill appear to be increasingly frustrated with the president. We're not giving them specific enough direction on health care reform, which is his top priority. One democratic senator told me he was baffled and another senior democratic source said while they appreciate him ratcheting up the rhetoric, what they want is for the president to weigh in and make decisions on some of the issues that are vexing them here. Dana Bash, CNN, Capitol Hill.

(END VIDEOTAPE)

COLLINS: Join us tonight for live coverage of President Obama's news conference that is scheduled for 8:00 Eastern, 5:00 Pacific.

The president's money men have their eyes on the road to recovery. This hour, Federal Reserve chairman Ben Bernanke is back for more give and take with lawmakers. A live shot for you there.

Yesterday he told them that the economy has started to show signs of stabilizing. White House budget director Peter Orzsag will be in New York this afternoon. He'll update the Council on Foreign Relations on the state of our economy and Washington's efforts to restore fiscal responsibility. And expect more blunt criticism from Neil Barofsky who overseas the $700 billion troubled asset relief programs or TARP as you know it. Here's what he told CNN's AMERICAN MORNING before heading back to the Hill.

(BEGIN VIDEO CLIP)

NEIL BAROFSKY, SPECIAL INSPECTOR GENERAL, TARP: The original point of the TARP when it was first announced was to take $700 billion of toxic assets off the books and records of banks. That obviously has not happened.

One of the other goals was to increase lending, I don't think that happened either, although I think there may be far greater decrease in lending absent the TARP. So it really depends on what your definition of success. If it was to avoid a systematic failure and complete collapse of the financial system, I would say the TARP along with other programs may have achieved that goal.

(END VIDEO CLIP)

COLLINS: Barofsky is set to appear before a House subcommittee a little bit later on this afternoon.

President Obama is scheduled to meet with Iraq's prime minister this afternoon, security and reconciliation are expected to be the major points of their discussions. It's their first meeting since U.S. troops pulled out of Iraq's major cities. The president and Prime Minister Nuri Al Maliki will hold a joint news conference following that meeting at about 3:00 p.m.. We will bring that to you live when it happens.

A series of deadly bombings in two Iraqi cities. 22 people died in the attacks on Tuesday in Baghdad and Ramadi. Baghdad alone was rocked by at least seven explosions. Several marketplaces were targeted including one field with day laborers. A bomb also went off near the entrance to the green zone, the home to key Iraqi government offices and the U.S. embassy.

Vice President Joe Biden heading from Kiev, Ukraine to Tablisi, Georgia today. His focus, Russia's influence on former Soviet nations. Biden met yesterday with Ukraine's president. The vice president told reporters he rejects Russia's push for more influence over former Soviet nations. He says no nation should veto another nation's choices.

Secretary of State Hillary Clinton hitting the security highlights in Thailand today. She is attending a security conference in the country with her counterparts from China, Russia, Japan, and South Korea. On North Korea, Clinton said permanent dismantling of the nation's nuclear program was the only option.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: We do not intend to reward North Korea just for returning to the table. Nor do we intend to reward them for actions they have already committed to taking and then reneged on. The path is open to them and it is up to them to follow it. Unless and until they do, they will face international isolation and the unrelenting pressure of global sanctions.

(END VIDEO CLIP)

COLLINS: Secretary Clinton also offered a warning to Iran saying the U.S. won't wait forever for Iran to come to the negotiating table.

A fast-moving storm lit up the morning sky in Phoenix, dumping more than an inch of rain in just a couple hours. There are reports of downed power lines and a few traffic accidents. Officials say the storm quickly gave way to clear skies yesterday, but it's now the wet season. So there's a chance there could be another storm later on today. Just the guy to tell us more, Rob Marciano standing by with a look ahead.

ROB MARCIANO, AMS METEOROLOGIST: We always talk about how Phoenix is 100 some degrees and a dry heat, but there's a time of year about a month and a half to two months, right around now where they get that monsoon flow and it's actually humid and pretty swampy. I know it would be hot again today with a threat of seeing showers and thunderstorms, but most of the weakness in the atmosphere has moved towards New Mexico, but around Phoenix, we're seeing a little bit of showers trying to pop up. So we'll see a few of those later on today.

This is KMOV. I'm doubtful about that, but this is a Vegas shot where temperatures there will easily get up in over 100 degrees today, as well. Probably not much in the way of showers and thunderstorms. We're seeing a fair amount across the Sabine River, across the Mississippi and across central Louisiana and through Mississippi, Alabama, as well and then up towards parts of the Tennessee Valley.

Right now, they're not terribly strong but it may get a little bit more punch as the afternoon wears along. Nashville heading up towards Columbus, Ohio, and Cincinnati and also seeing some rain. Chicago might see a thunderstorm or two develop, but I think for the most part will be dry. Warm out west and maybe 10 to 15 degrees above average and cool again across the western Great Lakes today. And we'll see temperatures into the 70s and daytime highs down in Texas in the 90s, although near the border it will be well up and over 100 degrees again today.

Let's talk about that eclipse. Didn't see it here, but they saw it across parts of Asia. A magical experience if you got a clear shot of it. There were spots where it was shrouded but there it is peeking out of the other side of the moon as that sucker blocked the sun. It just blows my mind. I never witnessed a complete solar eclipse.

COLLINS: Really?

MARCIANO: Well, they're not as frequent as the lunar eclipses are. But a lot of people, they go hunt them down.

COLLINS: But was it this one only in this century, isn't that right?

MARCIANO: Well, it was the longest and largest because July is when the sun is farthest away and it just so happens that the moon during this particular orbit is pretty close to us. So, by relatively speaking gives you about a six minute or so...

COLLINS: That horn that I keep hearing, did that happen, do you think in real life? There's a horn and then the (INAUDIBLE).

MARCIANO: I don't know. I like that horn. It's like the king is showing up.

COLLINS: All right. Rob, we'll come back and find you a little later on.

MARCIANO: All right. See you.

COLLINS: Black protesters and white supremacy groups go head-to- head in Texas. Why a case of perceived racial injustice could tear a small town apart.

(COMMERCIAL BREAK)

COLLINS: Tempers flaring and tensions rising in Paris, Texas.

Black protesters clashed with white supremacy groups over the death of a 24-year-old African-American man that they believe was run over by a truck, dragged and killed. Olso Dos (ph) from our affiliate KTXA has the story from Paris, Texas.

(BEGIN VIDEOTAPE)

OLSO DOS, KTXA-TV CORRESPONDENT: It started out as a peaceful protest.

UNIDENTIFIED MALE: Someone has to stand up.

DOS: Brandon McClellan's family joining others in rallying for justice. His family says the 24-year-old was run over by a truck and dragged more than 70 feet in September.

JACQUELINE MCCLELLAND, MOTHER: What I'm really learning is justice does not prevail. I need to know the truth.

DOS: Just a few hours into the protest the screaming and chanting intensified. The tension was intense between black separatists and white supremacists.

UNIDENTIFIED MALE: Cross that street and we will give them exactly what they came to cross the street for.

DOS: Protesters were warned to stay separate.

UNIDENTIFIED MALE: Do you understand?

DOS: At one point police formed a wall to keep the two apart. But before the day was over, two men were arrested for disorderly conduct.

UNIDENTIFIED MALE: Brian Crostley, my home boy, Shannon Finley is my home boy.

DOS: Shannon Finley and Charles Ron Crostley were charged with the murder. The charges were dropped last month.

MCCLELLAND: He didn't take a step out there and showed and (inaudible). Somebody did this.

(END VIDEOTAPE)

COLLINS: Prosecutors initially charged with two men with murder but they dropped the chargers when a truck driver said he may have accidentally run over McClelland.

A resounding yes from voters in Oakland, California to tax medical marijuana. The landslide vote yesterday makes Oakland the nation's first city to tax proceeds on the sale of medical marijuana. The man who runs Oakland's largest cannabis dispensary was among those backing the measure. Oakland's pot tax could generate from $300,000 to $1 million in annual revenue. Some advocates hope it will even lead to legalizing pot for recreational use.

Packing heat. A vote is expected in the senate today on a measure that would allow people with concealed weapons permits the right to carry guns across state lines. CNN's Brianna Keilar looks at both sides of this controversial issue.

(BEGIN VIDEOTAPE)

BRIANNA KEILAR, CNN CORRESPONDENT (voice-over): In Vermont a 16- year-old can carry a concealed weapon without a permit but when a Vermonter crosses into neighboring New York, home to some of the strictest gun laws in the country, that right evaporates. Senator John Thune, a republican from South Dakota wants to change that. He is pushing an amendment that would allow people with concealed weapon permits from their home states to carry their gun into other states that allow concealed weapons.

SEN. JOHN THUNE (R), SOUTH DAKOTA: Since criminals are unable to tell who is and who is not carrying a firearm just by looking at a potential victim, they're less likely to commit crimes when they fear that they may come in direct contact with an individual who is armed.

KEILAR: But New York's Chuck Schumer and other Democratic senators representing states with large urban areas says changing the law will put Americans in danger.

SEN. CHARLES SCHUMER (D), NEW YORK: If the Thune amendment is adopted, this hypothetical Vermonter would be free to stroll through Central Park or Times Square with a backpack full of loaded guns.

KEILAR: 450 mayors from across the country also oppose the change, including New York City Mayor Michael Bloomberg.

MAYOR MICHAEL BLOOMBERG, NEW YORK: This flies in the face of states rights, it flies in the face of what, in fact, the NRA has always argued that states should be allowed to set their own regulations, own laws and not have anybody else do it.

KEILAR (on camera): Like many Democrats who will vote yes on this, Harry Reid is from a western state, Nevada in his case, where there is a strong tradition of gun ownership and also some heavy political consequences for bucking the will of gun rights supporters in the National Rifle Association. And we are told by republican top aides, as well as democratic top aides they expect this expansion of gun rights will pass the senate. Brianna Keilar, CNN, Capitol Hill.

(END VIDEOTAPE)

COLLINS: OK. So, gun control providing lots of ammunition on our blog this morning. That question, once again. Should people be allowed to carry their concealed weapons across the state lines? Just go to cnn.com/heidi, click on that page and you can put your comments there. Also, I want to remind you that we have this new thing, check it out. "Hotline to Heidi." You can call in and tell us what you think. Leave your message on 1-877-742-5760. We will read or hear some of your responses a little bit later in the show.

No job, no health care and diagnosed with cancer. We're taking a look at the uninsured in America.

COMMERCIAL BREAK) COLLINS: The fight for health care reform rages on in Washington with the president gearing up for a major push tonight. Watching closely, the millions who are sick right now with no insurance. Senior medical correspondent Elizabeth Cohen is joining us now to talk a little bit more about this. Hi there, Elizabeth.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Hi. You know, many of us are following the health care reform debate, but if you don't insurance right now, I bet you're following it even more closely than anyone. And I spoke to one such woman. She doesn't have insurance and she does have breast cancer. Let's hear her story.

(BEGIN VIDEOTAPE)

COHEN (voice-over): In early 2008, life was going great for Pamela Rinchet(ph), she had a good job and was about to get married. Then in March of 2008, the plant where she had worked for more than 20 years in Sarasota, Florida, shut down and she lost her job. And with it, her employer-paid health insurance.

PAMELA RINCHET: I was upset but I thought I'd be all right.

COHEN: But two months later, an even bigger bombshell.

RINCHET: I found out I had breast cancer.

COHEN: The government stimulus bill helps her pay for Cobra, which allows her to keep her employer's insurance but only for a limited period of time and that insurance doesn't pay for everything. Rinchet(ph) is $20,000 in debt because of her medical expenses. One doctor has refused to see her until she pays her bills.

(on camera): When people don't have health insurance, they often end up here in the emergency room and that costs all of us. It's one of the major reasons why insurance premiums have sky rocketed.

DR. KATE HEILPERIN, EMERGENCY MEDICINE, EMORY UNIVERSITY HOSPITAL: In many respects we all have paying for the uninsured. Those who don't have health insurance are actually impacting those who do.

COHEN (voice-over): And despite efforts from the president, Congress and others -

RON POLLACK, EXECUTIVE DIRECTOR, FAMILIES USA: I think there's no question that it is likely to get worse before it gets better.

COHEN: As for Pamela Rinchet(ph, she's done with her chemotherapy and for now she's cancer free, but more surgeries lie ahead.

RINCHET: I just try to keep a positive attitude.

(END VIDEOTAPE)

COLLINS: So, Elizabeth, when you watch that, I mean, I think in our hearts everybody wants to help her, but then you have to think about your own personal situation, I guess, and your own family and can you afford to try to help out someone else and then make sure that your family is also taken care of.

COHEN: That's right. Some would say that there is a possibility that people who have health insurance would be affected in some way. Their insurance might possibly change, although I think the Democrats would argue with that. You might be paying higher taxes, again, some people would argue, but it's a possibility.

So you want to ask the question, well gosh, how do people feel about health care reform? How do they feel that it's going to affect them? So let's take a look at some poll results. The first one is a "Washington Post" poll. It's about a month old at this point. But the question was asked how concerned are you about your family's health care future? And it's interesting that almost 60 percent of people said that they were indeed very concerned.

The second one says, asked the question, if Obama's health plan is passed, your family would be better off, worse off or about the same? More than a third think they're going to be worse off and only 20 percent think they're going to be better off, about half think they're to be about the same. So I think that's very interesting that only a third think they're going to be worse off.

Here's another question. This one is also from a CNN poll. If Obama's health plan is passed, the amount you pay for medical care would increase, decrease or stay the same? More than half think it's going to increase. So there is definitely - there appears to be, from this poll, a perception that you're going to be paying more after health care reform, that your family situation could very well get worse. When you're feeling that way, are you willing to help out others? That's a little iffy.

COLLINS: Yes, definitely. I know you talked with a lot of people on this, people who are decision makers and people in the health care industry and those who are analysts. What are they going to be listening for tonight?

COHEN: Well, they're going to be listening for is to hear what Barack Obama has to say. Is he going to repeat the same thing? Sort of what is the point of heath care reform or is he going to get a little bit edgier because he now has a little bit more of a fight than he did have a month or two ago.

Is he going to change any kind of the wording that he has used in the past and, also, there's still this sort of thought out there that somehow America is going to go to a Canadian-style of health care. That the U.S. is going to be like England. We're going to go to a single payer system? Is he going to try to sort of squash that as he has in the past? Is he even going to step that up?

COLLINS: Yes. All right. Well, it's there for the watching. That's for sure.

COHEN: That's right. COLLINS: And we're going to have it right here on CNN. Thank you, Elizabeth. Appreciate that. And a reminder about tonight. You can join us for our live coverage of President Obama's news conference scheduled for 8:00 Eastern, 5:00 Pacific.

Tough love, straight talk, success is the only option. We'll introduce you to a principal whose innovative school has sent 100 percent of its graduates to college. It's part of our new documentary, "Black in America 2."

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: On Wall Street, there have been signs that the tide is changing. After all, banks like Goldman Sachs, JPMorgan Chase and Bank of America have all reported better-than-expected earnings this month. But, there's always a but, today's reports are a reminder that things are still quite fragile.

Susan Lisovicz standing by at the New York Stock Exchange with the details. Hi, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. After all, it's been called the financial crisis. Everybody is interested in knowing how financial companies, especially giant financial companies are doing.

So, let's start with Morgan Stanley. Well, it's on a roll, unfortunately, not a good roll. Third straight quarterly loss. It lost $1.2 billion. Think of it. Three months, $1.2 billion. I should mention, though, a good chunk of that was a charge for repaying the government TARP.

Wells Fargo, a different story. Its profits soared more than 80 percent in a three-month period. It actually was a record for the company. Both stocks under pressure right now. Morgan Stanley shares are down five and a half percent. Wells Fargo off one and a half percent, and the averages are bobbing and weaving.

Right now, the Dow is down, but just modestly after a seven-day win streak. The NASDAQ is up, helped buy those Apple shares which you were talking about. Apple on a very positive roll with its quarterly reports. Heidi?

COLLINS: Yes. Sounds like it. Wells Fargo, this 80 percent jump in profit. I mean, it sounds good, but you have to consider where they started.

LISOVICZ: Well, you know, I think one of the things that you always look at what happened in the last quarter and going forward. I think there is a big question as to sustainability, and also some of the other issues that loom out there.

For instance, Wells Fargo still dealing with big problems in the real estate market, particularly the commercial real estate market. And we should say, also, that's the same thing with Morgan Stanley. Also, Wells Fargo taking more provisions for credit losses. After all, the unemployment rate is rising.

Morgan Stanley saying it saw some improvements in its key investment banking business, but, obviously, not doing the gangbuster's business like some of its competitors, like Goldman Sachs, for instance, are doing. A lot of people talking with the problems of commercial real estate markets. Ben Bernanke talking about it. He may talk about it again today.

I don't know if you saw the headlines about the Watergate Hotel -- failed to get any bids at an auction yesterday. This famous, or infamous hotel, fell back into the hazardous lenders. That's another example of the problems out there in the commercial real estate market. Guess who's got exposure to it? Big financial companies like Wells Fargo and Morgan Stanley.

COLLINS: Yes. Certainly a place with all that history, you would have thought somebody might have bid on it. Susan, we'll check in later on.

LISOVICZ: You're welcome.

COLLINS: Finishing high school and going to college. It is part of the American dream, but African-American students fall behind whites in this achievement, partly because of higher dropout rates. In fact, in 2007, nationwide, 5.3 percent of whites dropped out of high school compared to 8.4 percent of African-American students.

Joining me now is Dr. Steve Perry, the author of "Raggedy Schools" and founder and director of Capital Preparatory Magnet School in Connecticut. And, boy, oh, boy, have we heard a lot about that place.

Thank you for being with us, Dr. Perry. We appreciate your time here, as always. I want to ask you off the top, what is your secret? Because you guys have 100 percent graduation rate, and then of those kids that graduate, they all go to college, too. What's the deal?

DR. STEVE PERRY, AUTHOR AND FOUNDER, CAPITAL PREPARATORY MAGNET SCHOOL: Well, 100 percent of our graduates go on to four-year colleges. What the deal is, is our school was designed to be successful. We're a year-round school because there's no reason for children to be home during the summer except to give teachers the time off. We're designed to be successful because our day is longer and more important than that, we're designed to be successful because we don't just focus on the academic side, we focus on the affective side, which means that every child needs to know that somebody is both watching and loving them.

COLLINS: And caring.

PERRY: Quite a bit.

COLLINS: You have longer days, you have no summer, you ever get any flak from the kids? PERRY: The kids don't want to be home. After about a day and a half of swinging that Wii around, they don't know what else to do with themselves. In fact, what often happens is the kids will call us and ask us if there is something they can do. When the kids know you love them, they'll do anything virtually anything for you.

COLLINS: Well, I know one of the mangles from the No Child Left Behind law was to reduce this achievement gap that we keep talking about. In your eyes, has it worked? We're talking about the differences in achievement from blacks to whites.

PERRY: There is an unconscionable difference between the performance of African-American children and white children...

COLLINS: Why?

PERRY: ... and the reason why is because our children, for the most part, are going to the worst -- some of the worst schools in America. And we accept the achievement gap as if we accept weather. It's hot outside, so it's just that way. Nothing we can do about it. It's a fete de compleat.

When the fact remains that we know how to run successful schools. We know that large, ineffective schools -- large urban schools are ineffective. We also know that in the suburban schools, African- American children are being outperformed by every single group.

So, it's not just the design of the school, but it's also our parents. Our parents have to value education. Black parents have to make education as important as we make AAU basketball, as important as we make modeling schools that we pay for. We have to do an audit of our time and resources, and we have to ask ourselves, "What are we doing to make sure education is important in our children's lives?".

COLLINS: What going to happen with all these urban public schools. I mean, just close them up and create more schools? I mean, your school's pretty small, but the success rate is undeniable -- just create more of those?

PERRY: What we can do -- sure, that is the start. But what we can do is have an honest discussion about vouchers. We need to say that every single child needs to have the opportunity to choose his or her school. We agree with Medicaid, which is a voucher, and we agree with Medicare. We agree with food stamps, we agree with Section Eight, we agree with federal financial aid.

COLLINS: Why is that so controversial, though? The school vouchers.

PERRY: Teachers' unions don't want competition.

COLLINS: A-ha.

PERRY: If they get competition, they'll get smoked. I mean it. If they have to compete for our children, they will lose. COLLINS: Well, I know in your book anyway, this "Raggedy Schools" book we've been showing, you talk about why these public schools don't work. It's a very fascinating issue. I wonder what the future is on that. Do you see yourself going to the White House to argue more of these issues?

PERRY: I honestly hope to be part of the solution. My reason why is because I'm fired up. We just had (INAUDIBLE), he's a former basketball player, and he's starting a school in the Sudan. He's at my school right now. I just left him there. And he's a brother who's starting a school, and I'm a brother who's starting a school, and we're working together to make sure that children throughout the world have access to quality education. That's what makes a person feel human, when they have access to the system itself.

COLLINS: I know that you are featured in "Black in America 2." In fact, we saw the piece a little while ago right here on this show...

PERRY: Really? They've been showing that on TV?

COLLINS: Yes. I know. I've never even seen your face before. What do you hope that this documentary or the discussion around it really accomplishes?

PERRY: That's a great question, Heidi. What I want people to do is I want them to look at me, a regular dude, who saw a problem and decided to do something about it. I am one member of a phenomenal team of educators, but I know our community -- and I say our community, I don't mean just the black community -- but our community of people who care about children are inspired as we have taken "Black in America 2" around the country, people have left the screenings inspired, excited about what they can do in their own lives.

That's what "Black in America 2" is about. Having people look at themselves and say, "Where do I fit in in the solution?". Regardless of my hue, how can I help my community out -- my community being the community of America?

COLLINS: Steve Perry, the founder of Capital Prep, a magnet school in Hartford, Connecticut, and the author of "Raggedy Schools." Thanks so much.

PERRY: Thanks, Heidi.

COLLINS: And I want to remind everyone about "Black in America 2." It premiers tonight at 7:00 Eastern with a live show, "Moment of Truth." It includes an exclusive interview with Harvard professor Henry Gates, actually his first TV interview after being arrested after forcing his way into his own house. That's followed by President Obama's news conference at 8:00, and then join us at 9:00 for the first night of a two-evening, all new, "Black in America" event.

Still ahead, breaking down the reforms. What would a health care overhaul mean to you? We'll get a closer look. (COMMERCIAL BREAK)

COLLINS: Concealed weapons and whether people should be able to carry them across state lines. The Senate votes on it today, and it's firing up the phone and blog lines this morning. Here's what Herb from New Jersey has to say.

(BEGIN AUDIO CLIP)

CALLER: I'm for the concealed weapons amendment, with one provisio. I believe it's the responsibility of citizens to be prepared to come to the assistance of law enforcement officials.

(END AUDIO CLIP)

COLLINS: All right. So that's just one of the responses we've gotten, and we're getting a lot of them on our blog this morning. CNN.com/heidi. Let's go on over to the Heidi Mac and look, once again. That question, "Should people be able to carry guns across state lines?" Concealed guns, I should be more specific.

Greg said, "What about someone bringing their legal gay marriage across state lines? I guess states' rights only count when Republicans like what they are fighting for." And then this one from Steven, "A driver's license is valid outside the state of issue. Why not a concealed carried permit?" So, there you go, a couple of our responses in. I got a lot of them this morning.

Just remember, the lines are still open. Go to CNN.com/heidi if you're a blog kind of person, or call the "Heidi Hotline" if you'd like your voice to literally be heard on the air. That number, 1-877- 742-5760.

(COMMERCIAL BREAK)

COLLINS: The battle over health care reform. Here's a quick look at where the debates stands right now. The Obama White House wants to complete passage by early August, but that is looking pretty unlikely at this point. Republicans are objecting to parts of the plan, and there's even reluctance among Democrats in both houses. They say the plan is too costly and too complex to rush.

President Obama has said that Republicans who will pose the plan are putting politics ahead of progress. But, recent polls show that more Americans are having doubts about the reform and whether the country can afford it in such a tough economy.

As politicians wrangle over the specifics, many Americans say, spare me the details, tell me what health care reform means for me. Allison Costic has the breakdown from New York. It is a big question, Allison.

ALLISON COSTIC, CNN CORRESPONDENT: It really is. At this point, Heidi, we don't know what the final bill will look like, but a picture is emerging about how this sweeping reform could affect us all. Let's go ahead and start with the 160 million Americans who now get their insurance through work. If that's you, you probably won't see much of a change. You'll keep your insurance, although it's possible your particular plan could change if your company decides to offer different choices.

At the same time, your premiums probably won't go down. In fact, the Congressional Budget Office predicts premiums will probably keep rising just as they have been, at least initially. Critics argue that all these new options could eventually lead to a shift away from employer-sponsored health care. That remains to be seen, Heidi.

COLLINS: What about people who buy insurance on their own?

COSTIC: Yes. About 14 million Americans fall into that category, and they could seem premiums fall. The bills in Congress create a national insurance exchange, giving you an opportunity to shop for your plan, setting up a more direct competition.

And one of the most controversial elements of the plan involves the government-run option, creating even more competition. Opponents are worried that could put private insurers out of business. The bills also prevent insurers from denying coverage or charging higher premiums because of pre-existing conditions, and that is another reason you could be paying less, Heidi.

COLLINS: What about the 49 million Americans who don't have coverage at all, though?

COSTIC: Those numbers will shrink because those bills will require most people to be insured or pay a penalty. There's help from the government.

The poorest would be eligible for an expanded Medicaid program. If you buy a plan, subsidies for people earning four times the poverty level. So, a family of four making around $88,000 a year could qualify. If you want more information on how you could be affected, go ahead and check out our story on CNNmoney.com. You can see it right there. Heidi?

COLLINS: Allison, sure do appreciate it. Thank you.

And just a reminder. Join us tonight for live coverage of President Obama's news conference scheduled for 8:00 eastern, 5:00 Pacific.

(COMMERCIAL BREAK)

COLLINS: You knew this was bound to happen. The Naked Cowboy throwing his hat into the ring for mayor of New York. He's been in New York's Times Square. You've definitely seen him posing for pictures wearing only a cowboy hat, boots and white briefs. Robert Burck, that's his real name, plans to run a transparent campaign.

There could be more legal trouble for outgoing Alaska governor Sarah Palin. A preliminary state report suggests she may have violated state ethics laws by letting supporters set up a legal defense fund for her. Palin rejects that notion, saying she had nothing to do with the funds. She cites the cost of battling a host of ethics complaints as one reason she's stepping down.

Nearly 20 years on death row for killing a police officer. A number of people said he did it, but most of them are now telling a different story. It's the case of Troy Davis.

(COMMERCIAL BREAK)

COLLINS: Convicted nearly 20 years ago, Troy Davis has come within hours of being executed. Now many people argue the state of Georgia has the wrong guy on death row. Here's CNN's Gary Tuchman.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): It's anything but a routine question.

(on camera): How scared of you are possibly being executed?

(voice-over): But it's relevant. The man I'm talking to, Troy Davis, may soon be a dead man. A jury only took a few hours to decide he was guilty of murdering a police officer in Savannah, Georgia. A few more hours to decide to send him to death row.

Brenda Forrest was one of the jurors.

BRENDA FORREST, MEMBER OF DAVIS' JURY: He was definitely guilty. All of the witnesses, they were able to, you know, to I.D. him as the person who actually did it.

TUCHMAN: The primary reason he was convicted, the witness testimony. The slain police officer's wife agrees.

JOAN MCFAELS (ph), WIFE OF SHOT OFFICER: They were just so adamant about what they saw, when they saw it.

TUCHMAN: But this is how the juror feels now.

FORREST: If I knew then what I know now, Troy Davis would not be on death row. The verdict would be (AUDIO GAP).

TUCHMAN: What she knows now is this. Almost all the prosecution star witnesses have changed their stories. Some saying police pressured them to say Troy Davis did it.

Darryl Collins, one of the prosecution's witnesses, who signed a police statement implicating Troy Davis.

DARRYL COLLINS, PROSECUTION WITNESS AT DAVIS' TRIAL: I told him over and over I didn't see this happen. They put what they wanted to put in that statement.

TUCHMAN (on camera): Twenty years ago this summer, Savannah police officer Mark Macphail was working an off-duty job here. He was providing security at night for this bus station and for this Burger King restaurant that is currently out of business.

There was a homeless man in this parking lot that was being harassed and intimidated. He yelled for help. The officer ran over and seconds later, Officer Mark Macphail was shot and killed. It was tragic, horrifying and chaotic. And two decades later, it all still is.

The man who admitted to harassing the homeless person went to police the next day and told them he saw Troy Davis shoot the officer. Wanted posters went up all over Savannah. A reward offered to catch the so-called dangerous cop killer.

Racial tensions inflamed. After the shooting, Troy Davis was in Atlanta, four hours away. His sister said scared for his life.

MARTINA DAVIS-CORREIA, DAVIS' SISTER: So, when my brother decided to turn himself in, they already had a "shoot to kill" order on him

TUCHMAN: This man, Derek Johnson, a pastor, got in touch with Davis. He volunteered to drive him back to Savannah to surrender. He says Troy Davis insisted he was innocent. The pastor, who has never told the story to a reporter before, was stunned. The D.A.'s office never interviewed him.

(on camera): You're with this man for four hours, you're bringing him back to Savannah in police custody. They never interviewed you?

DEREK JOHNSON, PASTOR: Never talked to me.

TUCHMAN: Never asked you a question about your journey?

JOHNSON: Never.

TUCHMAN: What he said? If he had a weapon? If he admitted to the crime, if he did admit to the crime?

JOHNSON: This was the one case where nobody wanted to know, and I don't think now, looking back, that anybody cared.

TUCHMAN: The pastor is one now of many who believe facts be damned. Troy Davis was going to be arrested for murder. As for the Savannah police, they have always said their witness interviews were taken properly, no coercion. And prosecutors have stood by the conviction.

But a number of witnesses have signed affidavits changing their original testimony. Dorothy Ferrule is one of them. A former prison inmate. She writes, "I was scared that if I didn't cooperate with the detective, he might find a way to have me locked up again. So, I told the policeman that Troy Davis was the shooter, even though the truth was that I didn't see who shot the officer."

And a witness named Jeffrey Sap now writes, "The police came to talk to me and put a lot of pressure on me to say Troy did this. They made it clear the only way they would leave me alone is if I told them what they wanted to hear."

And then there's this woman, who says she purposely left out testimony.

(on camera): Sylvester Coals came up to you after the shooting and said, "Would you hold my gun?".

UNIDENTIFIED FEMALE: Yes.

TUCHMAN: Sylvester Coals. He is the man who admitted harassing the homeless person, the man who fingered Troy Davis, who talked to Tonya Johnson near her old home, across the street from the crime scene.

UNIDENTIFIED FEMALE: He opened the screen door, which this was not here. It was a wooden screen door. This was tore out. He opened the door and set the gun here and shut the door.

TUCHMAN: And you -- did you think he did the shooting?

UNIDENTIFIED FEMALE: Yes, sir.

TUCHMAN: Did you ask him?

UNIDENTIFIED FEMALE: No. But the way he was acting...

TUCHMAN: You were scared to ask him.

UNIDENTIFIED FEMALE: I was scared of him. Still scared of him.

TUCHMAN: Today, you're still scared of him. He's still here in town?

UNIDENTIFIED FEMALE: Yes, sir.

TUCHMAN: Free man?

UNIDENTIFIED FEMALE: Yes, sir.

TUCHMAN: And you see him occasionally?

UNIDENTIFIED FEMALE: I see him.

TUCHMAN: How come you're talking to me? I admire the fact that you are.

UNIDENTIFIED FEMALE: Because I don't want to see this innocent man get killed for something he didn't even do.

TUCHMAN: During the trial, Davis' attorneys tried to convince jurors Coals was the killer. We tried to find Sylvester "Red" Coals to give him a chance to have his say. We talked to family members, but we couldn't track him down.

J. MACPHAILS: I don't believe Red Coals that killed Mark at all. TUCHMAN: Officer Macphail's wife, Joan, who had a 2-year-old daughter and newborn son when her husband was killed, looks at Sylvester "Red" Coals in a very different light.

J. MACPHAILS: Sylvester came forward, and he didn't have to. I also know that Troy ran, and he didn't have to. If he were innocent, he should have come forward.

TUCHMAN: What does she think about people like Tonya Johnson with their new information?

J. MACPHAILS: Five minutes of fame.

TUCHMAN: Pope Benedict has asked for his sentence to be commuted. Jimmy Carter and even death penalty supporter and former Georgia congressman Bob Bark have asked for the case to be reopened.

Troy Davis has been hours away from execution three times only to have the case reviewed. It has now reached the U.S. Supreme Court. If the justices decide not to review the case, Troy Davis could go to the death chamber within days.

Remember when I asked him if he thought he would be executed? Troy Davis told me, no. He has faith in the justice system. A view, ironically, shared by the widow of the murdered police officer.

J. MACPHAILS: We believe in this justice system. We have to believe in this justice system.

TUCHMAN: But she is still waiting for an execution. Gary Tuchman, CNN, Savannah, Georgia.

(END VIDEOTAPE)

COLLINS: President Obama taking his case for health care reform to the American people. I'm Heidi Collins. CNN NEWSROOM continues right now with Tony Harris.