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CNN Live Today

East Coast Flooding; Troop Reduction; Supreme Court News; Flood Protection; Back To Business

Aired June 26, 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: May be coming home. A live report from the White House is just ahead.
And Bill Gates has an interesting problem. How do you spend Warren Buffett's billions of dollars? It's a story of charity among the titans.

We're going to start our week off with those torrential rains that are transforming stretches of the East Coast today, turning streets into rivers in Delaware and a tunnel into a lake in Washington. The flooding is behind a lot of headaches for Monday morning commuters. Our Bob Franken is in the nation's capital talking about that.

Bob, good morning.

It looks a little bit dry where you are.

BOB FRANKEN, CNN CORRESPONDENT: Well, you're talking about that tunnel and it is certainly drier than it was. You see that tow truck in back of me. He sort of tentatively drove through a few moments ago, or tried to. Made a very smart decision to back out because the water gets pretty deep there.

It is receding a little bit. They have a technique they use when they run into situations like this in your nation's capital. It's called evaporation.

The water is receding, as I said. Earlier there had been cars that had tried to drive through overnight and they flat got stuck with the water at some point up to the windows and all that. No injuries reported, but a lot of exasperated drivers.

As a matter of fact, it even left quite a deluge on Constitution Avenue, about 10 yards from where I am. And at that corner is the Internal Revenue Service building. The basement is flooded there. No word on whether any tax records were affected. So a lot of people probably right now in hearing this have his or her fingers crossed.

Also some closing. The IRS building is closed down for the day. So is the Justice Department. So is the National Archives.

You can see now a private airport not far from the National Security Agency and you can see the real serious damage that was done out there. The flooding was really quite severe out there. As a matter of fact, when you get to the outlying areas like the eastern shore, it is really serious.

In places like Federalsburg, Maryland, and Seaford, Delaware, the flooding was just unbelievable because of a heavy, heavy rainfall. Over 10 inches fell in those areas. There were some evacuations. But again, thankfully, no casualties of any sort. And things are receding there, as they are in the District of Columbia.

You go out, by the way, a little further than the district and you get into Alexandria where a mud slide was blocking some access to the freeways. Freeways were a bit of the problem on the beltway. So was mass transit with flooding reported on the rails coming in from Maryland and Virginia, as far as the metro. It is a mess here. And, Daryn, they're expecting more severe weather in the next day or so.

KAGAN: Yes. And, Bob, we're looking at new pictures. These are coming into us live from Anne Arundel County, Maryland. Just using it looks like a bulldozer to get some of the mud out of the way because the mudslide, with all the flooding there. Give us an idea where Anne Arundel County is.

FRANKEN: Anne Arundel County is one of those in SMSA, the metropolitan Washington area. It is a couple of counties out. A lot of people would be coming in from Anne Arundel County to go to work in the district. Obviously a lot of people will not be coming in to go to work in the district. In Anne Arundel County, Prince George's County, all of the surrounding counties because of really unbelievable rain. Not just over night last night, but over the weekend. And that's, of course, the problem. It has really saturated the ground.

KAGAN: Bob Franken live from Washington, thank you.

And the word is that the rain is supposed to continue in this area. Chad Myers telling us more about that.

Chad.

(WEATHER REPORT)

KAGAN: Not the wet, the dry the problem in the west. Tracking the western wildfires now. A 2,300 acre blaze is burning just outside of New Mexico in the town of Galina (ph). A hundred and twenty homes have been evacuated. Crews have been digging fire lines. But air tankers have been grounded due to thunderstorms. So far no structures have been lost.

Next door in Arizona, firefighters still attacking that 4,200 blaze near Sedona. Today crew will focus on one flank of the fire. Hundreds of homes in that area remain empty, their residents evacuated. Full containment is not expected until at least Wednesday.

Democrats on Capitol Hill are saying, hey, hold on a second here. Wait a minute. The Bush team looks ready for a significant troop draw down in Iraq, but Democrats pointing out this is what they wanted and it looks like it will be happening in time for the November election. Let's go now to the White House and Correspondent Ed Henry.

Ed, what is the White House saying about charges of playing politics.

ED HENRY, CNN CORRESPONDENT: Well, good morning, Daryn.

You can probably see the crane over my head here. A tree of some 100 years old crashed last night near the White House because of this big storm Bob Franken was talking about.

But, you're right, a political storm really brewing over the fact that Democrats say there's hypocrisy coming out of the White House. Because it was just a few days ago that Republicans were charging that any sort of a timetable for withdrawing troops from Iraq would be cut and run.

Democrats now saying, wait a second, General Casey, who was here on Friday briefing the president, military sources tell CNN that he now has a plan that would basically pull two combat brigades later this year out of Iraq. That's about 7,000 troops. "New York Times" reporting that this plan also includes much steeper cuts -- troop cuts in 2007 -- somewhere in the neighborhood of at least 21,000 more U.S. troops coming out.

Democrats say that sounds very similar to what they were talking about just last week. But senior Republicans insist there's a big difference here because General Casey does not have a firm deadline. Take a listen to Republican Senator John Warner and Democrat Russ Feingold.

(BEGIN VIDEO CLIP)

SEN. JOHN WARNER, (R) ARMED SERVICES CHAIRMAN: We will move to reduce our troops as soon as this new government gets up and gains the full confidence of its military to direct them to put down the insurgency.

SEN. RUSS FEINGOLD, (D) WISCONSIN: And I wonder what all this talk was about how a time line is a bad idea. We can't tell the terrorists what we're going to do. Well, General Casey just told them.

(END VIDEO CLIP)

HENRY: Now you can hear what Senator John Warner, the chairman of the Armed Service Committee, was saying. Stressing again that it will be conditions-based, facts on the ground, that will be motivating General Casey. Not a specific timetable, a specific deadline, a point White House Spokesman Tony Snow just a few moments ago is trying to stress also with reporters saying this is just one, one of many plans that General Casey is looking at and that, in the words of Tony Snow, it's not engraved in stone.

Daryn.

KAGAN: So just being talked about there at the White House.

Ed, thank you. Still ahead, one of the richest men in the world decides it's time to give his fortune away now. Why did he decide to give it to the richest man in the world? We'll tell you the story behind Warren Buffett's big decision. That's just ahead. You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: We have a lot of water on our brain today. These live pictures coming to us from Dallas, Texas. A water main break right near Dallas. KBSW (ph), our affiliate there, as they try to put a plug on that.

And then a whole other kind of water. Too much rain along the East Coast, especially in the Maryland area. The National Guard has been called out in some places. Let's go ahead and bring in Adjunct General Bruce Tuxill with the Maryland National Guard in Ricertown (ph), Maryland.

General, good morning.

ADJ GEN BRUCE TUXILL, MARYLAND NATIONAL GUARD: Good morning, Daryn, nice to speak with you.

KAGAN: Tell me a little bit about what's happening in the state and what the National Guard is being called to do.

TUXILL: Well, mainly I -- as the National Guard, the chief of the National Guard, I also have emergency management. So we're primarily working with emergency management and their emergency managers across our jurisdictions. As you know that Maryland is low lying. And on the eastern shore and we've had some flooding over in that area. We are immediately responding with our state departments and agencies as best as needed by our jurisdictions.

KAGAN: Have you had to conduct any rescues?

TUXILL: There have been local jurisdictions I know the night before last in Hartford County. Did some swift water rescues. And I believe there were some also in Caroline County.

KAGAN: What would you say is the hardest hit part of your state right now?

TUXILL: Well, right now the hardest hit appears to be Dorchester and Caroline County. We did have some evacuation there, but I am told now that all are back in their homes.

KAGAN: And for those not quite as familiar with your fine state, are we talking east, west?

TUXILL: We're talking eastern shore counties over on the isthmus that is combined with Delaware.

KAGAN: And at this point you pretty much asking people to stay home to make your jobs a little bit easier? TUXILL: Well, we're also asking people not to -- if they see swift running water going across the road, turn around. That's the best thing I can tell everyone.

KAGAN: It seems so simple, doesn't it?

TUXILL: Yes, it does. However, some people are in SUVs and decide that they are -- they can gauge it and they find themselves in the middle of some swift running water and actually the vehicle starting to float and move.

KAGAN: Yes, when in doubt, don't try it.

TUXILL: That is correct.

KAGAN: Not that catchy, but good logic there. Well, general, thank you. Adjunct General Bruce Tuxill with the Maryland National Guard. Thank you, sir. Good luck taking care of everybody in your state.

And now a headline with heart from the world's two richest men. We're talking Warren Buffett. He's number two on the rich list. He's giving away the bulk of his $44 billion fortune. Most of it will go to the charitable foundation created by the world's richest couple, Bill and Melinda Gates. The giveaway was the topic of discussion on AMERICAN MORNING.

(BEGIN VIDEO CLIP)

MILES O'BRIEN, CNN ANCHOR: The thing that most people think about, the kids, right, you know, because they're kind of -- I mean they're set, but they're not set like they thought they were going to be set. This is interesting in your interview, I found this fascinating. He said this. "Our kids are great. I would say it's neither right nor rational to be flooding them with money. In affect, they've had a gigantic head start in a society that aspires to be a meritocracy. Dynastic mega-wealth would further tilt the playing field that we ought to be trying instead to level."

Does he really mean that? That's really -- for a capitalist of his nature to say that, it's interesting.

CAROL LOOMIS, "FORTUNE" MAGAZINE: He really means that. I've known him for four years and he's been saying that since I knew him. And he's always been very tough on his kids in the sense that his daughter says, if I write him a $10 check, he cashes it.

(END VIDEO CLIP)

KAGAN: Well here are some of the numbers. They're all really big ones, so get your eyeballs ready for this. Before Buffett's announcement, the Gates Foundation already had $29 billion. All of it donated by its founders. Last year the foundation gave away almost 1.4 billion focusing on world health and technology issues and education in this country. The Buffett money, $1.5 billion a year, will double the foundation's gifts. Tony Harris has some news out of the Supreme Court.

TONY HARRIS, CNN CORRESPONDENT: Yes, Daryn, good morning to you. A couple of developments to tell you about this morning from the Supreme Court. One, a decision to take on a case. A decision to come next year. Then another, a decision on a case rendered this morning.

The Supreme Court will take a look at a case to determine whether the Bush administration must regulate carbon dioxide to combat global warming. Now a dozen states and a number of cities and various environmental groups had asked the Supreme Court to take on this case after a divided lower court ruling left the question undecided in a lot of people's minds. So this is a case that sets up really what stands to be a huge decision by this court on one of the most contentious and important issues facing the environment right now.

And then there is this, a decision on campaign finance. The high court has struck down a Vermont law strictly limiting campaign spending contributions. And, as you know, Daryn, the court through the years has determined through various decisions that money is speech and once again this decision in the Vermont case to strike down a law strictly limiting campaign spending contributions seems to be consistent with the rulings of the courts through the years.

So two decisions. One to take on a new case and another on campaign finance.

KAGAN: Two so far. But as, you know, the court tries to wrap up its business before its three-month break, I have a feeling we're going to be checking with you a bunch more over the next couple hours.

HARRIS: And I'll be here.

KAGAN: OK. Good to know that.

HARRIS: All right, Daryn.

KAGAN: Moving to Mars. It might not be science fiction.

Also, Gerri Willis is here with flooding on her mind, as well.

GERRI WILLIS, CNN CORRESPONDENT: That's right. Seven days. Boy, I'm telling you, that's a lot of rain.

People in the Mid Atlantic, Daryn, aren't the only ones who have to worry about flooding, though. In "Five Tips" we tell you what you need to do to keep your home safe, coming up next.

(COMMERCIAL BREAK)

KAGAN: And we're watching Wall Street just getting started here. It's been open about 50 minutes. That's the stocks and investors just kind of stretching and getting started to start a new week after what was kind of a rough week. You can see the Dow is up 14 points. The Nasdaq moving up just a tiny bit. It is up 10 points. Flooding problems along the East Coast today, but what you can do to protect yourself before the high water hits. That's what we're talking about with Personal Finance Editor Gerri Willis with her "Top Five Tips" today.

Gerri.

WILLIS: Hey. Good morning, Daryn.

KAGAN: Say flooding problems five times fast.

WILLIS: Flooding, it's a nightmare.

KAGAN: Flooding problems, yes.

WILLIS: Really. It's messing up everybody today. Flooding is the most costly natural disaster in the U.S. But do you realize that only one in four homes carry this high risk kind of insurance called flood insurance. Now one-third of claims we see come from people who live outside the flood zone. That's right. You can have a flooding problem and not even be near an ocean or a lake. Check out the National Flood Insurance program website at floodsmart.gov. Or you can even pick up the telephone and call 888-379-9531. And you buy this flood insurance, even through it's underwritten by the federal government, through your insurance agent.

KAGAN: What kind of rights do homeowners have?

WILLIS: Well, I've got to tell you, here's the sad part right now. The National Flood Insurance program is in trouble. They are swamped by claim, 25 billion in fact, from people who've suffered from Katrina and other hurricanes. However, it is underwritten by the federal government. They're going to have to make good on this stuff. And they're the only game in town. So if you want flood insurance, you have to go to that program.

KAGAN: But there are limits.

WILLIS: Absolutely. You can only get up to $250,000 for the house and $100,000 for what's inside. So there are limits on your coverage. Remember that flood insurance covers damage resulting from rising water from outside the house. So if you've got a leaky bathtub or broken pipes or if the sewer backs up, this is not going to help you. Remember, finished basements, including carpeting, wall paper or personal belongings, are also not insured by the National Flood Insurance program. So you also want to talk to your agent about getting additional coverages for other kinds of water problems.

KAGAN: Now something all homeowners should probably do is take an inventory of what you have in you house.

WILLIS: It's really hard to ask for reimbursement if you don't know what you own. So you'll want to be prepared to document your losses when disaster strikes. Take inventory of your valuables and you can get a checklist at iii.org. It's a great place to go if you want to figure out what should be on that list. What makes sense. Go to that website and you'll get more information about what you can do in the event you're in one of these situations.

KAGAN: And why is time of the essence here?

WILLIS: Well, here's the sad part you may not realize. You may think, if I buy flood insurance today, hey, I'm covered. Not true. While you can buy flood insurance at any time, there is a 30-day waiting period after you have already applied and paid the premium before the coverage takes effect. If you've already seen a flood watch in effect for your community, it's too late to get flood insurance. So buy it early.

And, Daryn, just a reminding to your viewers. We want to hear from them. Send us your questions to 5tips@cnn.com. Of course, if you missed anything at all on "Five Tips," check out the website at cnnmoney.com/5tips.

KAGAN: Gerri Willis. Gerri, great to see you on this Monday morning.

WILLIS: Good to see you.

KAGAN: Thank you.

Well, speaking of flooding, it symbolized New Orleans' failures after Katrina. Now the city's convention center becoming a beacon of renewal. Business looking bright. Our Gulf Coast Correspondent Sean Callebs has that story.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT, (voice over): It will be hard to replace the images of the suffering at the Convention Center following Hurricane Katrina. But New Orleans is trying to put a new face on one of its most recognizable symbols. The city is hosting its first convention since the storm. And so far, so good.

AMY ROSENBAUM, COVENTIONEER: As I walk up and down the streets, are you with the American Library Association. Welcome. Thank you for coming. We've never been welcomed like we have been welcomed here.

CALLEBS: Amy Rosenbaum is one of 18,000 librarians who come to the crescent city for the American Library Association Convention. And you can't overstate how important their arrival is to the city.

STEPHEN PERRY, CONVENTION & VISITORS BUREAU: This is a very magical week for New Orleans because it's the relaunching of a multibillion dollar part of our economy.

CALLEBS: This convention alone is expected to bring in $25 million. Very little when compared to the $3 billion the city lost in convention business when Katrina hit. But it's a first step. Tourism officials say two more conventions will be held this week alone and the books are filling up with plans for the fall.

LESLIE BURGER, AMERICAN LIBRARY ASSOCIATION: I would say any convention group that's thinking about coming back to New Orleans, now is the time to come, to be part of this great rebuilding effort.

CALLEBS: A lot of hard work and cold cash went into getting the Convention Center ready for this weekend. Nearly $70 million in restoring and renovating so far. And the work is only about 75 percent complete. At the same time, tourist areas of the city were spruced up as part of a campaign called Companies Coming. And then there's the question of security. The city was worried about its national image on the heels of five teenagers being shot and killed. And the mayor calling in the National Guard to help curb the violence.

PERRY: The timing could have been a little better. But the reality is, fighting crime is good business. It's good for tourism and it's good for the social fabric of the city.

BURGER: If anything, I think it may have reassured our members that things were under control. Did we have some questions? Absolutely. But we were very quick to talk to the city and talk to the convention and visitors bureau about why that had happened and to get a message out to our members immediately.

CALLEBS: And that's the message the city hopes to get out as it launches its first major conference -- that New Orleans is not on the brink of falling apart, but a city slowly, but surely, putting itself back together.

Sean Callebs, CNN, New Orleans.

(END VIDEOTAPE)

KAGAN: And speaking of New Orleans, none other than our own Anderson Cooper will be live from there tonight on his show, "A.C. 360," 10:00 p.m. Eastern.

A withdrawal plan in the works possibly. A number of U.S. troops in Iraq may drop sharply but there is a big if.

A murdering mother goes back to court. Andrea Yates, the Houston mother convicted of drowning her children in the bathtub, prepares for retrial. Details ahead on CNN, the most trusted name in news.

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