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Priest Sex Abuse Scandal; Germany's Priest Abuse Scandal; Losing Everything; Soda Tax; Q2 to Start with A Gain; Auto Sales Expected to Jump; First Census Hits Auction Block

Aired April 01, 2010 - 09:00   ET

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

JOHN ROBERTS, CNN ANCHOR: Good morning, Kyra.

KYRA PHILLIPS, CNN ANCHOR: John, congratulations on your new position. Ambassador to Canada. That's amazing.

(LAUGHTER)

ROBERTS: It's --

KIRAN CHETRY, CNN ANCHOR: We are so proud of him.

ROBERTS: It was very surprised.

PHILLIPS: Yes. Yes. I'm -- Kiran and I especially wish you the best of luck.

(LAUGHTER)

PHILLIPS: Moving right along.

ROBERTS: Are you (INAUDIBLE)?

PHILLIPS: Yes. Of course, I can't wait to be a first lady.

Speaking of first, it's April 1st. Happy April Fool's Day, everybody. I got to tell you I wish these stories were pranks but they are not.

It's the kind of flood you see every 200 years. This is the year. Somewhere under all that water is Rhode Island. The rains let up but the pain keeps reigning down.

Soda making America's belts and buttons pop. Wait until you see if there is a curtail to the colas. We're talking about that. Maybe reach a little deeper into your pockets. Would you mind paying a bit more to hydrate?

GRAPHICS: His diploma was death. His pencil was a bazooka. So now you've been warned.

PHILLIPS: And Mexico's bloody cartel war celebrated in song. Music and lyrics by Grim Reality. Take everything you thought new about gangster rap and toss it out the window. So you remember the old saying? The best defense is a good offense? The Vatican apparently does as the Catholic Church reels from a deepening sexual abuse scandal. It's now going after media coverage.

And listen to this. The Roman Catholic Church in Germany unveils a telephone hotline for those abused by priests.

But will victims really turn to the institution that betrayed their trust in the first place?

CNN's Frederick Pleitgen is in Germany with details on that hotline and Diana Magnay is in Rome with the Vatican's sharp counterattack.

Diana, let's go ahead and begin with you.

DIANA MAGNAY, CNN CORRESPONDENT: Hi, Kyra. Well, the Vatican has been criticizing the media in recent days for what it's calling an attempt to smear the Pope's name.

But this is the first time that we've actually seen a very comprehensive rebuttal of some of the points raised in the media and specifically in "The New York Times" in relation to the case of Father Lawrence Murphy who abused deaf boys in the United States in the '50s and '60s.

And "The New York Times" alleged that the decision not to defrock Father Murphy in 1996 when the case came to the Vatican's attention showed some kind of leniency on the part of the now Pope, then Cardinal Ratzinger.

And what this letter said is that, in fact, the decision not to go -- not to take Father Murphy on a canonical trial was because that trial would have been extremely lengthy. And he would have died before any justice had actually been meted out.

So by restricting his ministries, the Vatican was actually acting (INAUDIBLE) in a more punitive fashion.

Also what this letter spells out in detail is the Pope's record on sexual abuse. And Cardinal Lovato (ph), the author of the letter, says that in fact he's done more than anybody else, and it is only because of the Pope's initiatives that abuse is now a top priority for the church and must be reported in every suspected instance directly to the Vatican.

And prior to 2001, that didn't happen. And in many cases, we know, Kyra, that wasn't reported even to civil authorities or at all, Kyra.

PHILLIPS: Wait -- Diana, here in the U.S., I have interviewed a number of leaders within the Catholic community who say the Pope should go. Is there a sense of crisis within the Vatican right now? And have you even heard something that extreme there where you are? MAGNAY: There is very much a sense of crisis. And we know from the Vatican spokesman that the Pope has called this a real test for the church. And also, Frederick Lombardi, that spokesman, said that, you know, the way the church handles this issue is a real question of its moral credibility.

But the likelihood of the Pope resigning is extremely remote. The last pope to do is -- back in the 15th century. And especially, given the fact that a lot of these allegations against the Pope don't really appear to be holding water at all.

Certainly, though, the church deals with these kinds of allegations in a fashion that many of us would not see as extremely timely. You get the impression from them that Vatican time is very different to the rest of the world's time.

And that this is a century's old institution that will not be pushed, really, to make changes because of media pressure, Kyra.

PHILLIPS: Diana Magnay, thanks so much.

Now the telephone hotline for sexually abused Catholics in Germany. Victims talking to the accused institution? Will that really work?

CNN's Frederik Pleitgen joining us now live from Berlin.

Fred, what do you think?

FREDERIK PLEITGEN, CNN CORRESPONDENT: Hi, Kyra. Yes, and it's not only victims of the church actually wants to call its hotline, it also believes that some priests might call the hotline themselves.

It is of course anonymous, to basically report themselves and say that they have things like pedophiliac thoughts. Now what's been going -- going on so far in the first day that this hotline has been on air, Kyra, is that apparently there have actually been a flood of calls.

The church says that they thought they were going to get about 160 to 200 calls for all of Germany. They say so far they have gotten more than 4,000 calls to that hotline. They say their hotline is swamped. They say they can't keep up.

They said at some stages the hotline actually broke down and they said that people were reporting alleged abuses that hadn't been reported before, things that happened in eastern Germany, things that happened that simply had not even been thought about talking about before.

So certainly, so far, the church says that this hotline, if you will, is drawing a lot of attention from people. They say many, many people have tried calling multiple times and simply could not get through because so many people were trying, Kyra.

PHILLIPS: I mean I have a feeling this is just going to be the tip of the iceberg. So two more quick questions. Any critics out there to this hotline? Anyone think this is a bad idea?

PLEITGEN: Yes, there's a lot of people that think this is a bad idea. A lot of people are actually saying that people should not call this hotline. One of those organizations is actually called SNAP, which is a victim's rights organization from the U.S. And that's even issued a press statement urging people not to call this hotline.

They believe that what the church is trying to do with this hotline is trying to cover up the abuses that happen within its ranks over the past decades. And they also say that the other thing the church is trying to do is keep these abuses away from criminal investigators and from criminal justice authorities.

That's one of the main criticisms that we're hearing. What people are saying, some of them, is that they believe that people who have been abused by priests should very simply go to the police and report this. Go to a lawyer and report this. And not report it to the organization where the people come from that actually abuse them.

So certainly there are a lot of critics here within Germany. Also a lot of victims' rights organizations that are saying the exact same things. So there are a lot of critics out there. Nevertheless, the church said it's simply being swamped by calls right now -- Kyra?

PHILLIPS: Well, it'll be interesting to see if the church opens up such a hotline here in the U.S.

Fred Pleitgen, appreciate it so much.

Nobody can remember anything worse than the flooding right now in Rhode Island. And that's because it's the worse there in 200 years.

Here's more of what we know. The rain has stopped but rivers are only slowly receding. Homeland Security secretary, Janet Napolitano, plans to travel to the state tomorrow. The president has already declared most of Rhode Island a disaster area.

And part of I-95 is closed and could stay that way for days as engineers inspect structural damage and even Amtrak has suspended some service in the northeast corridor.

So say you were told to grab whatever possessions you could hold in your hands and flee your home. What would you take? Well, that's been the dilemma for flooded-out residents in Cranston, Rhode Island.

Our Reynolds Wolf is there with one man's story.

REYNOLDS WOLF, CNN METEOROLOGIST: Well, Kyra, I am coming to you from Shaw Plaza here in Warwick, Rhode Island where there were only just a few puddles here a few days ago. But it's got a raging torrent of water that's coming on through. The flood waters not just here but throughout much of the region.

Now although we've got plenty of damage to businesses here, the stories that we've seen in some places like Cranston, Rhode Island have more of a personal side. Yesterday, we were able to see one man's struggle against the rising waters.

(BEGIN VIDEOTAPE)

WOLF (voice-over): Rhode Island or Eddie Flynn has called this place home for the past 10 years. But he's never seen anything like this. Early Tuesday morning, the neighboring waters of the flooding Pawtuxet River paid him a visit.

EDDIE FLYNN, CRANSTON EVACUEE: About 7:00 yesterday morning is when I spotted it. And I seen all the water. I said, we're in trouble.

WOLF: 24 hours later, his basement was submerged. And with waters rising higher, the rescue boats of the Cranston Fire Department came calling. With only minutes to spare, Ed grabbed what mattered most -- his girlfriend and two puppies -- and was towed to dry land. His loss, overwhelming.

FLYNN: I lost everything. Once they shut the pumps off, my furnace is under water, everything.

WOLF: Flynn is not alone in his grief. There are thousands of similar stories all across the region. Some of the rescuers say the scope of the damage is mind-boggling.

(On camera): Have you ever seen anything like this before?

LT. GARY MEINERTZ, CRANSTON FIRE DEPARTMENT: No. Nothing in my time on the job, no. This is historical.

WOLF (voice-over): But the floodwaters will recede and when they do, the cleanup will begin.

For Flynn, who has no flood insurance, bigger battles lie ahead but still, he says, he is going nowhere.

FLYNN: But I am not leaving. I am with the captain. That's my ship. I'm not leaving it. So that's my story. And I'm sticking by it.

(END VIDEOTAPE)

WOLF: Well, Kyra, there is some good news for Ed Flynn. And that good news that his daughter only lives a few blocks away on dry land. So he'll have a place to help try to put things back together. So that is certainly a positive for him.

A bigger positive to the region all together that has been just inundated with these floodwaters is dryer weather. Looks like a great forecast into the weekend and into next week.

That's the latest from Rhode Island. Let's send it back to you.

PHILLIPS: Reynolds Wolf, thanks so much. We're going to talk to Jacqui Jeras in just a few minutes to see when things are going to get better for the northeast. Plus she'll have the forecast for the rest of the country.

Students face charges for a schoolmate's suicide but outraged parents want more. Fire the administrators.

Plus will you drink fewer soft drinks if they cost more? It worked with cigarettes.

(COMMERCIAL BREAK)

PHILLIPS: Phoebe Prince was young, beautiful and took her own life. Nine of her classmates are being held accountable for it. But outraged parents are demanding that even more be done to bring about justice.

What are they demanding? Fire the administrators. Parents say this bullying has gone on at South Hadley High for years. And the school has done nothing about it.

(BEGIN VIDEO CLIP)

SUSAN SMITH, PARENT: They haven't apologized to this family. They haven't apologized to this community. We had been saying from early on that the administration needs to resign. It's despicable.

ALINA CHO, CNN CORRESPONDENT: What do you say to all of the parents who are outraged and who are calling for your resignation?

DANIEL SMITH, PRINCIPAL, SOUTH HADLEY HIGH SCHOOL: At this point, I'm not going to talk any further.

CHO: Will you resign when your contract is up?

SMITH: I have no comment.

CHO: And your contract is up in May, sir?

SMITH: I have no comment.

(END VIDEO CLIP)

PHILLIPS: Total of nine students have been indicted in connection with Phoebe Prince's suicide. Charges ranging from statutory rape to criminal harassment to civil rights violations. Three of those students go to court on Tuesday.

Soda and smokes, high taxes put a dent in number of smokers in this country. But a similar tax on sugary soft drinks hasn't really had the same effect on obesity.

CNN chief medical correspondent Dr. Sanjay Gupta. So why isn't it working?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: You know, I think the tax isn't high enough. And it's one of those weird things because you're trying to, like, figure out the tax, figure out the potential behavioral changes and then the outcome overall on obesity. And it's a tough puzzle to sort of crack. This isn't a national soda tax, although that's been something that's been debated, as you know, for some time. Twenty-one states around the country have the sales tax so to speak on sugary drinks. Soda, in particular.

Those are the states there. You can take a look at the map. But you know, this is something that's become more common. These taxes have been in place for some time.

Let me put in a little bit more context for you, though. If you're looking at specific products, like a 20-ounce soda, for example, the cost may be around $1.50, for example. The increased tax, sales tax, again was about 4 percent. So $1.50, add six cents to that, $1.56.

Now, Kyra, you may look at that and say, you know, it doesn't seem like a lot of money.

PHILLIPS: Hey, six cents.

GUPTA: Right.

PHILLIPS: It seems like nothing.

GUPTA: Right. And that's what consumers thought as well. Which is exactly why this probably didn't work.

The reason they're so focused on this is because, you know, we talk about this obesity problem all the time. And if you just isolate soda as the potential problem, look at the number of calories potentially in the soda -- and the numbers are sort of mind-boggling.

Twenty ounces, on average, children drink about that in a day, 240 calories. We did the math. That's about 75,000 additional calories a year. Third to 5th graders, 20 pounds.

PHILLIPS: I'm going to -- I was just going to say I'm going to just throw something in here. I just thought about that when saw that calorie count.

I remember a friend in high school horribly overweight. And she struggled with it. She cut out soda. And then when we saw her five years after high school -- and we're going back a long way -- she had dropped 30 pounds. And you know what she said? All she did was cut out soda.

GUPTA: It's remarkable.

PHILLIPS: That's what it. She just cut out soda.

GUPTA: It's -- the calories, I mean, the simple math just adds up there.

PHILLIPS: And it does other things, too. It's not good for your bones. It's not good for so many other things in your body as well. Right? GUPTA: Yes, I mean, you know, there's -- it's always tough because you sort of brought the idea of cigarettes. And I think as a doc, I can say cigarettes have very few redeeming qualities.

PHILLIPS: That's right.

GUPTA: When it comes to taxing food or drinks and stuff like that, I do think that's different. In part because, you know, people living near the poverty line, these things are a good bargain, which is why people buy these in such great quantities.

They did try and figure out incidentally how much tax would have to go up to actually make a difference. So the Rand Corporation, which did the study --

PHILLIPS: What would it be?

GUPTA: That was it.

PHILLIPS: Twenty-seven.

GUPTA: About three times. The tax -- 27 cents. So it's about 18 percent from 4 percent. So $1.77, does that make a difference? They think it will.

But to your point, Kyra, you know, it's one of those things that -- do you tax us? Who are you punishing? Probably people at the lower income levels. Wouldn't it be smarter to try to make healthier drinks and food cheaper? So, you know, you bring it more in line.

We talked to the Food and Beverage Association about this specifically. What they say is that taxation hardly ever helps situations like this. But diet and exercise is really the key. And I think --

PHILLIPS: Yes. We know that.

GUPTA: People agree on that.

PHILLIPS: Yes, definitely.

(LAUGHTER)

PHILLIPS: You can't debate that at all.

GUPTA: Right.

PHILLIPS: All right. Thanks, Sanjay.

GUPTA: Thanks.

PHILLIPS: Blocking something dangerous. It must be an adrenaline rush, right? Well, this glacier in Iceland erupting for almost two weeks now. Not only attracting geologists but a lot of tourists. Scientists say that they're not too concerned about the eruption but they are concerned it could provoke a nearby larger and more dangerous volcano to blow up.

From fire and ice and just plain fire, there is an extreme fire danger going on for parts of the southwest over the next few days.

Is that right, Jacqui?

JACQUI JERAS, AMS METEOROLOGIST: Absolutely. Those are amazing pictures, Kyra.

PHILLIPS: Yes. Would you -- now, how close would you get? I'm curious. Have you ever --

JERAS: No, you don't. Because, you know, they spew out not just, you know, the volcanic ash and lava and things that could burn you, but there's also toxic chemicals, too, you know, like sulfur and zinc that you could inhale that could actually make you sick. So --

PHILLIPS: There you go. A lesson to all those geologists and tourists that are moving closer.

JERAS: Back away.

PHILLIPS: Yes, there you go.

JERAS: Back away from the volcano.

PHILLIPS: Just back off.

(LAUGHTER)

JERAS: All right.

(WEATHER REPORT)

PHILLIPS: Thanks, Jacqui.

It's April 1st, time to head out to the spaghetti orchards and reel in the harvest. Oh yes, it also April Fool's Day. We're going to look at some of the greatest pranks of all time.

(COMMERCIAL BREAK)

PHILLIPS: D.C. Police right now searching for a fourth suspect connected to a deadly drive-by earlier this week. Four people died in that shooting. They were actually coming back from a funeral. Three people are under arrest. But so far only two of them have been charged.

An abortion doctor will have his day in court this morning. Scott Roeder faces life in prison for murder when he is sentenced. He was convicted in January of gunning down Dr. George Tiller at his Wichita, Kansas church. Tiller was one of the few U.S. doctors to perform late-term abortions. Roeder has said he had to kill Tiller to save babies' lives.

An obsession with the make-believe cost a little girl her life. Her parents go on trial tomorrow. You don't remember the case, this is the South Korean couple who spent all their time with their virtual child, so much time, in fact, that they left their three-month-old daughter starve to death.

The case is expected to shine a spotlight on the dangers of Internet obsession. We're back in a moment.

(COMMERCIAL BREAK)

PHILLIPS: Oh yes, fooling and being fooled. At first, we thought about examining the origins of this traditional day of mischief. But forget that. You can look it up. So let's just look back at some of the best jokes played on April Fools' Day, shall we?

1989, Briton buzzes over the UFO, unidentified (INAUDIBLE) object. It was actually a hot air balloon. Billionaire Richard Branson flying it. And according to the London legend, as a policeman approached, a costumed alien stepped out and the Bobby bolted.

1996, run for the border. Maybe Taco Bell should have run for cover. The fast food giant sparked outrage when it said it had bought the Liberty Bell and renamed it the Taco Liberty Bell. Got a filled of crack with guacamole but it tried to sue the anchor by donating $50,000 for the bell's upkeep. Nowadays that kind of corporate sponsorship doesn't seem that farfetched.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Spaghetti cultivation here in Switzerland is not of course carried out on anything like the tremendous scale of the Italian industry.

(END VIDEO CLIP)

PHILLIPS: How about this for a bumper crop of bump? 1957, England's BBC reports on a record spaghetti harvest being plucked from the trees. Curious gardeners called in and were told that they could grow their own trees by placing a sprig of spaghetti in a can of tomato sauce.

Here's another April Fools' Day prank. Just a mouse click away. Internet surfers know that Google has a tradition of pranks and today the search engine has changed its trademark to Topeka. That's because the city's mayor proclaimed the name changed to Google, Kansas last month in a bid to become the company's test site for its broadband experiment.

Well, eight Michigan militia members armed and ready. But were they really planning to kill cops and set up their own country? That story in two minutes.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Kyra Phillips.

PHILLIPS: Wall Street has closed the book on the first quarter. Don't be afraid to check out that 401(k) because the numbers are probably better.

Right, Stephanie Elam?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: That is true, Kyra. We had a pretty solid first quarter here. All the major averages rose at least 4 percent during the quarter. So that's not too bad.

It's the Dow's best first quarter since 1999. And today we're expecting the second quarter to bust off the gates with the game. So we like that start. Investors are encouraged by strong economic reports overseas and here at home.

Let's take a look at new jobless claims. They fell more than expected last week, dropping to 439,000. New claims have fallen in for the past five weeks so signaling that layoffs are slowing down. Despite the signs of improvement, Treasury Secretary, Tim Geithner, told the "Today Show" that he believes unemployment will stay, quote, "unacceptably high for a very long time."

We are also keeping our eyes on the auto industry today. Automakers are expected to report March sales figures throughout the day. Wall Street has high hopes because of the economic recovery and big incentives from Toyota. Separately, a reading on manufacturing will actually be released at the top of the hours and we are expecting to see some expansion.

Let's take a look at the numbers as we get going here today. We are out the gates with some positive numbers. It wasn't enough for Wall Street. The Dow up 54 points, 10,911 and if you take a look at Nasdaq, it is up 14 points at 2,412.

Finally, Kyra, before I go, as you know, today is National Census Day. This is the day we are supposed to get our census reports back into the government and how appropriate, Sotheby's announced their plans to auction off the first U.S. Census. It's from 1791 and it's signed by Thomas Jefferson. It is expected to fetch $50,000 to $70,000.

Just in case you are wondering what kind of things are included, state population according to five categories and free white males over 16, under 16, free white females and all other person and also slaves so interesting data there.

PHILLIPS: Wait a minute, single white females, wasn't that a movie?

ELAM: I think you have to add that part in. It might have been very different in 1791.

PHILLIPS: That was part B. On a serious note, did you fill yours out and send it off? ELAM: Yes, I did.

PHILLIPS: You did, OK, very good. You paused for a minute there.

ELAM: Got it done.

PHILLIPS: Yes, I did mine too.

The funny thing is my husband had no clue that I had done it, but yes, I did it and got it out. When I saw that legally, we had to do it, I was getting ready to -- that's full disclosure. I'm not going to go there.

ELAM: Full disclosure.

PHILLIPS: See you, Steph.

Is there a case or not? The attorney for the alleged leader of a militia group accused of planning to kill cops says, no, it is just talk, nothing but talk. Our Drew Griffin was in Federal Court in Detroit when not guilty pleas were entered for these defendants.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, INVESTIGATIVE UNIT CORRESPONDENT (voice-over): In court, no longer wearing designer fatigues but shackled at the feet and wearing prison jumpsuits, eight members of the Huteree militia sat by their court appointed attorneys listening as the government laid out its case. A conspiracy plot to kill law enforcement officers and start a war based mostly on the observations of that still unknown and unseen undercover agent.

At one point, the government even presented an audio tape of David Stone, the Hutaree leader reading a speech he had prepared to deliver to other militias. The Hutaree will fight along anyone who sees the new world order as an enemy. The voice on the tape says, the goal is a free nation without tyranny and it is time to strike. Welcome to the new world order.

Prosecutors alleged David Stone ran his militia from these run down trailers and was attempting to build his own nation, combining four Michigan counties to create a new country that he would defend with his Hutaree army. If that sounds like a bunch of crazy talk, stone's court-appointed attorney says, that's because that is all that is all the government has, talk with no evidence of an actual crime.

WILLIAM SWOR, ATTORNEY FOR DAVID STONE SR.: It is legal to speak out in America. It is legal to have opinions in America. It is legal to assemble with people in America. The government has to show more than that.

GRIFFIN (on camera): You said in court that he likes to talk a lot.

SWOR: So do I. GRIFFIN: This is just talk?

SWOR: Well, did you see or hear anything today that was anything else than talk?

GRIFFIN: During the court hearing in which all the defendants had not guilty pleas submitted on their behalf, the government's own lawyer described a rag-tag group that had trouble building any kind of explosives, couldn't obtain the material they needed for various operations and even failed to reach a militia summit in Kentucky because the van they were driving in couldn't make it through a snowstorm.

(voice-over): The government says, they confiscated 37 guns from the trailers along with materials that could be used to make bombs. But other than an alleged overall desire to kill law enforcement officers, no evidence was presented of any violent act the Hutaree were attempting to carry out. Ronald Waterstreet is the Assistant U.S. Attorney prosecuting this case.

(on camera): The attorneys are arguing you really don't have anything other than people expressing their free speech?

RONALD WATERSTREET, ASSISTANT U.S. ATTORNEY: Well, we have a public information officer that would probably be the best person to discuss the matter.

GRIFFIN: Can I ask you one factual question? The 37 guns confiscated, were any of them illegally obtained or illegal?

WATERSTREET: As I said, I don't want to try the case out here on the courthouse steps. The best place is in the courtroom.

GRIFFIN (voice-over): The judge in the case put off any decision on whether he would release any members of the militia pending their trial.

UNIDENTIFIED FEMALE: I'm tired of you guys harassing me.

GRIFFIN: Wives, fiancees and mothers of the militia members ran from the media after the hearing complaining of being harassed and offering no comment. Drew Griffin, CNN, Detroit.

(END VIDEOTAPE)

PHILLIPS: You know those slacker dudes that sing about free credit reports, the guys that aren't the cave men. Dudes, it is time to change your tune or get another job. That's what happens when you make free irrelative turn.

(COMMERCIAL BREAK)

PHILLIPS: Is it for safety's sake or just an excuse to target immigrants. The George State Senate has passed a bill requiring permanent residents to take their driver's license exam in English. Right now, the test is available in 13 languages. Supporters say the proposal would give immigrants a basic understanding of the language needed for driving in traffic stops. Other lawmakers call the bill a hostile, anti-immigration measure. Outside the Capitol's hallways, people in Georgia are divided.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You got to read the signs and you know, know where you are going.

UNIDENTIFIED MALE: America is a melting pot and we have people of all languages backgrounds and all (INAUDIBLE) here. We've got to cater to all of them.

(END VIDEO CLIP)

PHILLIPS: The bill now goes to the state house for action.

New rules for carmakers unveiled in Washington. The plan is really no secret, but here is the big point. Carmakers are going to have to up the ante on fuel efficiency, 35 miles per gallon is the target starting with the 2012 models. The higher standards are going to raise car prices about $1,000. You are supposed to make that back threefold by using less gas.

Happy Census Day! Today is the deadline to send in your form. It's look like around 62 million of you sent them in, including 1600 Pennsylvania Avenue. That's just over 50 percent. For those of you who didn't get it done, well, guess what, replacement forms on the way. If that doesn't work, you will get a knock on the door.

Patrolling the border, dangerous business in Southern California. We take you there.

(COMMERCIAL BREAK)

PHILLIPS: Violence spilling over the border. Mexican drug gangs running wild. U.S. citizens caught in the crossfire. Border agents on alert. We start with the murders of a U.S. consulate worker and her husband gunned down on their way home from a children's party.

Now Mexican authorities say they have a confession with a startling twist. The consulate worker was not targeted by the notorious gang. Gang members were aiming at her husband. He was a jail guard in El Paso who supposedly had several run-ins with gang members. Those killings led to an anti-sweep through El Paso, putting more gang members behind bars.

In Arizona, they are pleading with the federal government to get serious about border security. Ranchers gathered near the border to remember one of their own, murdered over the weekend. Police say they followed the alleged killer's track right to the Mexican border. The memorial service turned into an impromptu rally with calls to protect the people from cross-border attacks.

(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: We have been dealing with violence along the border for a long, long time. People say, it hasn't spilled over here yet. It is here. It is in the middle of us and has been for a long time. The risks are high. Until we get a hold and get the kind of aerial platforms and resources and boots on the ground and equipment in place to be able to detect each and every incursion of the border and respond to it, we are going to suffer and be at risk.

(END VIDEO CLIP)

PHILLIPS: There's no known motive or suspect in that rancher attack.

Texas, Arizona and California, all dealing with the violence. California, it's the border agents taking the beating literally. They are fighting back with force and a fence. CNN's Ted Rowlands has more for us now from just outside San Diego.

TED ROWLANDS, CNN CORRESPONDENT: Here we are along the U.S. Mexican border. We're talking about border violence, specifically against border patrol agents. This is Tijuana on this side. The reason we're here is that over the years, this has been an area of the country where assaults against agents were most prevalent. In fact, it was the most violent area for a number of years, but it is getting much better.

This is Sam Anderson Jr. He has been an agent for 21 years. You have been assaulted yourself but, good news, the assault levels are down in terms of the numbers.

SAM ANDERSON, JR., U.S. BORDER PATROL AGENT: Absolutely, and I have to attribute that to the right combination of personnel, technology and the infrastructure like you see in this fence and the razor wire above you.

ROWLAND: In fact this razor wire here, as Sam was telling us, has basically stopped anyone from trying to get over this fence even after the secondary fence went in, they would still scale it with ladders. What they are doing still is trying to cut through it. You see these holes here that have been repaired. They use a saw (ph), a piece of equipment to get through. But even those levels have dropped.

Now, in terms of violence against agents, the numbers of assaults are way down. However, one disturbing trend is the level of intensity in some of these assaults has gone up. And one of the cases that demonstrate that happened last year. One of your agents was murdered by someone involved in the drug trade.

Give us a sense of what that incident did?

SAM ANDERSON JR., U.S. BORDER PATROL AGENT: I specifically would have never thought that somebody would have dreamed of trying to kill, much less successfully kill, a border patrol agent. With that in mind, agents are keenly aware of the threat that's out there along the south west border. ROWLANDS: And Robert Rosa was an agent in your sector. It had to really hit home for you folks.

ANDERSON: Absolutely. And within the San Diego Sector, I mean, there's not a day that goes by that we don't think about what happened to Robert Rosas and our duty and our mission to protect this nation along the southwest border.

ROWLANDS: Bottom line it for us. Are we winning this battle?

ANDERSON: I would say -- especially here in the San Diego Sector, our ability to control or gain operational control of this particular area has increased immensely.

ROWLANDS: Is it worth taxpayer's money, this is millions, billions of dollars?

ANDERSON: Yes. You have to gauge, for instance, where are you going to put your infrastructure. Say for instance here in San Diego, because we are in an urban area, you would need to have this level of security, you would need that double fence. You would need that technology, those canvas and those fence, because the people are able to quickly assimilate into the population.

ROWLANDS: How disturbing is this trend that the level of attacks against agents has gone up?

ANDERSON: It is very disturbing to us. And it heightens our alertness of our surroundings and areas and the dangers that are out there.

ROWLANDS: And has it changed the way you do business?

ANDERSON: Absolutely. The thought of being complacent doesn't enter into my mind. So we strongly talk to each agent, do not be complacent. Do not be complacent while you're out there protecting our homeland.

ROWLANDS: All right, bottom line is, the number of assaults have gone down. The intensity, however, seems to be going up in some of these instances -- Kyra.

PHILLIPS: Ted Rowlands thanks so much.

Well, banned in Mexico, traditional Latin music with a very modern message.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: His diploma was death, his pencil was a bazooka. So now you've been warned.

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PHILLIPS: Glorifying murder and mayhem.

Next hour, we're going to meet the American musicians turning other's misery into personal success.

Jacqui Jeras, the Northeast trying to dry out?

JACQUI JERAS, AMS METEOROLOGIST: Yes and trying. It's succeeding, actually.

PHILLIPS: OK, good.

JERAS: Yes at least in terms of the weather, in terms of things that are coming down from the sky anyway. But, as you can see, still a lot of flood warnings remain in effect here. So, many of these rivers have crested now already. But it takes a long time for everything to continue to run off and to get the rivers back within its banks.

So, many of them will be in flood, which means you're still going to have water out there at least into the early part of next week. So keep this in mind. You know, it's Thursday today. And we're getting towards the weekend. And a lot of people want to get out and get out and about. So you still be really, really careful. It's still a very dangerous situation. And that's going to be ongoing across the Northeast.

Now, the best thing we can tell you is that the high pressure is in effect, high and dry. Keep those things in mind. And so we're going to get this nice, southwesterly flow in here, bringing in all that nice and warmer air. So temperatures are going to be just incredible across the east today.

In fact, we could see some record highs across the upper Midwest where temperatures are going to be as much as 25 degrees above normal. Hello, 25 above.

So everybody has been saying, where is spring? We are so tired of this. It is here, man. And in fact, we're almost like just transitioning right into summer.

The west, the reversal of the patterns, so now we're looking at the cooler conditions and yes we're looking at some snow into the higher elevations today. We could see, well, maybe as much as eight to ten inches out here, great for those of you heading on spring break and want to do a little skiing.

But one of the consequences is that we have a great difference between the warm and the cold with this low pressure coming in that the winds will be very fierce. So high fire danger across parts of the south and west -- Kyra.

PHILLIPS: All right. Jackie thanks.

Oh, she might have only gotten a few bucks and some loose change. But you know what? It's the thoughtlessness that counts. We're just three minutes away from a new chapter in the dirt bag chronicles. Wish this were just an April Fool's joke but it's not.

OK, admit it. You thought you were cool until your parents made you drive the green one with the three dents and the purple stripes. Remember that? Everyone in high school laughed as you rolled into the parking lot. Maybe it just needed spinners. All right. I just digress for a moment.

But the birth of the subcompact on this date in history -- there it is in all its glory, the AMC Gremlin, the first American made subcompact beating both the Pinto and the Vega by six months, by the way. The first Gremlins off the assembly line cost around $1,900.

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PHILLIPS: All right.

We've all heard about the school of hard knocks, but how about a school with hard liquor? And I'm not talking about bartending school. I'm talking about the Harambee Institute of Science and Technology Charter School in Philadelphia. That's its name by day, but after classes let out, the good times roll as a nightclub.

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ALAN BUTKOVITZ, CITY CONTROLLER: Yes, mixing liquor in a school that covers very young grades. It's really shocking.

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PHILLIPS: You think?

Well, once the cat got out of the bag it was last call. The bar's closed. The students go back Monday. Probably the hardest drink you can get there now in the old cafeteria, bug juice. Remember that stuff?

And now more dirt bag adventures. Some people -- boy, I tell you -- you have to wonder what's going on in their little dirt-bag minds.

Case number one: Oildale, California near Bakersfield. A woman gets ready to buy coffee at a convenience store. Clerk walks away for a second, woman snatches big donation jar for kids, terminally-ill kids. Shoves it in her purse and wins admission to the dirt-bag society.

The woman doesn't need coffee. She needs a conscience. I know the economy's tough and all, but really? Terminally-ill kids? Maybe the cops should put this on YouTube to help capture. That's right.

That's what they did in Fayetteville, Tennessee, and it worked. Take a look at this. You're looking at some pretty messed up family time action. A mom and a dad taking their two kids to a car lot to steal a radio out of an SUV, like a take your kids to work day for thieves. The sheriff said he really, really wanted to catch those parents, so he could talk to the kids, teach them that this is not a family value.

He doesn't want them to be dirt bags of tomorrow. Guess what? Putting the video on YouTube might have helped break the case. YouTube, you busted. Could be the next great criminal fighting tool.

A lot going on this morning. CNN crews keeping watch on all kinds of stories. Let's check with our correspondent beginning with Josh Levs.

JOSH LEVS, CNN CORRESPONDENT: Hi there, Kyra. This is the jackpot that 41 states competed over. Billions of dollars to revolutionize their schools, only two have won. So which are they and how can your state still get some of your billions? I will have that in the next hour.

JERAS: I'm CNN meteorologist Jacqui Jeras. The flood waters finally just starting to recede across the northeast as temperatures warm in the 70s and 80s. But the worst of the weather now hits the southwest with fire danger and severe thunderstorms. We'll have more details coming up in your forecast.

PHILLIPS: All right. Thanks, guys. Also ahead, we know that states are struggling to make ends meet, but should budget cuts come at the expense of foster families? We're going to talk to one family that opened its home and hearts to kids with special needs.

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