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CNN Tonight

Senate Has Last Procedural Before Health Care Vote; California's Budget Problems Raising Issues With Medi-Cal Reform; White House To Focus on Job Creation For New Year

Aired December 23, 2009 - 19:00   ET

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

ERICA HILL, CNN ANCHOR: Tonight, we are less than 12 hours away from the final vote on the Senate's health care bill. That really is just the beginning. Up next, the really hard work combining the Senate and House proposals, and one major sticking point is abortion.

An American dad wins the international custody battle for his nine-year-old son. That official handover expected to happen in just a matter of hours. But when exactly will this little boy make it home to New Jersey?

And how about decking the halls with LED lights and maybe a little economic boost? An unexpected hit in this recession-damaged holiday season.

Thanks for spending time with us this evening. Late this evening, the Senate voting down a final Republican attempt to kill the proposed $871 billion health care reform bill.

The 60-39 party line vote that followed clears the way now for tomorrow's final vote on that bill, a vote which has been moved up again. Now it's set for 7:00 a.m. on Christmas Eve.

It's expected to pass easily, especially since all that's needed this time around is a simple majority, 51 yeas. And after that, as we mentioned, the real work begins, finding the common ground between the Senate and the House bill to create one final measure on health care.

And once that is done, President Obama is expected to sign the legislation, which would be the biggest expansion of federal health care since Medicare and Medicaid more than 40 years ago. Jessica Yellin is joining us tonight live from Washington.

So Jessica, at this point, what does it all mean?

JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT: It means, Erica, that finally both the House and the Senate are at the cusp of an historic moment, having both bodies of Congress pass major health care reform.

So there are no barriers now between the Senate passing a bill tomorrow at 7:00 a.m. The only drama that actually happened today was when senators tried to decide if they should vote sooner than 7:00 a.m. Some people were groaning they should vote tonight. The Republicans shot that because they vowed to have the vote on Christmas Eve showing that they have driven the Democrats to the very last day they could hold this vote. So we are all set, barring any unforeseen developments, which you never know, for that big moment.

HILL: So eve 12:01 Christmas Eve would haven't worked?

YELLIN: No. They tried. John McCain gave a big head shake no way.

HILL: There were so many votes, seven votes in total today?

YELLIN: Yes. Basically what happened was, except for the last vote, which says yes, we are going proceed to tomorrow's big one, every other vote today was an attempt by the Republicans to shut this down.

There were constitutional challenges to the spending measures, there were concerns about a mandate requiring people to buy health care. So it was an effort time and time again by Republicans to stop this in the tracks, and they fail the each time.

HILL: Now 7:00 a.m. tomorrow. I'm sure your alarm is set.

YELLIN: I can't wait.

HILL: But that's going to be fairly uneventful since we pretty much know it's going to pass.

YELLIN: What we expect tomorrow is the Democrats will clear the 60 votes. But what is momentous, they have to get to the moment where the House and the Senate find a way to blend the two incredibly different bills.

So all eyes are going to be on the Democrats for the next few weeks, because the clock is ticking. They still want to try to get a bill done by the State of the Union. We will see Nancy Pelosi, Harry Reid, and members of the White House staff running around the Hill for the next few weeks like chickens with their heads cut off.

(LAUGHTER)

HILL: That will make for some interesting pictures. Jessica, thanks.

As Jessica was talking about, that passage pretty much given, it's the marrying of the two that is the sticking point now. And one of the main sticking points in all of this is the issue of abortion and insurance coverage, how to deal with those two.

Here is Lisa Sylvester.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT: Senate Democratic leader Harry Reid preferred to keep the conversation on the first step. SEN. HARRY REID, (D) SENATE MAJORITY LEADER: Our focus today and tomorrow is to complete this legislation.

SYLVESTER: But the real work is still ahead, merging the House and Senate health care bills and coming up with a final version that can ultimately pass in both chambers is not going to be easy.

The House bill has a public option. The Senate bill does not. The House bill is stricter about prohibiting federal dollars from being spent on abortions.

Under the Senate bill, the decision on whether insurance plans could cover abortions would be made by each individual state. The House bill costs over $1 trillion paid for with a surcharge on individuals making over $500,000 or families earning more than $1 million.

The Senate bill costs $871 billion paid for with increases in the Medicare payroll tax and a tax on the so-called "Cadillac insurance plans," those high value insurance plans in. That's a controversial point for labor unions.

JEANNE CUMMINGS, POLITICO: They have been having back room conversations about what the final product might look like. They have to deal with their memberships.

SYLVESTER: That's where it gets tricky because Democratic leaders in the House and Senate came up with enough votes by adding specific language on issues like abortion and the public option to appease certain blocks within the party. Remove the compromise language and the fragile coalitions could break down.

Ron Pollack acknowledges the difficulty ahead.

RON POLLACK, FAMILIES USA: You have to make sure you don't tip too far in one direction. In the Senate, since you need 60 votes and there are only of 60 members who caucus with the Democrats, that is obviously a little more difficult. So I think the Senate will have somewhat greater leverage in this process.

SYLVESTER: Pollack, who is a supporter of the public option, reluctantly says the political dynamics in the Senate may require it be dropped.

(END VIDEOTAPE)

SYLVESTER: President Obama has said that he would like to have final passage in the House and the Senate before the State of the Union address. That is going to take a lot of work and compromise, and even then it may be difficult to reach that goal by then -- Erica.

HILL: Yes, and it even sounds like later today there is backpedaling on that. We will see what happens.

SYLVESTER: Yes. And originally they said they wanted to get it down by August and then have it wrapped up by the end of this year. And now they say they want it by the State of the Union. The deadline has been slipping and pushed back. There is a lot of work to be down.

HILL: A lot of work to be done, indeed. Lisa, thanks.

California Governor Arnold Schwarzenegger is hitting the panic button over health care reform. He is in favor of reform, but the governor is warning it's going to fail unless the feds cough up billions more for states like his own in financial crisis.

Casey Wian has more.

(BEGIN VIDEOTAPE)

WIAN: California Governor Arnold Schwarzenegger has been one of the few Republican elected officials to publicly support health care reform.

But he warns that, quote, "health care reform will fail unless lawmakers correct flaws in the bill they're debating."

Schwarzenegger estimates the current bill would cost California taxpayers an additional $3 billion to $4 billion because it would require them to cover Medicaid patients without providing the money needed to do so.

GOV. ARNOLD SCHWARZENEGGER, (R) CALIFORNIA: We to have to tighten our belts and also ask the federal government to pay up what they owe us, because the federal government, we don't need a bailout from them, but we need for them to pay.

That's why I made it very clear, I now caution about the health care reform. I endorsed it and was all for it, but now all of a sudden we find out it's going to cost California $3 billion.

WIAN: Schwarzenegger admits some of California's financial problems are its own doing. The latest example, a state auditor's report of stimulus funds received by California found some agencies mismanaged bailout money and overstated the jobs it created.

LAURA CHICK, CALIFORNIA RECOVERY ACT INSPECTOR GENERAL: What they're saying is the state isn't doing such a great job of watching the people's money.

WIAN: Still, Schwarzenegger warns that without financial help from Uncle Sam, the state will be forced to make cuts in health care and welfare programs as well as continue to furlough state workers to close a projected $20 billion deficit.

JENN ROSS, CALIFORNIA BUDGET PROJECT: Additional federal aid is critical not only for California but for states across the country that are facing substantial budget deficits in the next fiscal year.

WIAN: The Center on Budget and Policy priorities estimates 900,000 jobs will disappear without more federal aid for financially strapped state.

(END VIDEOTAPE) WIAN: California's governor isn't the only one criticizing the federal government health care plans. Today Georgia's Republican governor Sonny Perdue asked his attorney general to join other state attorneys general who are investigating the constitutionality of the health care reform proposal.

They site deals with senators from Louisiana and Nebraska that give extra money to those states in exchange for the senators' votes -- Erica.

HILL: And those were some controversial deals there, as we know, made at the last minute. Casey, thanks.

Just ahead, outrage over those bonuses at AIG. Taxpayers, you, who bailed out the insurance giant, want to say, show us the money, or better yet, give it back. But is any of it working?

Plus, unemployment is still sky high. The country needs a new year's resolution. How about jobs?

(COMMERCIAL BREAK)

HILL: We have been hearing from economists for months now that the recession is over. But the numbers still seem mixed. Today we learned new home sales tanked in November. That is just a day after hearing existing home sales rose more than expected as did income and spending.

Still, the vast majority of the Americans will tell you the economy is in poor shape. As Dan Lothian reports, the new year's focus for the Obama administration is clear, jobs.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Evens as the economy shows signs of stabilizing, high unemployment remains a major concern for the Obama administration.

BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES OF AMERICA: I am entirely dissatisfied with where we are now in terms of jobs and the fact that families out there on the eve of Christmas are still really worried about being about to pay the bills.

LOTHIAN: Top White House aides say the president plans a laser focus in January, working with Congress to get a jobs bill, and create a so called cash for caulkers program.

But the president who met with the CEOs of big financial institutions and small community banks will also keep pressuring them to increase lending to small bases the life blood needed to spark new hiring.

JAMES MCPHEE, PRESIDENT, KALAMAZOO COUNTY STATE BANK: They know that the community banks in the nation did not create the train wreck. We are common sense lenders and we have traction going in the communities of this nation. And we're works hard and he is in support of that.

LOTHIAN: All of this will be complicated. Republicans think spending our way out of an economic downturn will bankrupt the country. And some liberal Democrats don't think the administration is spending enough.

And there are political consequences. The pace of recovery could impact fellow Democrats in Congress worried about losing their jobs in next November's elections.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: The Democrats really need a rebounding economy, a strong growth in jobs, and a good salesmanship job on the health care bill if it becomes laws to convince voter to keep them this power.

(END VIDEOTAPE)

LOTHIAN: The president will try to sell his jobs and economics message to the nation at the State of the Union address. Top aides say from the president right down to staff member they have been working very hard on that message, holding meetings, one of those meetings takes place just yesterday -- Erica?

HILL: Until the final Christmas day. Dan, thanks.

In the meantime, a taxpayer bailout that kept AIG afloat, it appears that AIG has not kept its promise to return millions of dollars in bonuses. AIG paying more than $165 million in bonuses following the company's downfall a year ago.

And as the outrage erupted, some employees received death threats. President Obama demanded every legal avenue be pursued to block the payments. As of now, the majority of the bonuses it turns out have not been returned.

An attorney for some of the employees said the company told the offers to return bonuses were voluntary and nonbinding.

Convicted swindler Bernie Madoff has been moved to a prison medical facility for undisclosed reasons. Madoff is serving a 150 year sentence in North Carolina.

Still to come, dozens hurt as a plane overshoots the runway in Jamaica. That story is up for you next. And it could be trouble for holiday travelers, a major winter storm threatening snow, ice, and countless delays here in the U.S. And a Christmas tornado? Yes. We'll tell you where.

(COMMERCIAL BREAK)

(WEATHER BREAK)

HILL: Weather may have been the factor in the Caribbean when a seemingly flawless flight ended in an enormous mess on a Jamaica beach. You are looking at an American Airlines jet that overshot the runway, rammed the perimeter fence at Kingston Airport, and then stopped just short of the Caribbean Sea. Imagine being onboard that plane.

The fuselage broke apart on impact. Amazing, 154 horrified, I would imagine very frazzled passengers and crew members all survived. There were some broken bones, cuts and bruises, but again, everyone survived. That flight originated in Washington D.C. It stopped in Miami before making its way to Jamaica.

And a little bit of travel trouble here back home. Commuter trains up and down the northeast corridor coming to a screeching halt on one of the busiest travel days of the year. Why? An electrical problem in northern New Jersey stopped both Amtrak and New Jersey transit service for three hours.

That created a ripple effect throughout the region, meaning thousands of passengers were stranded from Boston all the way to Washington. The problem was eventually solved. We're told tonight, delays have decreased. Hopefully tempers have as well and there is a little bit of patience to be spread around.

Just ahead, the final chapter in the international custody battle between an American father and his son's Brazilian relatives.

Plus a look at what is lighting up the holiday season during these dark economic times. That answer may surprise you a little.

(COMMERCIAL BREAK)

HILL: We thought you might enjoy a little good news on the economy tonight. How about this one -- personal incomes rose in November at the fastest pace in six months. That is matched by an uptick in spending for the second straight month.

But as Louise Schiavone reports, that isn't the only thing lighting up the holidays this season.

(BEGIN VIDEOTAPE)

LOUISE SCHIAVONE, CNN CORRESPONDENT: This year, the long shadows of winter are matched by the long shadows of a recession, emotions running the gamut from serene to distressed.

UNIDENTIFIED FEMALE: I noticed a lot of other people just getting one present for one person.

UNIDENTIFIED MALE: The economy is definitely affecting a lot of people.

UNIDENTIFIED FEMALE: Things aren't all that great this year compared to last year.

SCHIAVONE: A glint of hope has emerged from people in the business of casting light, Christmas lights.

MIKE STREB, CHRISTMAS LIGHTS ETC.: Our sales have been absolutely phenomenal over the last several years, and we're just seeing no letup in sight. SCHIAVONE: Mike Streb runs the sales department of Christmas Lights Et Cetera near Atlanta. They are clearly bucking the trend with their product.

STREB: We didn't know what to expect. In fact, we probably found ourselves caught a little bit short on the LED sales. We expected the incandescent to hold their own, but for the first time in our company's history, LEDs have outsold the incandescent light.

SCHIAVONE: LED, or light-emitting diode lights, go for about $25 a strand, at least twice as much as a good quality string of the old fashioned lights. They save energy, and are safer, and if one light on a string goes out, you don't have to toss the whole strand.

UNIDENTIFIED FEMALE: I like those, actually.

UNIDENTIFIED MALE: Those are nice. The regular bulbs go out too quick.

SCHIAVONE: Home Depot reports a triple-digit increase in LED holiday light sales over this time last year. An electronics market analyst expect as much as half of the lights purchased this year will be the more expensive yet energy efficient LED strings.

PROF. PETER MORICI, UNIVERSITY OF MARYLAND: The economy is stressing everyone out. With 17% of the population needing a full time job and not having one, it's a terrible time. Christmas is an opportunity to forget it all. You know for 20 bucks you can buy new lights for your tree. It looks great and it makes you feel good.

SCHIAVONE: L.E.D. lights cast their magic through the movement of electrons through a semiconductor material. That's the science of it anyhow. The real magic, that is up to the individual to the individual to judge.

ERICA HILL, CNN ANCHOR: That beauty may be in the eye of the beholder. Louise, thanks. Have a great holiday.

It is down to the wire now for holiday shoppers. Tonight, I hope you have your shopping done. This there isn't much time left. The final countdown to Christmas of course is on and Saturday's monster snowstorm dashed plans for the retailers and gift givers alike. You have Christmas Eve, the last crucial day of the holiday shopping season. Joining us now with some last minute tips, Tod Marks who's senior editor with Consumer Reports Magazine.

You can still get some stuff and Tod I know you don't like to brave the stores and they've been pretty busy in New York City today. Online shopping, has your window closed for that?

TOD MARKS, SR. EDITOR, CONSUMER REPORTS: Pretty much you know I mean with few exceptions. You have until 11:59. For example Amazon, you are ordering the kindle until 11:59 and get it delivered tomorrow. And Amazon also has local express delivery in selected cities like New York, Philadelphia, Boston, Baltimore, Seattle and Las Vegas where you can actually order tomorrow and get it tomorrow. You know, those are pockets. For the most part, you are done. The bell has rung and you are out of luck.

HILL: If you are going be doing that, it always amazes me. Because I have to admit, sometimes we procrastinate in my house hold and I said we're not going to spend a ridiculous amount on these last minute shipping fees because they get you.

MARKS: You know what? But more and more -- we wrote a story, Consumer Reports, on shipping and how the deadlines were. But I noticed in the last few days, more and more retailers were offering free upgrades just to get you to keep on shopping so they wanted to ride that wave out and get people to shop and they actually have been giving free overnight shipping at a lot of merchants. So that's unheard of.

HILL: Make should I have waited. People do tend to procrastinate. Some people enjoy the rush of shopping on Christmas Eve. I have to admit I don't get it when all that's left is a pair of socks and a candy cane. But what are some of the other reasons that people wait so long? Are they getting a better deal?

MARKS: Well you know what? Thirty percent of Americans in our Consumer Report poll said that they probably even wouldn't get their shopping done until Christmas or later. And I think there are three reasons, one, people are gut cutting back. And one of the things they are giving in this down economy are pragmatic gifts. What's more pragmatic than cash? You don't have to go to a store and get cash.

HILL: The ATM is always open.

MARKS: The second reason, people kind of -- well, there is an adrenaline rush that's associated with last minute shopping. And some people, no matter what they hear, they are going to wait and brave the elements and go out at the last minute because they are adrenaline junkies for shopping and they love that. Those are the kind of reasons they work. And a lot of people think, there are always the dyed in the wool shoppers who wait to the last second to get the killer deal and that's part of it too.

HILL: The killer deal is probably on the 26th. I'd hate to burst their bubble. But when it comes to last year we saw insane deals. 70% off at major department stores. This year, we haven't seen as much of that. Have we seen as much buying?

MARKS: You talked about the big snowstorm. And I know shopping in the brick and mortar stores was down but online shopping has gone through the roof during this storm in this past week. For a lot of the retailers, while they were holding their breaths, it hasn't been as horrible as everyone thought. There were really big waves.

HILL: They also prepared for it too. They don't have as much inventory at the end.

MARKS: They didn't want to sell off stuff to liquidators and do clearance and have mark down but that means procrastinators might be really up against it because if they didn't act and they have a must have gift on the list and they go to the store today or tomorrow, and it's not there what are they going to do? You know what they're going to do? They are going to buy jewelry and fancy watches. They're going to overspend and over buy because sometimes you know they think quantity can make up for quality.

HILL: Before we let you go, what are some of the top things people are buying this year?

MARKS: Clothing, electronics, toys, gift cards are the big things and toys, and the electronic are what we've noticed is laptops and net books are big. MP3 players, a category that we at Consumer Reports thought was dying has been reinvigorated with the new video iPod. Video games and systems and accessories really big because not only can you get remember last year, the Nintendo wii, now it's under 200 bucks. And cell phones and smart phones. Those are the real killer deals.

HILL: All right. Tod Marks, great to the have you with us. Good luck getting out of the studio. It could be busy for you.

MARKS: It could be dangerous.

HIIL: As we mentioned, the holiday shopping season, Tod was talking about this, prime for online shopping. And it turns out, cyber crimes. Millions of identities are stolen each year in what has become a major business. Here is Mary Snow with our report.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT: When Matt Marquess recently checked the twitter account he keeps for work, he was surprised to find messages written about him.

MATT MARQUESS, VICTIM OF CYBER HACKING: And here's a tweet from one of my friends. It says wondering why Matt Marquess is tweeting about lady's underwear. I thought that was pretty funny.

SNOW: But he quickly learned it wasn't a joke. He was hacked and he was inadvertently sending out a link to a $500 coupon for lingerie.

MARQUESS: It made me just a little upset and concerned that somebody was going to get some sort of malicious software or something downloaded on the machine.

SNOW: Once links like that are clicked, the doors opened for identity theft and those cyber criminals say law enforcement officials are becoming increasingly sophisticated. To make that point, security software maker Symantec recently constructed a mockup of the underground cyber world. It includes what a black market channel looks like where identities are bought and sold. How much is an identity worth?

ROWAN TROLLOPE, VICE PRESIDENT, SYMANTEC: Typically a full identity is available online for $10.

SNOW: $10. TROLLOPE: $10.

SNOW: And that includes social security --

TROLLOPE: Social security number, billing address, current credit card information. So everything that you need to fully steal someone's identity is available for $10.

SNOW: Ten dollars for an identity theft that can cause victims thousands of dollars each. Combating that growing black market is a nonstop job. Austin Berglesas is the head of the FBI's cyber crime unit in New York.

AUSTIN BERGLAS, FBI CYBER CRIME UNIT: When we feel that everything's safe and secure, that everything's locked down, there is someone out there spending 24 hours a day seven days a week looking for the next hole.

SNOW: Berglas says one of the biggest trends right now involves ATM fraud with many of the scams originating in Eastern Europe. He gives this example. Let's say 1,000 scam e-mails are sent out with bogus links promising gifts or money. Of that, maybe 10 people click on the links. As soon as they click on the link, a key logger is installed to record keystrokes, capturing information such as passwords from online banking. And that is sent back to the cyber criminal who puts it up for sale on the black market. Once that information is sold it's distributed and here is where law enforcement officials say the next phase of the scram returns to the U.S. Money mules are given fake bank and credit cards with the stolen information and then the mules tap out those accounts. While the mule keeps some of the money, the rest is sent back to the original hacker in many cases to Eastern Europe. But those mules open the door for law enforcement.

BERGLAS: The lowest hanging fruit is the money mules. So when they get picked up at the ATM machine. We will interview them, we'll tell them how much jail time they're looking at and they will wind up working for the FBI and then giving up their sources.

SNOW: Experts say the economy here in the U.S. and in Eastern Europe is one of the reasons behind the rise in identity theft with more people turning to cyber crime to make quick money.

Mary Snow, CNN, New York.

(END VIDEOTAPE)

HILL: Just ahead a judge throws a book at balloon boy's parents. How much time will they spend behind bars? That is ahead.

Plus, after a long international custody battle, the fight is finally over. What is next for Dan Goodman and his little boy Sean?

RYAN SMITH: I'm specialist Ryan Smith from the 19th engineer battalion in Afghanistan. I want to say merry Christmas to by wife back home in Indianapolis, Indiana. Merry Christmas baby and happy New Year.

(COMMERCIAL BREAK)

HILL: An American father will finally be reunited with his 9- year-old son, ending a five-year-long international custody battle. Yesterday, the Brazilian Supreme Court ruled Sean Goldman must be handed over to his father David and today the boy's Brazilian relatives said they wouldn't stand in the way, they would not appeal the ruling. The very latest on the case now we're joined by Ines Ferre.

(BEGIN VIDEOTAPE)

INES FERRE, CNN CORRESPONDENT: David Goldman is closer than ever to the moment he has been waiting for. At this Rio hotel, he has been meeting with attorneys to plan the handover of his 9 year old son Sean. Goldman made ten trips to Rio in a five-year custody battle. The boy's mother passed away last year, giving birth to another child. Now Sean's Brazilian family has waved the white flag, saying no more appeals. Brazile's chief justice ruled the boy must be return to his father. The Goldman's are overjoyed. The other side of the family, heart broken. Sean's maternal grandmother wanted the boy's testimony to be heard in court. Silvana Bianchi told CNN, "Sean is very sad because it has never been his desire to go back to the states. He got especially disappointed about not having the right to speak in his own country about what he wanted for himself." But the court agreed with the Goldmans that Sean was too young to have a say in the matter. It seems he will leave for the U.S. on Thursday where his paternal grandparents await his arrival.

BARRY GOLDMAN, PATERNAL GRANDFATHER: I'm going to hug him and kiss him and tell him how much I love him and missed him and go from there. I can't wait.

(END VIDEOTAPE)

FERRE: We spoke with Congressman Chris Smith who is with Goldman in Rio. And he says Sean is under a lot of pressure and this hand over is going to be a very sensitive process on both sides. The courts said the child needs to be handed over by 9:00 a.m. local time in Rio tomorrow.

HILL: You think about the stress on this child just in terms of what is happening the last few years, David Goldman talked about this. In terms of support for Sean in the U.S., have they worked out meetings with psychologists or other mental health professionals who can help with that transition?

FERRE: His lawyers said that David has been consulting with a mental health professional to make the transition as easy possible for Sean. The number one thing is his mental state, how he is going to be. They know it's going to be a healing process and it will take time.

HILL: Ines Ferre, thanks. A good outcome. They won't be fully relieved until the seat belt and buckled and the wheels up. We'll be watching for that.

Meantime, the Heene family pleaded guilty for that balloon boy hoax that had us all captivated before it angered so many people. They were in court today for sentencing. The judge said the Heenes exploited their children, the media and the emotions of people across the country. He sentenced Richard Heene to 90 says in jail and four years probation. His wife will face 20 days in jail as well as four years probation. And Richard Heene today apologizing for his actions.

RICHARD HEENE, BALLOON BOY'S DAD: I'm very, very sorry. And I want to apologize to -- all the rescue workers out there. And the people that got involved.

HILL: The Heene's stunt cost the county more than $47,000. The judge has ordered the Heenes pay restitution. The exact amount though was not exposed.

Just ahead, Democrats or Republicans? Whose policies will move this country in the right direction? We will tell what you Americans are saying.

Plus the health care backlash continues with some states questioning the constitutionality of the Senate bill. All that and much more next.

That is Anthony from southern Afghanistan. Merry Christmas and happy new year to my paints and brothers in St. Louis, Missouri.

(COMMERCIAL BREAK)

HILL: As the Senate vote on health care nears, some states are saying, not so fast, questioning if the bill is constitutional. Joining us now with more, Chris Frates, healthcare reporter with Politico, Miguel Perez, syndicated columnist and CNN contributor and Hank Sheinkopf, Democratic strategist and also CNN contributor.

Gentlemen, good to have all of you with us. Chris, I want to start with you because you've spent a lot of time there on the Senate floor as I understand it over the past week, which has been a very busy week. We know pretty much this is set to pass 7 a.m. tomorrow morning. They need a simple majority, 51 votes. What are some of the things that really stuck out to you on a day where there were seven different votes?

CHRIS FRATES, POLITICO: Well I think Erica you know you're right. The bill is on the way to passage. It's going go a historic vote for Democrats. This is the first time they have passed through the Senate and the house any kind of sweeping health care reform legislation. And what stuck out with the rank that remained. The Republicans were dug into their positions. The Democrats dug into theirs. It was trench war fair. It necessitated the first vote to get this place where it will be tomorrow morning for a final vote, took place at 1:00 in the morning Monday. We were there all evening, watching the vote to see if Harry Reid had the 60 votes he needed to end the debate on the bill and there were a number of other procedural votes that they had to take throughout the week just to get to where they are today.

The big question in the last few days was the vote originally was scheduled for 7:00 or later Christmas Eve. There was a big question we know this bill will probably pass. Are the Republicans and Democrats going to come to an agreement where they can let folks go home for the holiday? They did decide to at least move it up until 7:00 in the morning so folks can get home for Christmas Eve.

HILL: Right but not any earlier despite some attempts. One thing that came up and is getting a lot of attention and Miguel I'll start with you on this is the charge that the idea of making Americans either buy insurance and if not, they would face a penalty actually violates part of the constitution, I believe the fifth amendment in particular is what they are talking about here. My question, too, if that violates it, because it reads you can't take private property, it shall not be taken for public use without just compensation. This is the thinking here, it could be unconstitutional. Can you say the same thing about mandating people buy car insurance?

MIGUEL PEREZ, SYNDICATED COLUMNIST: Absolutely. Why did they wait this long to raise unconstitutionality of this bill. I mean if they had a problem with it, they should have raised it earlier. This is last-minute effort to block this thing. I don't think it will be successful.

HILL: Hank when you look at what's been done, obviously we talked about how partisan the process has been. Especially for major piece of social legislation, you never have seen such partisan division like this. Heading forward, what do the Democrats need to do as they try to marry the two bills to perhaps win over a vote or two in either the house or the senate?

HANK SHEINKOPF, DEMOCRATIC STRATEGIST: They've got to send out for a compromise that makes the Republicans feel they're not being pushed into a situation where they won't win at home. Wish for Republicans is they are giving up too much to what sections of the country, not getting enough for their home districts and if that's the case their home states, they are going to have a problem getting that done. Different issue. More importantly, Democrats have to pray the Republican complain sufficiently about the legislation until the end and afterwards. That will give them the argument they need to get re- elected next year.

HILL: Although the other side could say the same thing that this will give them the howling argument as well. Both sides are going to play this, obviously, to their advantage. Republicans saying that look at this, you know, huge albatross we have been dealt. Democrats saying this is going to be the greatest piece of legislation you have ever seen.

FRATES: Absolutely. When this bill passes tomorrow, and after the house and Senate reconcile it to get to it the president's desk, that's had the war of public opinion will begin. That's why Democrats are trying to move this as quickly as possible. They want as much time. They wanted more than a year to sell this to the American people and they are going to get less than that if they pass it in January or February. They are already talking about once people know what's in the bill and can educate them about why this is good for them you will start to see those poll numbers move a little bit and Republicans likewise say no way. They -- they hate the bill now. Public opinion has been against this bill. And when we explain it to them they are not going to like it. Look for health care to play a huge role in the 2010 elections as members have to go home to their districts and their states and defend what they did and the votes they made. Both sides are going to make this a major issue and it is part of the reason Democrats try to front load more of the provisions to take effect immediately. Things like the Medicare drug gap benefit, filling that for seniors. There were a number of provisions they tried to make take effect immediately so they have something to show right away out of the gate that this is why it is good for you.

PEREZ: I think that the problem here is that the reconciliation. We are skipping over the fact that these people need to concede a lot and give up a lot and the house and the Senate bill are completely different in so many ways. And this reconciliation is going to be angering the American people because this is -- we still don't know all the details of what happened in the Senate. All of this stuff is going to be coming out now slowly but surely. It is going to anger American people even more because they are going to -- all of us will find things we disagree with. Don't get me wrong. I'm all for health care reform. It is just that the way they are going about it, I --

HILL: Also making process we hear so much.

PEREZ: Buying of votes that has been going.

HILL: That's not new.

PEREZ: But it is happening under the president that said this would not happen.

SHEINKOPF: This is nothing new. Next year people won't be thinking of buying of votes but what it will mean long term.

HILL: We will see. We can tell you we know from our Congressional staffers that while house Democrats may have left for vacation there was a conference call this afternoon they are already huddling the wagons trying to figure out what to do, putting together a list of the comparisons for the two.

I do just want to throw this out there. A new CNN Research Opinion poll, looking at which leaders in Congress are moving the country in the right directions in terms of their policies. Democratic leaders getting a slight edge. 51% to Republican policies at this point. It will be interesting to see how the numbers change as people do learn more about all of this and we will continue to talk about it with you in the New Year. Maybe next week. 2009 is not over yet. We are not quite done with health care even if they are going home for the holidays. Hank Sheinkopf, Miguel Perez, Chris Frates, good to have all of you with us. Have a great holiday.

FRATES: Thank you. Merry Christmas.

HILL: Just ahead at the top of the hour, sitting in for Campbell Brown, Ali Velshi. Hey Ali.

ALI VELSHI, CNN ANCHOR: Hello my good friend Erica. What caused a near disaster aboard an American Airlines jet in Jamaica? Dozens of passengers hurt when their plane skidded off the runway in Kingston. Tonight, we'll get some expert advice on how to survive if you are caught in an aircraft emergency.

And why are U.S. troops going to some of the most unforgiving land in America? We will show you the answer in a CNN exclusive, "The War before the War." It is a look at what our soldiers go through to get ready for Iraq and Afghanistan.

And is the health care fight headed for the courts? With the Senate's final vote on reform just hours away, could Republicans be ready to take this whole fight to a new level? Erica?

HILL: We will be looking forward to that. Ali, thanks.

Still ahead, Santa earning his spot on the naughty list. What? It is true. Armed holiday heist when we continue. I have a feeling that's not the real big guy. But just me.

AARON: My name specialist Aaron at Afghanistan. I would like the wish my wife and baby happy holidays. My wife, Barbie, baby Violet and my family in Seattle, Washington. Happy holidays.

(COMMERCIAL BREAK)

HILL: Nightmare before Christmas in Nashville today. A man dressed as Santa brought a local bank - I mean seriously, how low do have you go? Armed with a nine millimeter handgun, the six foot St. Nick had to pay his elves. Try some new material, buddy. After stuffing his red bag with stolen cash, the crook made his getaway in a car. Interestingly not a sleigh, another clue this is not really Santa. No one was hurt during the robbery. Local police and the FBI are investigating. Low. Just low. One bad Santa cannot spoil the whole bunch.

In Ohio 7-year-old Reagan Walters knew just wear to turn with the biggest wish on her Christmas list.

REAGAN WALTERS: I told him that I wanted my dad for Christmas and showed him a picture of my dad. He brought home the right dad.

HILL: In Iraq since July, there was little hope Bobby James Walters would make it home for the holidays. In a flash he appeared giving her the surprise of her life. The big man delivering a few days early.

For all of you celebrating, have a very merry Christmas.