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Fargo Swamped Again; Undecided Lawmakers Feel Pressure for Health Reform; Making the Grade in Detroit

Aired March 17, 2010 - 12:00   ET

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


TONY HARRIS, CNN ANCHOR: And time now for your top-of-the-hour reset.

I'm Tony Harris in the CNN NEWSROOM.

It is 11:00 in Fargo, North Dakota, where schools turn kids loose to help battle the rising Red River.

It is 12:00 in Washington, where House Democrats look for last-minute votes to pass health care reform.

And it is noon in Detroit, where the city unveils a plan to shut dozens of schools. I will talk live with former education secretary Rod Paige about that and change ahead for No Child Left Behind.

Let's do this -- let's get started.

An all-out battle, but will it be enough? Floodwaters rising by the minute along the Red River in North Dakota and Minnesota. The river is now a major flood stage in Fargo.

And sandbagging is fast and furious on the East Coast. Lingering problems from the weekend nor'easter. In Rhode Island, a state of emergency from the flooding.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We've had it. We've been here for 22 years. This is the fourth flood, and this is the ultimate. In 2005, it was bad, but I can't handle this anymore. I just can't, and I'm sorry.

(END VIDEO CLIP)

HARRIS: Oh, boy. Talk about a case of been there, done that. A lot of stress in Fargo, North Dakota, right now as the city deals with yet another battle with floodwaters.

Mayor Dennis Walaker is on the phone with us.

And Mr. Mayor, thanks for your time.

You have young people, teens and younger, showing up in a really wonderful, coordinated way to help fill sandbags. Talk to us about the effort that is unfolding right now to help save homes and communities. MAYOR DENNIS WALAKER, FARGO, NORTH DAKOTA: Well, the problem is right now it's spring break for our university, where we have about 13,000 students. And they're on spring break, they don't return until Monday.

So our next significant effort is by our high school students and our junior high school students. And they turned out by the hundreds yesterday to help us get through this current event.

HARRIS: Yes. Given the resources that you have, what do you think? Is it going to be enough? Will you be able to hold back the river?

WALAKER: Well, right now I'm very optimistic. We're going to put out five $2,000 scholarships drawn randomly for college students and for high school students. And that's going to be unveiled sometime next week when things are better.

But now we have to say we have some kind of incentives, and I don't know if they needed that. I mean, they came out en masse, and they're singing and so forth --

HARRIS: Wow.

WALAKER: -- and just having a good time. And today, right now, the weather is extremely beautiful here in Fargo. Finally got some sunshine after about 10 days.

HARRIS: Yes.

WALAKER: So, the river continues to rise, and hopefully by sometime Sunday we'll finally get a crest, and then hopefully it will slow down a little bit. But right now things are good in our community, and we hope to have everything in place by sometime Friday night.

HARRIS: Yes. Well, Mr. Mayor, one final question for you. Your community went through this at about the same time last year. Are folks optimistic or thinking, oh, no, here we go again?

WALAKER: There's a lot of people that did not want to participate this year because they just thought that positive thinking would make this thing go away. But as the event occurred, they moved forward and are getting things done. So if we're going to have a good week of weather -- and it's supposed to cool down toward the weekend -- maybe things will slow down a little bit and we can stay at the projected crest of 20 or 38 feet sometime Sunday night.

HARRIS: OK. Mr. Mayor, if you've got a second, I want to bring Chad Myers in. I know Chad has a couple questions for you.

Chad, take it away.

CHAD MYERS, CNN METEOROLOGIST: Well, Tony, what I'm finding out here -- we're tweeting with the North Dakota National Guard, and they're putting up something called an aqua fence for the very first time. It literally is a fencing system with supports in the back, and that will be holding back some of the water. I'm wondering, Mr. Mayor, have you heard of this and do you think it will work?

WALAKER: Yes, we had something last year that was similar, but this is supposed to give a better design. As science moves forward, they come up with these new techniques and these new features. Everybody is looking for a niche someplace. And we're certainly willing to come out -- we had kind of a flood exposition here in Fargo where everybody brought their products in, and we thought we would give this thing a try.

MYERS: Tony, it would be wonderful if we could use the force of the river, with its own power, pushing water into a tube and literally blowing up their own bladders on the sides of these levees. And as the water comes in, it goes up a foot, so does this bladder. It goes up a foot, so does the bladder, and the water always stays in back.

HARRIS: Wouldn't that be nice?

MYERS: Boy, we've got some patents out there. Some of you smarter than all of us figure this out so we can save these cities and towns -- Tony.

HARRIS: Well, Mr. Mayor, good luck to you. And we will check in with you if you don't mind keeping us posted on developments over the next few days.

WALAKER: No problem. Not a problem.

HARRIS: We appreciate it, Mr. Mayor.

Dennis Walaker from Fargo, North Dakota.

And Chad Myers, we'll check back with you in just a couple of minutes.

Old schools, declining enrollment. Got to tell you, it's really taking a toll in Detroit.

Just last hour, the district announced a plan to close more than 40 schools over the next five years. It will save $31 million this year.

You know, we hear a lot about Detroit's failing school system. Now a story of success there. In just a bit, Allan Chernoff will take us to a school where third graders learn to play the violin and speak Mandarin. Ninety-five percent go on to graduate high school. Pretty impressive stuff given the city's massive dropout rate.

Improving the nation's public school system is a focus today on Capitol Hill. Education Secretary Arne Duncan is testifying about a plan to reform the No Child Left Behind law. Teachers unions have said it relies too heavily on standardized testing.

(BEGIN VIDEO CLIP)

ARNE DUNCAN, EDUCATION SECRETARY: We know the achievement gap is unacceptably large and teachers and school leaders throughout the country are working and mobilizing to address that problem. NCLB was right to create a system based on results for students, not just on inputs. But NCLB's accountability system needs to be fixed and it needs to be fixed now.

There are far too many perverse incentives in the current law. It allows and actually even encourages states to lower standards. It doesn't measure growth. It doesn't reward excellence.

(END VIDEO CLIP)

HARRIS: All right.

Got to tell you, the heat is on for undecided lawmakers in the battle over health care reform. Democrats are scrambling to round up enough votes. They persuaded one lawmaker to switch from "no" to "yes." Ohio Congressman Dennis Kucinich announced today he will support the legislation.

(BEGIN VIDEO CLIP)

REP. DENNIS KUCINICH (D), OHIO: This is a defining moment for whether or not we'll have any opportunity to move off square one on the issue of health care. And so, even though I don't like the bill, I've made a decision to support it in the hopes that we can move towards a more comprehensive approach once this legislation is done.

(END VIDEO CLIP)

HARRIS: And live now to Capitol Hill and our senior congressional correspondent, Dana Bash.

Dana, does Congressman Kucinich have any influence? Is he likely to sway any other undecideds?

DANA BASH, CNN SR. CONGRESSIONAL CORRESPONDENT: You know, I was talking to Democratic leadership sources and others. It doesn't look like his particular vote will cause other Democrats or undecideds to say, oh, if he's going to vote yes, I'm going to vote yes, too. However, what the Democratic leadership, what they're hoping is the reasoning, which you just heard that he gave, that he doesn't think that this is a perfect bill, will actually be, they hope, the same reasoning that others who are currently undecided and not very happy with all of the components of this legislation, but that they decide to just go ahead and vote for it because they feel that it's a good start.

But in terms of the Democratic spectrum -- and again, we're only talking about Democrats here, not Republicans -- those Democrats who are undecided are, for the most part, Tony, on the conservative side of the Democratic spectrum. Those who are in Republican-leaning districts and really are not sure that is this is the best thing politically for them to do, because for many of them they could lose their seat over this vote, not so for Kucinich. He's obviously one of the more liberal members of Congress, and he was opposed for it for other reasons.

HARRIS: Yes. And Dana, how is the leadership hoping to convince -- you know, let's call them wobbly Democrats to get on board?

BASH: You know, they are meeting with them one-on-one. The president is meeting with them. And just down the hall here is actually the House Speaker's office, Nancy Pelosi's office.

And just to give you an example, she had a meeting this morning, Tony, with Democratic women. It's a large number of them. There are nearly 60 Democratic women. And it's just one example of the kind of coalitions that she is hoping she can use to try to sway undecided Democrats.

Women obviously say that they believe that women out there make most of the decisions on health care. And just specifically, in terms of arm-twisting here, there are some women in the Democratic Caucus who are undecided. So they're going there.

But the biggest issue right now is actually seeing the legislative language. And I was told by two Democratic sources -- we talked about this last hour -- that it is possible that we're going to see it later today. And, in addition, see those Congressional Budget Office numbers that tells us exactly what this legislation is going to cost.

That is really the single biggest thing that is holding back a lot of these undecided Democrats. They just don't have the information yet.

HARRIS: OK. Finally, maybe today.

BASH: Maybe.

HARRIS: Maybe today.

BASH: They're hoping.

HARRIS: All right, Dana. Appreciate it.

BASH: OK.

HARRIS: Thank you.

As you've seen with today's announcement from Detroit, America's schooling are struggling. I am going to get perspective from a former U.S. education secretary just ahead in the NEWSROOM.

First, though, our "Random Moment" in 80 seconds.

(COMMERCIAL BREAK)

HARRIS: Machines wash our clothes, our dishes and cars. A machine that washes your dog? Well, that's a "Random Moment of the Day."

Automated dog cleaning is the new canine grooming craze in Japan. You place your pet in a box-like machine here for a soaking, shampoo and the rinse?

Watch this poodle get pampered. Oh, boy. That poodle's going to get so even. Once the rinse is done, the machine blows your dog fluffy dry. No cats allowed. At $10, it's a deal and our "Random Moment of the Day."

(END VIDEO CLIP)

HARRIS: More than a quarter of Detroit's public schools slated to be closed. You heard it here on CNN last hour. The school system's emergency financial manager outlining a five-year plan to save money and improve education.

Our Allan Chernoff takes us to another school in Detroit where they're actually making the grade.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): Violin lessons for everyone begin in third grade. Mandarin Chinese is mandatory beginning in kindergarten. And individualized computer challenges reinforce what's taught in the classroom.

In a city plagued with academic under achievement, Cornerstone Schools, one private and two charter schools that are part of the public system, are overachievers. Students, on average, test a year above grade level, and 95 percent go on to graduate high school. Students here come with no special advantages. Half live below the poverty line.

Fourth-grader Kaitlynn Rogers recently transferred from public school to Cornerstone.

KAITLYNN ROGERS, CORNERSTONE, 4TH GRADER: At my old school, nobody really cared if they fall asleep in class.

CHERNOFF: At Cornerstone, students, teachers and parents care enough that the school year is 11 months long.

ROGERS: Yes, we only get one month of summer vacation.

CHERNOFF (on camera): Does that bother you?

ROGERS: Not really when you get the chance to learn about the school. It's actually fun at the school. It's like we're actually on vacation.

CHERNOFF (voice-over): Easy to see why with after school activities like fencing. A new experience for Kaitlynn.

FREDERICKA HARDEWAY, KAITLYNN'S MOM: Cornerstone to me embodies what education should be. You get the reading, the math, the arithmetic, you know, but in addition to that, you know, you're learning how to be a well-rounded person, you know how to love each other, how to get along.

CHERNOFF (on camera): Cornerstone also motivates children to achieve. This hallway is decorated with college banners so every day as students walk into the classroom, they see the goal on the college education.

(voice-over): Cornerstone constantly assesses students but doesn't teach to test like many public schools that focus on standardized exams.

ERNESTINE SANDERS, PRESIDENT, CORNERSTONE SCHOOLS: We need to know about every individual student. What makes that student tick? What makes that student learn? What are the challenges that that student is facing?

CHERNOFF: Teachers are so committed they work here even though many earn less than they could in public schools. Parents and guardians also must make a commitment to be involved in their child's education.

CLARK DURANT, FOUNDER, CORNERSTONE SCHOOLS: We say that you have a responsibility too, not just the student. We expect you to be at parent-teacher meetings. We expect you to see that the child's homework gets done.

CHERNOFF: Witnessing academic success at Cornerstone involves three Cs, a culture of education, commitment to learning and community, a nurturing environment embracing parents and professionals willing to mentor the children.

(END VIDEOTAPE)

HARRIS: Nice stuff.

All right. Allan Chernoff joining us from Detroit.

Allan, does Detroit have the resources to use the methods we're seeing at the Cornerstone School and other schools across the district?

CHERNOFF: Tony, the Detroit public school system has a deficit of more than $200 million. But with the announcement today that they're going to be shutting so many schools, they are going to save lots of money, more than $30 million just by making some closures in June. There will be additional cuts as well.

It's not all a matter of money, though. This is really about motivation, about getting people to care. Not only students, not only teacher teachers, parents as well. It's basically everybody buying into the mission. It's all about caring, motivation.

That's why the students here are doing so well. It's not because they're all taking violin lessons beginning in third grade. It's about applying themselves, and it's happening here, it's happening at other schools as well. It can happen.

HARRIS: Got to get that message out.

All right. Allan Chernoff for us in Detroit.

Allan, appreciate it. Thank you.

The second largest school district in Illinois is also making major cuts. Pink slips passed out this week to 1,000 school employees in the city of Elgin, 732 of whom are teachers. The rest, bus drivers and teacher assistants. School officials say more cuts are planned.

(BEGIN VIDEO CLIP)

SARAH SUH, DISTRICT U-46 TEACHER'S ASSISTANT: It's really sad. What I don't understand is how we can bail out all the banks but we can't bail out the schools. You know? It makes no sense to me.

DAVID SMILEY, ELGIN HIGH SCHOOL PRINCIPAL: I think our administration has been frugal. I think they cut where they could prior to all of this.

It's just like you and I with our checkbook. If people don't pay us when they're supposed to, we have difficulties. And the state is not meeting their obligation. They also need to take a deep look at fixing school funding across the board.

(END VIDEO CLIP)

HARRIS: You know, the scenes in Illinois and Michigan are playing out in school districts across the country. All this, as President Obama is putting forward new standards aimed at keeping America competitive.

My next guest says one of the top problems America needs to solve is the black-white achievement gap in America's schools. Former secretary of education Rod Paige writes about that in his new book. And he joins me from New York.

Mr. Secretary, it is good to see you. Thanks for your time today.

You know, and let's start with No Child Left Behind. It was a law you were to implement, law you believed in, law you criticized the NEA, the National Education Association, for resisting. And now the president's education secretary wants to shift the focus from singling out underperforming schools to rewarding successful programs, some of the proposals right here on this screen. Also increasing flexibility and broadening the emphasis beyond math and science and reading.

Your reaction, sir, to the proposed changes to No Child Left Behind?

ROD PAIGE, FMR. EDUCATION SECRETARY: Oh, I think there's much to like in the proposed changes. I like the fact that the essential principles of No Child Left Behind remains. There's a shift in emphasis, and I like the shift.

HARRIS: You do? OK.

So you didn't feel leaving as you were implementing No Child Left Behind that it was perfect? You felt that it could be improved?

PAIGE: Absolutely it was not perfect. I don't know of any law that's perfect coming out of the box.

The No Child Left Behind Act was a bipartisan act. And I congratulate the Congress, both sides of the aisle, for working so hard to get that done.

And I think it's made a big difference in American education. It has shifted the focus and caused people to really begin to think about education in a different way. I think it played an important role. And it can be improved now.

HARRIS: All right. Perfect. Well, then let's move on then.

What's your view of the proposals from the governors of 48 states now to formulate a set of standards for what children should learn in math and reading? It's being called common core state standards. What are your thoughts on the proposal? Some are calling it the first step to nationalizing the schools.

PAIGE: Well, I don't think that's a way to characterize it. Common standards, I think, will make a big contribution to improving the way our schools operate.

In '83, when we had the "At Risk" document, it didn't say that some states were at risk, it said the nation is at risk. So there's a national interest. And I think there's also a national need to have some national standards.

HARRIS: You know, you are watching, as we all are, what's happening with education cuts at the state level. And what are your thoughts on the impact of the cuts on schools K-12?

PAIGE: I think we're going through some really difficult times in education. And some important times to really think this through.

I believe that we are really at a point now where we need to think beyond reform. We need to ask ourselves, is there a better way to deliver educational instructions, educational service to young people? What we're doing now I don't think can be sustained financially across the years.

HARRIS: Wow. You know, Mr. Secretary, one final question. What are your thoughts on the impact of the cuts on an issue that you care passionately about, and that's the achievement gap?

PAIGE: Repeat that. My ear piece fell out.

HARRIS: Yes, no worries. Your thoughts on the cuts that we're seeing across the country on an issue that you are really concerned and passionate about, the achievement gap between whites and minority children?

PAIGE: Well, I think those cuts are going to do damage. But that's really not the point I was trying to make in the book.

The point I was trying to make in the book is that the leadership in the African-American community needs to shift its focus to this educational issue that we have now. We've come through some really difficult times, and I think the African-American leadership has been stellar. But now it's time to take a look at two new types of challenge, a challenge that our kids are not performing well. And that same kind of power that has propelled us so far focused on this educational problem, I believe, can solve it.

HARRIS: Secretary Paige, appreciate your time. Thank you, sir.

PAIGE: Thank you.

HARRIS: Let's get caught up knew on our top stories.

A big push by House Democrats to get enough support to pass health care reform. They picked up a vote today from Democratic Congressman Dennis Kucinich of Ohio. He voted against the plan earlier. A final decision on the bill is expected this week.

Good news for a Haitian couple trying to reunite with their baby who was injured in the January earthquake. DNA tests prove the infant known as "Baby Jenny" is the couple's daughter. The baby was found in the rubble and flown to Florida for treatment. A court will determine when the couple can come to Florida and claim their daughter.

On this day everybody is Irish. Parades are rolling and green beer is flowing across America on this St. Patrick's Day.

A live picture from New York? OK.

In New York, sunny, balmy weather for the city's annual parade. Another celebration in Savannah, Georgia.

We brought you live pictures last hour and live pictures right now. This is one of the country's biggest parades in Savannah.

More of your top stories in 20 minutes.

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: Building up America by bringing in new jobs. Our Tom Foreman is on the road seeking success stories. He reports on a big get in Alabama.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): Just south of Montgomery, at the gleaming new Hyundai plant, almost every minute another new call rolls off the line. And just about as often you can find someone like Yolanda Williams singing the company's praises.

YOLANDA WILLIAMS, HYUNDAI TEAM MEMBER: I love it. I enjoy what I do every day.

FOREMAN (on camera): Did you ever have any idea you would be making a living from the car industry in southern Alabama?

WILLIAMS: No, I never dreamed. And it's changed a lot of people's lives down here. FOREMAN (voice-over): Winning this massive economic prize over other states that wanted it had local leaders scrambling at one point, making sure Hyundai knew how transportation services, power grids and, most of all, the local community could and would meet all their needs.

RICK NEAL, VICE PRESIDENT, HYUNDAI: So this location was great.

FOREMAN (on camera): And they made sure that you had everything?

NEAL: Everything.

FOREMAN: The land, the communications, the transportation.

NEAL: Yes. Utilities.

FOREMAN: And it seems like it's working?

NEAL: It is working. It's working for them. It's working for us.

FOREMAN (voice-over): Last year, Hyundai was one of just three companies to increase sales in America. The success for the community?

FOREMAN (on camera): So you're just looking to see if there's anything wrong with this piece.

FOREMAN (voice-over): Good jobs.

JASON THOMAS, HYUNDAI TEAM MEMBER: It means the world to me. And I know a lot of other people feel the same way.

FOREMAN (on camera): How secure do you feel in your job?

JAMES LENOIR, HYUNDAI TEAM MEMBER: I feel really secure. I really do.

FOREMAN: Enough to buy a house? Enough to move forward?

LENOIR: I have.

FOREMAN: Hyundai doesn't make everything it needs, so that means that lots of suppliers have sprung up all throughout this region to make bumpers and sun roofs and dashboards. And that has created many more jobs.

FOREMAN (voice-over): About 800 have come from Mobis, another Korean company, that followed Hyundai here.

FOREMAN (on camera): I'm guessing a lot of people are pretty happy about this?

UNIDENTIFIED MALE: Yes, we are. As a matter of fact, I'm one of them.

FOREMAN (voice-over): In all, local officials estimate more than 20,000 jobs have rippled out from the Hyundai deal, building up south Alabama one job, one car, one minute at a time.

Tom Foreman, CNN, Montgomery.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

TONY HARRIS, CNN ANCHOR: And, of course, CNN is your source for money news. Just check out cnnmoney.com for the latest financial news and analysis. Just past three hours into the trading day. Let's look at the big board. New York Stock Exchange. Six straight days of positive gains. Working on a seventh right now. The Dow, as you can see, is up by 43 points. The Nasdaq, at last check, was up 14. We are following these numbers throughout the day with Stephanie Elam right here in the CNN NEWSROOM.

You know, ever since the federal economic stimulus checks started going out last year, there have been allegation of fraud. Now federal prosecutors have opened up some investigations. Josh Levs is at the stimulus desk for us.

And, you know what, Josh, you had to believe there would be some fraud in a program as massive as the stimulus program.

JOSH LEVS, CNN CORRESPONDENT: Sure.

HARRIS: Have investigators been pretty busy so far?

LEVS: Yes, I mean, there were always going to be some cases, right, in which you were going to take a look and you were going to discover, ultimately, that there was alleged fraud or possibly actual fraud.

What's happened now is that a report has come out from the agency that oversees this money, all those public dollars. And you're taking a look at it right there. It's the quarterly report from the Recovery Accountability and Transparency Board. And they've given some numbers. Let's go straight to those. This is what they're saying.

The total number of complaints they're looking at in terms of what's happened to this money, potential fraud or mismanagement, 1,771 complaints have been received. They're investigations ongoing right now into 147. And that figure at the bottom is the key right there, 43 cases have been accepted for prosecution.

Now, that does not automatically mean that there will be charges and that will ultimately go to trial. What it means is that federal prosecutors have looked at those case, Tony, and they think that the issue is serious enough that there could be charges. They're looking into it. They're getting involved. And when you're at that stage, you're getting pretty close to the case where you could see some trials into mismanagement or fraud, allegedly, of these stimulus dollars.

HARRIS: Do we know any specifics about the cases being looked into?

LEVS: Well, here's the thing. The group that oversees it is actually not giving out this information. They're not saying what those cases are. But we at CNN have done some of our own reporting and we do have some information for you.

Let's go to this. I'm going to show you a couple of things from our CNN Money story we have going. This talks about some examples. Federal investigators are finding evidence of bid rigging in some cases, Tony. Prosecutors are examining cases where contractors appear to have been colluding with each other to win some road improvement jobs.

Also, other potential fraud, companies owned by minorities or women winning contracts. And then after those groups take their cut, passing the work and most of the funding to a non-qualified contractor. That's under a specific government program that tries to make sure companies owned by minorities and women get some of that money.

So those are just a couple of examples that we've reported on here, Tony, of what's been done. But the totality of all those cases that they're looking into right now, we don't know. We're going to keep looking into that. And, unfortunately, it is inevitable when you're talking about $862 billion, there will be some fraud, there will be some mismanagement and there is this team that's watchdogging it and ready to bring it to prosecutors and have charges go.

HARRIS: Well, we need that. We need that.

LEVS: We do. It's critical.

HARRIS: All right, Josh, appreciate it. Thank you.

LEVS: Thanks, Tony.

HARRIS: You know our CNN Money team has been spending a lot of time in Detroit. Poppy Harlow is going to share some perspective on what parents and students there are saying about their schools.

(COMMERCIAL BREAK)

HARRIS: Let's get you caught up on your top stories now.

Sandbagging, fast and furious in Fargo, North Dakota, as that city copes with another round of serious flooding. Even the National Guard is pitching in. Just hours ago, the Red River reached major flood stage in Fargo. It is expected to crest just days from now.

A short time ago U.S. senators put the final seal of approval on a $17 billion jobs bill. Both Democrats and Republicans voted for it. The measure, which has seen a lot of changes, now goes to President Obama for his signature.

Arm twisting on Capitol Hill big time as House Democrats try to get enough support to pass health care reform. They picked up a vote today from Democratic Congressman Dennis Kucinich of Ohio. He had voted against the plan earlier. A final decision on the bill is expected this week.

You know, we've been asking for your calls on health care reform. Here is what some of you are saying.

(BEGIN VIDEO CLIP)

GLENDA, CALLER: Hi. I'm absolutely for health care reform. I know it isn't perfect, but it's needed so badly. If we don't do it now, I don't know when it will be done.

HANK, CALLER: I am against this health care bill. It's got too many things tagged on to it. And I don't believe in forcing people to buy something from a private company because the government tells you.

RAY, CALLER: Without the public option, it's no good. People are going to suffer even more.

(END VIDEO CLIP)

HARRIS: Man, oh, man, love it. Can't get enough of it. Your views right here in the NEWSROOM. We'd love to hear from you. Here's the number, 1-877-742-5760. Give us a call. Tell us what you think. We're back in a moment.

(COMMERCIAL BREAK)

HARRIS: The motor city has taken one of the worst beatings in this economy and its public school system is suffering the consequences. Today, the future of public education in Detroit gets a major overhaul. Cnnmoney.com's Poppy Harlow has "The Breakdown" for us from New York.

Poppy, when we say major overhaul, we really mean it.

POPPY HARLOW, CNNMONEY.COM: Huge. A billion dollar investment. That's what Detroit is planning on here. And, boy, do they need it, Tony. These schools are the worst performing in the nation.

I just want to give you some perspective here. They're going to close 44 schools. They say there's just not enough students to fill the classroom. They have to rein them in. It's going to mean some layoffs. But, ultimately, they think better education for their kids.

Why do they need it? Take a look at the numbers. The graduation rate, an abysmal 58 percent in Detroit proper right now. Their aggressive goal, get that up to 98 percent graduation rate by the year 2015.

They told us, listen, simply put, with have an academic emergency. We need change. And you see the enrollment falling by the thousands year by year in these schools, Tony. Right now about 84,000 kids in Detroit Public Schools, expected to fall to 56,000 by 2014.

The man heading all of this is Robert Bobb. He's the emergency financial manager. He is in the spotlight today. Take a listen to his announcement a little bit earlier.

(BEGIN VIDEO CLIP) ROBERT BOBB, EMERGENCY FINANCIAL MANAGER, DETROIT PUBLIC SCHOOLS: We believe that this plan provides certainty where in the minds of some there may be uncertainty. We want to build flexible, adaptable and sustainable learning environments. We want to support smaller learning environments. We want to develop multi-use facilities that support community use and community partnerships.

(END VIDEO CLIP)

HARLOW: And, Tony, you heard him say community there because he said the school can't just be from 8:00 a.m. to 3:00 p.m. You've got to get the parents there. The whole neighborhood. Keep it open at night. Bring people in so you have that positive environment, Tony.

HARRIS: Yes, yes, I like the sound of that. You know, you have spent a lot of time in Detroit.

HARLOW: Yes.

HARRIS: Is it possible for you to give us a sense of what the parents and students are feeling there?

HARLOW: Yes. I mean, take a look here. This Fredrika Turner. She's one of the people we spent a lot of time with, and her daughter. We went to Fredrika's old high school a few months ago to talk to her about why, Tony, she will not send her own daughter to a Detroit Public School. Take a listen to what she told us.

HARRIS: OK.

(BEGIN VIDEO CLIP)

FREDRIKA TURNER, DETROIT PARENT: Well, my daughter has never attended any Detroit Public Schools and it's because of this. As a concerned parent, my daughter would never go to a Detroit Public School as of now. Whereas I felt comfortable as a child going to school, I would -- I don't feel comfortable to allow her to attend a Detroit Public School.

(END VIDEO CLIP)

HARLOW: That is her story. But so many in Detroit, Tony, that we have talked to over the last year say it is all about education and how they survive in that city. I want you to listen to the real people.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: How do I survive in Detroit?

UNIDENTIFIED MALE: Education.

UNIDENTIFIED FEMALE: Um --

UNIDENTIFIED FEMALE: That's hard to say.

UNIDENTIFIED MALE: Go to school. Don't be like -- a person like me, out here selling drugs.

UNIDENTIFIED FEMALE: Just perseverance and education. Going back and getting your education. You have to be persistent in this city to achieve what you want to achieve.

(END VIDEO CLIP)

HARLOW: So you hear, Tony, that success. All about education there in Detroit. The city pushing forward. We'll see if they can make it.

HARRIS: Yes, yes, we'll be watching.

Poppy, thank you.

HARLOW: You got it.

HARRIS: So what's good on the web today? FaceBook versus Google. Inmates getting a very special privilege. And on the telephone with Beyonce and Lady Gaga? We're back with Ines Ferre.

(COMMERCIAL BREAK)

HARRIS: Boy, I love this little segment here. Let's take a look at some of the stories generating buzz, traffic on the Internet, what you're talking about. Ines Ferre joining me from New York.

Ines, good to see you a gain. What's good on the web today?

INES FERRE, CNN CORRESPONDENT: Good to see you today, Tony.

Well, this week, FaceBook had more friends than Google had users. I'm talking about FaceBook, which overtook Google with 0.03 percent more web traffic. And 7.07 percent of all U.S. web traffic goes to FaceBook, while 7.0 percent goes to Google. Pretty close there. The research doesn't take into account, though, Google's own sites like YouTube, for example.

HARRIS: Yes. Yes. There you go. All right, so cnn.com, I understand, has a pretty interesting story about what is it, special privileges for inmates?

FERRE: Yes. Maybe (ph) inmates at this Texas jail were complaining too much about food. Bexar County Detention Center in San Antonio is allowing inmates to order in. Family and friends can order the items online, like pizza or chicken wings, and then the meals are delivered to the prisoners.

HARRIS: Good.

FERRE: I know.

HARRIS: Yes, yes. Hey, I've got one more.

FERRE: Pretty cool, right?

HARRIS: Yes, one more. You know, everyone is talking -- and I'm getting the e-mail traffic going on this as well. Everyone's talking about, you know, my favorite these days, that Lady Gaga. I know I'm coming to the Gaga party about a year late, but I'm there now. What is going on there?

FERRE: Lady Gaga. Yes, Lady Gag, well, she's starring in this video -- a prison-themed video with Beyonce also. Their latest collaboration is called "Telephone." It's a nine-minute long video, Tony. I mean, have we seen videos this long since like "Thriller" or something like that?

HARRIS: Not in a long time. Yes, yes.

FERRE: I know. OK. Well, the video was released online and it's gotten a lot of attention. Some critics are saying that it may go too far. A little too racy. I mean we're showing you the images that are, you know --

HARRIS: That we can put on television?

FERRE: Television.

HARRIS: All right. I need that link again, everyone.

Ines, good to see you. See you tomorrow. Have a good day.

FERRE: See you tomorrow. Bye-bye.

HARRIS: We're back in a moment. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: You know, guns used in recent shootings at the Pentagon and in Las Vegas now traced back to Memphis police. Needless to say, that's sparking a lot of outrage. Our Brian Todd explains how it happened.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice over): A man with a history of mental illness shoots and injuries two Pentagon police officers. A convicted felon kills a security officer and wounds a deputy at a Las Vegas courthouse. CNN has learned guns in both recent shootings had been kept in the vaults of law enforcement agencies in the Memphis, Tennessee, area, and traded by them to gun dealers. Memphis' mayor promises an investigation.

MAYOR A.C. WHARTON JR., MEMPHIS, TENNESSEE: I just don't want our city of having any role in getting a confiscated gun back on the streets.

TODD: The story was first reported by the Associated Press. A law enforcement official helped CNN follow the trail of the 0.9 millimeter handgun used by alleged Pentagon shooter John Patrick Bedell. It had been confiscated by Memphis Police in 2005, traded by the police to a Georgia gun distributor three years later, then to a gun dealer in Pennsylvania. Then sold to a store in Las Vegas last year and later sold at a gun show. It's not clear how Bedell got it after that. A similar story with the shotgun used in the Las Vegas shooting. Memphis Police confiscated it in 1988. Turned it over to the nearby Shelby County Sheriff's Office, which later traded it, along with thousands of other guns, to a dealer in Massachusetts for better weapons. Experts say these cases highlight a divide among law enforcement agencies. Some destroy confiscated guns, but others sell or trade them. A practice that former Philadelphia and Miami Police Chief John Timoney says has to end.

JOHN TIMONEY, ANDREWS INTERNATIONAL: I think it's unseemly that police department would be in the business of selling guns that eventually could get into the hands of criminals.

TODD: Contacted by CNN, officials with the Memphis Police Department and the Shelby County Sheriff's Office defended the practice.

TODD (on camera): Those officials say they only trade guns to licensed, reputable dealers and they say that these days, with many law enforcement agencies across the U.S. forced to cut their budgets, trades are an efficient way to upgrade their own weapons and save the taxpayers money.

TODD (voice-over): We pressed the issue with gun advocate Larry Pratt.

TODD (on camera): Why is it not a problem for a law enforcement agency to trade a weapon away that eventually winds up in the hands of, you know, of a repeat offender and someone with a history of mental illness?

LARRY PRATT, GUN OWNERS OF AMERICA: It's no different for a law enforcement agency to sell its guns than it is for a private dealer to sell its guns. They're both going to be going into the private market.