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CNN Live Today

Domestic Spying; New England Flooding; Immigration Battle; Flood Insurance Tips

Aired May 17, 2006 - 10:00   ET

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

DARYN KAGAN, CNN ANCHOR: We, though, have a lot to get to here at CNN in Atlanta. Major stories we're following this hour.
The flood waters are receding a bit and the full extent of the damage emerges. Cleanup time now in New England.

Plus, a hot day on The Hill. Lawmakers get an earful on the administration's controversial domestic surveillance program.

Well, it starts today. More lawmakers are going to get the lowdown on domestic surveillance. Tomorrow the former director of the National Security Agency goes before a Senate panel. Confirmation hearings will begin on General Michael Hayden's nomination for CIA director. That comes as the White House briefs more members of Congress on the controversial wiretap program by the agency that Hayden once headed. The Senate's top Democrat says it's about time.

(BEGIN VIDEO CLIP)

SEN. HARRY REID, (D) MINORITY LEADER: I must acknowledge that the Senate needs more information on these programs and the role that the president's played in this. I appreciate very much the step forward to allow all members of the intelligence committees to know what's going on, or attempt to get to know what's going on.

(END VIDEO CLIP)

KAGAN: Our White House correspondent Ed Henry joins us with more.

Ed, it sounds like the White House might be expecting a bit of a bumpy ride for the Hayden nomination but they're buckled in and ready to go?

ED HENRY, CNN CORRESPONDENT: Oh, now doubt about it, Daryn. This is an about-face by this White House which for months has resisted calls on Capitol Hill to brief the full House and Senate Intelligence Committees on this domestic surveillance program. Clearly, as you pointed out, this is tide to the fact that General Hayden's confirmation hearings begin tomorrow. They're trying to take a little bit of the sting out of this.

As you mentioned, it will be contentious, a bumpy ride. Obviously General Hayden was the architect of the domestic spying program. Democrats and some Republicans on The Hill have raised questions about the legality of the program, whether or not civil liberties have actually been violated and also there will be questions at these hearings about why it took the White House so long to brief. New White House Press Secretary Tony Snow told me a short while ago it's because the administration wanted to be careful about turning its playbook over to the terrorists.

(BEGIN VIDEO CLIP)

TONY SNOW, WHITE HOUSE PRESS SECRETARY: You've got surveillance that is being conducted in order to find al Qaeda members here and abroad who are trying to kill Americans. And the idea of somehow spilling the beans so those al Qaeda members then can adjust their behavior and their techniques and their approaches to terrorism would be grossly irresponsible.

(END VIDEO CLIP)

HENRY: There still will be plenty of fireworks at the first day of General Hayden's confirmation hearings tomorrow in the Senate. But Tony Snow told me the White House is still confident he's going to get through, Daryn.

KAGAN: All right, Ed, I want to combine your old beat of Capitol Hill and your new beat of the White House and ask you, what will you be watching for as these confirmation hearings get underway tomorrow?

HENRY: I think mostly, how many Republicans in the Senate Intelligence Committee stand up and really ask some of these sharp questions we've heard from others. For example, Republican Senator Arlen Specter, chairman of the Judiciary Committee. He does not sit on the intelligence panel. He will not get a chance to press General Hayden. And there have been other Republican like Lindsey Graham, et cetera, who have raised questions about civil liberties and whatnot.

But a lot of the Republicans on the intelligence panel have been pretty much in lock step with the administration on this domestic surveillance program. We know the Democrats are going to raise sharp questions. But what I'll be looking for is, will the Republicans really be pressing General Hayden or not?

Daryn.

KAGAN: All right. And we'll be check in with you. Thank you, Ed Henry at the White House.

Now to this business of phone companies perhaps cooperating with the government. Verizon said it doesn't ring true. The telecom now says it did not enter into contract with the NSA to provide information about its customers phone calls. Last week "USA Today" reported the NSA had secretly collected phone records from Verizon, BellSouth and AT&T. BellSouth also denies providing the government with records.

The rains are easing up a bit. Rivers are cresting. Looking at a live picture from Massachusetts now. Today, though, is the really hard part. New Englanders are going back to their homes and businesses this morning, getting a look at the water damage. CNN's Dan Lothian has this story from "Anderson Cooper 360."

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN CORRESPONDENT, (voice over): The storm that fueled this raging river and pushed an aging dam to its breaking point also took a swing at Philip and Donna Silverio and didn't miss.

Is this hard to believe?

DONNA SILVERIO, METHUEN RESIDENT: Yes, it is. I would never think that this water would overtake our property like this. But water you cannot fight. It's going to do its thing and that's it. There's nothing you can do about it.

LOTHIAN: The Silverio's live and work along the Merrimack River in Methuen. They bought this engraving and silk screening business seven years ago and finished building their new home next door late last year.

PHILIP SILVERIO, METHUEN RESIDENT: We love it here, you know?

LOTHIAN: But the storm has changed the landscape.

You were just watching things float by?

DONNA SILVERIO: Oh, yes. Doors. Gates. I actually watched a wooden bench that my son had made for me.

LOTHIAN: Just floated away?

DONNA SILVERIO: It just floated away.

LOTHIAN: Water has become the centerpiece outside and in.

PHILIP SILVERIO: The water was up to here.

LOTHIAN: Down in the basement were the couple's expensive silk screening machines and materials are kept.

PHILIP SILVERIO: Like, see the screens in the water? Some of them are no good.

LOTHIAN: Water is still pouring in. It's about two feet deep.

PHILIP SILVERIO: This is terrible. This is unbelievable. There's stuff floating all over the place.

LOTHIAN: His initial effort to hold off the river with a dirt barrier and a small pump failed.

PHILIP SILVERIO: Yes, try to pump it as we were taking stuff out. It's just-- it just came too fast.

LOTHIAN: It didn't take long for this neighborhood along the river to be swallowed by water. The rain came so hard and so fast that it all happened within a few hours. Now the Silverios are using two large pumps to dry out their business so they can reopen and two smaller units are running in the lower level of their home.

PHILIP SILVERIO: All I can do is just keep pumping and hope for the best. Hope my pumps outlast the river.

LOTHIAN: His wife tries to do a little business on the phone.

DONNA SILVERIO: Well, I'm on a generator right now, so I'm lucky I even got a computer.

LOTHIAN: They are taking care of each other. And for the time being, ignoring the potential price tag of the damage.

DONNA SILVERIO: We're not even thinking of that right now.

LOTHIAN: One thing they do know.

DONNA SILVERIO: We're not going anywhere. We'll just have to take a little more precaution. PHILIP SILVERIO: No, we're not going to move. What are you going to do you? You live on the water, you have to accept it. (INAUDIBLE).

LOTHIAN: Even in the midst of the storm.

Dan Lothian, CNN, Methuen, Massachusetts.

(END VIDEOTAPE)

KAGAN: And you can catch more stories like Dan's on "Anderson Cooper 360" weeknights at 10:00 Eastern.

Let's find out what the weather picture is doing today not only in New England but across the country. Here's Jacqui Jeras.

Jacqui.

(WEATHER REPORT)

KAGAN: Well you know the old saying, the check's in the mail. It might be burnt, crispy and soggy today. This is a postal sorting facility in Oakland, California, east of San Francisco. Fire officials say this was a three alarm fire started earlier today. Also very close to one of the BART station there's for local transit. Fire officials say they are now doing salvage work and trying to get water out of the building. No word on the status of the mail inside. And since it happened so early, 5:30 local time, doesn't sound like there was anybody inside at the time.

And now a sad update on a story we first told you last week. A second police officer shot in an ambush in Fairfax County, Virginia, died. Michael Garbarino was hit five times when a gunman opened fire on his patrol car outside the police station. A female detective was also killed. The teenager was later killed in a gun battle with police officers.

Beyond the classroom and outside the law, a Houston area teacher is accused of carrying on a sexual relationship with a 17-year-old student. Our affiliate, KPRC, brings us the story. Police arrested Sean Eckman after school officials launched an investigation. And as you'll see, Eckman had gone to his principal with an unusual request.

(BEGIN VIDEO CLIP)

KIRK LEWIS, SCHOOL SUPERINTENDENT: He asked for permission to take her to the prom. He said he was a family friend and that the parents had agreed that it would be OK.

UNIDENTIFIED MALE: I didn't hear about that one.

UNIDENTIFIED MALE: What do you think when you hear that?

UNIDENTIFIED MALE: That's crazy because they should go to prom with someone like their own age or whatever.

(END VIDEO CLIP)

KAGAN: Go to prom with someone your own age.

Coming up, we're looking for Defense Secretary Donald Rumsfeld and the Joint Chiefs Chairman Peter Pace. They'll be on Capitol Hill today testifying before the Senate Appropriations Committee. We should find out more, at least we'll hear questions asked, about how exactly is this plan going to work to put more National Guard troops along the U.S. border with Mexico. You'll see parts of that live here on CNN.

And then we head to le France. The stars may be smiling, but some critics are sneering. A rude welcome for the long awaited "Da Vinci Code." Details on LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: The border doesn't move, but divisions on Capitol Hill apparently do. There is movement on the Senate immigration bill. The measure is backed by the White House and now support appears to be growing on Capitol Hill. Lawmakers have agreed to compromise on two key issues, hiring 1,000 more border patrol agents and setting new limits on President Bush's guest worker program. No more than 200,000 immigrants would be able to be a guest worker in any particular year.

The National Guard on the border. That is one of the most talked about points in the immigration debate. President Bush proposed it in his prime time speech on Monday. And his defense secretary will likely defend it this hour. There's Donald Rumsfeld. He is appearing right now before a Senate panel. The latest from the Pentagon and CNN's Barbara Starr.

So, Barbara, should we learn more logistics of how this should actually -- how it's supposed to work coming up?

BARBARA STARR, CNN CORRESPONDENT: We do expect to hear about that, Daryn.

This is a hearing of the Senate Appropriations Subcommittee on Defense. And what they are looking at is the Pentagon's request for $63 billion in spending for the wars in Iraq and Afghanistan. But, of course, with the immigration issue just coming up in the last couple of days, Defense Secretary Donald Rumsfeld fully expects to get a number of questions on that.

And in fact, at the last minute, he has now asked his chief of the National Guard Bureau, Lieutenant General Steven Blum, to cancel an appearance later today down in Baton Rouge about the guard's readiness for hurricanes and to come with him to this hearing on Capitol Hill. General Blum is in the room, ready, standing by to answer questions from the senators about how this National Guard mission on the southern border will work, how much it will cost, and how it will all be paid for.

And the latest information we have is that the rough price tag for all of this, for that guard mission, is going to be about $1.4 billion over the next two years and that money is going to have to come from somewhere within the existing Pentagon, guard, homeland security, budget. Somewhere from in all of that. So there are going to be a lot of questions about that. The secretary also, of course, expects to get a lot of questions from the senators about the ongoing war in Iraq.

Daryn.

KAGAN: Well, and you add it all up, whether you have the ongoing war in Iraq, or having to respond to natural disasters like hurricanes and now the border, there's a question of the military and especially the National Guard being stretched too thin.

STARR: Well, they say that they are not. They say that they can handle all of it. But it is very interesting to note that they have fenced off a few National Guard units that will not be sent to the border. Those are mainly going to be the troops that have just come back from the fighting in Iraq and Afghanistan. They won't be turned around and sent to the border.

And also there's a lot of concern that they be National Guard forces in the hurricane states ready to respond if another disaster like Katrina occurs. So we know that, for example, in Louisiana, Mississippi and Florida, National Guard troops from those states are not expected to be sent to the border to deal with that issue. For the state of Texas, though, that will be a potential problem that they will have to cope with, any hurricane aftermath and also sending their National Guard forces to their southern border with Mexico.

KAGAN: Texas gets the double whammy there. Barbara Starr at the Pentagon, thank you.

Let's move from the Pentagon over to the White House. President Bush has a joyful activity today. The gets the honor of welcoming the members of the U.S. Olympic team, the winter Olympic team, that represented the U.S. in Torino, Italy, this year. Also members of the U.S. paralympic team. They are there as well. There were 55 U.S. paralympians. In case you're wondering, in terms of the medals around the necks of those athletes, the U.S. had the second most medals in the medal count coming in with a total of 25, second to only Germany.

Coming up, it is simple, walk across a foot bridge and then come here into the U.S. We're going to take to you a place where the border barely exists.

Also, cut off, cursed at, the mean streets and some nice one, too. A road rage survey on LIVE TODAY.

Gerri Willis always drives so nicely because she's such a nice lady.

GERRI WILLIS, CNN CORRESPONDENT: Hey there, Daryn, good to see you.

Listen, the northeast, it's still drying out. Hurricane season is on its way. We're going to tell you what you need to know about flood insurance. That's up next.

(COMMERCIAL BREAK)

KAGAN: The markets have been open about 51 minutes. It is a tough day on Wall Street. Look at this. The Dow is already down over 100 points. The Nasdaq is slipping as well. It is down 17 points. Coming up, we'll talk with Susan Lisovicz to find out what is happening on Wall Street.

But first let's look at New England. It's been swamped with the worst flooding in 70 years and then hurricane season is just a couple of weeks away. Whether you realize it now or when it's too late, flood insurance could be the best investment that you make. Our Personal Finance Editor Gerri Willis joins us with her "Top Five Tips."

Gerri, good morning.

WILLIS: Good morning, Daryn. Good to see you.

This is a critical story right now. Look, a recent study indicates millions of families are at risk for severe financial loss if they have a flood. And only half of homeowners in flood-prone areas even buy insurance. So you really need to gauge your flood risk.

The Federal Emergency Management Agency is redrawing those maps that will tell you if you're at risk. So you actually have to pick up the phone and call them if you want to know. That's 1-800-358-9616 to get info.

KAGAN: So there are homeowner rights involved in this?

WILLIS: Absolutely. The flood insurance program has enough money to pay claims only until mid-June, Daryn, and they're swamped with claims from Katrina and the other hurricanes last fall. In fact, that price tag alone is $25 billion. So the program is hoping to increase its borrowing limit. But at the end of the day, if you buy it and make a claim, they're going to have to pay. They're backed by the federal government. This is not private insurance. So the FEMA people are telling us, if you make a legitimate claim, they will pay. And it's the only game in town, Daryn. Nobody else is writing flood insurance.

KAGAN: But also interesting that there are limits on this coverage.

WILLIS: Yes, absolutely. The flood insurance covers damage from rising ground water, as you would expect. But if you have a broken pipe or a leaky bathtub, forget about it. Now in terms of your costs, you can insure your home for up to $250,000 worth of value. The contents of your home for $100,000.

Here's some items that are covered under the flood insurance program. You'll want to check this out. Your plumbing, your water heater, your furnace, stuff that you'd really expect to be covered by it. But there are things that are not covered, like basement improvements. If you've upgraded your basement, that is not covered. Relocation cost, if you have to move. Deck, of course, not covered either. So you need to know there are limits to this coverage.

KAGAN: How much does it cost?

WILLIS: Well, you know, I've got to tell you, they keep the cost low. It is a federal program. The average deductible ranges from $250 to $500. The average premium is just $350 a year. And if you live in a low-risk area, you'll pay even less. So if you want extra flood insurance coverage, though, the $250,000 is not enough for you, you can go to companies like American International Group or Chubb, they're underwriting some of this. But if you want just basic level coverage, you've got to go to the flood insurance program.

KAGAN: So if it's set by the government, does it really pay to shop around?

WILLIS: You know, it does. You're going to pay the same thing no matter where you get it. But the difference is how well they -- how much customer service they have, how quickly claims are resolved. Looks, the other point here, Daryn, and this is really critical, very important, people can't delay in buying this this year. If you want to get a head start on this year's hurricane season, buy it now. The policy doesn't even take effect until 30 days after you first buy your insurance coverage. So if you're picking up the phone as you're starting to hear reports of bad weather, you're not going to be helped.

Of course, Daryn, I want to add here, we want to hear from you. Send us your ideas for "Five Tips." We want to answer your questions. Love to hear from you. It's 5tips@cnn.com.

KAGAN: And when do we start doing those segments?

WILLIS: Well, we're going to do that Friday.

KAGAN: Friday. WILLIS: We're coming back Friday, baby. We've got some fun question and some really important questions and then just some really fun ones.

KAGAN: We like fun and important one, too.

WILLIS: OK.

KAGAN: Gerri, thank you.

WILLIS: You're welcome.

KAGAN: Well, maybe it's the heat. I don't know. But Miami is topping a survey for the city with the most road rage. Drivers there are said to be the most likely to speed, tailgate and cut other drivers off. After Miami the survey ranks Phoenix, New York, Los Angeles and Boston as the rudest driving cities.

On the other hand, the nicest drivers were found in Minneapolis. According to the survey, motorists there are least likely to change lanes without signaling or curse at other drivers. Nashville was second, followed by St. Louis, Seattle and, yes, right here in Atlanta, Georgia. The automobile club AutoVantage surveyed drivers in 20 cities.

Well, that's nice to hear from them, but we want to hear from you. How are the drivers in your town? Here's your chance to vent or to brag. Send me an e-mail at livetoday@cnn.com and I'll read some of your responses a little bit later. How are the drivers in your town? And give us examples.

Well, speaking of driving, a seat belt, a bra and a bullet. You add them up and you have one very lucky woman in Florida.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I felt stuff fly back and hit me and I like got pushed back into the seat and I just didn't know what it was at first.

(END VIDEO CLIP)

KAGAN: This could have turned out very differently. Details straight ahead.

And it's a plot twist worthy of "The Da Vinci Code." A real life private eye finds himself in the middle of a best-selling novel. Stick around to meet the art detective.

(COMMERCIAL BREAK)

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