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Government Shutdown Deadline Looms; Japan Dumps Radioactive Water; UConn: Last Team Standing; Obama to Meet with Leaders from Both Parties in Oval Office
Aired April 05, 2011 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It is 10:00 a.m. on the East Coast, 7:00 a.m. in the West. I'm Carol Costello, in for Kyra Phillips.
Southwest Airlines finds another plan was cracked. So now the federal government is stepping in. The FAA ordering more detailed inspections of certain older jets.
Severe and deadly weather tears up parts of the south. Thousands of people waking up this morning with no power.
And another college basketball season is a wrap. UConn, the last team standing.
In just 15 minutes, President Obama will sit down with Republican and Democratic leaders in the Oval Office. They will try to hammer out a budget deal. They've got until 11:59 p.m. Eastern on Friday to make that happen or part of the government will shut down.
Some museums and national parks, for example, will close. Passport applications could get held up. And a Pentagon official tells us that U.S. troops will not be paid on time. We'll get more details on those things in just a minute.
But some Republicans are looking beyond this year's budget to 2012. House budget chairman Paul Ryan is unveiling his 2012 plan any minute now, and it slashes trillions and trillions of dollars from the budget. Dana Bash is live on Capitol Hill. So Dana, for the 2011 budget we're fighting what? $30 billion, maybe $60 billion to keep the government running, but Ryan's budget plan call for cuts in the trillions of dollars?
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: It does, Carol. You know, I'm talking to Republican leadership aides. They are making clear that some of the problems that they're having with their fellow conservatives and balking at compromising to keep the government open now they're saying "Well, wait a minute. You know, we might not be talking about a lot now. But look ahead to the future. And it is trillions of dollars." That the House budget chairman is proposing.
That budget is for 2012 online right now. Let me just give you some of the details of what we're talking about here. $6 trillion in spending cuts over 10 years. How would he get there? In large part by dealing with some issues of the issues that politicians simply haven't wanted to deal with more years. Medicare, for example. Of course, the health care program for seniors. People 55 and over wouldn't be affected. Because it wouldn't kick in until 2022.
But at that point, the government would no longer be directly paying medical bills and instead there will be lump sum payments to private health plans. That's one example. The other is Medicaid, which of course, is the health plan that essentially goes for low- income Americans. The federal government would effectively get out of the business and give block grants. Lump sum payments to states for them to deal with, we're told that could add up to about -- $750 billion in savings. Some examples of the massive changes that he's proposing.
COSTELLO: Oh, massive changes. He has other changes in there, too, having to do with making the tax cuts permanent, for example, is one. And also changing the tax code. In fact, we're hearing a lot about GE and the fact that they didn't pay taxes last year. Would that factor into his idea?
BASH: It does seem to be, at least that theory. The idea that corporations have big gaping loopholes that they can use to -- like the example of GE, not pay taxes. Well, this budget would do away with most of those loopholes, but and there is a but. It would also benefit these corporations by lowering the tax rate.
Right now it's 35 percent. It could go down to 25 percent and do the same for individuals. So you know, this is very much obviously a Republican credo that cuts taxes but it also cuts spending but it definitely does so in such a dramatic way that it is absolutely going to change the political debate about how exactly they're going forward in terms of spending.
COSTELLO: Thank you. Dana Bash reporting live from the White House this morning.
We're talking a lot more about the spending and cutting later this hour. At 10:15 Eastern, Congresswoman Christie Noem joins us. She's a South Dakota, Republican and she'll talk about what the Tea Party is looking for in the budget.
And 10:30 Eastern, actor Kevin Spacey will talk about funding for the arts, and at 10:40 Eastern, Pentagon correspondent Chris Lawrence will talk about the budget and the paychecks of American troops.
New signs this morning that the Libyan dictator Moammar Gadhafi may be looking for a way out after 42 years in power. Sources close to the Libyan leadership tell CNN that the plan would have Gadhafi's son, Seif, take over. Seif was once seen as a leading reformer in Libya, but he's also the one who threatened rivers of blood if people rose up against his father. Reza Sayah is live in eastern Libya. So Reza, how are rebels reacting to this idea?
REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: They are flat out rejecting it, Carol. They have a very emphatic message to the regime that is perhaps floating the idea of a political solution that would see Colonel Gadhafi step aside and have him be replaced by Seif Gadhafi. And the opposition's message is, we want the entire regime to be removed. For any of these opposition leaders, Colonel Gadhafi, and his sons, are one in the same, he talked to a lot of these opposition figures. They tell you that for the past several years, it hasn't been Colonel Gadhafi that has been running the country. In fact, it has been his sons, namely Seif Gadhafi. So if the regime is serious about a political solution that involved the transfer of power to someone and Colonel Gadhafi's circles, including his son, they have to think of another plan, because the opposition, Carol is rejecting it.
COSTELLO: Reza, many thanks. Reza Sayah, reporting live from Eastern Libya.
Zain Verjee has actually met Seif Gadhafi and she joins us live from London to talk about that. You're saying though what are the international headlines saying about this this morning?
ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: Yes, there's a lot out there today, Carol. Let's take a look first at "The Independent." It's a London-based paper. Its headline is this "A ceasefire looms, fight for Libya's future moves behind closed doors." It's says "Even if a temporary ceasefire is arranged, a permanent peace deal involving Saif al-Islam is likely to prove highly problematic.
"The National" in the UAE, Carol, says this "Now is the time to push forward on the Gadhafi exit. It says at this point, not too much faith should be placed in the idea floated that a new democracy could emerge with a Gadhafi still on top. Check out what they're saying in the "National Post" in Toronto. "Brothers Add voice to ceasefire deals." The paper says neither offer stands a chance of being accepted right now, but they have touched off a flurry of diplomatic talks as regional governments search for a solution to Libya's civil war. Carol?
COSTELLO: Always fascinating. And like I said before, you met Seif Gadhafi, who supposedly wants to take over the Gadhafi government and institute these somewhat democratic reforms. You met him. What's he like?
VERJEE: You know, I met him when I was in Tripoli at his house, just on the outskirts of this Moroccan house, and you know, this is a guy who has a degree in architecture. He got a PhD. at the London School of Economics, and wait for it, democracy reform and good governance, Carol, but you know, when we talked it was the time where he was on a high. Secretary Rice was going to be arriving. The first secretary of state in 50 years to go to Tripoli.
He was the guy that persuaded his father to give up weapons of mass destruction, that dealt with the Lockerbie compensation issue, victims of families and also that opened up Libya for business. The issue right now is that the rebels are not going to accept this guy. Anyone with a last name Gadhafi, they're just not going to buy it and also the United States and many other western governments have really been disappointed and appalled to see in the manner in which he's handled this situation. So for many people there is no going back, and they say he was just a wolf in sheep's clothing.
COSTELLO: Yes. It's sort of like, you know, Gadhafi government light, or something like that. So you can kind of understand where the rebels are coming from. Zain Verjee live in London. Many thanks.
VERJEE: Yeah.
COSTELLO: The Obama administration wants to make it easier for those around Moammar Gadhafi to jump ship. It's dropping financial sanctions against Moussa Koussa, Gadhafi's long time intelligence chief and foreign minister. As you know, he defected to Britain last week. Still, taking this action could cause problems. Koussa is believed linked to several acts of terrorism including the bombing of Panama 103 over Lockerbie, Scotland.
Back in December of 1988, among the 270 victims, J.P. Ryan, last week, I spoke with his mother and father.
(BEGIN VIDEO CLIP)
KATHLEEN FLYNN, SON DIED IN PANAM 103 CRASH: I just want justice to be done. I want the people who prepared the bombing and who exercised the bombing, I want everybody brought to justice, and I think it's the only fair thing that can happen, and put this, you know, behind us.
(END VIDEO CLIP)
COSTELLO: Gadhafi's son Saif is accusing the British government of coercing Kousa and to speaking out against his father.
So if the clock strikes midnight on Saturday and there's no budget deal, what happens? We'll break down how a government shutdown will affect you. It's happened before.
Also ahead, we'll ask a Tea Party leader what she's pushing for.
(COMMERCIAL BREAK)
COSTELLO: If Congress can't reach a budget deal by Friday, funding for the federal government gets cut off. That has not happened in 15 years, but we know what the results could be if that happens, because history is on our side in this case. Right? Sadly. Christine Romans breaks it all down for us.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Last time they did it the feds closed 368 national parks and all of our national monuments and museums. Passport applications backed up. I'm going to tell you right now, you need to renew your passport, just do it right now. Cleanup work at 609 waste sites stopped. Also in terms of U.S. troops, for those fighting in Iraq and Afghanistan, they could see their paychecks interrupted. It is a federal dollars that go to pay them.
Here's what -- here you go. What stays open. Essential services like air traffic control and the national security system would stay online. Anything that counts for national security.
COSTELLO: We're going to dip into this. As you can see, members of the Republican leadership are holding a press conference. You're looking at Eric Cantor. Let's listen to some of what he has to say.
(JOINED IN PROGRESS)
REP. ERIC CANTOR (R), VIRGINIA: Again, our members are concerned to make sure that our troops are funded and they are paid regardless. That is a real concern. We've got real lives on the line in harm's way. And none of us want to see a government shutdown. We just want to cut spending. We've got to change the status quo in this town. That's what our budget is about long term and frankly that's what we're trying to do short term.
It is the lack of leadership in the Senate that has brought where you say we are over the last couple of months. It's a fact that the Democrats didn't pass a budget or any appropriations bill last year that has brought us to where we are. We are changing the dynamic here. It's tough business. Our members are ready to do what's necessary to solve problems. We need the White House and Senate to go along with us. Thank you.
UNIDENTIFIED MALE: (INAUDIBLE)
CANTOR: Absolutely. You know, we want to make sure that we resolve this year's fiscal business so that we can get on with trying to implement the prescriptions in place in our budget that will come forward next week. Thank you.
UNIDENTIFIED MALE: Where are the negotiations right now?
COSTELLO: All right. We're going to jump out of that. You just heard what Eric Cantor says. Not promising as far as a budget deal is concerned by Friday between both Republicans and Democrats.
Kristi Noem is a freshman congresswoman from South Dakota and a big voice for the Tea Party. Welcome, Congresswoman.
REP. KRISTI NOEM (R), SOUTH DAKOTA: Thank you, Carol. Thanks for having me.
COSTELLO: Thank you for being here. We appreciate it. I talked to democratic Congressman Van Hollen this morning here in the Washington bureau. He said that he believed that there was a 50/50 chance that some deal being struck between Democrats and Republicans but says that's not so now. From your perspective, how likely is it that the government will shut down on Friday?
NOEM: Well, we're still hoping that the Senate and the president make the right decision and come to the table and agree to make some spending cuts that would put this country on a much more stable fiscal path. You know, that's been our goal all along. It's never been to shut down the government and unfortunately that decision laid in their hands. COSTELLO: Well, we heard at a big Tea Party rally just last week some actually saying if the government shuts down, so be it. If it needs to, so be it, and in your mind, is -- do you care if the government shuts down or not? I should ask it that way?
NOEM: Yes, I absolutely do care. I don't think that's something that we want to see and I think the responsible thing is to make sure that we all come down, sit at a table, make the discuss and decisions that are necessary. We've had plenty of time to work on this. The House passed a bill 44 days ago that was our solution on how we wanted to end up with fiscal year 2011. We listened to the American people and now it's time for the Senate to act.
COSTELLO: Democrats would say that many of the cuts that you support go along partisan lines, like cuts to planned parenthood and MPR. There's no talks at all to oil subsidies or farm subsidies. Is that true?
NOEM: Well, I think when you look at a lot of the cuts that have been made on the House say they've been on both sides of the issue. In fact, even one of the program that was so important to our speaker was cut as well. So I think that when you look at it, though, the Republicans have been willing to put everything on the table, have that discussion and be able to make cuts where it's necessary.
COSTELLO: But really? The Republicans have been willing to put everything on the table? Because there are a lot of people out say that there is no compromise here. That -- and you can't dismiss the fact that the Democrats still control the Senate. So isn't some form of compromise necessary to get a deal done?
NOEM: Well, we absolutely need to have everybody at the table. The House can't pass anything on their own and I think that's why we've seen a stalemate. The House is has certainly taken action days ago, weeks ago. And that's why we --
COSTELLO: But congresswoman, you're talking about cuts to something like planned parenthood or MPR, something you know the president will probably veto in the end. Anyway, that Senate Democrats will not go for, why not get those issues off the table?
NOEM: Well, we'd love to be at the table first. That's a discussion that needs to happen. We haven't had discussions going on. Today our leadership is meeting with the president. So hopefully from there we'll have those discussions. We should have had them weeks ago.
COSTELLO: So do you think something will come out of that? Because we know how past conferences in the Oval Office has gone between Democrats and Republicans.. Nothing much has come of it.
NOEM: Well, you know, I remain hopeful on that, because I think the American people need us to be hopeful and need us to continue to work at that. So regardless of past experience the right thing to do is sit down and have that conversation. Listen, we came here way with the mandate from the American people after the last election that we can't continue down this path. We can't continue to accumulate this debt. So we need to make sure that we're pursuing that every single day trying to maximize the amount of cuts that are necessary to make sure we give our children that future that we all had when we were younger.
COSTELLO: Well, there are people in this country who think the Tea Party, in particular and especially freshman members as you are, are sort of blocking this process and refusing to compromise in any way, shape or form and that's really what's holding things up?
NOEM: Well, I think when you look at the situation, a lot of people are trying to label people with different responsibilities, but you know, I speak for my freshmen class, I speak for my conference when I say that they are very willing to tackle the tough issues in front of us. Very willing to have those conversations. They've been on-going on our side of the House for weeks. We certainly need to come to a conclusion because by the end of this week, we certainly have a time frame but there's going to some real consequences if that doesn't happen.
COSTELLO: Thank you so much for joining us this morning. We appreciate it.
NOEM: Yes, thank you for having me, Carol.
COSTELLO: Sure. Kristi Noem is one of the members of Congress who has voted to cut funding for the arts next year. We're going to hear the other side of the story from an art advocate after Kevin Spacey who is on Capitol Hill today. He will join us live in about 10 minutes.
Checking stories cross country now. Police need help identifying two suspects in the beating of a San Francisco Giants' fan. 41-year- old Brian Stowe was fighting for his life. Witnesses say two men attack Stowe in the parking lot after the Giants' opening game.
(BEGIN VIDEO CLIP)
DAVID COLLINS, BROTHER IN LAW: Brian spends his whole life every day of his life saving people's lives and here we are praying for his life.
(END VIDEO CLIP)
COSTELLO: Stowe's family will give an update on this condition today. A $10,000 reward is being offered for information.
In Detroit, a simple status update on Facebook got a woman's husband a much-needed kidney transplant.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I decided to just post, I wish a kidney would fall out from the sky and anyone knows a live donor who is a type O. Please let me know.
(END VIDEO CLIP)
COSTELLO: One man saw her post and responded with an hour.
And in Miami -- all the ways to steal an ATM. Police released this surveillance video. Thieves who used a front loader to haul away an ATM on to a pickup truck. The vehicles used in the robbery which were stolen have been recovered. Police are now looking for the suspects.
Japan is apologizing for dumping radioactive water into the Pacific Ocean. Should we be concerned? We'll have the latest developments from Japan, straight ahead.
And after powerful storms devastated the Midwest, it's made its way down south. Showed no mercy. We'll tell you where the storms are headed next.
(COMMERCIAL BREAK)
COSTELLO: New this morning in Japan, officials say dumping radioactive water from the crippled Fukushima Nuclear Plant is their only option right now. TEPCO, the owner of the plant, has begun making token payouts to 10 nearby communities to help people evacuate because of the crisis. One of the cities is refusing the money, which totals about $240,000 per community.
A top Japanese official says he is sorry that radioactive water is being dumped into the Pacific Ocean. About three million gallons of it is being released to free up storage space for even more contaminated water. And the plant owner acknowledges that the radioactive water pouring into the sea has concentrations of radioactive iodine that are millions of times the legal standard. We talked to Bill Nye, the science guy, last hour. He says -- we shouldn't be worried -yet.
(BEGIN VIDEO CLIP)
BILL NYE, "THE SCIENCE GUY": Because three million gallons, it's a lot of gallons but it's not that many cubic meters or tons of water. It's -- it's only 10,000 tons of water, but when you put 10,000 tons spread over the vastness of the Pacific Ocean, it's not that much. However, some floating stuff from the tsunami has shown up in the Pacific northwest. So sooner or later some of this water's going to show up.
(END VIDEO CLIP)
COSTELLO: Bill says everything that's being done right now is just short-term solution. He says the best strategy might be to pave over the entire plant. In fact, seal it with concrete. That would be the best thing to do, he says.
Severe weather continues to hammer the midwest and now the south is feeling its wrath. Rob Marciano is in the weather center in Atlanta. Is it over in the south?
ROB MARCIANO, AMS METEOROLOGIST: Not quite. Not for Florida, at least. But I tell you what, the past 24 hours scary for a lot of folks. I want to show you some video out of western Kentucky and Tennessee. The hardest-hit areas, Ballard County, Kentucky. An EF-2 tornado went rolling through there around noontime or so yesterday. Some of the damage it did. We did have injuries from this storm. 20 reports of tornadoes in Mississippi, parts of western Tennessee, Arkansas. Even parts of Florida seeing some of this action. This threat is beginning to wind down with the exception of Florida.
The back side of this is beginning to move through the New York City area. Thunderstorms out ahead of the front have weakened. Look at that. Snow behind us. We're still looking at winter-type weather across parts of upstate New York and the Allegheny plateau.
Down in the south, this is where the leading edge of the front is now. It's about to press through central Florida. It's getting across the I-4 corridor. We got some rough weather across Orlando, Daytona, parts of St. Augustine as well. So this will be an ongoing threat as we go through the day today.
Behind this system though, certainly some quieter weather and it will be cooler. We do have a storm coming in through the Pacific northwest that we're watching and we're also watching the travel delays continue to pile up. Philadelphia, LGA, almost a buck and a half, Boston, 40 minutes. Just kind of rough weather for the next 12 t 18 hours. But we are not going to see the amount of reports we saw yesterday.
Over 1,000 severe weather reports, Carol. Quite an impressive storm system. There were injuries and fatalities, unfortunately, but it was so widespread, the amount of damage -- the amount of trees down alone remarkable. Here in Atlanta, still people, including me, without power. Back to you.
COSTELLO: Well, hopefully things will get better soon.
Hey, did you watch the basketball game?
MARCIANO: Oh, yeah. First half.
COSTELLO: First half?
MARCIANO: Which by the end of the first half, looked like butler might have a chance. But things went downhill in a hurry, didn't they?
COSTELLO: Why is -- I mean, I didn't watch it myself but I heard it was like one of the worst basketball games ever.
MARCIANO: Well, it was kind of rough for the first half. In the second half, was from the highlights I saw. You know, the butler just couldn't find the hoop. I mean, they're not even close on a lot of their shots. So a frustrating game shooting wise. It's their second trip to the finals. So it's got to be a tough loss for them. COSTELLO:. I know. They just ran out of gas. We have some highlights to show people, because, let's bring them on. Connecticut Huskies. Oh, I thought they were going to lift the trophy. There they go, there's the shooting you were talking about, or the lack of shooting thereof on Butler's part.
MARCIANO: A lot of stall tactic there at the end. By then it was done, by the end. Butler only scored 41 points, Carol. That's the least -- I believe that's the least amount of scoring since they've brought in the shot clock which basically forces you to be more offensive. Which means that they were just missing shots all across the yard. 18 percent field goal percentage. Boy, that's --
COSTELLO: Now I understand why people were saying that about the game. 53-41 final score. Uconn, champions this morning. Thank you, Rob.
MARCIANO: All right, Carol. See you later.
COSTELLO: Funding for the arts is a hot button issue on the budget battle on Capitol Hill. And hard times, why should we fund the arts? Actor Kevin Spacey joins us to make his case, next.
(COMMERCIAL BREAK)
COSTELLO: Funding for the arts has been called wasteful and frivolous by its critics, and it's become a big issue as Congress battles over next year's budget. A group of conservative Republicans wants to cut it down to zero. That's got supporters of the arts storming Capitol Hill today fighting for those funds. Actor Kevin Spacey is among them, and he joins us live from the Capitol. Welcome!
KEVIN SPACEY, ACTOR: Thank you very much.
COSTELLO: So, I know you were supposed to appear as a House hearing today, but it got cancelled because of the budget battles going on. How does it feel to be a victim of Washington gridlock?
SPACEY: Well, it didn't stop us from getting the message out. We just kind of pretended on our arts advocacy day here as if we were speaking in front of the Senate subcommittee and asking for them to approve the $167.5 million, which actually generates a tremendous amount more. It actually ends up being about a billion dollars from that core amount of money that is funded through the National Endowment of the Arts. Because there's a great deal of match funding and state funding and local funding that happens as a result.
But the thing that people in the United States and certainly members of our Congress and Senate should be aware of is at for that billion dollars that is put in to the funding of arts and culture around this country, $29 billion comes back into the Treasury. In both local and state government. There is no other issue, here is no other area of the budget that has that kind of return on its investment.
COSTELLO: Sounds like -- SPACEY: Just from an economic point of view.
COSTELLO: It sounds like a good argument, but we're talking -- in a time when we're closing down schools because there's no money. We're furloughing workers, et cetera, et cetera. So, even though you say those things, I think on many American's lists, arts would be -
SPACEY: I'm not saying these things. This is not an argument I'm making just to say those things, that is a fact. That is $29 billion that comes back into state and local government, and into the lives of children and students and teachers across this country. It is a serious amount of money to come back into our economy. Particularly at this time.
COSTELLO: So, in this particular climate, though, with Republicans, you know in control of the House and Democrats still in control of the Senate and they can't agree on anything, in this particular climate, do you have any real hope that you'll be successful?
SPACEY: Absolutely, because I'll tell you this. One of the things that Congress and the Senate has continually shown in its wisdom and in the wisdom of how this country is perceived in our political system, is that there are enough people in the Congress and Senate who don't necessarily focus on the squabbles of the day, but look to the future of this country, and take the long view approach rather than the short view --
COSTELLO: Like who? Like who?
SPACEY: Well, like Senator Ted Kennedy. Like President Kennedy. Like Richard Nixon, who was a great supporter of the National Endowment of the Arts. Like Senator Pell. I mean, the list is on and on and on. Remarkable people in this country. And we have senators and congressmen now who are on the subcommittee that will decide on this appropriation who believe in the arts and fight for the arts and believe they are an important part of our lives. Not just because of the economy but because of what they do for our nation's spirit and health.
Countries may go to war, but it's culture that unites us and teaches us and makes us better as citizens.
COOSTELLO: OK. We've got to go. One congressman is speaking who probably would not agree with you, Eric Cantor. Actually, it's Paul Ryan. He's going to unveil his 2012 budget plan. Ipologize for the mistake, but let's listen in.
(JOINED IN PROGRESS)
REP. PAUL RYAN (R), WISCONSIN: -- to the status quo. The president actually accelerates our descent into A debt crisis. He doubles in debt by the end of his first term and triples the debt by the end of his budget. He imposes a $1.5 trillion tax increase on the American economy at a time we need more economic growth and more job creation. He proposes to permanently enlarge the size, the reach and the scope of the federal government. He offers no reforms to save our vital health and retirement security programs and no leadership.
Our budget charts a different course. It's very different than what the president has offered. For starters, we propose to cut $6.2 trillion in spending over the next ten years from the president's budget. We reduce the debt as a percent of the economy. We put the nation on the path to actually pay of our national debt. Our goal here is to leave our children and our grandchildren with a debt-free nation.
We offer $4.4 trillion in deficit reduction the first ten years alone. Our budget is our plan to tackle this country's greatest problems. If we don't take on these fiscal challenges head-on, we will not be able to do this under our own terms in the kind of gradual, important, sensible way we are proposing here today.
My colleagues in the House Budget committee were instrumental in laying this vision out and putting these numbers together. I also want to thank the people in the Congressional Budget Office who worked so hard over time, overnight to get it added up. With that, I would like to turn it over to the Congressman Jason Chaffez from Utah, and our committee members will walk through the contours of this budget. Mr. Chaffez.
REP. JASON CHAFFEZ (R), UTAH: Thanks, Paul and thanks to all my colleagues here on the House Budget committee. I happen to also be on the Oversight and Government Reform committee, and I think all are committed to change the way we're doing business in Washington, D.C. We're not here to perpetuate the status quo because the status quo is not working.
The cuts are important because we need to be on a trajectory to actually maintain the fiscal sanity that is in this country. We want to restrain the explosive growth of bureaucracy, achieving a 10 percent reduction over the next three years in the federal workforce through attrition. Coupled with a true pay freeze for the next five years and reforms to government workers generous benefit programs.
We want to end the corporate welfare. End permanent bailout of Dodd-Frank. We want to take Fannie and Freddie off the backs of the taxpayers and energy - or agriculture focused on spurring competition and targeting investment, not having government pick winners and losers from Washington, D.C. We're committed to these reforms. It will be an exciting process moving forward. It's a pleasure to serve on this committee, and I think the American people will be excited that we're living up to the obligations and the commitments that we made in the Pledge to America in bringing back this Congress and bringing back the fiscal sanity that is so important to this country. Thanks.
RYAN: One of the things we are also trying to achieve is, we believe in this country that we ought to the have a social safety net. We believe that we ought to have a safety net to catch people from slipping through the cracks, to help people when they're down on their luck and to help people who cannot help themselves.
Problem is, our social safety set in fraying at the seams. To talk about how we repair our social safety net, I want to turn to Todd Young from Indiana.
REP. TODD YOUNG (R), INDIANA: Well, we mustn't just focus on getting government smaller and more efficient. It has to be more effective. And nowhere is that more apparent than with respect to our nation's social safety net. We in this budget build upon the successes of welfare reform in the 1990s. Starting with Medicaid, which we know is a program that for decades has ensured access to health care to millions of low-income Americans. We want this program to be sustainable.
Unfortunately, under the current financing model, it's unsustainable. So, we took a look at financing structure which is driving our national debt higher in straining state budgets. Governors like Mitch Daniels of Indiana, governors of both parties from around the country, are asking for more flexibility with respect to the Medicaid program. We give it to them.
Our approach is to end the onerous "one size fits" all approach to Medicaid financing. Instead, we convert all federal spending into block grants and allotments to each of the respective states. We give governors in conjunction with their state legislatures the flexibility to tailor Medicaid to the needs and desires of their own citizens.
We took a similar approach to food stamps and to housing assistance. These are other "one size fits all" Washington programs where we change them to block grant programs to the states. We give, again, governors flexibility to target aid to the neediest citizens.
And finally, we recognize that the best welfare program is ultimately a job. So we reformed our job training programs. We consolidated the current complex maze of dozens of federal job training programs into a single program, a program that we can hold accountable. It's a targeted scholarship program that is going to truly prepare our workers for a 21st century globally competitive economy.
These are bold programs, bold reforms but they're reasonable reforms, the sort of things many of us campaigned on before we came here in Washington. I welcome a constructive dialogue with our colleagues about how we can further strengthen and sustain our social safety net for our lowest-income Americans.
Thank you so much. And next will be Dr. Price to discuss the reform of health entitlements.
UNIDENTIFIED MALE: Thank you, Tom --
COSTELLO: All right. We're going to jump out of this. Were you just hearing from Todd Young of Indiana touting Paul Ryan's 2012 budget idea. He's come up with his own budget that cuts $6.2 trillion over the next ten years. We'll be talking a lot more about this, about what it exactly means and what exactly it will cost Americans or save our country.
We're going to take a short break. We'll be right back.
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COSTELLO: This morning House majority leader -- or actually, Republican whip Eric Cantor said the White House has increased the likelihood of a government shutdown and that, Cantor said, could affect when our military service members get their paychecks.
CNN's Chris Lawrence is live at the Pentagon. Chris, if the government does shut down on Friday, will service members not get paid?
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Well, Carol, if this shutdown goes beyond their next pay period of April 15th, no. They're not going to getting paid. Not on time, at least. They'd be in the same boat as everybody else, and that includes the troops in Iraq or Afghanistan. A spokesman for John Boehner's office said this just underscores how serious it is, but a group of about 50 Congressmen, including Blake Farenthold of Texas, have co-sponsored this bill that would protect military pay even if the government shuts down. But the chairman of the House Armed Services committee said, hold on. We may just be getting ahead of ourselves here.
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REP. HOWARD "BUCK" MCKEON (R-CA), ARMED SERVICES CHAIRMAN: They would get the pay. The problem is they wouldn't get it when they plan on getting it. I think that's just -- I don't even want to contemplate that, because to think that we would have our young men and women over on the front lines putting their lives on the line and their families at home that have bills to pay that don't get their paycheck, I just think that's -- really going way too far.
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LAWRENCE: Representative McKeon says we're look, mature enough to get this done. Although it's not stopping any of the operations. We're not going to stop fighting the wars in Iraq or Afghanistan, not going to stop helping the people in Japan. But it obviously could have a big impact on military families back home if they don't get that check. Carol?
COSTELLO: That would be such a sad thing that would be. Chris Lawrence, live at Pentagon, many thanks.
Long days and nights at the office can be tough on your social life and deadly to your heart. We'll tell you about the results of a new study. That's coming up next.
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COSTELLO: Probably heard the old saying, hard work is good for the soul. Well, a new study says it could be bad for your heart. British scientists have found regularly working long days raises your risk of heart disease by nearly 70 percent.
Elizabeth Cohen joins us now. That's insane. 70 percent? I mean, how long a working day are we talking about? ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Well, the way they did the study, Carol, they looked at folks who worked between 10 and 11 hours and then more than 11 hours. So, that's a pretty long day. Right?
OK. So, people who work 10 to 11 hours had a 45 percent increased risk of heart disease compared to people who just work a regular eight-hour day. If they worked more than 11 hours, it was an increased risk of 65 percent of heart disease. So, obviously this tells you a little something that al that work may not be too good for you. That's why I give everyone permission, 5:00, get out. Go home.
COSTELLO: Yes, but how many do you know in any business working an eight-hour day? I don't know anyone.
COHEN: It's tough. It really is tough. And I think in this economy, people are just grateful to have jobs in this economy.
COSTELLO: Exactly. So, they'll work however many hours it takes. So, is it just about the work that affect you? Is it the stress?
COHEN: Partly it is the stress. Doctors know that stress is bad for your heart, but part of it is also just a time thing. If you're spending 11 hours at work, how do you have time to make healthy meals? How do you have time to exercise? So, that's also part of it. It's just a scheduling thing.
COSTELLO: Yes, I can relate to that. I try to exercise. I really do, but it's tough sometimes.
So, should doctors be talking to their patients about their work schedules and saying, hey, it's time to lay off a little bit?
COHEN: That is one of the conclusions of this report. That they say, look, in the same way doctors take your blood pressure and your cholesterol, they ought to ask how long you're working. And they calculated if doctors did that, if they asked at the annual physical at patient work hours, they could prevent maybe about five percent of heart attacks going on because of extra work. Now, who knows if that's true but it's an interesting thing. Should you doctor ask you about your work during your annual visit?
COSTELLO: I'm imaging going to my boss saying, "My doctor said I can't work over eight hours a day."
COHEN: Get a doctor's note.
COSTELLO: The boss would say, "Yes, right." Because, you know, he works more than eight hours a day.
COHEN: Right, right.
COSTELLO: Elizabeth Cohen, many thanks.
COHEN: Thanks. COSTELLO: Lots of finger-pointing over who is to blame for a possible government shutdown, but Americans are having a hard time deciding who to believe. We're talking politics, next.
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COSTELLO: Checking our top stories now. Moments ago, two generals close to Ivory Coast self-declared president says he in the process of negotiating a surrender. He's believed to be in a bunker beneath his residence. NATO and French troops launched helicopter strikes on his residence, and two of his military bases overnight.
A major part of the Air France jet that crashed in 2009 has been found. Submarines spotted engines, a fuselage and landing gear. French investigators say at least two bodies found, still unidentifiable, though. The plane went down flying from Brazil to France.
Southwest Airlines finds another plane with cracks. That's the fourth. Now the federal government is stepping in. The FAA ordered more detailed inspections of certain older jets.
Both Republicans and Democrats are trying to blame each other for a possible government shutdown. So what else is new? CNN deputy political director Paul Steinhauser in here -- is here. Welcome, Paul.
So, not only are, I guess, our lawmakers divided about this, but the American people are divided, too, over who's to blame.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes. I guess that's the big question, Carol. Who would Americans blame if there is a shutdown on Friday? And look at these brand new polls. Two of them out in the last 24 hours. And both show that Americans are divided.
Let's start with the Pew Research Center. You can see right there, 39 percent of the people they questioned say that the Republicans and Congress would get more of the blame. 36 percent say the president. 15 percent say both sides -- 16 percent say both sides would get the blame. So, pretty much divided.
Go to the next one, Washington Post. also just out last couple of hours. Same thing. Americans are dead even on that one on who gets the blame. Carol, that tells me neither party has really the political upper hand here this week as we come close to the possibility of a shutdown. Carol?
COSTELLO: See if that big White House meeting does anything. Who knows? Maybe it will.
A lot of money being spent in a showdown today in Wisconsin. And so we know what's been going on in Wisconsin. What's this story about?
STEINHAUSER: Yes. This is crazy. $2.5 million. That's what I'm talking about, in Wisconsin. There's an election today for a state supreme court justice, and because of all the protests. And the fight over the last couple of months in Wisconsin over the collective bargaining law that would strip the collective bargaining rights of union workers there in Wisconsin. This election, which normally no one would pay a lot of attention to, is getting nationwide attention.
Yep. The supreme court justice is a conservative. Liberals are trying to knock him out. Conservatives and Tea Party activists trying to keep him in. And independent groups, Carol, spent $2.5 million just on ads alone just in the last two weeks on this election. Carol
COSTELLO: Wow! Insane. Paul Steinhauser, many thanks.
We'll have your next political update in one hour. And a reminder, for all the latest political news, go our Web site for more.
Coming up next of the CNN NEWSROOM with Suzanne Malveaux, Japanese tsunami victims living in limbo. Some still refuse to leave their decimated hometowns despite the lengthy rebuilding process.
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UNIDENTIFIED MALE (via translator): I was born here, raised here and have been working here all my life. But being old, it's very hard to think about what the future holds.
(END VIDEO CLIP)
COSTELLO: And inspectors find another Southwest plane with a crack in it. That's coming up in the 11:00 hour -- Eastern hour, I should say. 11:00 Eastern hour of the CNN NEWSROOM with Suzanne Malveaux.
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COSTELLO: Let's take a look at stories that will make news later today.
At 12:30 Eastern today, reporters will get their first look at a portion of the fuselage that tore away from that Southwest Airlines jet in flight. The NTSB is examining it to try to prevent any future problems.
Then at 3 p.m. Eastern, several of the convicted embezzlers -- several victims of convicted embezzler Bernie Madoff will be in court to answer charges of securities fraud and conspiracy. Investors lost billions of dollars in the Madoff Ponzi scream.
At 3:03 Eastern, work will stop at the Upper Big Branch Mine in West Virginia to remember the 29 miners who died in last year's explosion. There will also be a company-wide one minute and 29 second moment of silence.
Now it's time for the NEWSROOM to continue with Suzanne Malveaux.
And Suzanne, I'll be along in about 10 minutes or so.
SUZANNE MALVEAUX, CNN ANCHOR: Carol, you're not here with us in Atlanta.
COSTELLO: I know. I'm in Washington, but it's an appropriate place to be because of the big budget battle brewing.
MALVEAUX: Absolutely. We wish you were here though. It's not the same, Carol. But we'll try. We'll try.
COSTELLO: I'll be back tomorrow.
MALVEAUX: All right. Great. Thanks, Carol.
