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Lou Dobbs Tonight
Raging Wildfire; Flyover Blunder; Your Bailout at Work; Desperate Search; Your Government at Work
Aired May 08, 2009 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Good evening everybody.
Tens of thousands of people have been ordered to leave their homes, firefighters struggling trying to contain a raging wildfire in Santa Barbara, California. Officials are warning thousands of other residents to prepare to evacuate. High winds fanning those flames. We'll have a live report for you.
And House Speaker Nancy Pelosi facing new questions about whether she's fully disclosed what she knows about the CIA's harsh interrogation methods, including waterboarding, which she apparently learned about as early as 2002. We'll have the very latest for you and what the CIA says she knew and what the speaker says she doesn't remember.
And President Obama firing a White House aide after the scandal over the Air Force One fly-over of Manhattan; a fly-over that panicked some residents of New York and New Jersey and sparked outrage all across the country.
We begin tonight with what is turning into a highly destructive wildfire in California. That raging fire in the hills overlooking Santa Barbara has now destroyed at least 75 homes. Emergency workers have ordered more than 30,000 people to evacuate. The fire is advancing along what is now a five-mile front. One fire chief said quote, "all hell broke loose." Thelma Gutierrez reports now from Montecito just outside Santa Barbara. Thelma, what is the latest tonight?
THELMA GUTIERREZ, CNN CORRESPONDENT: Well, Lou, I can tell you, this is a very stubborn fire and it's very nerve racking for some of the residents who live in this canyon. You take a look at the ridge behind me you can see that plume of smoke rising up in the air. It doesn't look like much but last night when the winds kicked up, this whole hillside ignited and some of the firefighters said it was one of the most frightening scenes that they had ever seen.
In fact, they fought a very heroic battle through the night. They were able to save homes by putting out the fires that were on the rooftops. Now, some of the homeowners in this area have been told to evacuate. But Kay Camarillo (ph) says she is not leaving. She lost her home just seven months ago in the tee (ph) fire that swept through this area. She says she's staying behind to make sure to save this house.
UNIDENTIFIED FEMALE: Right. GUTIERREZ: What exactly are you going to do, Kay?
UNIDENTIFIED FEMALE: We've got water hoses in place and ladders ready to get on the roof if we need to, to put out any flame and embers that blow our way.
GUTIERREZ: It's a big risk, why are you taking it?
KAY CAMARILLO, SANTA BARBARA RESIDENT: This is my home. I've lived here all my life. Many generations of families, we've been here on this land.
GUTIERREZ: So many other people have evacuated. Well good luck to you tonight. I know that this is a very harrowing time.
And Lou, that's the big concern is what will happen as the night falls and as these winds kick up. People are hoping that the flames don't sweep down into this canyon and claim even more homes. As you had mentioned, 75 homes either destroyed or damaged. Lou?
DOBBS: Thelma, thank you very much -- Thelma Gutierrez, we appreciate it, in Santa Barbara.
Well as if those wildfires weren't enough, an earthquake this afternoon hit the central coast area of California -- that earthquake a magnitude 4.2 -- the epicenter, about 25 miles from those fire lines. No immediate reports of injury or damage from the earthquake.
In Missouri three people were killed when heavy storms ripped through the southern part of that state. High winds tearing roofs off buildings. Wind gusts reaching an incredible 120 miles an hour. Thousands of people left without power including 60,000 people in Joplin, Missouri. Two people were killed when a tree fell -- those storms causing damage in at least three dozen counties.
Turning now overseas -- Pakistan today in effect declared war against the Taliban, who control much of the northwestern part of the country. The Pakistani military has deployed thousands of troops in the Swat Valley (ph) to quote "eliminate extremists." The military says it's killed 140 radical Islamist terrorists in the past day. But the government says its troops face a tough fight against thousands of Taliban terrorists.
President Obama to deliver what the White House is calling a major speech on U.S. relations with the Muslim world next month. He will do so from Egypt. White House press secretary Robert Gibbs said Egypt is a country at the heart of the Arab world and Gibbs deflected any questions on why the president has chosen to deliver this speech in Egypt, a country that many accuse of violating human rights.
President Obama today fired the White House aide who authorized the Air Force One photo shoot fly-over in New York that sparked panic among a number of people in New Jersey and New York. It is the first time that an official's been forced to resign from the Obama administration. And Ed Henry has our report from the White House. Ed? ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Lou, all this stemming of course from that embarrassing Air Force One fly-over late last month. Cost taxpayers more than $328,000, today the president accepting the resignation of Lewis Caldera (ph). He had been running the military office. He basically takes the fall for this embarrassing episode that really sparked so much panic in New York as well as New Jersey.
People thinking that this photo op was really a terror attack. And obviously, that sparked all of that panic. White House aides say that after this internal review that was released today, the president is now ordering that his defense secretary, Robert Gates make sure this not happen again -- that there was a clear communications breakdown. I don't know if local officials being warned that it was just a photo op, also the fact that it was not properly vetted here within the White House, within that military office.
Also interesting, the White House decided to release this internal investigation late on Friday afternoon. Typically White House officials have done that over the years through many administrations when they try to bury bad news on a day they think people may not be paying attention. This whole mess, of course, was sparked by a desire to snap a new publicity photo for Air Force One.
You can see that the photo that was released today by the White House in conjunction with this investigation, a beautiful photo of the jet that's normally called Air Force One when the president is aboard, flying near the Statue of Liberty. But White House officials have said they have no plans to actually use this publicity photo now, because it's become so tainted. Lou?
DOBBS: Just out of curiosity, Ed, publicity photo -- what publicity is required for Air Force One?
HENRY: That's a good question. You really -- it doesn't need any publicity. It needs no introduction. But over the years and previous administrations in fairness we should point out, they have snapped publicity photos. You can find them on the Internet.
Basically Air Force One flying in front of Yosemite National Park, flying over Mount Rushmore, for example. It's been sort of this classic iconic kind of thing that's been done by previous administrations. I suppose this one thought, OK, let's do it in front of the Statue of Liberty. But obviously a lot of people also saying now with Photo Shop (ph) and other programs they probably could have done it obviously if they'd really wanted to without causing so much panic, Lou.
DOBBS: And so we really don't have any purpose for the publicity. You mentioned previous administrations, Yosemite, wherever it might be. Were those instances in which they dispatched an F-16 and an empty Air Force One for the purpose of taking that photograph?
HENRY: Well they certainly dispatched an empty Air Force One for those photos because I've seen them, but they were before my time covering the White House I should point out. DOBBS: Hard to believe.
(CROSSTALK)
HENRY: ... previous Air Force Ones have been used, but I think obviously one big difference is that many of those publicity photos were taken before 9/11. This one taken post- 9/11, flying -- a plane flying very low near Manhattan...
DOBBS: Yes, yes.
HENRY: ... obviously got a good idea, Lou.
DOBBS: Yes, to put it mildly not a good idea. By the way, there are some who would characterize that photograph as bad -- any thought in the White House about firing the photographer?
HENRY: Well, I have not heard that but I can certainly check. I have not heard that, Lou.
DOBBS: All right, thank you very much. Appreciate it -- Ed Henry from the White House.
New questions tonight about whether House Speaker Nancy Pelosi misspoke, misremembered, or something else when she declared she was never told waterboarding was being used against terrorist suspects seven years ago. This after the leak of an intelligence report saying Speaker Pelosi received a CIA briefing on so-called enhanced interrogation techniques as far back as September of 2002.
According to that document, which was prepared by the CIA, the briefing included a description of the particular enhanced interrogation techniques that had been deployed. The memo specifically referred to the enhanced interrogation of al Qaeda suspect Abu Zubaydah who was water-boarded more than 80 times in August of 2002.
In a carefully worded response, Speaker Pelosi's office said quote "the briefers described these techniques but said they were legal, but said that waterboarding had not yet been used." Speaker Pelosi continues to insist she did not know the CIA was waterboarding suspects until much later. She's demanding a truth commission for the entire controversy.
The issue of who knew what and when about so-called enhanced interrogations also arose during testimony by Attorney General Eric Holder yesterday. Senator Lamar Alexander (ph) asked Holder whether it is possible that members of Congress who knew about enhanced interrogation techniques could be investigated.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: ... would be gathered in the Capitol of the United...
(AUDIO GAP) UNIDENTIFIED MALE: ... assume you could also go to the people who created the techniques, the officials who approved them, and the members of Congress who knew about them and may have encouraged them.
UNIDENTIFIED MALE: I mean hypothetically that might be true, I don't know.
(END VIDEO CLIP)
DOBBS: Well, there's an answer. Holder's remarks demonstrating the controversy over those CIA interrogations is far from over.
The government's bailout of the automobile industry is at work creating jobs, but overseas. The Statue of Liberty will fully open for business this summer after an eight-year hiatus.
(COMMERCIAL BREAK)
DOBBS: The latest employment report today confirms what we've been reporting here for months. There are signs of recovery in this economy. Employers cut 539,000 jobs in April. While that is a terrible, terrible rate of layoff, it is slowing and significantly. This is the lowest monthly number of jobs to be cut in six months. And at the same time, the unemployment rate is rising. It's up to 8.9 percent. President Obama warned that there are still tough times ahead.
(BEGIN VIDEO CLIP)
BARACK OBAMA (D-IL), PRESIDENT OF THE UNITED STATES: While it's somewhat encouraging that this number is lower than it's been in each of the past six months, it's still a sobering toll. The unemployment rate is at its highest point in 25 years. It underscores the point that we're still in the midst of a recession that was years in the making, and we'll be months or even years in the unmaking. And we should expect further job losses in the months to come.
(END VIDEO CLIP)
DOBBS: Many economists are predicting now that the economy will begin to grow again later this year. The April job report helped boost the stock market today -- the Dow Jones industrials up 165 points on the day -- for the week the Dow up over four percent -- the eighth weekly gain for the Dow in the past nine weeks. And General Motors has received $15 billion in taxpayer bailout money to keep it afloat -- the White House and Congress fully behind that bailout. And the president has called the car industry the backbone of American manufacturing. But under GM's restructuring plan, almost a quarter of the cars that GM produces for sale in the United States will be made overseas in Mexico, China, and South Korea. Bill Tucker has our report.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): Americans, already angry about a taxpayer bailout of the auto companies may have even more to fuel their anger. General Motors is telling lawmakers in Washington that to get stronger it has to produce less in the United States. GM's looking at increasing the percentage of its cars made in low-wage countries and then sold in the United States from 15 percent to 23 percent.
SEN. SHERROD BROWN (D), OHIO: How do you justify to the American public that you're going to use our tax dollars to stimulate the economy somewhere else, and at the same time, lay off American workers? So I just don't think it works that way.
TUCKER: In a letter to lawmakers this week, the United Auto Workers legislative director was equally blunt. Saying quote, "GM should not be taking taxpayer money simply to finance the outsourcing of jobs to other countries." But that GM is planning such a move shouldn't be surprising, say both supporters of the automaker and its critics. Supporters say GM has to lower costs if the carmaker is to survive.
WILLIAM HOLSTEIN, AUTHOR, "WHY GM MATTERS": They're facing the fight of their lives. And so if, in fact, they're forced into bankruptcy at the end of this month, they could disappear as a company if that results in liquidation, so that's really the great drama.
TUCKER: Critics say it's an all-too-typical attitude from a multi-national company.
ALAN TONELSON, U.S. BUSINESS & INDUSTRIAL COUNCIL: It's the approach that says that it's fine for U.S. multi-national companies to use Americans as consumers of their products, but they have no obligation to ensure that Americans are also producers of this product.
TUCKER: GM already makes cars in low wage markets like Mexico, South Korea, and communist China. Much of the cars made in those markets are sold only in those markets, except for Mexico, where trade agreements make it even cheaper for carmakers to produce at low wages and import with no tariffs in the United States.
(END VIDEOTAPE)
TUCKER: Now GM's CEO Fritz Henderson (ph) is selling the move to congressional leaders, saying that the shift in production, Lou, will be temporary.
DOBBS: Well he's -- he'll be reviewed by the auto task force. That's the president.
TUCKER: Yes.
DOBBS: When Senator Sherrod Brown is criticizing it, he's criticizing the president. He's criticizing Steve Ratner (ph), the auto task force. They're the boys and girls running this business...
TUCKER: Right.
DOBBS: ... not Fritz Henderson. TUCKER: That is true and a very valid point.
DOBBS: Well thank you, I appreciate that -- Bill Tucker, thank you so much.
Well troubled mortgage lender Fannie Mae tonight asking the Treasury for $19 billion. It needs that cash to help cover a first- quarter loss of more than $20 billion. And it also needs a lot more money from the future, raising its -- well, the liability coverage from 100 billion to $200 billion -- not a bad guarantee.
California on the brink -- Governor Arnold Schwarzenegger may soon face judgment day in a desperate search along our border for a kidnapped 3-year-old -- police tonight revealing the suspects.
(COMMERCIAL BREAK)
DOBBS: The man accused of shooting a Wesleyan University student was arraigned today on first degree murder charges. Twenty-nine-year- old Stephen Morgan facing the judge in Middletown, Connecticut -- he gave himself up to police late last night. Police say Morgan shot Johanna Justin-Jinich, a Wesleyan University junior at an off-campus bookstore. Investigators reportedly found a journal in Morgan's car with an entry that read "kill Johanna, she must die." Morgan is being held on $15 million bond.
Turning now to the search for a kidnapped 3-year-old boy in California, Briant Rodriguez has been missing from San Bernardino for five days. There's been no demand for a ransom. The only clues tonight, new sketches of the suspects and potential links to drug smugglers. Casey Wian has our report.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): These are the men suspected of kidnapping 3-year-old Briant Rodriguez in San Bernardino, California, last weekend. And authorities say this is their get-away vehicle, a Circa (ph) 1990 green Ford Bronco. FBI and sheriff's department investigators say they found the photos by tracing the tape used to tie up Briant's family to a local store. So far despite 300 calls to a tip line, investigators say they have no significant leads. The family has received no ransom demand.
SHERIFF ROD HOOPS, SAN BERNARDINO CO., CALIFORNIA: I want to assure the citizens of San Bernardino (ph) we are using every possible investigative resource that we have to try and locate Briant.
WIAN: The Sheriff's Department says it has ruled out no motive in the case. The Associated Press says investigators are looking into the possible involvement of Mexican organized crime. Signs of that include Briant's mother's statement that the kidnappers threatened to take him to Mexico and kill him, and what she said to reporters.
ROSA MILLAN, KIDNAPPED BOY'S MOTHER (through translator): He doesn't owe you anything. I don't owe you anything. Please bring him back safely. WIAN: Millan (ph) told the "Riverside Press Enterprise" (ph) the family is not involved in anything illegal. Deputies tell CNN affiliate KKAL (ph) the family has no criminal history. The suspect spent 20 minutes ransacking the family home. Valuable items including a plasma TV were left. The boy's father was at his landscaping job at the time. Police say family members are not considered suspects.
UNIDENTIFIED MALE (through translator): Take my life, don't take my son.
WIAN: Overall there's been a sharp increase in kidnappings in Arizona and southern California in recent years. Law enforcement officials say most are tied to drug cartels or illegal alien smugglers. Immigration and Customs Enforcement and the U.S. Border Patrol are both providing assistance to investigators in the Briant Rodriguez case.
(END VIDEOTAPE)
WIAN: Rewards totaling $50,000 have been offered for information leading to the boy's safe return, which police say they're still hoping will happen, Lou.
DOBBS: No clue, no indication. There were early initial reports that claimed that the kidnappers had said they were going to kill Briant Rodriguez. That there were reasons for local law enforcement to believe they were headed to Mexico. None of that is now true?
WIAN: No, that is true. And as we mentioned in the report, the mother said that these kidnappers threatened to take the child to Mexico and to kill him. So that's one of the theories that the investigators are looking into. They say they're looking into every possibility. But they alerted the U.S. Border Patrol almost immediately in this case just in case they were able to find these guys taking young Briant to Mexico, which so far they haven't been able to do.
DOBBS: Well, troubling and frustrating case certainly for law enforcement, for all of us and our hearts go out to the family of Briant Rodriguez.
Well some other stories that we're following tonight across the country -- the Statue of Liberty's crown reopens to the public. Interior Secretary Ken Salazar (ph) today announced the crown will be reopened to tourists on July 4th. The crown has been closed since September 11th. It remains open for two years before it closes again for renovations.
An online coupon and Oprah Winfrey together -- they cause a few KFC restaurants to run out of grilled chicken. In an effort to promote their new healthier grilled chicken KFC teamed up with Oprah. Apparently she did too good a job. Coupons that could be downloaded for 24 hours from Oprah.com and redeemed for two pieces of grilled chicken created a frenzy.
KFC didn't expect that. Thousands flocking to the stores, in some areas traffic was at a standstill due to long drive-through lines. Some customers complaining that their KFC coupons could not be honored. Four million KFC coupons were redeemed. Another 6.5 million meals in rain checks issued.
And in England, a horse owned by Queen Elizabeth testing positive for a banned substance after a race. A blood sample taken from Moonlit Path contained a drug used to prevent excessive bleeding. The horse's trainer said the drug was administered by a veterinarian entirely in the interests of the horse's welfare. The 6-year-old horse finished sixth in the race. Moonlit Path is one of 41 horses owned by Queen Elizabeth.
Rising concern that uranium mining could take place on protected lands and some say the president is making it harder for states to fight illegal immigration.
(COMMERCIAL BREAK)
ANNOUNCER: Here again, Mr. Independent, Lou Dobbs.
DOBBS: Welcome back.
Outrage tonight over the possibility that President Obama could allow mining on this nation's protected lands and national parks -- conservationists say that this may be a new administration, but it's continuing, they say, the same old policies -- Louise Schiavone with our report.
(BEGIN VIDEOTAPE)
LOUISE SCHIAVONE, CNN CORRESPONDENT: On Arizona public lands, near the Grand Canyon lands deemed untouchable by a congressional panel, a Canadian-based company last week was issued permits to explore for uranium -- the authorization from the U.S. Interior Department's Bureau of Land Management. The lawmaker who invoked congressional authority to protect the land is outraged.
REP. RAUL GRIJALVA (D), ARIZONA: They're not merely real estate agents and they're not merely mining developers. They are stewards of the land.
SCHIAVONE: Uranium mining in this region is of particular concern to environmentalists seeking to preserve not only the land but also the Colorado River.
RICK MOORE, GRAND CANYON TRUST: The water from the mines could possibly flow down into the Colorado River and get into the water supplies.
SCHIAVONE: Under the Mining Law of 1872 quote, "all valuable mineral deposits in lands belonging to the United States, both surveyed and unsurveyed, are free and open to exploration and purchase", end quote. Using Bureau of Land Management data, the Environmental Working Group estimates 21 percent of mining claims in the American West are held by foreign companies. DUSTY HORWITT, ENVIRONMENTAL WORKING GROUP: The company from any nation can come onto our federal lands, stake a claim, and that gives you the opportunity to mine. And once you start mining and the government takes the position it has very little power to deny your opportunity to mine.
SCHIAVONE: The Bureau of Land Management would not speak to CNN on camera but the Interior Department says it's committed to protecting the Grand Canyon and places around it. As for the future of uranium mining in the area, it says there's no final decision. Mining companies pay annual rental fees for the federal government but do not pay a percentage of their profits.
UNIDENTIFIED MALE: Those profits leave this country. And not only do they leave this country, there is nothing left in this country in terms of royalty.
(END VIDEOTAPE)
SCHIAVONE: Well, Congressman Grijalva (ph) says he's working to change that mining act and he's even thinking about stripping BLM (ph) funding if exploration continues near the Grand Canyon. Lou?
DOBBS: Well according to the 1872 law, Iran could come to the United States and mine uranium.
SCHIAVONE: Yes, that's exactly right. I mean you could get someone who wasn't a convicted member of al Qaeda coming in and buying a lease and mining uranium. It's out of control. And that's what Congress is going to try to change. The House did try to change that last year, but they say the legislation got stuck in the Senate.
DOBBS: All right. Well, thank you very much. Appreciate it. Louise Schiavone -- outrageous story -- unbelievable, 1872, and no one with the guts or brains apparently to change the law -- fascinating. Of course uranium hadn't been anticipated I'm sure in 1872. Louise Schiavone, thank you very much.
The Obama administration is planning to end a popular program that helps in the fight against illegal immigration. The so-called State Criminal Alien Assistance Program provides states with federal subsidies to defray the costs of jailing criminal illegal aliens. The program once had the strong support of President Obama when he was a senator. Not anymore. Lisa Sylvester has our report.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN NEWS CORRESPONDENT (voice-over): The State Department of Corrections in Tennessee housed 1,500 illegal aliens in its jails last year. The state received more than $350,000 in federal reimbursement, money from a program known as the State Criminal Alien Assistance Program, or SCAAP. President Obama's budget has slashed all funding for the program, which last year was $400 million. To that, many congressional members say it's unfair because immigration enforcement is a task of the federal government. REP MARSHA BLACKBURN (R), TENNESSEE: This is a program where your state and local governments are filling, back-filling what the federal government should be doing. It is a program that regardless of -- it transcends partisan boundaries.
SYLVESTER: One of the most outspoken critics of the cuts is a Democrat, Dianne Feinstein from California. That state received $118 million in SCAAP funding last year, only 12 percent of the actual state jail costs for illegal criminal aliens.
President Obama, when he was a senator, not only supported funding for the program, but he co-sponsored an amendment that would have provided additional funding. CNN asked the White House why the turnaround. Spokesman Robert Gibbs said it was a decision made by the Office of Management and Budget.
ROBERT GIBBS, WHITE HOUSE PRESS SECY: That's not to say the president doesn't have strong views on immigration and enforcement. There's a sizable amount of money to increase enforcement at the border as an important step on our path toward immigration reform.
SYLVESTER: Mark Krikorian is with the Center for Immigration Studies which favors stricter control over the borders. He says this is a losing battle for the White House.
MARK KRIKORIAN, CTR FOR IMMIGRATION STUDIES: The Bush administration tried to eliminate the SCAAP program a number of times and Congress always put it back in.
(END VIDEOTAPE)
SYLVESTER: And an OMB official said there was too much waste in the SCAAP program, including funds used for extraneous items like bonuses, consultants and vehicles and that's why they recommended cutting the funding. However, a group of bipartisan senators has written a letter to congressional appropriators asking them to fully fund the program despite the president's budget requests. And in the letter, they point to what happened in 2003 when SCAAP funds were cut in California. The Los Angeles County Sheriff's Department was so strapped for funds the county was forced to implement an early release policy for prisoners -- Lou.
DOBBS: All right, thank you, Lisa. Lisa Sylvester.
The Obama administration, today, held a town hall meeting on swine flu in Spanish. We'd like to know what you think about that. Our poll question tonight: Should Spanish be the second co-equal language in the USA? Yes or no. Cast your vote at LouDobbs.com. We'd like to have your results by the -- just the very end of the broadcast; we'll try to do so.
An another example, tonight, of your government and your tax dollars at work: The National Institutes of Health spending more than $400,000 for a sex study -- in Argentina.
Researchers are conducting this study in gay bars in Buenos Aires. They're examining, they say, a link between gay men, alcohol, and risky sexual behavior and HIV. That study started in September of last year and it is expected to continue through 2010. The NIH did not return our calls asking for comment, perhaps the White House will.
Lawmakers in Hawaii have approved a resolution creating an Islam day. The resolution cites what sponsors call "The rich religious scientist, cultural, and artistic contributions Islam has made." State senator, Sam Slom voted against the measure. He told us tonight the resolution makes the state look ridiculous. Senator Slon said, "We don't have a Buddhist day or a Hebrew day, even though a Confucius day did resolution did make through the House, but not the state Senate."
Control of California is slipping through Governor Schwarzenegger's fingers. Our panel, tonight, will analyze a state on the brink.
(COMMERCIAL BREAK)
DOBBS: Californians go to the polls later this month, they'll vote on a series of budget cutting propositions. Those measures are backed by Governor Arnold Schwarzenegger, but the governor's popularity has sunk so low, that most of those propositions are headed to defeat, at least right now. Bill Schneider has our report from Los Angeles.
(BEGIN VIDEOTAPE)
BILL SCHNEIDER, CNN SR POLITICAL ANALYST: He started out as the good guy -- the "Terminator" from "Terminator 2" would save the Golden State.
SEN ARNOLD SCHWARZENEGGER, CALIFORNIA: I can promise you that when I go to Sacramento, I will pump up Sacramento.
SCHNEIDER: Now he's turning into the bad guy. "Mr. Freeze" from "Batman and Robin."
SCHWARZENEGGER: If those initiatives fail, then there will be less money available, billions of dollars less and it has to come from somewhere, so people should be aware of that.
SCHNEIDER: On May 19, California will hold a special election to vote on six propositions, they call for tough choices: Spending cuts, tax hikes, borrowing from state lottery profits. The measures were put on the ballot by the governor and the leaders of the state legislature. Hey, bipartisanship. Isn't that what voters want? Maybe not, says the former Democratic govern history got terminated.
GRAY DAVIS (D), FMR GOVERNOR OF CA: You have two conservative Republicans and two liberal Democrats and a centrist governor that came up with something bipartisan. The test for California voters who consciously say they want bipartisanship is to see whether they mean it.
SCHNEIDER: A new poll shows five of the six measures going down to defeat. Then what, Mr. Freeze? SCHWARZENEGGER: Therefore there will have to be additional cuts made, If it is in law enforcement, if it is in fire, if it is in health care, if it is in education.
SCHNEIDER: only one proposition seems likely to pass, The one that prohibits a pay raise for elected officials if the state is running a deficit. Are the voters scared?
DAVIS: We may not be able to convince the public this time that the wolf is at the door, because we've cried wolf so many times. But trust me, when the doorbell rings, it will be the wolf.
(END VIDEOTAPE)
SCHNEIDER: Now, the problem is that California voters have seen this movie before, many times. And one other thing, the "Los Angeles Times" is reporting that the governor's office is preparing plans to commute the sentences of some 38,000 state prison inmates if these measures fail to pass and that includes 19,000 illegal immigrants -- Lou.
DOBBS: Criminal illegal aliens, right? It's such a mess. It's such a mess in California. I know you've been covering California for a very long time, Bill. It's just stunning to think that this is going on. It just goes from one mess and disaster to another.
SCHNEIDER: That's right. And they've seen crises like this before. They see these measures as an insider deal, and what's happening is the governor is very unpopular because voters believe he's become one of "them." they elected him to be one of "us," but they think he's joined the team in Sacramento and he's just another politician.
DOBBS: Well, I'm sure they're utterly and completely mistaken. Bill, thank you very much. Bill Schneider.
Well, joining me now, three of the best political analysts in the country. Contributor to the "Huffington Post, Keli Goff, also an independent. Yay, Kelly!
(LAUGHTER)
Democratic strategist, Julie Roginsky, a Democratic strategist, CNN contributor. CNN contributor, Democratic national committee and fund-raiser and good guy, Robert Zimmerman. But principally Democratic, I think, since we're going to put labels on everybody here tonight.
ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: I think that would work for me. That'd be OK.
UNIDENTIFIED FEMALE: Nice shirt.
DOBBS: All right, let's start with what in the world is California doing? I mean, it is a disaster. The Democratic state legislature there keeps -- it's a mess. JULIE ROGINSKY, DEMOCRATIC STRATEGIST: Their hands are tied, because they have, you know, -- constitutionally these propositions keep passing, referenda keep passing and what ends up happening is the legislature and the governor's hands are very tied as to what they can do in certain instances...
DOBBS: Those darn citizens just won't cooperate with that talented, able principled legislature.
ROGINSKY: Well, but when you have a bunch of disjointed propositions that keep passing one year, another passes another year, another passes -- there's no continuity and therefore California's and the government's hands is tied to a very large extent.
ZIMMERMAN: I think it's even worse when there is continuity. I mean, the one great...
(LAUGHTER)
The one great strength the legislature and the governor has, you can't embarrass them. And no matter which party it is, it is just such a travesty, not just to the people of California, first and foremost, but to our nation and the world. They're one of the largest economies in the world and the ramifications of this are enormous.
KELI GOFF, CONTRIBUTOR TO HUFFINGTON POST: Can I start by saying that I think that those of us who live in states with questionable governors should not throw stones, so as a New Yorker, I have to be a little careful in who I call -- whose governors I call incompetent.
But you know, that being said, I think that, you know, this is an ongoing issue here, where we've seen this in California, it's not the first time. It's not party-specific. And I think that that is the biggest problem for the citizens is that there's enough blame to go around and they can't even seem to spell the word "shameless," like, that's what I think we're really talking about, here.
DOBBS: Well, I -- the development that the Obama administration is threatening to pull $7 billion from California in the stimulus package if they go ahead with the cuts to the wages of state health workers, because those workers are represented by the Service Employees Union, for crying out loud. Is there no shame here -- Julie.
ROGINSKY: No shame in politics? I don't know. Is that not an oxymoron, shame and politicians?
ZIMMERMAN: When you look at budget, a federal budget with a proposed $17 billion in cuts and that's considered fiscal prudence, I think that itself, not only tokenism, it's insulting. And I think that budget, ultimately -- that's an old tactic and I think what's more important to me about this budget that Obama presented is the $300 billion focusing on health care over the next 10 years, because that truly can begin to curb this spiraling cost of health care for America. DOBBS: But isn't it a bit blatant, when the Obama administration throws $7 billion into the teeth of the California state legislature and governor, who had wanted to be prudent, responsible, reduce wages rather than lay people off, and then they're told, it'll cost you $7 billion because the Service Employees Union supported this president and this election.
GOFF: Well, I love it that where actually, that one of the things that's driving this conversation is one that we're surprised and amazed that politicians can display gall, and two we're surprised and amazed that politicians can be influenced by unions. I mean, I think that that's not exactly...
DOBBS: Well, put me down as sincerely and seriously stunned that they would be this transparent and obvious about it, because it is -- I mean, this is Tammany Hall, this is utterly ignorant. I'm waiting for you...
ROGINSKY: Listen, what I would ultimately say to you is, people...
(CROSSTALK)
Look, California's going to be paying for people's health care one way or the other, it's going to be charity care, these people aren't getting health care any other way, that -- look, states are having massive budget cuts primarily -- budget problems, a lot of the time, because they have unfunded pension costs, which are spiraling out of control...
DOBBS: What I'm asking here is how dare the president of the United States withdraw $7 billion from the California state government because he was supported by the Service Employees Union, and a group of state workers who would be facing about a 10 percent wage reduction as a result of their efforts of responsible state government happen to be the Service Employees Union?
ZIMMERMAN: If it's any consolation to you, we're going to see the hypocrisy of this budget process be consistent with the hypocrisy during the Bush years. Most of the proposed cut-backs that the Obama administration has proposed are probably going to be restored by this Congress for better or for worse. In the case of...
DOBBS: So, we won't have to worry about that $17 billion?
ZIMMERMAN: Well, ultimately we're going to have to worry about a lot bigger deficit, but I think there is some good news too in the economy and some good news, too, to focus on, as well, especially while the job reports are very sobering, we're seeing some positive trends...
(CROSSTALK)
DOBBS: Do I get the feeling you don't want to talk about this?
ZIMMERMAN: No, I... DOBBS: I mean, seriously. I think it's a major issue. The idea that a federal government would make such a threat to a state government is to me utterly obscene and reckless and irresponsible.
ZIMMERMAN: Look, the idea they would cut off funding to, in fact, incarcerate illegal aliens who are found guilty of criminal acts is absolutely inexcusable. And my hope and mu belief is Dianne Feinstein is going to get that restored in the budget.
DOBBS: Well, let's talk about Nancy Pelosi next, because we're having fun now, aren't we? The House speaker apparently misspeaking? Forgetting? We'll find out.
But first, coming up at the top of the hour, NO BIAS, NO BULL. Roland martin in for Campbell Brown -- Roland.
ROLAND MARTIN, CNN NEWS CORRESPONDENT: All right, Lou, we're looking at the victims of the daily epidemic of gun violence in Chicago. This week we've been reporting on the killings of 36 students this year. Tonight, we'll hear from a victim who lived to tell his story and a police officer who lost his son to gun violence.
Also ahead, the real story behind the latest unemployment numbers. While many analysts see signs of recovery, there's a lot more here than meets the eye. Ali Velshi reveals some of the trends you need to know about.
Plus Lou, would you let your in-laws move in with you if they helped raise your kids? The first family did it and a lot of other families are considering it as well. We'll take a look at that issue, so Lou, interesting topic there.
Would you do it?
DOBBS: Interesting topic. And since I, you know, get to -- oh, I've got good in-law and we're delighted to have them around all the time.
MARTIN: Absolutely, I agree.
DOBBS: How'd I do, babe? OK.
(LAUGHTER)
MARTIN: You're safe at home now, Lou.
DOBBS: You got it. Thanks a lot, Roland.
She's a Tennessee native, she's world-famous entertainer, author, well-known philanthropist and by golly, I think we should have led with this story, tonight. Dolly Parton adding to her long list of accomplishments, she is now Dr. Dolly Parton.
Today Parton received her honorary doctorate of humane and musical (ph) letters from the University of Tennessee and as expected she was as quick-witted and humorous in her thank you speech as you would imagine.
(BEGIN VIDEO CLIP)
DOLLY PARTON, ENTERTAINER: Thank you so much to all of you for this wonderful honor, to be asked to speak to you today and to receive this honorary doctorate. Just think! I'm Dr. Dolly!
So now when people say something about double "D," they'll be thinking something entirely different now. I'm Dr. Dolly. Get it, double "D?"
(END VIDEO CLIP)
DOBBS: Well, it's been a very good week for Dr. Dolly. A few days ago her new Broadway musical "9 to 5" received four, count them, four Tony nominations. Congratulations to Dr. Dolly and the University of Tennessee for displaying such good judgment and taste.
We'll have more with our political panel, next. Stay with us.
(COMMERCIAL BREAK)
DOBBS: We're back now with our panel of Dan Troy, who is fluent in Arabic, just returned from Iraq, received notice the military's about to fire him because he openly came out as a gay service member. Your reaction to this?
ROGINSKY: Disgusting.
ZIMMERMAN: It's absolutely appalling.
GOFF: Ridiculous.
ZIMMERMAN: And this really does speak to the issue about the potential for Barack Obama to be the most supportive president, as his supporters claim, for the gay community. The idea that he has not repealed Don't Ask, Don't Tell is -- this much into his term is inexcusable.
GOFF: Well, I really defended the president here in terms of getting criticism from the African-American community, from the gay community for not making their issues enough of a priority, but I think when it comes to something like this, where he has said the words, "that I don't support this policy," and he now has the opportunity to stand up and prove himself not to be a hypocrite, he has to do it.
ROGINSKY: I completely agree. I mean, there's no reason why gay men and women should not be serving alongside straight men and women. People are dying -- you know, we're dying -- the military is dying to get people...
ZIMMERMAN: With general Powell acknowledging that Don't Ask, Don't Tell hasn't work (INAUDIBLE), even vice president Dick Cheney acknowledging that this policy, which at the time was considered cutting edge, and clearly now is obsolete -- it's absolutely imperative this president step up and make an important stand for all our servicemen and women.
GOFF: And this is actually a much more important issue in terms of national security than gay marriage. What Miss California says or feels about gay marriage is not a major news story. The fact that our country's national security is at stake because we're losing qualified men and women is an important, major issue and is something we need to be talking about.
ZIMMERMAN: And why are military being more frightened of -- have translators who happen to be gay than they are of al Qaeda or the Taliban is also...
(CROSSTALK)
ROGINSKY: And I'll go a step further and say I don't think -- he wants to avoid getting into any kind of legal trouble here, or any political trouble, but the reality is, I don't think anybody's going to care, it's not going to cause many ripples among anybody. It's not a divisive issue anymore. Democrats, Republicans, the majority of Americans...
DOBBS: How soon do you expect him back? We've got 20 seconds.
GOFF: This one you're going to be pushed on, I'd say you'd have to hear a statement within the week.
ROGINSKY: I agree.
DOBBS: Thank you. Appreciate it.
GOFF: Thank you.
DOBBS: Honoring our heroes, Sergeant 1st Class Michael Gainey, seriously wounded, he fought to help save lives as his own life was hanging in the balance. His story is next.
(COMMERCIAL BREAK)
DOBBS: And now "Heroes," our weekly tribute to the men and women who serve this nation in uniform. Tonight, we honor Sergeant 1st Class Michael Gainey. Gainey's patrol came under attack in Salman Pak,, Iraq. He was hit. He refused treatment. He risked his life to save others. Bill Tucker has his story.
(BEGIN VIDEOTAPE)
SGT 1ST CLASS MICHAEL GAINEY, U.S. ARMY RESERVE: No. 4.
BILL TUCKER, CNN NEWS CORRESPONDENT (voice-over): Expect the unexpected.
GAINEY: What do you see?
TUCKER: It's a sentiment Staff Sergeant Michael Gainey drills into this group of Navy officers training for deployment to Afghanistan. GAINEY: You have seven minutes to do this test.
TUCKER: Gainey earned his perspective as an Army reservist while deployed in Iraq.
GAINEY: It was a mission where they were wanting to move police headquarters, and our unit was assigned to clear this one area. Make sure everything's cleared once you get there, that's the end of mission.
TUCKER: Then, the unexpected happened.
GAINEY: We were almost at the end of the mission, and we started getting attacked. And there was one two-story building, so I mean, there could only be one place these people could be at.
TUCKER: Insurgent gunfire erupted, separating Gainey's men from the rest of the patrol.
GAINEY: Then you could see dirt just picking up right behind where these guys were shooting at them.
TUCKER: Acting as a shield, his Humvee advanced on the insurgents. And Gainey fired from the turret, provided the dismounted soldiers an escape to the rear.
GAINEY: And you knew they were waiting on you, you know, please come get me, please, come get me.
TUCKER: Exposed, Gainey suffered shrapnel wounds to his face and his hands, but refused medical treatment until the ambush was over, and when the hail of bullets ended, Gainey killed or repelled the insurgents.
GAINEY: Once we got those guys and got them to safety, I mean, it was so nice, so nice. And I had to give everybody high fives, and everybody was hugging and "thanks, man, I didn't think y'all were ever going to come."
TUCKER: Back on the simulated battlefield, members of Gainey's squad listen to the instructor's hard-fought experience.
1ST LT MIKE MCCARTY, U.S. NAVY: Drill would be trained in theory isn't as good as somebody who's had to apply the training.
GAINEY: Good job.
MCCARTY: It's meant a lot to be able to receive training from somebody like him.
TUCKER: Gainey wears the Bronze Star with Valor for his bravery and a Purple Heart for his wounds, yet he remains humble about his heroic actions.
GAINEY: I'm very appreciative that, you know, my commander is one of the (INAUDIBLE), but we're all doing the exact same thing. TUCKER: Army or Navy. Bill Tucker, CNN, New York.
(END VIDEOTAPE)
DOBBS: Michael Gainey is also a hometown hero, serving as a police officer near Charlotte, North Carolina. The volunteer Navy officers who Gainey trained, by the way, shipped out to Afghanistan on April 23. We wish them the best, as we do all of our troops.
Tonight's poll results -- 95 percent of you say you do not think Spanish should be the second co-equal language of the USA.
A reminder to join me on the radio Monday through Fridays for the LOU DOBBS SHOW 2:00 p.m. to 4:00 p.m. each afternoon on WOR-710 radio in New York City. Go to LouDobbsRadio.com to get the local listings in your area.
Thanks for being with us tonight, join us here Monday. For all of us, thanks for watching. Have a great weekend. Goodnight from New York. NO BIAS, NO BULL starts right now with Roland Martin.
