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Deadly Blast at Moscow Airport; Loughner Arraignment Today; Update on Congresswoman Giffords' Condition; Innovation and Education

Aired January 24, 2011 - 14:00   ET

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

ALI VELSHI, CNN ANCHOR: All right. I want to take you to the top story that we're following right now.

It's 2:00 on the East. From all indications, a blast that rocked Moscow's busiest airport today was not just deliberate, but designed to do the maximum damage. Smoke filled the international arrival section of Domodedovo airport, southeast of the Russian capital, where at least 35 people were killed and more than 150 hurt.

The government calls it a suicide bombing with a homemade device packed with shrapnel. Just moments ago, the Russian news service Interfax, quoting a source, said investigators have now found parts of the suspected bomber's body.

The airport itself remains open, although many, if not all, incoming flights are been diverted while investigators comb through debris. President Dmitry Medvedev has postponed his trip to the world Economic Forum beginning this week in Davos, Switzerland, and has stepped up security at other transportation hubs.

Here's a bit of his nationwide address.

(BEGIN VIDEO CLIP)

PRES. DMITRY MEDVEDEV, RUSSIA (through translator): We need to establish an investigation committee to perform as soon as possible on investigative actions on site. I have ordered the Moscow mayor and the governor of the Moscow district to come there. They're currently heading for the airport, and we need to make -- to do everything we can to make sure all investigative actions are carried out and all information is obtained.

(END VIDEO CLIP)

VELSHI: CNN Senior International Correspondent Matthew Chance joins us now. He's at the airport. He got there about an hour ago.

What have you been able to determine since you've been there?

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Well, certainly, Ali, the airport is the subject, as you might expect, of a big security operation. The whole arrivals half of the Domodedovo terminal, which you can see behind me -- it's a very modern building -- has been sealed off by the security forces. The arrival section, as you were just mentioning, of course, is the area where this suspected suicide bomber detonated those explosives with such devastating impact. Thirty-five people confirmed dead at the moment, more than 150 injured, many of them critically.

The Moscow police forces have been put on high alert not just here, at Domodedovo, but at other airports in Moscow as well, and other key transport installations like train stations and metro stations, because the concern, Ali, is that this was not a one-off attack, that there could be more attacks planned in the hours or possibly the days ahead at another transport center in the Russian capital. The reason people think that, the reason the authorities think that, is because the transport infrastructure in Moscow has been targeted many times in the past, most recently back in March of last year, when suicide attackers bombed on two occasions the metro system in the Russian capital, killing and injuring dozens of people. Obviously the concern is that could happen again after what we've seen here tonight -- Ali.

VELSHI: All right. Matthew, thanks very much for that. I know you're trying to get as much information as possible while you're there at the airport. We'll check in with you a little later.

Matthew Chance, at the airport now, trying to dig up everything he can.

I want to bring in Tom Fuentes. He's a former assistant director of the FBI, now a CNN contributor on security issues, joins me from Washington.

Tom, the suspicion that we've heard so far falls on Chechen rebels, or Chechen terrorists, because that's largely what Moscow has seen in preceding years.

Is that where it's likely to start?

TOM FUENTES, CNN CONTRIBUTOR: Yes, Ali. I think that will be the usual suspects in this case.

Going back to 2002, before today, the Chechens had committed five major terrorist attacks in Russia -- the Moscow Opera House in 2002, the Moscow Metro, also, in 2004, two airliners in 2004, the Beslan school incident in September of 2004 which resulted in 300 people dead, mostly schoolchildren. This past March, as Matthew Chance mentioned, another attack on the Moscow Metro system.

So, if in fact this is related to Chechen terrorism, it will be the sixth major attack since 2002 by them.

VELSHI: All right. What is likely to happen as a result of this attack? As Matthew Chance was just saying, there have been other attacks on transportation infrastructure in Moscow.

Is this likely to reverberate at airports throughout the world? Is there something differently that they'll do? Because earlier, you said the place that was bombed here is an area that in many airports is more vulnerable than their most secure areas.

FUENTES: It is more vulnerable, and that's true at every airport, including here in the United States. You know, the most vulnerable area is going to be where people are in line to check in, are in line before they go through the security systems. That gathering may be inside an airport or it may be out on the sidewalk. And then the second gathering place will be where people are coming to pick up arriving passengers, whether they be limo drivers or family members or friends who come to the airport.

Now, don't forget, it's January in Moscow, so if you don't let people in the airport, they're going to be gathering out on the sidewalk in possibly subzero weather, and we would have the same issue here in the United States. And you don't want people standing outside on the sidewalk for an hour and a half in Minneapolis waiting for passengers to arrive.

So that's always going to be the most vulnerable place where you haven't gone through security yet, but there's a crowd gathered, either leaving or arriving.

VELSHI: Tom, thanks very much for your input.

Tom Fuentes, a CNN contributor, a former FBI assistant director.

FUENTES: You're welcome.

VELSHI: Let's get on to some other stories that we're following.

(NEWSBREAK)

(COMMERCIAL BREAK)

VELSHI: Accused Tucson shooter Jared Lee Loughner is scheduled to appear in federal court in a little over an hour.

Ted Rowlands is at the federal courthouse in Phoenix.

Ted, what are we expecting today? Because we know that charges have been brought against Jared Lee Loughner. We know he showed up in court. What's happening today?

TED ROWLANDS, CNN CORRESPONDENT: Well, there are five charges, and he's only been indicted on three of them. So what we're expecting today, Ali, is that Loughner will come in and plea to those three charges of attempted murder. He was indicted by a federal grand jury.

After that, they'll also deal with another thing that is on the docket, and that is a motion by the United States government to move any further proceedings from here in Phoenix back to Tucson, because, of course, the crime took place in Tucson, it would be easier for victim family members to go to court hearing from here on out in Tucson. And the government is asking the judge here, who's been brought in from San Diego, to move any proceedings from Phoenix back to Tucson.

So it should be relatively short hearing all in all. We expect it to last 10 to 15 minutes. And we'll see what Loughner does.

Last time he was very well-behaved, answered all the questions that were posed to him by the judge. We'll see what happens today.

VELSHI: OK. Ted, are we expecting more charges after this, or will this likely be all of them?

ROWLANDS: Well, absolutely, we'll get a lot of state charges coming down in fairly short order. There's also those two murder charges that he faces in the federal system. Once he's indicted by a federal grand jury -- and the government has 60 days to do it -- then he will be re-arraigned on those two charges.

Meanwhile, you've got the corresponding state case that he is facing. He's facing four additional murder charges there, and some 12 to 14 other attempted murder charges on the state side. Right now the federal government is taking the lead, but it's safe to say that this young man has a lot of years ahead of him in court, not only federally, but state court.

VELSHI: All right, Ted. Thanks very much for that update. We'll stay in touch with you to find out how things develop this afternoon.

One of Jared Lee Loughner's alleged victims, Congresswoman Gabrielle Giffords, continues to surprise doctors as she recovers in a Houston hospital. They say she's doing well, but she's not ready yet to begin rehabilitation, the reason she was moved to Houston in the first place.

Senior Medical Correspondent Elizabeth Cohen is standing by.

Elizabeth, what is the delay in starting the rehab on Gabrielle Giffords?

ELIZABETH COHEN, CNN SR. MEDICAL CORRESPONDENT: Ali, simply put, she's got a drain coming out of her head. And that's because she has too much fluid around her brain. And fluid around the brain in big quantities is really not good. It's not safe. It can lead to infection.

Here's the situation.

This is what a normal brain looks like. You see some fluid -- that's in blue -- in the center there. And here you see much more fluid and you see swelling.

That is basically her situation. So they put a drain in there. Imagine just sort of a pipe going in there and coming out of the body.

Now, the problem is, is that that place can get infected relatively easily. As long as she's got a drain in there, she has to stay in intensive care -- Ali.

VELSHI: All right. So what has to happen for that drain to be removed? She has to -- what happens to get that fluid reduced? COHEN: Well, neurosurgeons tell me what they do is they sometimes do a trial run. They'll take the drain out, and if it starts to look like this on its own, then they're like, wow, this is great, terrific, we can think about moving her into rehab. But if it builds back up again, they're sort of in a pickle.

And usually what they do in that situation is they put in something called a shunt. And what that is, is that is a drain, but instead of going out of the body, it stays inside the body, and all that fluid goes into the abdomen.

And it sounds kind of crazy, but people actually live with these shunts for years and years, sometimes for their entire lives. So they're going to need to make a decision pretty soon. That drain has been in there for a while. It is a place that can easily get infected. If it gets infected, that's a huge setback for the congresswoman.

VELSHI: So one of the things about brain injuries is that even without the rehab, as the swelling reduces, as the pressure from the fluid reduces, some improvements start coming along even before rehab.

What kind of improvements have we seen with Gabrielle Giffords? What is she able to do already?

COHEN: Right. While I was in Houston, her doctors told me that they've been amazed at what she can do.

They said she can't speak, but they feel like she's trying to get words out. She can't stand up on her own, but she has much more strength when they try to hold her, she has much more strength than they thought.

And a nurse told an interesting story about how she admired a ring that the nurse was wearing. And the nurse took it off, and Giffords looked at it. And then when the nurse went to take it back again, she kind of made a joke and made like she was going to keep it. So, she has a sense of humor, so that's a good thing.

And one of the doctors spoke on Saturday about something she did that really kind of amazed him.

(BEGIN VIDEO CLIP)

DR. GERARD FRANCISCO, CHIEF MEDICAL OFFICER, TIRR MEMORIAL HERMANN: At one point her leg was dangling in the bed, and we asked her to bring her leg up. After a couple of seconds, she brought the left leg up without any further delay.

(END VIDEO CLIP)

COHEN: Now, Ali, that sounds so simple, just to take a leg that's dangling and putting it up on a bed, but for someone in her condition, that's notable.

VELSHI: All right. Well, we're going to follow it very closely with you. I'm really glad that you've also had some experience, Elizabeth, talking to people who have had similar injuries and have made really remarkable recoveries.

So, as amazing and remarkable as this seems, it is something that is plausible and likely to happen. So that gives a lot of hope to people.

Elizabeth, thanks very much.

COHEN: That's true. Thanks.

VELSHI: Elizabeth Cohen, our senior medical correspondent. She's following this case very closely.

The state of the nation, the state of America's housing. President Obama will tell you about the nation tomorrow night. We're going to tell you about housing right after this break.

(COMMERCIAL BREAK)

VELSHI: OK. In today's taking the lead segment, jobs, your money, your future, all topics that President Obama will surely touch on, on his "State of the Union Address" tomorrow night. His goal is to assure the nation that his plan for overcoming the effects of the Great Recession will bring about the needed results.

Christine joins me now with a look at the state of those crucial economic indicators -- jobs, small business, and housing.

We know that the president is going to talk about this new competitiveness that America has to embrace.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Right.

VELSHI: And that really does deal with jobs and small business. So tell us what your evaluation of this tells us the state of the union is with respect to jobs.

ROMANS: All right. Well, let's start with jobs.

We spoke with leading economists, we weighed the recent economic reports to determine whether the jobs market is weak, improving, strong, or very strong. The consensus on this, the jobs market is improving.

Still, economists caution it's going to take us years, Ali, to recover all those lost jobs. Job creation so far has been much weaker than it should be 18 months into a recovery. Bill Rodgers at Rutgers University, who you know well, says that the first beneficiaries of jobs growth, Ali, will be workers whose education experience and skills are the most up to date in this economy.

VELSHI: And when he says "up to date," he means up to date with respect to the type of jobs that we have available.

ROMANS: That's right. VELSHI: There are jobs available in this country. They just don't match the skill set of those who are unemployed in many cases.

OK. Let's talk about small business, another major, major concern. Traditionally, small business has been the engine of job growth in America.

Where are we?

ROMANS: And for the survivors of the Great Recession, the companies that are still around after that, conditions are generally improving. They are not yet strong. They are improving.

Big companies, as you know, have huge piles of cash. Profits for them have come back.

For small business, it's less dramatic. Sales are only slowing picking up, but the availability of credit is improving. And surveys show small business hiring is picking up.

This is Mark Zandi.

(BEGIN VIDEO CLIP)

MARK ZANDI, ECONOMIST, MOODY'S ANALYTICS: Home sales and housing construction, they have stabilized at incredibly low levels. But unfortunately, I think we have got more house price declines coming.

We have over four million mortgage loans in the default process. Many will go through to a distressed sale, and that will put downward pressure on housing values.

(END VIDEO CLIP)

ROMANS: So, in fact, housing is so weak, we had Mark Zandi tell you twice. The state of the housing market is weak.

(CROSSTALK)

VELSHI: That's interesting.

So the other one -- there was jobs improving, small business improving. Your experts are saying it's weak. Why is it weak?

ROMANS: Because you have so many foreclosures. I mean, I want you to look at this number. We figured it out. This last year, 3,287 bank repossessions every single day.

VELSHI: Wow.

ROMANS: And it's going to be more than that, perhaps, this year. RealtyTrac says some four million to five million foreclosure notices. That's everywhere along the spectrum.

But think of that, 3,000 people every day losing their home. And you could have home price declines, as Zandi was saying, into this year.

When you look at the range of estimates, according to (INAUDIBLE), some two dozen different economists, Ali, the worst forecast for home prices, down 11 percent.

VELSHI: Right.

ROMANS: The best, up 4.6 percent, up 5 percent -- call it up 5 percent. That's stabilizing at low-to-weak levels.

VELSHI: OK. So the only "but" that I have here is that, you're right, I don't doubt that it may be -- home prices may be down. But interest rates are still more than likely to go up.

ROMANS: So low.

VELSHI: So if you are a long-term buyer with good credit, and the ability to put money down, do the math on this, because it still may be more advantageous for you to buy this year than to wait for next year, when prices are lower but your interest rate might be higher.

ROMANS: Yes. You're going to get no argument from me on that. You're absolutely right.

The question here -- and if you look to (INAUDIBLE) from Ezra Financial, she pointed out, you have investors in the market and first-time homebuyers with jobs, with money in the bank, good credit -- you've got to have 20 percent down. There's opportunities of a lifetime for some of these people.

VELSHI: Right.

ROMANS: We also know that more metro areas are either fairly valued or undervalued now than any time in recent memory. That means there are some bargains for people. But there are lots of foreclosures. Still a lot of foreclosures. That's holding things back.

VELSHI: Yes. And by the way, on Money.com right now there's a gallery of some of the best values in cities, what cities actually have the best value for the money. So if you are in one of those positions, and you're flexible, give it a look.

OK, Christine. Thanks a million.

ROMANS: There you go.

VELSHI: All right. Be sure to tune in for special coverage of the president's "State of the Union" here on CNN starting Tuesday night, 7:00 p.m. Eastern. We're going to bring you lots more of this detailed analysis of where we stand in the country right now.

Twenty-five minutes after the hour. Let me bring you up to speed with some of the top stories that we're watching right now on CNN. Here is a tricky one. It looks like former White House chief of staff Rahm Emanuel is no longer the front-runner in Chicago's mayoral race. That's because an appeals court ruled just moments ago that he's not a Chicago resident. The appeals court overturned a lower court's ruling that had cleared Emanuel to run.

Moscow police are on high alert after a deadly bombing at the city's busiest airport. Russian authorities say 35 people are dead, 152 are wounded, after an apparent suicide bomber set off a homemade explosive near the international terminal. Russian President Dmitry Medvedev is calling this an act of terrorism. He's demanded more security at Moscow's international airports.

Another blow to the postal service that could change how you send and receive your mail. The U.S. Postal Service says it may close thousands of post offices due to a shortage in revenue. Its goal, 2,000 stations and branches in 2011, in addition to the 491 already scheduled to close.

Last year, the Postal Service lost $8.5 billion, stating it can't keep up with the Internet and other forms of electronic communication.

Well, even folks in Maine admit that it is wicked cold, so you know something's up. We're talking wind-chills of minus 50 in some parts of the Northeast, and people literally freezing to death.

(COMMERCIAL BREAK)

VELSHI: Well, there are lot of ways to describe really cold weather -- bitter, biting, piercing, and sometimes dangerous. That's where we are right now in some parts of the Northeast, dangerous.

Over to Jacqui Jeras in the Weather Center.

(WEATHER REPORT)

VELSHI: This is really cold. I know you and I both don't usually mind the cold, but there are some places in the country where it's actually very serious right now. Jacqui, thanks very much for bringing us up to speed on that. Jacqui Jeras in our Severe Weather Center.

All right. Take a look at this. We've been telling you over the last hour, there's a been a development in the Chicago mayoral race where an Illinois appellate court has deemed that Rahm Emanuel is not a resident of Chicago, and hence cannot run for mayor. They've overturned a lower court's ruling. Those are live cameras getting ready for a press conference being brought to us by our affiliate WLS, getting ready for a press conference.

I don't know if it's Rahm Emanuel himself who's going to be talking. I think it's a press conference explaining what's going on. I am hearing that it will be Rahm Emanuel who is coming to the mike to explain what happens next. Is he out of the race? Is he doing something else about it? We'll bring it to you after the break.

(COMMERCIAL BREAK)

VELSHI: Let's go straight to Chicago. Rahm Emanuel talking about the ruling against him running for mayor.

(JOINED IN PROGRESS)

QUESTION: All the evidence that this court has heard so far, the appellate court heard everything you just said, heard it from your lawyers, they decided opposite of what you believe. What's your reaction to that three-judge panel making that decision?

RAHM EMANUEL, FORMER WHITE HOUSE CHIEF OF STAFF: Well, first of all, as you know, there's another -- the dissent opinion is pretty strong and consistent with what Judge Ballard has said, who's heard this. What the three-panel at the Chicago Board of Election has decided unanimously, as well as what Mr. Morris has decided. And this is different than that. I think obviously this will go to the next level to the Supreme Court.

QUESTION: As of now, you are not on the ballot. The board of elections says they will not put your name on the ballot. It is going to be confusing for voters.

EMANUEL: You think it'll only be confusing for them, Marianne (ph)? Obviously my attorneys will address that and ask for a stay there so we can get our name printed on the ballot as well.

QUESTION: How quickly --

(CROSSTALK)

EMANUEL: Obviously, Mike, I'm not a lawyer. I consider that a benefit. I think that's up to obviously them to decide. Our goal is -- quickly for the very reason Marianne said. The clarity, not only for the voters, but the clarity for the issues that are at stake here for the city. The city has big issues facing it. It clearly has a budget crisis. It has a crisis in its schools. And it has no doubt a crisis in the safety of its streets. This is a big election that would determine I think, given the term a mayor got elected, some major decisions to be determinant for the city's future --

QUESTION: Rahm?

EMANUEL: And so - I'll be right there. Hold on a second. I'll be right there in a moment. Let me just try to slowly but surely answer all of these.

I think in that case, the Supreme Court has an obligation given -- not an obligation. They'll hear the case to make a decision quickly so both not only the voters have the clarity that they need, but there's a clarity to the issues that are discussing in front of the voters as it relates to the challenges we have as a city for our future.

QUESTION: Do you think there --

QUESTION: If the state courts are political places -

EMANUEL: What's that?

QUESTION: If the state courts are political places, in part, to what extent do you believe politics might be involved in this decision as it proceeds?

EMANUEL: Look. I think that's -- you guys will make a decision. We have an opinion here. We had a decision by the -- as I said before the board of elections, Mr. Morris as well as Judge Ballard. We'll now go to the next level for clarity for the voters so they can have a decision to make of who they want to be mayor.

QUESTION: When do you expect -

(CROSSTALK)

EMANUEL: Whether politics or not, you guys will make your own decisions about that basis. My view is to focus on what the voters need me to focus on. Then there will also be a decision at the next level by the Supreme Court.

QUESTION: When are your lawyers going to file your request for stay?

EMANUEL: They'll file everything in due order in a very proper way (ph).

(CROSSTALK)

QUESTION: Is this a serious setback?

VELSHI: OK, that was it. That's Rahm Emanuel explaining to reporters that he is going to continue his appeal to get back on the ballot. The issue is that the Chicago mayoral rate -- race -- the election is on February 22, so he's running out of time. He may not have his name on the ballot, as one reporter pointed out.

But the issue is that he was deemed eligible to run by a lower court; now an appellate court has ruled 2-1 against him running by saying he's not a Chicago resident. When he left to go work at the White House, he abandoned his Chicago residency. The lower court had said he had gone to Washington on a temporary basis to work for the president and that he did not, as a result, give up his Chicago residency. If you're not a resident of Chicago, you can't run for mayor.

So, at this point, Rahm Emanuel is off the ballot for the Chicago's mayor race. We will continue to follow the story to see whether he gets back on or not. He is the - the top-ranked candidate right now. He's got in polls, he is rating the highest of all the candidates in the race at the moment. We'll continue to follow that for you.

Now for more on that deadly bombing in Moscow's busiest airport. Russian authorities say it was a suicide attack carried out by terrorists. At least 35 people were killed at the airport's international arrivals entrance. And now officials are ramping up security at travel hubs throughout the city.

Terror attacks are not new in that city. For more on that, let's bring in CNN foreign affairs correspondent Jill Dougherty, who has spent a lot time in Russia. Jill, give us some context on this.

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Well, you know, Ali, think when something like this happens, it rings alarm bells on a lot of levels. Number one, the immediate thing that officials would think probably would be the caucuses. That means Chechnya and other areas in the south of Russia.

In terms of what kind of terrorist attack this would be, it also creates some real psychological problems for Russians themselves. After all they've been hit by terrorist attacks now for years. And you know, I was checking some of the blogs, Ali, reacting to some of this news. You can see it immediately people saying, look, there are people on the floor here, they're not getting any help. This is at the airport, and then other people saying, it has to be the Chechens. Other people talking about lack of security in Russia.

So it's quite serious, and it's very serious for President Medvedev because, after all, he has to show that he is strong, he's in charge, and he can get to the bottom of this as quickly as possible.

(BEGIN VIDEO CLIP)

P.J. CROWLEY, STATE DEPARTMENT SPOKESMAN: We obviously condemn the terrorism that we saw today in Russia. We stand with the people of Russia at this moment of sorrow, and we offer our deepest sympathy to the families and loved ones of those injured and killed.

We will continue to work with Russia and the international community to combat violent extremists that threaten peace-loving people everywhere. We have offered support to the Russian government if need be to help bring these perpetrators to justice.

Hmm? At this point, we have no information that any American citizens were killed or injured.

(END VIDEO CLIP)

DOUGHERTY: So, that was P.J. Crowley here, Ali, at the briefing just a few minutes ago at the state department. And you've gotten a very strong message coming from President Obama calling it -- talking about the solidarity of the American people, and also NATO coming out.

So all from Western countries, a lot of support coming from Russia. Because after all, you know, this movement that began in the south of Russia in the caucuses many years ago now has kind of morphed into something else, and there are definitely ties to international terrorism. I am not saying, of course, that this necessarily was, but that movement does -- is an inspiration for terrorists around the world. So, there are international implications one way or the other to all of this. VELSHI: Jill, this has happened in Russia for a long time at different transportation hubs. What's the sense of whether the government is on top of it or not? In other words, do they commonly come out as you hear in the United States saying that they foiled various attempts? Or does this kind of happen? It seems like it happens almost on an annual basis, some kind of large-scale attack at a transportation hub in Russia related to the Checthen rebels.

DOUGHERTY: Precisely. I mean, you look back, March of last year, they had the subway bombing. I mean, there have been bombings on a regular basis. And even President Medvedev today when he was responding said that some security laws had not been carried out the way they were supposed to.

So, if you look at this airport -- you know, it's a very modern airport. It was renovated. It's really very top notch, up-to-date, that it could happen there, they would have to look very seriously at how a person could take that much explosive material -- I mean, you look at some of those pictures. It was a major, major explosion. So, there are a lot of question about this.

As usual in Russia, the question will be, did people really carry these out as they should have, or was there a more lackadaisical approach to this? Or maybe even structurally, the laws and regulations weren't what they should have been. We'll find out, I hope.

VELSHI: Jill thanks very much for your insight and for giving us some context. Jill Dougherty live at the State Department.

Education and innovation in our schools. What's the biggest roadblock to kids getting better grades? Let's spell it out for you when we come back.

(COMMERCIAL BREAK)

VELSHI: Some news just in to CNN from St. Petersburg, Florida. Police there say the fugitive who killed two police officers this morning has been found dead inside his home. Now, police have made partial entry and couldn't find him, so they started tearing the place up with heavy machinery. And that's when they saw his body.

The guy was reportedly a registered sex offender. He was wanted on new aggravated battery charges. After a fugitive task force entered his home this morning, they were met by a barrage of gun fire. Two St. Petersburg police officers and a U.S. -- deputy U.S. marshal were hit. Both of the officers have died. The marshal is in stable condition.

President Obama has had his say about the state -- well, has his say tomorrow about the State of the Union, and then lawmakers will get their say. Well, we don't want to wait that long. So, we're looking at some of the key issues right now.

What is the State of the Union when it comes to education and competitiveness? We know the president is going to talk about both of those things tomorrow, so we're turning to experts in the field for some insight.

Let's bring in Magnet School principal and CNN education contributor Steve Perry -- Steve.

STEVE PERRY, CNN EDUCATION CONTRIBUTOR: One of the things that we know is that America is at an intersection in education of the recession and technology, and there we see great opportunity. Not just in urban centers where we think we might see them, but in many of the suburbs where they have one high school and they have to make certain decisions as to what they can and cannot keep because they don't have the money to do what they used to be able to do. So, technology has bridged the gap and, in fact, can propel us forward academically.

VELSHI: Steve, what's the -- what are we doing right now that has actually improved our situation? Because as you looked at it, some things have actually improved.

PERRY: Actually, technology has been very, very helpful because in schools such as ours, we're a small school. We may want to teach a child Arabic, but we couldn't hire a teacher to teach Arabic to one child, but we can, in fact, use a resource, an online resource, that will bring that opportunity to children.

VELSHI: What are the biggest impediments toward improving things in the education system and the public education system in this country?

PERRY: One of the biggest challenges, we're going to have to find a way for organized labor and those people who are innovators to come together. We're going to have to take a more serious look at what a school is and isn't. We see with post-secondary education, schools like University of Phoenix that posts some 250,000 students or some other smaller schools that may post some 65,000 online students. And then some of the brick and mortar colleges that also show online applications going up and up and up.

Well, in the primary and secondary schools, we see the opportunity there as well. Johns Hopkins University has a center for talents and youth. We did a story on it for "Perry's Principles." And they have 10,000 students in pre-K -- in grades three to 12, 10,000 students from 90 different countries.

More and more children need greater access to that. And the way to do that is get the unions to understand that everything that happens in the school isn't the only place school takes place. We need to open up education to those experts outside the building. That will allow us to use information technology just like we have here with Cisco, in which we can bring experts into the classrooms.

VELSHI: Also, Steve, good to talk to you as always. Thanks very much. Steve is coming to us on one of those fantastic Cisco cameras that looks just like if he were in a regular studio. Steve Perry is a principal and cofounder of Capitol Prep Magnet School live from Hartford, Connecticut.

Oprah had a big secret. Yesterday, she told us she had held something back from our Piers Morgan. It's a whopper. The family secret is unveiled, next.

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VELSHI: Former Republican presidential candidate Rudy Giuliani is Piers Morgan's guest tonight on CNN. In their discussion: his thoughts on running against Sarah Palin for president.

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PIERS MORGAN, HOST, "PIERS MORGAN TONIGHT": Would you be more tempted to run if she wasn't?

RUDY GIULIANI (R), FORMER NYC MAYOR: Maybe the opposite.

MORGAN: Really?

GIULIANI: Yes. Maybe the opposite because, you know, my one chance, if I have a chance, is that I'm considered a moderate Republican.

MORGAN: Yes.

GIULIANI: So, the more Republicans in which I can show a contrast, probably the better chance that I have.

MORGAN: So, you've become the acceptable face ever the Republican Party.

GIULIANI: Well, I don't know if I'm acceptable. The question is, of the way I got elected mayor of New York City was not being acceptable, my slogan was, you can't do any worse. Things are so bad you need me.

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VELSHI: Well, you can catch more of that interview with New York's former mayor tonight 9:00 Eastern on CNN, "PIERS MORGAN TONIGHT."

Oprah Winfrey has a secret sister. Well, not so secret anymore. She revealed the truth and her half sister on her show today. Oprah said she never knew about Patricia who was put up for adoption at birth by Oprah's mother. A couple much of years ago, Patricia started searching for her birth family and she discovered that she might be Oprah's sister. A few DNA tests later, and here we are. Oprah said she first met her half sister over Thanksgiving.

Time now for a political update and a big problem has popped up in Rahm Emanuel's campaign for mayor of Chicago.

CNN chief national correspondent John King joins now us from Washington.

I remember, John, when that first ruling came out saying to you, do you think this is it? And I think you implied that it's never really it when it comes to politics.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: It's never really it. We'll get to that saga of Rahm Emanuel in just a second. But a saga it is.

First, though, you know, the president gives his State of the Union address tomorrow night. And people also wonder who will be up there in the president's box with the first lady on the State of the Union. We don't have the full list yet, but we do know that some of the guests that the president invited are the heroes, if you will, of the Tucson shooting.

Daniel Hernandez, remember, he's the intern in Congresswoman Gabby Giffords' office. He helped save her at the scene, get her to the first responders. He will be up there. He was also seated in the front row with the president at that big memorial service in Tucson.

Also there, the family of Christina Taylor Green, the 9-year- old. She was, of course, the youngest victim of the Tucson tragedy. Her family will be there.

Dr. Peter Rhee from the Tucson medical center there, University Medical Center, one of the medical people who not only helped Congresswoman Giffords but others, the shooting victims.

They will be there and we're waiting for the full list still for the president's speech tomorrow night.

And, now, Ali, to that big story, Rahm Emanuel. He was the president's right-hand man. He went home to run, the Chicago board of elections said he was qualified to be on the ballot. But, now, an appellate court says no. They are reading the state law quite literally.

Here's what they wrote. A candidate must met not only the election code's residency standard, but must have actually resided within the municipality for one year prior to the election. A qualification the candidate unquestionably does not satisfy.

Now, you saw Rahm Emanuel just moments ago saying he will appeal this now to the state's Supreme Court, hoping they act quickly, Ali, for what Rahm called clarity.

VELSHI: All right. John, thanks very much for that. You can watch John every night on CNN, 7:00 Eastern, "JOHN KING, USA."

Your next political update is just an hour away.

Tomorrow, President Obama will tell us the State of the Union is strong. Has he looked at the budget lately? My "XYZ is next.

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VELSHI: Time now for the "XYZ" of it. President Obama will see a changed political landscape when he gives his State of the Union address tomorrow. Among the big issues Republicans capitalized on heading into the midterms -- how big government spending fuels America's debt burden. This issue will plague both parties for years to come no matter who's in control.

Right now, about 76 cents of every federal tax dollar collected is spent on just four things -- Medicare, Medicaid, Social Security, and interest on the government's debt. That leaves just 24 cents for everything else in the budget. If you think that's bad -- that number is expected to drop to just 8 cents per dollar collected by 2020. Just to be even more alarmist, by 2040, there may only be enough tax revenue to pay for Social Security and interest debt, nothing more.

The State of the Union is traditionally a speech that summarizes where we are and where we're heading as a country. Let me tell you where we should be going as a nation, we need to revisit all of Washington's sacred cows, including our archaic tax system and the way we take care of the elderly and the cost of health care going forward. If we don't start now, those of you who want smaller government will likely get it. But at this rate, it might be much smaller than you expected or wanted.

That's it for me. Brooke Baldwin takes over from here.