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How A Shutdown Would Affect You; Wall Street Watching Washington; When Health Services Will Stop

Aired April 08, 2011 - 13:00   ET

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

RANDI KAYE, CNN ANCHOR: Thanks, Suzanne.

The hour draws closer, budget negotiators don't, at least not close enough to keep the government running past midnight tonight, less than 11 hours from now.

By this point, President Obama wanted an answer, deal or no deal from House Speaker John Boehner and Senate Majority Leader Harry Reid, but they still can't even agree what they've agreed on. Boehner says they're still hung-up on spending cuts, Reid says it's come down to policy. House Republicans had tacked on riders to the spending plan they passed earlier this year, stripping the EPA of the power to regulate greenhouse gases, restricting health care reform, and defunding public broadcasting and Planned Parenthood.

Harry Reid says all of those points have now been resolved accept Planned Parenthood. John Boehner says, yes, they're close on policy but spending is the sticking point.

So, here is where we stand right now. Today is the final day of the latest stop-gap federal spending bill, yesterday the House passed a one-week extension that couples $12 billion in cuts with six months of funding for the Pentagon. Democrats won't accept it, so today the Senate may vote on its own one-week plan if Senate Republicans agree.

The finish line of course, take a look, way down there, September 30th, the end of fiscal 2011, but that seems a long way off when we're counting down the minutes until a federal government shutdown.

Joining me now with the latest on the showdown, our CNN Senior White House correspondent Ed Henry and senior congressional correspondent Dana Bash.

Dana, let's start with you. What's happening right now? Both parties I understand are huddling. DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: That's right. I can tell you -- the House speaker is going to come to the microphones right here but this is a meeting of House Republicans where the speaker gave an update to his rank and file.

In talking to many Republican lawmakers walking out of this meeting, they say that the speaker insisted that there is no deal but that they are close. He also insisted that the issue, at this point, is spending, Randi, is spending. That's what he said publicly, it's what he said privately, that what he said is that all of the policy issues, all of the social issues, even Planned Parenthood, he is insisting to all of his rank and file that that's worked out and is just a matter of the numbers.

Having said that, I can tell you, in talking to Republican and Democratic sources, in fact Harry Reid, the Senate majority leader, he said on the record today that they do have a tentative agreement, roughly about $38 billion to cut, but maybe that some of the questions still are exactly what to cut in that top line dollar.

KAYE: And Dana, I want to point out, because I know that a lot of talk has been -- has been made about the Planned Parenthood issue, but there really is no federal money that can be used to fund elective abortions so even though they're saying that the policy is no longer an issue, why was that an issue to begin with? Because Obama had to agree to that in order to get his health care reform passed?

BASH: Right. Let me tell you the big picture is that Democrats, as you've been reporting, they have been -- from really yesterday on, they have been hammering away at the idea that this is all about women's health because it's politically astute for them to do that -- it's a good political issue for them to do that.

You know what? Let me finish that answer in a minute because the house speaker is coming up. I have to get out of the way.

KAYE: Absolutely.

House speaker John Boehner there heading to the microphone. Let's hear what he has to say.

UNIDENTIFIED MALE: Ladies and gentlemen, the man who is trying to keep the government open so that we can create more jobs and ensure that we fund the troops, the speaker of the House.

REP. JOHN BOEHNER (R-OH), HOUSE SPEAKER: Well, Jeff (ph), thanks. I think -- well, you know we just met with all of our members to try to bring them as up to speed as we can, considering that we're still in discussions. I might add that these discussions continue to be respectful, we continue to work together, most of the policy issues have been dealt with, and the big fight is over the spending.

You've heard me say time and time again that we've got to cut spending if we're serious about creating an environment for our job creators in America to do what they do best and that's to create jobs.

It's been a difficult several weeks. Our intention has been to keep the government open. We have no interest in shutting down the government. Now, that's why we sent the troop-funding bill over to the Senate yesterday and attached to it was a seven-day agreement to keep the government open while continuing to cut spending, and I'm hopeful that the Senate will take this up.

I'm also hopeful we'll be able to come to some agreement, but we're not going to roll over and sell out the American people like it's been done time and time again here in Washington.

Now, when we say we're serious about cutting spending, we're damn serious about it. I'll take a couple questions.

QUESTION: Mr. Speaker, you say you're not going to roll over here. I mean, what will you do about 11:59 p.m. tonight? The Senate when (ph) take up that bill yesterday, they say they can't accommodate that with those cuts. I know you're going to say, you know, talk about the military component, but to save that, what can be done to keep the government open past 11:59 p.m.?

BOEHNER: Well, the way we keep the government open is to come to an agreement today that has real cuts in spending in the past short- term CR to give us time to actually put the agreement in place and to get it passed.

QUESTION: Mr. Speaker, Mr. Speaker --

QUESTION: Mr. Speaker, how much are KOD cuts an issue in this (INAUDIBLE) to medical spending?

BOEHNER: I think that issue's been pretty much resolved and there's a number but it's not really in contention.

QUESTION: Mr. Speaker --

QUESTION: The Senate majority leader said today that you do have an agreement roughly around $30 billion in cuts, that the only thing that's holding this up is differences over Title 10 funding. Is he just not telling the truth?

BOEHNER: (INAUDIBLE) I'm not sure what was said. I didn't hear it. All I can tell you is that almost all of the policy issues have been dealt with and there is no agreement on the spending level, and we're working to try to get there.

QUESTION: The agreement on Title 10?

QUESTION: Is Planned Parenthood and Title 10 funding the issue you have a problem with and what do you --

BOEHNER: Almost all of the policy riders have been dealt with.

QUESTION: Speaker Boehner, what's your message to thousands of families -

BOEHNER: (INAUDIBLE) he has a loud mouth, he back. The main word (ph) is where he stands.

Yes, sir.

QUESTION: (INAUDIBLE) the families are planning on visiting the museums in Washington, D.C., national parks across the country, what's your message for them right now?

BOEHNER: I would -- listen, our goal is to keep the government open. I've said it thousands and thousands of times, privately and publicly, our goal is not to shut down the government, our goal is to cut spending. Thank you.

KAYE: All right, we want to get back to our Dana Bash who's been listening along with us to the Speaker of the House, John Boehner there. Again, saying that spending cuts are the issue, not policies. In fact, he said that almost all of the policy riders have been dealt with.

Dana, are you still with us and can you pick up where we left off on the issue of Planned Parenthood and whether or not that policy is an issue still -- is still a hang-up for why we may have a government shutdown?

BASH: Well, it was very interesting, Randi, you noticed that the speaker said almost all of the policy issues have been dealt with. Very careful in his wording there. So, although he is saying that the issue is spending, that the Democrats are saying it's not spending, it does seem to me that that could be a hang-up here.

And so, this is -- again, back to what we were talking about, this is what we're talking about. In the House Republican bill they completely eliminated what's known as Title 10 funding. That is funding for women's health clinics, included in that is Planned Parenthood. That was $317 million.

What we're told is on the table now, from the Republicans, the Democrats said that was a non-starter, is to send that money -- not eliminate the federal money, but send it back to the states to let governors decide what to do with it.

Well Democrats say, no, because they believe that that's still dismantling what they consider a very important program to deal with women's health issues.

Now politically, you might question that we've been talking about the issue of abortion for a few days, why does this factor in to it? Planned Parenthood says they don't use any of this money for their abortion services because it's already illegal.

But Republicans, I can tell you, in talking to them, watching them in public, talking to them in private, they say that they just don't buy that, that the abortion is an underlying issue for Republicans because they believe that some of this federal money does end up going for abortion services.

But in terms of the big picture, the politics here, very interesting to watch the Democrats pound away, Randi, pound away that this is a women's health issue and not so much a spending issue.

As for political interests, as you just heard from the speaker, it is in his political interest to say that he's fighting for spending cuts because that's what Republicans want.

KAYE: Right, well, last year, we know that the president had signed this executive order which would ensure that no federal money was going to abortions in order to get the new health care legislation passed. So, we will continue to watch that.

Dana, thank you.

Let's get now to our Ed Henry.

Ed, the president canceled a road trip today to deal with this deadline. What is he up to?

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, he is also maybe delaying a family trip to Colonial Williamsburg in Virginia, he was supposed to do that this weekend and that's now TBD as he waits along with the rest of us to figure out what is really going on on Capitol Hill.

I think what's most important when you hear Dana report all of that is how both sides on the Hill seem to be digging in. I was standing in this very spot about this time yesterday when Senator Reid and Speaker Boehner walked behind me to the microphones at the stakeout location here and were very cooperative with one another.

Then today, it took a different turn, and as he was talking about Democrats pounding on Republicans on women's health, Senator Reid was on the senate floor earlier today saying and charging that Republicans are in his words throwing women under the bus when it comes to their health care.

And then, you've got speaker Boehner also seeming to dig in on that issue of spending cuts, saying it is not about women's funding, instead it's all about a broader spending cuts. Each side is digging in, is the point. After a couple of days of saying, look, we're going to work this out, we're together, that's worrisome to this White House.

The president has not spoken out publicly yet. He did, we're told, speak by phone this morning separately with Senator Reid and Speaker Boehner, but here's your bottom line, last night the president told reporters he was setting a deadline, that he wanted a progress report from Democratic and Republican leaders, and he wanted this don early today.

Well, it's probably early somewhere on west coast but here on the east coast it's getting pretty late, and we're now under 11 hours before midnight. So, his deadline has basically passed, that's got to be worrisome for this White House in terms of heading toward a government shutdown -- Randi.

KAYE: Absolutely, Ed. All right, Ed Henry there at the White House. Thank you, Ed.

I want to read to you know what Bob posted on our blog, quote, "The government shutdown is a result of the polarization of our Congress and our country. This is about nothing more than placing extremist political ideology ahead of the welfare of the country and its citizens."

I'm joined now by Mark Skoda the founder and chairman of the Memphis Tea Party. Mark, I'm sure you've been watching this along with us. Many Democratic leaders are blaming Republican leaders for listening to the Tea Party and not listening to their constituents. What do you say about this?

MARK SKODA, FOUNDER AND CHAIRMAN, MEMPHIS TEA PARTY: Well, let's be clear that the Tea Party is a majority part of those constituents. I mean, at this point, the Rasmussen poll suggests 48 percent of Americans side with the Tea Party in terms of fiscal issues we're talking about here.

And it isn't extremism. I mean, at the end of the day, the Republicans promised in their platform to get elected in 2010 to shave $100 billion. We're at $61 billion and we're holding them accountable to that, it's that simple.

I think at the end of the day, the charge of extremism are falling on deaf ears. Look, the echo chamber no longer works for the Democrats. With due respect to leader Boehner, he suggested this was a civil discussion. We've heard Harry Reid say the Tea Party's throwing people under the bus. Nancy Pelosi said it is a war on women. Representative Norton in Washington, D.C. suggests that this is bombing civilians and Jesse Jackson compares it to the Civil War.

KAYE: OK, so do you disagree with all that?

SKODA: I find it amusing is what I find it. I mean, the truth of the matter is, look, the hyperbole is gone, we don't buys it anymore. They called us racists, they called us anarchists, they called is riotists. It doesn't work, people -- see, we own the new media.

KAYE: What does the Tea Party want? What do you want to accomplish?

SKODA: We want the $61 billion cut, we agree with the leader. I would prefer to see larger cuts, but more importantly, we want those cuts to be made. Remember, the Democrats had a super majority. They didn't do the one constitutional requirement that they have which was to present a budget for the president. They did not do that because they played the politics last year in 2010. They understood that if they would've come to the American people with a $1.6 trillion deficit in the budget, we would have revolted even more than we saw in 2010.

KAYE: So, would you like to see the government shut down?

SKODA: My opinion right now, we shut it down until that agreement to $61 billion. They get to $61 billion, everything is fine.

KAYE: But it's not going to save money though to shut it down, because, I mean, last time it cost quite a bit of money, more than -- more than --

SKODA: Well, indeed. I think -- I think -- you're right. I think at the end of the day, this is about -- we're not 1995 anymore, the Tea party didn't exist, people didn't have the communication that they have today. We understand very clearly the cost of this decision. The fact of the matter is, however, that the president and the Democrats could never had this happen had they done their constitutional duty in 2010, they chose not to.

We're doing our duty in having one -- as kind of -- as I think the president suggested, elections have consequences, and those consequences are being played today which is to reduce the total spending for the remainder of this year, $51 billion. And then, subsequently present budgets that get us moved closer to some level of fiscal responsibility. And I think that is prudent.

KAYE: All right, Mark Skoda, Founder and Chairman of the Memphis Tea Party. We will leave it there, thank you for your thoughts.

SKODA: Thank you.

KAYE: So, what do you think about a possible government shut down? Join the conversation on our blog, CNN.com/Ali, and you can also post on Ali's and my Facebook and Twitter pages. We'll share your comments throughout the show.

(COMMERCIAL BREAK)

KAYE: So, how does a shutdown affect your everyday life? Well, here's a look at what would happen to just some of the federal services. The IRS walk-in centers would close. They would stop processing paper tax returns.

The shutdown will affect some mortgages since the Federal Housing Administration will stop endorsing new loans. Not only would businesses be losing revenue from tourists, but the Small Business Administration would delay new loans.

Forget about getting or even renewing your passport and visas. Most passport offices would close and most visas will not be processed.

Now, a lot of are you angry, frustrated about being put in this position when you, the taxpayer, of course, pay for these services. We are listening. We hear you. Here's what Stephanie Cubbon wrote on our blog. "I will continue to be separated from my husband. We have been applying for his U.S. visa for over a year. The final step, the interview, is scheduled to happen this month. This is causing me a lot of pain and heartache" right now.

Casey Wian is outside a federal building in Los Angeles.

Casey, a lot of people in the area rely on the services inside that very building. If the shutdown occurs, what's going to happen to those services?

CASEY WIAN, CNN CORRESPONDENT: Well, I just heard Ed Henry, Randi, telling you a little while ago that President Obama may be delaying his family vacation this weekend to Colonial Williamsburg. Well, a lot of these folks behind me may be delaying their vacations as well through no fault of their own. That's because they're here in line and they've been in line, hundreds of people, all morning, waiting to apply for their passports. And if the federal government shuts down, almost all of the passport services will be shut down as well.

We spoke with a woman who is planning a trip to Cabo San Lucas, Mexico, next week.

(BEGIN VIDEO CLIP)

SHANNON SAUCEDA, PASSPORT APPLICANT: I blame all of them. I mean I feel like, get to the table, do what you need to do and let the people get on with their business, you know? It's unfortunate that it would have to affect people who are trying to go on vacation.

I know Congress is still getting paid if they shut down, which is kind of upsetting. But it's just a really unfortunate situation for people being affected that have nothing really to do with it, you know? I think they should come to some sort of agreement today. I think it's their responsibility to do that.

(END VIDEO CLIP)

WIAN: Now the folks who have passport applications completed by today and have paid the $60 extra fee for expedited services, they're still probably going to be able to pick up their passports next week because there will be a skeleton crew here dealing with emergency, life or death kind of passport applications. But other than that, passport services, if the government shuts down, will be shut down as well.

Randi, I also heard one of your previous guests, the gentleman from the Tea Party, talking about how it's not 1995 anymore. Well, 1995, the last government shutdown, is very real for some government employees here. I spoke with one officer from the federal police services. He says he endured six weeks without a paycheck in 1995 when the government shut down and he's very, very worried that there's not going to be an agreement today and he's going to have to go through something like that again this time -- Randi.

KAYE: I'm sure.

What about those furlough notices that people are waiting for and certainly anticipating? Have you seen any sign that federal employees there have received any?

WIAN: The federal employees we've been able to talk to today say they're still not sure, the folk who are going to be here manning the passport office on a skeleton basis. They don't know if they're going to be paid while they're here at work. A lot of uncertainty. A lot of these federal agencies have not announced their plans yet. Some of them are still formulating those plans, Randi.

KAYE: All right, Casey Wian. Thank you so much, Casey.

Wall Street is also watching the politics playing out in Washington. We're live from the New York stock Exchange with how a shutdown will affect top financial regulators after this.

(COMMERCIAL BREAK)

KAYE: So if the government shuts down, the Securities & Exchange Commission says it will keep its basic regulatory oversight with a pared-down staff. So, should we be concerned about who's going to be watching the money? Alison Kosik is at the New York Stock Exchange.

Alison, is there cause for concern here?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: You know what, Randi, you should be at least a bit concerned because some SEC workers are actually considered essential, meaning we really need them to protect our property and, in this case, our money. The fact is, most of the agency's 4,000 workers will be furloughed. That means they'll be left with a skeleton staff to only do basic services, like issuing court orders, freezing assets or monitoring tips and complaints.

And then there are the things that won't happen. Some investigations would be put on hold. Tips would be monitored, but they wouldn't be responded -- responding to all of them. And investment advisors, they would not be examined, so you'd hope that everyone would be on their best behavior.

Other agencies would be working, though. The Federal Reserve. The CFTC. That would have a small staff on hand. And the FDIC would also be up and running -- Randi.

KAYE: So what about the trickle down? What about all those economic reports that Wall Street trades on, for example?

KOSIK: Well, you know what, you probably wouldn't see any government economic reports come out if the government shuts down. And you know what? Wall Street is really watching for some of those reports, especially with how the economy is these days, especially the reports on inflation that are expected to come out next week and the reports on retail sales numbers.

You know, for traders, it matters to some degree. They say that the market really needs direction. And without these economic reports coming out, the focus could wind up shifting to Europe and the Mideast, where things are really uncertain.

The good news is, the Federal Reserve, once again, will be up and running, so we'll still have money flowing through the economy, Randi.

KAYE: And as we inch closer towards this possible shutdown, how are the markets taking this?

KOSIK: The markets are flat, really. They're kind of in neutral because they're waiting to see what happens with the government shutdown. They're also watching oil prices, which are now up to $112 a barrel.

Sure, they're concerned because if the government shuts down, traders are telling me, you know, it's not good for the economy, it's not good for business, it's really not good for anybody. And their prediction is, if the government shuts down, you're going to see a sell-off on Monday. But traders are being hopeful at this point. I'll tell you, they're waiting for that 11th hour deal at this point, Randi.

KAYE: All right, Alison, thank you very much. Have a great weekend.

KOSIK: You too.

KAYE: And checking the time right now. About 26 minutes or so past the hour. Time for a quick check of our top stories.

Japan is assessing the casualties and damage after its latest earthquake. A 7.1 magnitude aftershock that rocked its northeastern coast Thursday. Three people were killed, more than 140 injured.

More dead bottleneck dolphins are washing ashore on the Gulf and scientists don't know why. Since February 2010 to this month, 406 dolphins were found either stranded or reported dead. National Oceanic and Atmospheric Administration are going to designate these deaths as an unusual mortality event.

Alabama health officials say they now know how a deadly bacteria ended up in the IVs of nine hospital patients who died last month. They've traced it to a faucet at a pharmacy that made the intravenous nutritional supplement. It got into the tap water used to clean a container in which the supplement was mixed.

Well, we're only hours away from a government shutdown if no deal is reached. Ed Henry is at the White House with much more on what the Obama administration is doing. And we'll check in with him.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: These are people they're dealing with. You know, everyday people that are trying to do the best we can for ourselves and for our families, and working this part of our everyday being. We have to work.

(END VIDEO CLIP)

KAYE: We're getting closer by the minute to a possible shutdown. Senior White House correspondent Ed Henry joins me from the White House.

Ed, Speaker Boehner says that the White House offers are really just more of the same. So do we have any idea what the strategy is here for the president?

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, the strategy so far, Randi, has been let's focus on the substance and try not to make it about politics, even though there's obviously politics injected on both sides. No matter what, they're trying to keep the focus at least broadly on the substance, about the military pay that's not going to go through, about the various offices like the FHA will not be able to process mortgages or refinancing, how that might affect middle-class viewers of ours all around the country.

But I think, in talking to senior people, you're going to see a turn here if we get closer to a government shutdown and then if there is one in the next 24 hours or so, and see a much stronger stance from the White House.

Instead of seeking cooperation with the Republicans and talking about how they can work this out, you're going to see a much tougher president and top aides who are going to go out there this weekend and make the charge that it was the Republicans refused to meet the president halfway and shut the government down.

They know full well here at the White House that the politics of this can go in any direction and it can blow up in the face of either or both parties. And from what we're hearing, in the early stages, they're going to be very aggressive about trying to pin this on the Republicans.

KAYE: Yes, it seems though, in a way, that the president, at least some have suggested, that he's positioning himself as a mediator-in-chief, if you will. Almost as if he's saying that if the government shuts down, it is because of a disagreement between the two sets of lawmakers, not him, not his fault.

HENRY: You're absolutely right. And in fact, the other day, some were noticing that the president, in one of his public comments, seemed to almost be talking about Democrats in the third person as if he was not a fellow Democrat and saying, the Democrats want to do this, Republicans want to do that.

Where have we seen that before? Well, it would be Bill Clinton went through another government shutdown with that word triangulating, trying to say, look, I'm not on the left, I'm not on the right, I'm in the middle here trying to bring both sides together. Worked for Bill Clinton then, we'll see whether it works for this president if the government is shut down.

But while both sides say politics is not involved and they're focused on the substance, let's not forget how this week started. It started with the president of the United States filing the official paperwork to run for election in 2012. Now the week is ending on this dramatic story.

Certainly, they're focused on the budget here, but they still got one eye on that re-election in 2012. So if anyone out there thinks there's not going to be a ferocious political battle as well beyond the substance, they're not paying close attention.

KAYE: So much at stake here in so many ways. Ed Henry, thank you. HENRY: Good to see you.

KAYE: Appreciate it.

All right, so obviously, this potential government shutdown is blowing up on social media. If you check out this Twitter feed that's right next to me there, the word "shutdown" is going so fast you can hardly read it. These tweets just keep pouring in to us.

So what do you think about a possible shutdown? Well, join the conversation on our blog, CNN.com/Ali. We'll share your comments throughout the show.

(COMMERCIAL BREAK)

KAYE: A check now of some stories you may have missed.

Let's start in England where one person is dead and another critically wounded after a shooting today on this British nuclear submarine. A suspect has been taken into custody. The HMS Astute was docked in the English port of Southampton.

A Colorado man who wrote and published and sold a how-to book for pedophiles will spend the next two years on probation. Phillip Greaves pleaded no contest to charges brought against him in Florida.

He gained national attention, you may recall, when Amazon.com began selling his book last year. It's since been removed from the website. Under the plea deal, Greaves will not have to register as a sex offender, but will have to continue mental health counseling.

The hits, well, they just keep coming in Japan. Rescuers say Thursday's earthquake killed three people and injured more than 140. The 7.1 magnitude earthquake hit off the coast of northeastern Japan. It's considered an devastating aftershock from last month's devastating earthquake and tsunami. That disaster has left 12,731 people dead and nearly 15,000 still missing.

Round two at the Masters is underway, and the leaderboard is getting pretty crowded. Roy McIlroy was one of the co-leaders after the first round, but as McIlroy finishes his game, K.J. Choi has emerged to the top. Tiger Woods will tee off shortly just before 1:50 Eastern. He closed out round one, one under par.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: If we're going to be furloughed, they should be furloughed, not be paid.

(END VIDEO CLIP)

KAYE: A lot of frustration as we approach this possible government shutdown. Now if the government does shut down, so do federally funded health services. This includes some operations at the National Institutes of Health and the Centers for Disease Control and Prevention. Sixty-two percent of all Department of Health and Human Services staff would be furloughed.

Kate Bolduan is following this story from outside the Department of Health and Human Services.

Kate, good to see you.

Tell us what are some of the things that you've been tracking that would simply come to a halt.

KATE BOLDUAN, CNN CORRESPONDENT: This is a huge department.

And hearing some sirens, so have no fear, just to give you a heads up.

Let me show you something really quick, Randi. We're outside the Department of Health and Human Services, we're quite literally steps away from the Capitol where negotiations are ongoing.

Meanwhile, in this building at the Department of Health and Human Services, you said 62 percent of employees will be affected? That's more than 47,000 people that will be told to stay home if this shutdown begins.

And that will affect a wide range of important operations, important agencies that our viewers know very well. The Food and Drug Administration, the Centers for Disease Control and Prevention and the National Institutes for Health. Those are just some of the operations that are affected.

And while we could go on forever listing how they'll be affected, let me give you a couple examples. They say at the Food and Drug Administration, drug and medical reviews and inspections will be slowed significantly and have to be prioritized in terms of risk because they're going to be working with skeleton crew, might be obviously be a little extreme to say, but a lesser staff.

The National institutes of Health, clinical trials that are ongoing, they will continue if they're already in process, but no new patients will be accepted and no new clinical trials will be started.

At the CDC, we're told that limited public health activities will continue.

So everyone from top to bottom, every agency that is part of this department will be impacted, really delayed or slowed or halted is kind of the shorthand for what's really going to happen.

A couple good notes, if I could add, Randi, that community health clinics that are so important to our viewers across the country, they're largely funded by grants and they, I'm told, should have money in the bank. So they will -- should likely be able to stay open. That's the same for Indian health services in the many clinics that they fund. They should be remain open as well.

But many people impacted here and many people that will be told -- we're told they'll be notified today if they'll be furloughed, so that's no surprise.

KAYE: And, Kate, just quickly, what happens during this time to Medicare and Medicaid?

BOLDUAN: Also important to talk about. A huge department within this department.

Medicare and Medicaid operations, they will continue. They are mandatory. They go under the category of mandatory funding, so those operations will continue. Medicare beneficiaries will continue to get payments, providers will get reimbursed. So there's some good news, at least if it's temporary stop.

So actually, Medicare and Medicaid operations, those employees, they'll be the bulk of people who will be working in this department come Monday if the shutdown does occur, Randi.

KAYE: They're part of the so-called essential bunch.

BOLDUAN: Exactly.

KAYE: All right, Kate Bolduan, thank you.

A shutdown would also affect other scientific organizations doing work important to all of us. For example, the Environmental Protection Agency would stop monitoring pollution and issuing environmental impact statements. Clean-up work would also stop at toxic waste sites. Imagine that.

Researchers at NASA would have to stop their work and depending on how long the shutdown actually lasts, it could affect any future space missions.

And the National Ocean and Atmospheric Administration could miss out on collecting important climate information as well.

So a lot of folks in a lot of departments across the country affected.

Libyan rebels outraged; NATO offers an apology. The latest on an apparent friendly fire incident right after this.

(COMMERCIAL BREAK)

KAYE: NATO officials are speaking out about an airstrike that witnesses say killed two rebel fighters and two civilians.

Earlier today, the British deputy commander of the air campaign acknowledged that yesterday's airstrike hit a rebel convoy, but he refused to apologize. He said the rebels had failed to notify the alliance that they were using captured government tanks.

Well, later, NATO secretary-general did offer his apologies calling the airstrike a, quote, "very unfortunate incident."

It's apparently the second friendly fire incident in less than a week.

Ben Wedeman joins us now from eastern Libya.

Ben, what are the rebels telling you about that airstrike yesterday?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Certainly they're very angry about it and frustrated because the head of the rebel military effort yesterday said in Benghazi that they had provided NATO with information about this tank column that they were sending in the direction of Brega. In fact, it was part what have they were hoping would be sort of a new offensive by the rebels to retake Brega, that critically important town with a large oil refinery and oil export facility. So, it really has kind of smashed the morale of the rebels.

We were up in Ajdabaiya, which is now the front line. And we saw the town's very lightly defended. The gates of the city came under artillery bombardment this afternoon. Increasingly we're seeing morale is slipping, and also there's a lot of anger at NATO for on the one hand not launching enough air strikes against Gadhafi's forces. And, of course, on the other this incident yesterday that, as you said, left at least four dead, including two medics. And there's still six people missing from that incident. Randi?

KAYE: So Ben, are there any steps that the rebels can take to prevent this kind of confusion in the future? Are they thinking about marking their vehicles, for example?

WEDEMAN: Well, actually I don't think they have the technical ability to mark them in such a way that these NATO planes can actually see them. Because you have to realize, they fly so high from the ground -- you can hear them, but you can barely see them. Unlike the Libyan Air Force, which we saw quite up-close and a little too personal for my taste.

So, they fly -- the rebel vehicles go around with their flags, but those aren't really visible from the height we're talking about. There has been talk of some sort of coordination between forces on the ground and the planes in the air, but as far as we can tell, that doesn't exist. The troops on the front line communicate back to Benghazi, and Benghazi then communicates with NATO. And it is such a round-about means of communications that there's, in effect, very little going back and forth in terms of real-time intelligence. Randi?

KAYE: All right. Ben Wedeman reporting for us from Benghazi, Libya. Ben, thank you.

Time right now, 47 minutes past the hour. Checking other top international stories. In Syria, security forces opened fire on anti- government protesters today. At least 22 protesters were killed, 40 wounded. It happened in the southern city of Daraa, the focus of unrest since protest erupted against the government back in mid-March.

In Ivory Coast, former president Laurent Gbagbo remains holed up in a bunker. In the presidential residence. With him, about 200 loyal fighters.

Also, the U.N. today said more than 100 bodies have been found in the western part of the country. A U.S. spokesman said some of the killings may have been ethnically motivated.

Already devastated by a mounting death toll from March 11, Thursday's earthquake has claimed more lives in Japan. Three people were killed and more than 140 others injured when the 7.1 magnitude quake hit off the coast of northeastern Japan. It's considered an aftershock from last month's disaster that left 12,731 people dead.

Ahead, some Americans think a government shutdown would actually be good for the country. We'll have details.

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KAYE: Time now for CNN political update. CNN national correspondent Jessica Yellin joins me from the political desk in Washington. And Jessica, it sounds like not everyone thinks that a government shutdown would be a bad thing.

JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT: That's true, Randi. A minority, a sizable minority of Americans think that it could be a good thing for the country, 36 percent if the government shutdown for a few days. But it is important to point out that a almost two-to-one majority of Americans think it would be a bad thing. The majority of Americans think that the government should find solutions to keep government open.

If you break that down by party, and let's take a closer look, 20 percent of Democrats and 35 percent of independents support shutting it down for just a few days to support the priorities. The strong support for a shutdown, you'll see, comes among the Republicans where 53 percent support it and within the Republicans, it is Tea Party activists in particular, 62 percent, who really strongly back a government shutdown.

Now, one thing that both parties seem to agree on is that they have a great opportunity to start raising money. Because, Michele Bachmann's PAC and the DSEC (ph) which raises money for Democratic senatorial candidates, which I have over here, they are all sending out fundraising appeals to the supporters saying, please help us to raise lots of money. Michele Bachmann trying to start a petition off the government shutdown because each of their partisan basins objects in one way or another to what the other side is doing.

So, bit picture overview of this, partisans locked in on the ground on both sides are very angry at the other party. Independents in particular really object to this shutdown, and somebody is going to pay. So, if there is a shutdown, both sides are going to have to try to scramble pretty quickly to make the other side get the blame for this. A lot of independents who decide elections will be very unhappy if the government does shut down, Randi.

KAYE: Yes, I'm sure. All right. Jessica Yellin, thank you. Good to see you.

Your next update from our political team is just one hour away.

If you are planning a visit to the Statute of Liberty, you are out of luck if the government shuts down. What some tourists are saying as they wait for the ferry to Liberty Island today, right after this.

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UNIDENTIFIED MALE: Downtown relies on the tourists and everything else, and if you close the parks down, we get no business. I don't know why the government can't come to a conclusion here.

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KAYE: We have been asking for you to join the discussion online about the possibility of a government shutdown and boy, have you responded to the call.

Jena posted this on my Facebook page. "A shutdown would be a huge slap in the face to the military with how much they are sacrificing and then living paycheck to paycheck. The military should be the one area that definitely does still get paid."

Another big part of this discussion is tourism. A shutdown at midnight would close all national parks and all sites run by the park service, including New York's Liberty Island, home of the statue of liberty.

Allan Chernoff is standing by at Battery Park where visitors catch the ferry to Liberty Park. Allan, what is the mood like there?

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Well, the mood has been one of a bit of anxiety. A lot of people want to make sure they get on to that ferry over to Liberty Island because this may be the last day they can do it for quite some time. So, these tickets that I am holding over here, the Statue of Liberty and Ellis Island tickets are a very hot, hot commodity today.

The Statue of Liberty is an essential tourist destination for people who come here to New York, but the National Park Service worker, and well, the government considers them to be nonessential.

Let's talk to a few tourists. We have Kim right over here. Kim, tell me what's your thinking with regard to this? I mean you came specifically today?

KIM PRESCOTT, TOURIST: Yes, I would agree that the statue of Liberty definitely is an essential stop in New York.

CHERNOFF: : You didn't want to miss it?

PRESCOTT: No. Couldn't miss it.

CHERNOFF: And your friend Kelly as well?

PRESCOTT: Kerry.

CHERNOFF: Kerry?

KERRY, TOURIST: No, I'm so glad that we were able to get here and see it before it closes, if it does.

CHERNOFF: Briefly, how do you folks feel about what is going on down in D.C.? I mean, the effort to try to hammer out a budget deal to keep the government open?

PRESCOTT: I think it is really unfortunate that people are letting the politics keep them from reaching an agreement. The stakes are extremely high and these are people's - their money, their - I don't know - their ability to pay for their food, and soldiers may not be able to take care of their families.

CHERNOFF: Yes. A common sentiment here all day long. A lot of the tourists absolutely mystified, frustrated that their government just can't hammer out a deal. Randi?

KAYE: All right. Allan Chernoff for us at Battery Park. Thank you, Allan.

And now more on the national parks. There are 394 of them across the country. The parks provide jobs for 20,000 people. At this time of the year, the parks receive about 800,000 visitors a day, and they spend some $32 million per day.

Now, if a shutdown happens, campers at these parks will have 24 hours to just pack up and leave. All educational programs will be stopped during a shutdown. Public roads through the parks, like Yellowstone will remain open, and park law enforcement officials will remain on duty.

So, the hour draws closer. Budget negotiators still not close enough. The deadline for a compromise to keep the government fully up and running is now less than ten hours away.

And last we heard, House speaker John Boehner and Senate majority leader Harry Reid could not even agree on what they have agreed on. Boehner says they are still hung up on spending cuts; Reid says it has all come down, actually, to policy. House Republicans had tacked on riders as they are called to the spending plan to the plan passed in February, stripping the EPA of the power to regulate greenhouse gases, restricting health care reform, and defunding public broadcasting and Planned Parenthood.

Harry Reid says that all of those points have been resolved except Planned Parenthood. John Boehner agrees they're close on policy, but says spending is really the sticking point.