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Closer Look at Auto Safety; Kansas District to Close Almost Half of Schools; Iraq's Political Future; Secret Life of Jihad Jane; Nuclear Program in Question; Buy American Initiative; Severe Southern Storms; Rising Tide of Red Ink; 7-Year-Old's 911 Call Saves Family

Aired March 11, 2010 - 09:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: All right, Kyra and Jim. Have a great day.

JIM ACOSTA, CNN ANCHOR: Hi, Fredricka.

WHITFIELD: Hello to you.

All right, here's what we're covering for the next couple of hours.

Kansas City confronts a radical problem with a radical solution. Shut down about half the schools, lay off hundreds of people, even sell the school board building. This fall is going to be a lot different for parents and students.

(BEGIN VIDEO CLIP)

CARLOS: They have guns. They shoot my mom and dad.

MONIQUE PATINO, 911 DISPATCHER: Right now?

CARLOS: Yes. Can you come really fast?

(END VIDEO CLIP)

WHITFIELD: So think back when you were 7. Would you have kept your cool like he did?

And several Americans get the phone calls they've been waiting for more than seven months now from their loved ones detained in Iran.

And we are also digging deeper into the Jihad Jane story, talking to people who knew her or at least thought they did. Her ex-boyfriend said he can't believe she was doing that and -- or what the feds are saying about it.

And Arwa Damon is in Iraq as the country's political future begins to take shape.

And March weather is living up to its fearsome representation. Rob Marciano will show us the proof.

An evening of terror in central Arkansas. Three tornadoes ripped through the region after dark yesterday, all touching down within hours of each other. At least three people were hurt, two of them critically. One woman described a horrifying scene.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The awfulest roaring I ever heard in my life. And my house felt like it was fixing to crumble right over me.

(END VIDEO CLIP)

WHITFIELD: The storms took down trees and power lines and damaged dozens of homes.

Meteorologist Rob Marciano is in the CNN Severe Weather Center.

So what can we expect today, Rob?

ROB MARCIANO, CNN METEOROLOGIST: Well, not quite that much, we're hoping, but just recently the Storm Prediction Center out of Norman, Oklahoma has issued a slight chance of seeing more of that severe weather, actually back in the area that saw some of that. Maybe just a little bit father to the south.

(WEATHER REPORT)

MARCIANO: We'll talk more about this in just a few minutes.

WHITFIELD: All right, very good. We'll do that. Thanks so much, Rob.

Well, investigators want to get a look at a Toyota Prius that reportedly sped out of control into a stonewall. Police in Harrison, New York say the driver was actually on the way to her Toyota dealer.

Take a listen to the 911 call.

(BEGIN VIDEO CLIP)

911 OPERATOR: Harrison Police 911 Emergency.

UNIDENTIFIED FEMALE: I am calling to report a Toyota Prius just smashed into a wall.

911 OPERATOR: Is she out of the vehicle?

UNIDENTIFIED MALE: Yes. She's shook off.

(END VIDEO CLIP)

WHITFIELD: The driver was not seriously hurt in the accident. Police say they don't think the crash was caused by faulty floor mats or a sticky accelerator. The 2005 Prius is now hot property. Toyota and federal investigators both want to take a look at that vehicle.

So those federal investigators are the focus of a hearing on Capitol Hill this morning as well. The House Energy and Commerce Committee is looking at the role and effectiveness of the National Highway Traffic Safety Administration.

Joan Claybrook is a former NHTSA administrator and now president- emeritus of Public Citizen. She's testifying at the hearing today.

So, Joan, on the heels of these new Prius accidents, what do you hope to hear today?

JOAN CLAYBROOK, PRESIDENT EMERITUS, PUBLIC CITIZEN: Well, I think that what's going to happen is we're going to have testimony about the need to give this agency more money. It's grossly underfunded. Its total motor vehicle program is funded $132 million, which is nothing in terms of running a federal agency.

And also some new authority to impose tougher penalties on manufactures who avoid or delay or do not conduct recalls or violate other provisions of the act.

Also I think that we are going to be talking about transparency, the fact that the agency has been very secretive in the past, and also about new some safety standards, particularly for break override, electronic break override and also a new accelerator standard. The existing accelerator standard is from 1973 and it's totally out of date.

So there are going to be quite a number of these kinds of issues being discussed.

WHITFIELD: And do you think there will be pressure on NHTSA to force a recall, perhaps of all Toyotas?

CLAYBROOK: Well, there could be. The agency is doing a lot of investigating at this point. And it seems that a number of the vehicles that Toyota did not recall are having these problems of sudden unexpected -- unintended acceleration. And because the issue has been so public, it's been possible to get more details about some of these crashes, or runaway cars, and showing that it's not driver fault, in fact, but it's the vehicle itself.

And so I think that's putting a lot of pressure on both the agency and on Toyota to take a longer look at it, a bigger look at what vehicles are involved.

WHITFIELD: Joan Claybrook, formerly of NHTSA and president- emeritus of the Public Citizen. Thanks so much for your time. Appreciate that.

CLAYBROOK: Thank you.

WHITFIELD: And for more on Toyota's troubles, be sure to check out CNN.com. There you'll find all the information on the recalled cars and documents the company really didn't want you to see. There's also advice on how to stop a runaway car. All that is just a click away at CNN.com.

Desperate times, drastic action. A Kansas City, Missouri school district will be closing almost half its public schools in a bid to avoid potential bankruptcy. The school board voted last night to shut down 26 of its 61 schools despite angry pleads from parents.

Administrators say it will help to erase a $50 million budget deficit and it addresses dwindling enrolment. Parents and students are disappointed.

(BEGIN VIDEO CLIP)

PRINCE JONES, WESTPOINT HIGH SCHOOL SENIOR: I feel like I have nothing. I mean I don't even have a high school legacy at all. I have nothing. I have nothing to go back to.

DENEICIA WILLIAMS, PARENT: I have an 8-year-old and a 6-year-old that will be going to school with a 12th grader. And I find that to be very inappropriate. Very inappropriate. I don't feel like my children will be safe.

(END VIDEO CLIP)

WHITFIELD: The schools are slated to close before next school year.

So joining us live now with more on this story is reporter Jena Corrie from our affiliate KMBC.

Jena, we understand the superintendent is going to speak in about 30 minutes or so from now. What do we expect to hear from him?

JENA CORRIE, KMBC REPORTER: Well, a lot of parents, as you can imagine, are looking forward to hearing from the superintendent because, even though they packed last night's school board meeting here at the Board of Education headquarters in downtown Kansas City.

They didn't get to hear a direct response from superintendent, Dr. John Covington. So we're going to be hearing from him in about 20 minutes here. He has scheduled a news conference to answer some of those questions from some of those frustrated parents that did pack into that meeting last night to hear that 5-4 very close vote to again close 26, half of the schools here in the Kansas City, Missouri school district.

WHITFIELD: And apparently there are a lot of jobs at stake as well. And what will come of the jobs that will be eliminated and perhaps the need for other teachers?

CORRIE: Yes, that's right. A lot of jobs. Seven hundred jobs here, 700 employees will be cut in the Kansas City, Missouri district. That's out of 3,000. Of those 285 are teachers so a pretty substantial cut.

This is really far reaching here in Kansas City. A lot of people wondering what will become of the schools as well because these are neighborhood schools. These are and community schools where most of these kids right now walk to school. They don't have the money to drive to school so now they're going to be bussed across town.

So a lot of concern about what will become of these schools. Will they schools be eye soars, boarded up, join crime, join vandalism? So hopefully we'll be getting some answers to those, again, from the superintendent in just about 15, 20 minutes.

WHITFIELD: All right, Jena Corrie, thanks so much from our affiliate KMBC. Appreciate that.

Well, the school superintendent has scheduled that news conference in just a few minutes to talk more about the school closings, as Jena was mentioning. We'll of course be watching and bring you up-to-date.

Iraqis risk their lives to cast their ballots. Some even lost their lives. Today we should start seeing the fruits of that risk and get an idea what Iraq's future will look like.

(COMMERCIAL BREAK)

WHITFIELD: We should get a glimpse today at Iraq's political future. Preliminary results of Sunday's parliamentary election are set to be released.

Let's go now to CNN's Arwa Damon in Baghdad.

So we're hearing now the release of the results might be delayed yet again?

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Actually, Fredricka, this is what's going on right now. At the Independent High Electoral Commission tally center there are a number of screens. On these screens are the rolling results, what is coming out is the results from every single election center from every single province.

So it's going to take quite some time to get through all of that. But so far what we know is that with 30 percent of the votes counted in the two southern provinces of Babel and Najaf, the State of Law Coalition is in the lead. That is the coalition headed by Iraqi Prime Minister Nuri al-Maliki.

It is followed by the Iraqi National Alliance. That is the alliance that is dominated by the country's main religious Shia parties. Not entirely unexpected that these blocs will be fairing very well in Iraq's Shia heartland.

And they are followed by the Iraqia List. That is the coalition that is headed by the former prime minister Iyad Allawi. He was prime minister in 2004, and there you have a secular lineup running on a platform of an out -- of an end to outside interference especially that of Iran's.

Now the race is actually between these three main blocs. We're going to be keeping a very close eye on these results as they continue to get updated -- Fredricka.

WHITFIELD: And now, yet, Arwa, there is another distraction, the Iraqi National Alliance is now accusing the U.S. of trying to rig the outcome. What can you tell us about that? DAMON: That's right. Now according to one of the candidates on that political bloc, Entifadh Qanbar, he is saying that the bloc wants to have the tally seats from every election center made public because they are concerned that perhaps the U.S. could be trying to manipulate the results at the final tally center itself.

Now for a different set of reasons, the Iraqia List wants to make those tally sheets from the election centers made public as well because they are concerned about political pressure that could potentially lead to a manipulation of the final results.

And it really just goes to show you the type of bitter and tense atmosphere that is taking place here. As we've been saying this is proving to be a very close race. And some of these top political parties don't want to see their grip on power become even -- become weakened even further -- Fredricka.

WHITFIELD: All right, Arwa Damon, in Baghdad, thanks so much for that.

Vice President Joe Biden is moving past a perceived Israeli snub. Speaking in Tel Aviv this morning, he explained his condemnation of an Israeli plan for new settlements.

(BEGIN VIDEO CLIP)

JOE BIDEN, VICE PRESIDENT: Quite frankly, folks, sometimes only a friend can deliver the hardest truth. And I appreciate, by the way, the response your prime minister today announced this morning that he is putting in place a process to prevent the recurrence of that sort of event.

And who clarify that the beginning of actual construction on this particular project would likely take several years. A statement he put out. That's significant. Because it gives negotiations the time to resolve this as well as other outstanding issues.

(END VIDEO CLIP)

WHITFIELD: Biden was upset the original announcement came while he was meeting with Palestinian leaders in the West Bank.

Meanwhile Defense Secretary Robert Gates is explaining comments that he made in Afghanistan. He talked to troops about it during a stop in Abu Dhabi.

(BEGIN VIDEO CLIP)

ROBERT GATES, DEFENSE SECRETARY: President Ahmadinejad and I exchanged a few words through the media yesterday. I've talked about Iran playing a double game in Afghanistan, of wanting a good relationship with the Afghan government, but wanting to do -- wanting to make our lives harder. And our efforts more difficult.

At this point, the level of their effort, I think, is not a major problem for us, the level of their support with the Taliban, so far, as best we can tell, has been pretty limited.

(END VIDEO CLIP)

WHITFIELD: During his own stop in Afghanistan yesterday, Iranian president Mahmoud Ahmadinejad questioned American motives in the region.

All right, this spring weather is getting really nasty, and it's not quite even spring yet. Rob Marciano is in the weather center.

(WEATHER REPORT)

WHITFIELD: OK. All right, thanks so much, Rob.

MARCIANO: You bet.

WHITFIELD: A school board didn't like the girl's prom date so what happens? The whole prom cancelled. That story in 90 seconds.

(COMMERCIAL BREAK)

WHITFIELD: Our top stories right now.

Spring and high school prom simply go together, but not in one Northeastern Mississippi community. The school board in Itawamba County has cancelled a high school prom rather than allow a lesbian student to attend with her girlfriend.

The ACLU asked officials to allow Constance McMillen's request but the board said the debate over the problem had become too much of a distraction.

(BEGIN VIDEO CLIP)

CONSTANCE MCMILLEN, WANTED TO BRING FEMALE DATE TO PROM: I am not going to pretend. I wasn't raised like that. I was raised to be proud of who you are. And I don't think you should have to hide who you are to go to a school event.

(END VIDEO CLIP)

WHITFIELD: In women's basketball, the Tulsa Shock's fast break takes on a whole new meaning. Yes, that's Olympics winner, Marion Jones. She has joined the team. Jones won five medals at the Sidney Olympic Games but had them stripped after admitting that she used performance enhancing drugs.

Jones played on North Carolina's National Championship team back in 1994. She was drafted by Phoenix in 2003, but never played in the WNBA.

And she is now known as Jihad Jane, but how was she known to those who were closest to her? A former boyfriend talks about the secret life of an American terror suspect. That story in less than 90 seconds.

(COMMERCIAL BREAK)

WHITFIELD: We have new details now on the American terror suspect known as Jihad Jane. Her new federal indictment is not the first of her troubles. According to a police report, Colleen LaRose tried to commit suicide five years ago. Police say she was upset over her father's death and mixed booze with prescription muscle relaxants.

And next week she faces arraignment on charges that she tried to recruit terrorists online and even planned to carry out an assassination by herself.

In Pennsburg, Pennsylvania, one person who knows her scoffed at the idea saying she didn't have the smarts or brains to pull it off. LaRose's her former boyfriend says the revelation surrounding her arrest are, quote, "really crazy."

So what else did the former boyfriend have to say about her?

CNN national correspondent Susan Candiotti tracked him down for an extensive interview.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (on camera): For this is a man who must bewildered that the woman he lived with for almost six years is now accused of having a dual identity.

(BEGIN VIDEOTAPE)

CANDIOTTI (voice-over): Did Colleen LaRose, AKA Jihad Jane, lead a double life? In an exclusive on-camera interview with CNN, her ex- boyfriend says that charges left him stunned.

(On camera): What do you think when you see her dressed up like that?

KURT GORMAN, FORMER BOYFRIEND OF COLLEEN LAROSE: Can't believe it. It doesn't make sense.

CANDIOTTI (voice-over): The person Kurt Gorman says he knew was a twice divorced woman he met in 2004 on a visit to Texas. They hit it off and she moved to Pennsylvania with him.

(On camera): Did you feel like you really knew her?

GORMAN: Thought I did.

CANDIOTTI (voice-over): But apparently his girlfriend had demons.

A 2005 police report says LaRose attempted suicide mixing pills and alcohol. Gorman did not think she was suicidal.

GORMAN: I know a couple of years earlier after her father passed away from cancer she was very depressed.

CANDIOTTI: The Colleen LaRose he knew took care of his ailing father who lived with them. Not someone who used his home computer allegedly to help recruit and help terrorists overseas.

GORMAN: Didn't seem like her personality.

CANDIOTTI (on camera): In what way?

GORMAN: Well, if you're a nice person taking care of an elderly man there, I mean, that doesn't in my mind go with somebody that wants to hurt somebody else.

CANDIOTTI (voice-over): No one in the small town of Pennsburg outside Philadelphia seemed to know her, yet on the Internet, LaRose made the rounds. CNN found online postings and evidence she tracked groups including Revolution Muslim that advocates attacking Americans overseas.

(On camera): She called herself Jihad Jane.

GORMAN: Yes. I don't know. Doesn't make any sense. I don't know if there's ways that people are manipulated or not.

CANDIOTTI (voice-over): Last August, Kurt Gorman says LaRose bolted a few days after his father died, took her clothes and left without a word. Sometime later he noticed his passport missing and reported it. A month later the FBI showed up. They took his computer hard drive and questioned him.

(On camera): Did you worry that she might be involved in something?

GORMAN: Worried she might not be -- worried something might have been happened to her.

CANDIOTTI (voice-over): A few weeks later, she was arrested after a trip overseas.

(On camera): Anything you'd say to her? Want to say to her?

GORMAN: Hope she's well, and, you know, I just don't understand it. So it's just a shame.

(END VIDEOTAPE)

CANDIOTTI: Next Thursday, Colleen LaRose, AKA Jihad Jane, is scheduled to appear before a judge and is expected to enter a plea at her arraignment. Fred?

WHITFIELD: Thanks so much, Susan Candiotti.

A 7-year-old boy locked himself in the bathroom when gunmen invade his homes. Then things really get scary during this 911 call.

(BEGIN VIDEO CLIP)

911 OPERATOR: When you were in the house tell me exactly what happened, OK? Just stay where you are and don't hang up whatever you do. CARLOS, CHILD: OK. OK. The guys -- they have --

(SCREAMING)

(END VIDEO CLIP)

WHITFIELD: That brave boy survives but got the rest of the story -- we've got the rest of the story, that is, a little bit later.

(COMMERCIAL BREAK)

WHITFIELD: On Wall Street, stocks haven't moved much after reacting to last Friday's monthly jobs report. But today, we have a new reading on employment, the weekly jobless numbers.

Stephanie Elam is in New York with a look at whether it will get stocks moving again.

Hi, Steph.

(LAUGHTER)

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Hi, Fred. Yes, probably not as much as we'd like. Today's employment report is encouraging, though. New jobless claims fell to 462,000 last week, and that's a drop of 6,000. Still it's probably not going to be enough here to give us a positive open.

After all the level is still very high. Ask all the people out there who are without jobs. And investors want to see a sustained decline in jobless claims.

We do have a bit of corporate deal making to tell you about today. BP is paying $7 billion to acquire exploration rights from U.S. based Devon Energy. BP will get the rights to explore off the Brazilian coast, in the Gulf of Mexico and the Caspian Sea.

Meanwhile over at rival Royal Dutch Shell, the company is joining a list of oil giants that has stopped selling gas to Iran. Last month the Senate passed a bill that would allow President Obama to expand sanctions against Iran. All of this is due to increasing concerns about Iran's nuclear ambitions.

Of course the whole idea, Fred, of doing some explorations off the Brazilian coast sounds really good to me, right about now.

As we draw near for the numbers to start, but I can tell you now, the Dow is off 4 points, 10,562, so we are off to a lower open. Although, it is really quite fluctuant at this point.

And finally, Panera Bread will be the first chain restaurant to post calorie information that all of its company owned restaurant. You can expect to see the calorie information popping up over the next two weeks. Some cities have been mandating that restaurants disclose nutritional information, and Congress is considering a nationwide requirement. I don't know from people out there, Fred, if that's good thing or not.

WHITFIELD: I was just thinking the same thing --

ELAM: I want to know that.

WHITFIELD: Maybe, in general, that's really good, but there are some nice little sweet things in there that maybe --

ELAM: Panera Bread, yes.

WHITFIELD: I don't want to know how sinful it really is.

ELAM: Look at all that bread! It's warm, and you have butter and you got your hot chocolate or whatever you want to drink.

WHITFIELD: I know, and the calories just pileup. Yes. Let's not ruin the fun, people. All right. Thanks so much, Stephanie. We appreciate that.

ELAM: All right.

WHITFIELD: Oh, and that soup in a bowl, that looks good, too.

ELAM: Look at that.

WHITFIELD: Please no calorie counting for me. All right. We're back in 90 seconds with President Obama's plan to grow more jobs in the U.S.

(COMMERCIAL BREAK)

WHITFIELD: Buy American. It's not just a slogan. Today, it becomes a major initiative led by President Barack Obama. Putting the entire government behind a plan, the grow businesses and jobs through exports. CNN's senior white house correspondent Ed Henry joins us now. So, Ed why is the White House announcing this initiative and now?

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Good morning, Fred.

I mean, this is largely about the president trying to keep that focus on jobs and the economy. Even as he obviously also spends a heck of a lot of time trying to push health care reform through the final stages on Capitol Hill. You'll remember in the State of the Union Address just a couple of months back, the president set this goal of doubling exports within five years and says that will create about 2 million jobs. But when e-mailing my colleague, Christine Romans, she points out that you're not really going to get there unless we're all stopping the sharp increase of imports from China.

That's really where we see the big trade and balance, so a lot of people are listening closely to the President and see what he has to say in terms of the details, but what we know so far about what he'll say is that he is going to issue an executive order that is going to basically create this trade promotion, export promotion cabinet, within his government. He's going to include official from the State Department, Agriculture Department, and Commerce. All of those are relevant agencies, and secondly, he's going to create sort of this re- establish something that had been in place and had been shut down.

The president sort of export advisory council on outside group is going to run by CEOs from Boeing as well as Xerox to try to have an outside panel, not just of government officials, but business folks who really understand this about how you can improve all of these. I will be listening closely, 11:15 AM Eastern time when the President lays all of this out, but I think as well, when you talk about doubling exports, officials at the Chamber of Commerce for example, already e-mailing out this morning that they've been pushing for a couple of years now for bigger focus on exports.

But they're saying there are a lot of pending free trading group inside Capitol Hill right now that the White House hasn't really pushed that hard on free trade agreements with Columbia, with Korea, with Panama, and so I think a lot of people in both parties will be looking very closely at the details.

The back story here is a lot of business leaders have been coming to White House in recent months having this sort of regular, quiet, behind-the-scenes lunches with the President talking about markets. And what I've been hearing from business leaders is they are frustrated that this White House has not said a lot about trade perhaps because organized labor is not too keen on a lot of these free trade agreements, and so a lot of people are listening closely. This is one of the first time the President has really laid out a trade agenda -- Fred.

WHITFIELD: All right. Ed Henry, thanks so much. We appreciate that from the White House.

So, the President is also meeting with the Congressional Black Caucus to talk health insurance reform. Yesterday, he was in the hard land telling the people that Congress owes them action.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I believe that Congress owes the American people a final up or down vote on health care reform. The time for talk is over. It's time to vote.

(END VIDEO CLIP)

WHITFIELD: Support seems to be building in Congress for a bill that would make health insurance companies get approval from government regulators before they raise rates.

And senators will hold a news conference with a young man who calls himself a health care advocate. He is only 11 years old. Marcellus Owens of Seattle will explain why he thinks the system needs to change. His mother lost her job, lost her health insurance, and then lost her life. She died at the age of 27 of pulmonary hypertension. Owens thinks she would still be alive if she could have afforded health care. And a 7-year-old boy sees his parents held at gunpoint. He called 911 and pleads for help.

(BEGIN AUDIO CLIP)

MONIQUE PATINO, 911 DISPATCHER: Listen to me, where are you at in the house?

CARLOS: Inside the bathroom.

PATINO: You're in the bathroom?

CARLOS: Yes.

PATINO: Who is with you?

CARLOS: It's my sister.

PATINO: How old is she?

CARLOS: Six years old. Can you come really fast, hurry up.

(END AUDIO CLIP)

WHITFIELD: No soldiers needed. The boy takes care of the bad guys all by himself. See how, straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: A dismal economy eating away at school budgets. Now, a Kansas City Missouri school district makes a drastic move. The school board has narrowly approved a plan to close almost half of the district's 61 schools in an urban area of the city. It's all in an effort to save $50 million and addressed declining enrollment. Right now, superintendent John Covington is holding a news conference to discuss the next step for the school district.

And it's not just Kansas city, schools across the country are in trouble. Some are on the brink and many are looking for federal stimulus dollars.

Our Josh Levs is working at the CNN Stimulus Desk. So, Josh some drastic measures that some school districts are taking and many are saying if only they had some federal stimulus money?

JOSH LEVS, CNN CORRESPONDENT: That's right. Yes. It's definitely connects this dot, because there are billions out there, Fred, in the battle. The competition for that money really might be fueling some of the major steps that we're seeing schools take around the country. There's this stimulus fund and program; it's called race to the top, and this is what the education department says about it. They're calling it a $4.35 billion effort to dramatically reshape America's educational system. That's how big this program is.

Now, schools want a piece of that pie, obviously, and this is a race. Forty states applied for that money, and last week, the Department of Education paired that down to 16 finalists. It's 15 states, and Washington D.C. is still on the run, and all later this month, they're going to have to lobby for why they deserve the money. But you know somebody get to this point, they had to show that they were taking steps on their own to turn around their schools, especially the lowest performing ones, and they have to show they were doing things to only have high quality teachers in schools.

Now, in steps, Rhode Island was made headline last month as you know when the Central Fall School District fired every teacher at its high school after it was designated the worst in the state. For months, Rhode Island's education commissioner had said, getting stimulus money for the school was a priority, and this drastic measure won the praise of Education Secretary, Arne Duncan, and it just may have helped them or in a finalist spot in the race to the top.

Now, Fred, Missouri did not make the cut so far, but states are going to get a second chance to apply for this money in a couple of months, and now, they said that they have taken that one particular school district there in Kansas City, it just might help. Officials in Kansas City are saying that one of the reasons they did it is that they want to improve quality. They want to get rid of a bunch of schools in order to improve the quality of the ones that they are keeping, and Fred, the federal government is looking for big steps now in deciding who gets that money -- Fred.

WHITFIELD: And how much money are we talking about?

LEVS: You know, the whole program has just over $4 billion. Just about half of it is going to be used for now, so we're talking about $2 billion that's going to be spent for now to some schools -- Fred.

WHITFIELD: All right. Josh Levs, thanks so much at the Stimulus Desk.

LEVS: You got it.

WHITFIELD: Appreciate that breakdown.

All right. Let's talk nasty weather overnight particularly in some southern states and kind of right positive spring tornadoes and once again coming right through tornado alley. Rob Marciano in the Weather Center. What is happening?

MARCIANO: Well, we have the threat for that happening again today, Fredricka. Last night or yesterday afternoon in through last night we had that happen across Arkansas. And that's where we thought it was going to happen.

The Storm Prediction Center put out a risk for it and then they put out watches for it all day yesterday afternoon. And the spots where we saw those tornadoes break out, right around the Little Rock area, both north and south.

And there was damage done to homes and there was also unfortunately some injuries from this breakout. All right, what we're going to see today is a storm system that's really not progressing very quickly to the east, or at least the kind of the parental low, if you will and then that will keep shooting energy down across parts of the south.

So this is what -- this time of the year that this can happen. And the jet stream is fairly strong down here and not really pushing this guy along. So, severe thunderstorms expected today, later this afternoon. Louisiana and through parts of Mississippi and stretching in through Alabama and also in through parts of Florida, which, by the way, we've got a live picture for you in Miami.

WSPN, it looks a little bit gray, the next couple of days look fairly wet. The CHF which will happen at (INAUDIBLE) the blue monster, golfers top 68 golfers in the world teed up today right through Sunday. The next two days a little bit iffy as far as the forecast goes but Saturday and Sunday look to be nice, 79 degrees in Miami. So that's back to where they should be, but unfortunately that comes with it a chance for showers.

Seventy-six in Houston. Still chilly across parts of the north west; 48 degrees in Seattle and low snow levels yesterday. They are still feeling it as far as when it -- as far as winter goes. It doesn't want to go away. As a matter of fact, Arizona and New Mexico still seeing some mountain snows today from this parental low that continues to sit and spin here.

As a matter of fact, back to Omaha seeing a little of low, but we don't expecting a tremendous of amount of accumulation and not a tremendous amount of rain expected in Chicago. Maybe the next couple of hours you'll see a quick pop of showers and maybe of thunderstorms.

But notice that tomorrow we still see thunderstorms break out across the same area that got it yesterday, the same areas that they are going to get it today, the same areas will get it tomorrow. And then finally, as we get towards the weekend it will start to move up the East Coast and (INAUDIBLE) in New York and Tri-state areas and some of the major metropolitan areas --

WHITFIELD: We have to share a little bit.

MARCIANO: Share a little bit of love. They won't quite see severe weather but they'll see just some nastiness in the way of a high winds and heavy rain for their soggy Saturday.

WHITFIELD: The remnants of --

MARCIANO: Exactly.

WHITFIELD: All right. Rob Marciano, I appreciate it.

MARCIANO: OK, see you.

WHITFIELD: A red flag over red ink. The government sets a new spending record. You and I will pay the price.

(COMMERCIAL BREAK) WHITFIELD: In Washington, the tide of red ink rises even higher. The federal government says February deficit spending sets a new monthly record for overspending. So what does that mean to you and me?

Christine Romans is part of the CNN Money Team. And she's got a lot to cover here on this.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: OK.

WHITFIELD: Where do you begin?

ROMANS: I know. Let's get out our oar and start -- right. OK, look, setting records. We are setting records and these are dubious records to have but it's important that everyone realize what the fiscal situation is.

We are spending as a country much more money than we take in. These red bars show you that in February we spent $221 billion more than we took in. The deficit so far for the fiscal year, that's October, November, December, January and February is now $652 billion. It's a staggering amount of money; 17 months in a row now of deficits.

Again, this is how much money we spend versus what we take in. The recession has just devastated how much money that the government has been taking in. You know, both companies and people can pay less in taxes and that's a real problem here. At the same time that the demands on the government for safety net and for services and for deficit spending just trying to get the economy going again are only rising.

The big categories of spending are really the kinds of things that in politics at least are sacred cows. You're not going to see a lot of pullback in those; health care, social security and defense. We're spending a lot of money on those things and we're spending more money than we take in.

February, though, is typically a tough month. And this is why. Because you have the government starting to write the tax refund checks, so that was part of it. And a little glimmer of hope in there, if you look in these Treasury numbers, Fredricka, that we did see tax revenues increase for the first time in many, many months in the month of February after what has been really a freefall for some time.

So that's a little bit of good news.

But over -- I mean, overall, seriously, a sea of red ink here and the only way to fix it, the only way to correct it, of course, is growth. You need to get the economy growing again and that's one of the reasons why they're spending all this money, to trying to get the economy growing again.

So just kind of a historic situation right now with the deficits.

WHITFIELD: All right, Christine Romans, thanks so much in New York. I appreciate that.

We've got some news that's just now coming in. The Associated Press is reporting that a strong earthquake has rocked Chile. And this just as the new President Sebastian Pinera is about to be sworn in.

Now, again, this earthquake taking place we understand near Santiago. And this is taking place just two weeks after that 8.8 earthquake that rocked that entire region causing the deaths of hundreds and destroying so much. And so once again the Associated Press is reporting yet another strong earthquake to rock Santiago, Chile. We'll have much more on that as we get it.

All right, we also have a lot of news to cover overall and CNN crews are at work to bring you all the latest developments. Let's check in with our reporters beginning with Poppy Harlow of the CNNmoney.com desk.

POPPY HARLOW, CNNMONEY.COM: All right. Well, Fredricka, one year ago tomorrow Bernie Madoff entered his infamous guilty plea. And the SEC shouldered a lot of the blame for just completely missing Madoff. So we wanted to know has anything changed since then? We're digging deeper and finding some answers on that in the next hour.

DAMON: I'm Arwa Damon in Baghdad and we finally have some partial results from Iraq's historic elections. We'll have that story coming up.

MARCIANO: And I'm Rob Marciano in the CNN Severe Weather Center, just checking out this report on the earthquake in Chile, it's a 7.2 magnitude. So this is the strongest aftershock we've seen. It's still an aftershock but by any stretch it's a major quake.

And this one is closer to the capital of Santiago than was the original quake. So we may very well be seeing almost as much damage in the capital from this 7.2 quake. We're going to have much more on that plus a severe weather threat at the top of the hour.

WHITFIELD: All right, thanks so much, everybody.

Also ahead, the storm clouds build, the concerns mount. We'll show you why Haiti may be entering its most fearsome rainy season ever.

(COMMERCIAL BREAK)

WHITFIELD: A 7-year-old's quick thinking saves his family. CNN's Randi Kaye tells us why he's now being called a hero.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): Courage sometimes comes in small packages, like this 7-year-old from California.

CAPT. PATRICK MAXWELL, L.A. COUNTY SHERIFF'S DEPT: I would like to introduce our hero from yesterday's 911 call that may have saved his family's life. His name is Carlos.

KAYE: Carlos, a second grader from Norwalk, California, had a good reason for missing school yesterday morning. Three armed men entered his home through an unlocked front door. They had guns and threatened his mom and dad.

(on camera): Carlos quickly grabbed his 6-year-old sister and hid in the bathroom. From there he made this desperate call for help to 911.

CARLOS: Can you come really fast, please, please.

MONIQUE PATINO, 911 DISPATCHER: Can you tell me what happened?

CARLOS: They come. They ring the door, and they have guns and they'll shoot my mom and dad.

PATINO: Right now?

CARLOS: Yes, can you come really fast? Bring cops -- lots of them.

PATINO: OK, I have them coming.

KAYE (voice-over): 911 operator Monique Patino knew she had to act fast.

PATINO: Listen to me. I have them coming, hon. Listen, OK?

CARLOS: OK.

PATINO: Listen to me. Take a deep breath. I already have the police coming.

CARLOS: And bring soldiers, too. Can you come really, fast? Hurry up.

PATINO: Yes, stay on the line with me. Don't hang up. Listen to me. We're coming to help you, but listen to me, OK?

CARLOS: OK.

PATINO: I couldn't really think too much about the emotion. It was more of the instant reaction. I needed to get help to him.

KAYE: But before help could get there, the suspects figured out someone was hiding in the bathroom. They busted open the door to find Carlos on the phone.

PATINO: Stay where you are and don't hang up, whatever you do.

CARLOS: OK. There was a guy.

KAYE (on camera): When the bad guys asked who he was talking to, the brave little boy told them straight up he called 911. The suspects took off and left Carlos' family intact, nobody injured. PATINO: Once I heard the screams toward the end, I mean, honestly, I'm holding the phone, and I'm in tears. I can barely talk. I'm shaking. I'm in tears, because all I hear is them screaming, and it was very, very tough for me.

KAYE: Carlos told reporters it was his mom who taught him to use 911.

CARLOS: We practice it every day.

UNIDENTIFIED MALE: Were you scared?

CARLOS: Just a little bit.

KAYE: If Carlos was scared, there was no mistaking who got him through it, a stranger on the other end of the phone line, who in just moments became a friend.

Randi Kaye, CNN, New York.

(END VIDEOTAPE)