their jobs. it's a stubborn recession. the best time or worst to bump up the minimum wage? and we're live in central america where the ousted president of honduras is back in the driver's seat. but it's a long, long road. hello, everyone, i'm kyra phillips, live in the cnn world headquarters in atlanta. and you're live in the "cnn and you're live in the "cnn newsroom." -- captions by vitac -- www.vitac.com and we expect to hear soon from president obama, but guess what? for the first time in days, he won't be talking health care. he and education secretary, arne duncan, will put out more than $4 billion in stimulus money to bankroll reform in america's schools. it's called race to the top. and you'll see the president live, right here, in the "cnn newsroom" at quarter past the hour. now, some massachusetts cops have had enough. they've just held a news conference coming to the defense of sergeant james crowley. the officer at the center of the

harvard controversy. some of the speakers pretty much called out president obama for criticizing the arrest of his friend, harvard professor, henry greats jr. take a listen -- >> whatever may be the history, the supervisors and the patrol officers of the cambridge police department deeply resent the implication and reject any suggestion that in this case, or any other case, they have allowed a person's race to direct their activities. however, we hope that they will reflect upon their past comments and apologize to the men and women of the cambridge police department. >> then just a few minutes later, the tone softened a little bit. >> let me make it clear. we're not demanding an apology from anyone. our view is that we think if governor patrick and the president review all of the facts, which they did not have before them when they made their off-the-hip remarks, that they would have commented differently. we're hopeful that upon

reflection, they will realize that their statements were misguided and will take appropriate action in the form of an apology. if professor gates chose to do that, i think that would be an excellent outcome, but we're making no such request, and we'll leave that decision to him. >> well, there you have it. calling out the commander in chief, not something that happens very often, especially by a group of local cops. so, how is all this sitting at the white house? suzanne malveaux is there. suzanne, i don't think is where we thought this story was going to head to. we're talking about local cops and the president of the united states, and noun-wise giving an inch. >> reporter: well, certainly. and one of the things, the big question is, you know, whether or not the administration or the president would say upon reflection, he apologizes or has any different ways of wording this. and we heard from the president yesterday who said, quite frankly, he was surprised by all the discussion, the controversy, around this. he called it straightforward commentary. i spoke with robert gibbs this morning about this, asking the

question was, of course, whether or not there was any regret in getting involved in all of this. the answer from robert gibbs was saying, well, you know, there would be regret if there was a sense that he knew that all of this obsession and distraction would take place. but then he really turned the corner, and he simply said the president understands the hard work of people who do the job of law enforcement, that he has a great deal of respect for them, and essentially that he feels that the president has addressed this story. he's addressed this concern and this controversy. and i want you to take a listen to how the president saw all of this upon reflection. >> it doesn't make sense, with all the problems we have out there, to arrest a guy in his own home if he's not causing a serious disturbance. now, i don't know all the ext d extenuating circumstances. and as i said, i respect what police officers do. what i can tell -- from what i can tell, the sergeant who was involved is an outstanding

police officer, but my suspicion is, is probably it would have been better if cooler heads had prevailed. >> reporter: so, kyra, another question we put to gibbs is, what is the president's role here? how does he see this? when he was hit by this question, obviously, it was one he had anticipated. he was good friends with professor gates, so he expected it, and he'd been thinking about his response. but it was clear it was unscripted and that it was a real moment for the president and gibbs was asked does the president see his role as some way illuminating black americans as well as white americans in racial profiling, taking this opportunity to educate. or does he see his role as someone needed to bridge the divide, bringing people together? gibbs said he doesn't believe they are competing roles, and that was something the president was trying to do in responding in the press conference to that question, to what had happened to professor gibbs. we'll see whether or not there is any kind of walk-back, if you will, whether the president will address this once again, kyra.

>> suzanne, why don't you ask the president if he'll invite sergeant crowley and also skip gates to the white house. the three of them can have a conversation, you can cover and it we'll put an end to all this. what do you think? >> reporter: it's a great question, kyra. >> you take that to robert gibbs. >> reporter: i'm sure we would have a big audience for that, i'm sure. we did ask him if he had reached out, he picked up the phone to call professor gibbs, or if the other way happened. we know the two men have not talked since the controversy, since the president weighed in on this. we'll see if there's actually some sort of outreach and whether or not some people will get together and talk about this in a much more direct way. >> we just need to all get along. suzanne malveaux, appreciate it. >> reporter: thank you. we didn't hear from officer crowley at the news conference, but he did sit down with whdh, and he talked about what led up to professor gates arrest. >> i continued to tell him to calm down, because i really didn't want this either.

although i didn't know at the time who professor gates was, knowing he was an affiliate of harvard, i really didn't want to have to take such a drastic action, because i knew it was going to bring a certain amount of attention, unwanted attention, on me. nonetheless, that's how far professor gates pushed it and provoked and just wouldn't stop. no surprise, sergeant crowley's account of the arrest isn't sitting well with professor gates' attorney. some reaction now from charles ogletree next hour. now, remember when i said president obama wouldn't be talking health care today? well, i meant in public. he's already met in private with the top senate democrat and chairman of the senate finance committee, who are shunning his deadlines, but heeding his call to keep on working. over in the house, meanwhile, it's democrat versus democrat, and one key dem has had enough. cnn's brianna keilar on the hill. what can you tell us, brianna? >> reporter: some developing information here, kyra. addre as you said, it's democrat versus democrat in the house.

there is some holdup. they haven't decided exactly on key points for moving ahead on health care. and what we're now learning that democratic leaders may consider bypassing some of their concerns and moving this whole health care reform bill to the floor. this is the -- the person we're talking about is henry waxman. he is the chairman of the energy and commerce committee. and, kyra, the way it works, you have three committees in the house that took up this bill, and they were supposed to pass it out of their committees and then go to the house floor. well, two of these committees were able to pass this bill through. but the third, it got hung up because of a group called the blue dog democrats. some fiscally conservative democrats who have major concerns, in a nutshell, about the costs of this and how you're going to pay for it, how the democrats' plan pays for this. in this committee they have delayed moving the bill through, and so now this is kind of the threat that's come down from chairman waxman that you know what, we may just bypass these blue dog democrats and go

straight to the house floor, kyra. >> meanwhile, action going on in the senate as well. >> reporter: yeah, that's right. and a big slowdown there. if there's a slowdown in the house, there's really a slowdown in the senate. as you know, president obama was meeting with harry reid, the top democrat in the senate, and also with max baucus, the head of the senate finance committee, really the key committee that's trying to find a bipartisan compromise. they just wrapped up their meeting at the white house. we understand one of the big things they talked about according to one democratic source was the importance of passing something out of that committee, passing a bill out of the senate finance committee, by the time the senate leaves for recess in august 7th. but it's really going to be a heavy lift because those folks there, the six key players, democrats and republicans who are trying to hash out a deal, kyra, but it's certainly slow going, as evidenced by the fact that we learned from harry reid yesterday that there is not going to be a vote before the full senate certainly before the senate leaves for its recess. >> all right.

brianna keilar, thanks so much. at the top of the hour you heard from sergeant jim crowley for the first time on a one-on-one camera interview on his account of the arrests of harvard professor skip gates. and we have just reached t.j. holmes who just finished an interview with charles ogletree, professor gates' attorney. he's actually responding to what we heard for the first time. t.j. joins us on the phone. how is ogletree -- well, i guess, what did he say once he heard the interview, t.j.? because i know you just wrapped up your interview. >> well, some of the things he's saying at this point, kyra, is that they are really looking forward to moving forward. he said he has been in touch with police and other officials there, the district attorney as well, and that this is no longer, in his words, about race. he said he has never said -- at least ogletree, and, remember, representing gates -- this is not about race. this is about an officer and bad judgment. however, kyra, just a few questions later, he went back --

and i asked the question, well, why is it that this is all about racial profiling? why has this become what it is in the public eye now? he says, this case became about race when that witness called and said she saw two black men at the door. so, i found it interesting in that -- in one breath he wanted to say and wanted to defend why this was not about race, or racial profiling as far as he's concerned, it's about an officer who displayed bad judgment, but then, of course, as we know, kyra, in this whole public dialogue that's going on has, in fact, been about racial profiling, white officer versus black professor. and he said the reason it became that because when that call went in from that witness, when he said there's two black men at the door, he said that put things into motion. that put a certain mindset into those police officers' minds what they were dealing with. so, it was interesting to hear. and another piece of news i guess he's making here, kyra, he's saying at this point there will be no lawsuit. he's saying a lawsuit, quite frankly, is not on the table at

this point. he is not 100% ruling it out somewhere down the road, saying there will be no lawsuit. but several other options, is how he put it, are on the table. those options being the possibility of more sensitivity training and certainly having more of a dialogue between police officers and the community around this country, but at this point, kyra, no lawsuit, he said, is even being contemplated. >> all right, t.j. holmes, we look forward to hearing more from charles ogletree's, professor gates' attorney. it's one of the worst cases they've seen in a state that's no stranger to crime. (announcer) illness doesn't care where you live...

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assuming it passes, californians will see deep cuts in education, health care, welfare, prisons and parks. 24 days to fiscal 2010, other states still haven't passed budgets. connecticut, pennsylvania, north carolina still trying to make up to slumping revenues. we'll keep you posted. does america need a consumer financial protection agency? treasury secretary tim geithner says yes, fed chief, ben bernanke says no. they're airing their differences separately at a house committee looking at ways to protect us from shady or risky mortgages, credit card loans, investments, you name it. bernanke said it's the fed's territory, geithner said a whole new agency is needed. slightly fatter paychecks are on the way for some of you. minimum wage goes up, but some say do the chances of losing your job.

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stormy skies in parts of the midwest. some travel delays in the northeast. chad myers watching the maps and the radar for us. hey, chad, what's up? >> a couple things going on, kyra. yeah, we have some storms coming in now to parts of iowa. that would be, like, iowa city

but also near dubuque and the quad-cities. you will see weather later on this afternoon. oh, by the way, we're also watching for the president, just like we were yesterday. when he comes up to the podium, i'll send it back to you, kyra. here's the radar. it doesn't look bad. there are clouds in the northeast, laguardia, newark, and jfk have all been slow in the morning hours. i think it will clear up by the afternoon as long as we get enough planes in the air and people in and out as they need to be. pleasant weather from memphis to dallas. better than it's been. considering we've had 100-degree temperatures here a couple weeks ago. i know we've had 80s and now we're into the 90s, but that's exactly where we should be. another thing i want to draw your attention to, people have been asking me, what, is this a year without a hurricane season? i went, are you even kidding me? i mean, here's where we are right now in july. and so, if you look at the bottom of the screen, in general, we have only just started to what would be a hurricane season, and it's going to ramp up severely from here. september 10th is the big day.

that is the peak that we get to the top of the hurricane chart, and then we begin to cool the waters off. and as the waters in the atlantic cool off, that's when we begin to lose the effect of those hot waters and also the potential for hurricane activity goes down from there. so, i know we haven't had any yet. but, remember, how bad the year that andrew was? andrew was the "a" storm. didn't happen until august. let's hope we're not in for that, kyra. >> i'll second, third, fourth, fifth that. >> yeah. >> tell everybody else that has worked those and lived there. chad, thanks. "endeavour" astronauts this hour, live pictures on an extra-long space walk to install more fresh batteries for the station. the walk is scheduled to last more than seven hours. four new batteries were supposed to be plugged in during wednesday's space walk, but after two were in place, nasa sent the two astronauts back inside after a problem with

carbon dioxide levels in one of the space suits. not a good thing. "endeavour" is scheduled to head back to earth one week from today. it's a state with a history of corruption. now corruption repeats itself in new jersey in a big way that's grabbing headlines. people notice my devotion to family. people notice my love for animals. my smile. my passion for teaching. my cool car. people notice i'm a good friend and a good listener. people notice that i'm a good boss. people notice my love of nature. people notice i can fix anything. (announcer) thanks to miracle-ear what people don't notice about you is your hearing aid because, look closely, our hearing aids are nearly invisible. our exclusive line of open fit products are so lightweight, so small and so natural sounding even you won't know you're wearing one. you know, most people don't know how good or bad their hearing is... they just know when they're missing things or hearing words incorrectly. miracle-ear can help. with a quick, free hearing test. miracle-ear has been helping folks for nearly 60 years.

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call 1-800-769-9112 to take one of these easy steps toward better hearing. that's 1-800-769-9112 call now! does new jersey have the most rampant corruption in the nation? 12, the feds say it might after a corruption and money laundering bust that netted more than 40 suspects including rabbis, mayors and state lawmakers. today news of the raid is rippling across the globe with the arrests of the rabbis grabbing headlines in israel. meanwhile, the scope of the case is staggering, even in a state with a history of corruption. cnn's deborah feyerick brings us

up to date. >> reporter: it began as an investigation in to international money laundering with prominent new jersey rabbis with ties to israel. it turned into a far-reaching probe of public corruption in new jersey as nearly 30 politicians and public officials, democrats and republicans, with were rounded up in what prosecutors called the largest sweep of its kind. >> this case is not about politics. it is certainly not about religion. it is about crime, corruption. it is about arrogance. it is about a shocking betrayal of the public trust. >> reporter: the two cases are linked by a single cooperating witness posing as a real estate developer. but, in fact, working for the government, says new jersey's top prosecutor. >> i don't donate, i invest, the cw would say in meetings in parking lots, at restaurants, luncheonets, diners, offices, basement boiler rooms and bathrooms. and the politicians willingly put themselves up for sale. >> reporter: prosecutors say

public officials including mayors, deputy mayors, councilmen and assemblymen brazenly took envelopes stuffed with thousands of dollars in bribes in favor for political favors. one of the most damaging statements? hoboken mayor peter cammara cammarano iii who allegedly took $25,000 in bribes telling the phony developer he would become a priority while, quote, the people who were against us the whole way, they get ground into powder. prosecutor ed carrarre has been work can the case for ten years. >> corruption is not only persuasive, it has become ingrained in new jersey's political culture. >> reporter: new jersey governor jon corzine criticized the corruption, while asking one of his staff to step down after he was investigated but not charged. >> this morning i asked for the resignation of commissioner joe dougherty and he has agreed to resign. >> reporter: prosecutors safe the same cooperating witness who had been allegedly paying public officials bribes had earlier

infiltrated the money laundering organizations which had rabbis taking fees after laundering millions of dollars for their charitable organizations. as you know, you've been watching the past hour or so on cnn, we took live the cambridge police department holding a news conference. you'll see right here, sergeant jim crowley, the officer who arrested harvard professor skip gates. his bosses, his comrades, co-workers, stepping up to the mikes, showing support for him. our don lemon was actually there at that news conference, on the phone with us now. don, i understand you had a chance to talk to some of those cops just a few minutes ago. >> yeah, kyra, and boy, oh, boy, was it emotional. not only did i get a chance to speak with some of the police officers. i got a chance to talk to sergeant crowley himself. he didn't want to comment much on camera, because, you know, he's been advised and has given his word not to talk any more on good advice, he says. but, you know, we went into a

room. it was an exclusive with him and about 20 of the officers, most, if not all, of the officers who were on that podium with him. and i got to tell you, it ended with tears and -- and hugging. and, kyra, these were officers who were black, hispanic, white, asian, women, all standing around this officer, supporting him, saying, when i heard about what happened, i thought they absolutely had to have it wrong. there is no way. this is according to them, on earth that this sergeant would ever racially profile someone, especially someone who trains officers in how to not to racially profile anyone. and i point-blank, kyra, i asked an african-american officer, who's been on the force, i think she said, for almost 20 years. i said, what do you think of the president's comments? she goes, i don't like the president's comments. i voted for him. i supported him. i will not vote for him again. because he's insulted police officers all around the country.

and, you know, i asked them what would they say to professor gates. they say, professor gates, you need to sit down and bring this down, because you we, in their estimation, they believe he has created a smokescreen and created something that is not there. they believe that he was acting erratically. and no way was he racially profiled, and he needs to take it down a notch. so, that was the sentiment. and at the end, as i said, the officer -- sergeant, hugged everyone in the room. they started crying. all of his buddies. and, you know, how it is, the police officers are very insular, and they're very close, kyra. so you can imagine the big, tough guys and the tough gals who are out every day fighting -- you know, fighting the fight and putting their lives on the line, they're all standing there hugging each other and supporting each other. >> so, you know, what's it going to take to just put this to rest, don? what's your sense? i mean, i said to suzanne malveaux, i said, you know, now that the president's involved, you know, he's the commander in

chief, he should just get skip gates and sergeant crowley and bring them to the white house and all three of them have an open and frank conversation. >> reporter: you hit the nail on the head, kyra. you just hit the nail on the head. because i spoke to a law enforcement professional expert, he's a two-time police chief and was an officer here in massachusetts and now runs his own consulting company, and he advises police departments. he said do you know what they need to do? they all need to get into a room, the police commissioner, the sergeant, the professor, the attorneys, and they need to work it out and they need to take it down a notch. because there are lots of misperceptions about this story. i'll tell you with these officers -- what's important here and, you know, maybe i buried the lead. they said absolutely -- and you know it, kyra, you and i talked about it. yes, there's profiling. it happens right here in cambridge. but this case they believe it was not that. it was simply a big

misunderstanding and something that got blown out of proportion. that is not necessarily racial profiling. maybe it's something else. maybe it's communication. maybe it's other things they need to work on. but they don't believe that this one was racial profiling. see, to answer your question, you hit the nail on the head. they need to sit down and talk and not judge each other and be open to each other's thoughts and comments and work it out, as they say. work it out, kyra. >> it just seems like a perfect opportunity. you got skip gates who writes on this. i mean, he's famous for this subject matter. you've got sergeant crowley, who's the one that educated other officers about racial profiling and how not to do that on the job. and then you've got the president of the united states, an african-american -- >> yeah. >> -- it seems like a no-brainer to hash this out in an intelligent way and put an end to it. >> you saw the front of "the usa today," kyra, it says, the professor, the president and a police officer. so, yeah, you're exactly right. listen to this -- i wasn't

there. i don't know if the officer did anything wrong. i don't know if skip gates did anything wrong, but we know that racial profiling does happen. situations can get out of control. but this officer was handpicked by a former african-american police commissioner here in cambridge who is now retired and handpicked to teach officers how not to racially profile people. so, it's, like, oh, what do you do? that doesn't necessarily mean that he's 100% immune and doesn't do it, you know? everyone, you know, makes mistakes and everyone has misjudgments and misperceptions. but, you know, it's -- it's -- every time you -- the onion just keeps unpeeling. the onion just keeps unpeeling and unpeeling and unpeeling. and every minute i learn something about this story. >> wow, and it's such a great opportunity for these players. and we're talking about, you know, the sergeant and skip gates and the president to do something really amazing with this and turn it into a positive outcome. it's up to them. they've got the opportunity. we've teed it up, right, don? >> it is. absolutely, they do have the

opportunity. >> all right. >> i think the president, you know, from what he says about these matters, he says he's open to that sort of dialogue. it's okay to disagree, and then you can move on and make progress. we'll see, kyra. good idea. let's hope it works. >> okay, let's push for it. thanks, don. >> thanks. >> mr. president, i hope you're listening." more money into people's paycheck translate into more jobs? it's an age-old argument that's being revisited today. as the federal minimum wage goes up today. 4.5 million workers will see bigger paychecks and some economists think that struggling businesses might have to cut jobs to keep up, but others think that workers will spend the extra dollars stimulating the economy. now, if you want a state-by-state breakdown "just go to cnnmoney.com for this interactive map. some states that already pay more than $7.25 an hour, like california, will see no change. here's a look at it right now. and other states, like new york

where the state minimum wage is $7.15, the hike will be more modest. 29 states will see some kind of raise. 21 states and d.c. won't. the largest raise of 70 cents actually translates into $28 a week or more than $1,400 a year. just go on to cnn.com. you can actually click on to any state there in the u.s., and it will actually tell you the minimum wage. so, it's just a few bucks, right? well, for some mom-and-pop businesses, it could add up to a huge burden, one they won't be able to bear. businesses, like slice-o-rama pizza shop. co-owner terry odom is hoping and praying she can make payroll. but she said the recent string of pay hikes is killing her pizzeria. she's joined by her daughter kimberly who is about to get the raise. let's hope we don't start a

mother/daughter feud here. hi, guys. >> maybe. >> let's start on the positive side before we get to you, mom. kimberly, you know, you're 22. you're going to school. you're having to pay all your bills. mom's not, you know, letting you off the hook in any way. so, you're working, you're paying your bills. so, uh might be pretty excited about the minimum wage going up? >> well, yeah, i mean, it's going to mean an increase in my paycheck, but i know it's going to be a strain on her. you know, it's hard enough as it is, and now it's going to get a little worse. i don't know, it's going to be hard. >> well, you're in a tough position. >> i'm going to have to see with her. >> sure. it's more money for you in your pocket. yet, mom, you're saying -- >> yeah. >> -- that this is going to be really tough for you, because day by day, you're wondering if you're going to make ends meet. so, tell us the con for you on this. >> unfortunately, i under from a younger person's perspective, more money, more money in their pocket is great. as a small mom-and-pop

business -- >> forgive me, guys. the president of the united states and the department of education in washington now. we're going to listen to his announcement of a billion more federal dollars for schools. hopefully we'll get back and talk about minimum wage after the speech if our guests will hold on. >> thank you for the outstanding introduction from matthew. and matthew's teacher, you're doing obviously an outstanding job. although i understand matthew's mom's also a teacher, who has also won awards for her outstanding work. so, you know, the acorn doesn't fall far from the tree. we are very proud of him. obviously i want to thank my wonderful secretary of education, arne duncan, who has helped to lead us. i want to thank all the members of congress who are here, the governors who are in attendance, and i want to give a special shout out to chairman george

miller, of the education committee in the house, who has just been an outstanding partner for reform. please give him a big round of applause. you know, from the moment i entered office, my administration has worked to beat back this recession by creating jobs and unfreezing credit markets, extended unemployment insurance and health benefits to americans who are out of work. but even as we've worked to end this immediate crisis, we've also taken some historic measures to build a new foundation for growth and prosperity that can help secure our economic future for generations to come. you know, one pillar of this new foundation is health insurance reform that can control deficits and reduce costs for family and businesses and provide quality, affordable health care for every american. another pillar is energy reform that makes clean energy

profitable and creates green jobs that can't be outsourced and frees america from the grip of foreign oil. we're also working to enact financial reforms that will set up firm rules of the road to help prevent an economic crisis like the one we've just gone through from ever happening again. but even if we do all of those things, america will not succeed in the 21st century unless we do a far better job of educating our sons and daughters, unless every child is performing the way matthew's performing. in an economy where knowledge is the most valuable commodity a person and a country have to offer, the best jobs will go to the best educated, whether they live in the united states or india or china. in a world where countries that outeducate us today will outcompete us tomorrow, the future belongs to the nation that best educates its people,

period. we know this. but we also know that today our education system is falling short. we've talked about it for decades, but we know that we have not made the progress we need to make. the united states, a country that has always led the way in innovation, is now being outpaced in math and science education. african-american and latino students are lagging behind white classmates in one subject after another, an achievement gap that by one estimate costs us hundreds of billions of dollars in ige wages that will be earned, jobs that will not be done, and purchases that will not be made. and most employers raise doubts about the qualifications of future employees, rating high school graduates' basic skills as only fair or poor. of course, we -- as i said before, we've talked about this problem for years. for years we talked about bad

statistics and an achievement gap. for years we talked about overcrowded classrooms and crumbling schools and corridors of shame across this country. we've talked these problems to death, year after year, decade after decade, while doing all too little to solve them. but thanks to arne's leadership, thanks to george miller's leadership, thanks to all the dedicated americans in statehouses and schoolhouses and communities across this country, that's beginning to change. we're beginning to break free from the partisanship and the petty bickering that have stood in the way of progress for so long. we're beginning to move past the stale debates about either more money or more reform, because the fact is, we need both. we're beginning to offer every single american the best education the world has to offer, from the cradle to the classroom, from college to careers. in recent months, i've spoken about the different parts of this strategy. i've spoken about what we're doing to prepare community

college students to find a job when they graduate, to make college and advanced training more affordable, and to raise the bar in early learning programs. today, i want to talk about what we can do to raise the quality of education from kindergarten through senior year, because improving education is central to rebuilding our economy. we set aside over $4 billion in the recovery act to promote improvements in schools. this is one of the largest investments in education reform in american history. and rather than divvying it up and handing it out, we are letting states and school districts compete for it. that's how we can incentivize excellence and spur reform and launch a race to the top in america's public schools. that race starts today. i'm issuing a challenge to our nation's governors, school boards and principals and teachers, to businesses and not

for profits and to parents and to students. if you set and enforce rigorous and challenging standards and assessments, if you put outstanding teachers at the front of the classroom, if you turn around failing schools, your state can win a race to the top grant that will not only help students outcompete workers around the world, but let them fulfill their god-given potential. this competition will not be based on politics or ideology or the preferences of a particular interest group. instead, it will be based on a simple principle -- whether a state is ready to do what works. we will use the best evidence available to determine whether a state can meet a few key ben benchmarks for reform. and states that outperform the rest will be rewarded with a grant. not every state will win. and not every school district will be happy with the results. but america's children, america's economy, america

itself will be better for it. now, one of the benchmarks we will use is whether states are designing and enforcing higher and clearer standards and assessments that prepare a student to graduate from college and succeed in life. right now, some states like massachusetts are setting high standards, but many others are not. many others are lowballing expectations for students. telling our kids they're prepared to move on to the next grade, even if they're not, awarding diplomas even if a graduate doesn't have the emergency and skills to thrive in our economy. that's a recipe for economic decline, and it has to stop. with the race to the top funds, we will reward states that come together and adopt a common set of standards and assessments. now, let me be clear. this is not about the kind of testing that has mushroomed under no child left behind. this is not about more tests. it's not about teaching to the test. it's not about judging a teacher

solely on the results of a single test. it is about finally getting testing right. about developing thoughtful assessments that lead to better results, assessments that don't simply measure whether students can use a pencil to fill in a bubble, but whether they possess basic knowledge and essential skills like problem solving and creative thinking, creativity and entrepreneurship. and already 46 states are working to develop such standards. i urge those 46 states to finish the job. i urge the other 4 to get on board. one of the other benchmarks we'll be using in awarding race to the top grants is whether outstanding teachers are being placed in our classrooms. from a the moment a student enters a school, the single most important factor in their success is the person in front of the classroom. every one of us can point to a teacher who inspired us and in

some way shaped the course of our lives. great teachers are the bulwark of america. they should be valued and they should be honored. few have worked harder to do that than our national union leaders, randy winegartner is right here and dennis van roker, who are two union leaders who are here. and i'm very pleased that they're with us today. but if we're honest with ourselves, we'll admit that in too many places, we have no way -- at least no good way -- of distinguishing good teachers from bad ones. as arne has pointed out in the past, they have 300,000 teachers in california. the top 10% are 30,000 of the best that are out there. the bottom 10% are 30,000 of the worst out there. the problem is we have no way to tell which is which.

that's where data comes in. some places are keeping electric electronic records. this helps students, parents, teachers, principals and school boards know what's working and what's not in the classroom. and basketball coaches have a game tape for the teams to see what they did right and what they did wrong after a tough series. teachers and principals should have a way of doing the same. now, i recognize there's a concern among some that a teacher won't be judged fairly when we start linking students' performance to the performance of their teachers. and that's why we need to bring teachers into the process and make sure their voices are heard. and that's why -- and that's why we need to make sure we use tests as just one part of a broader evaluation of teachers' performance. but let me be clear. success should be judged by

results, and data is a powerful tool to determine results. we can't ignore facts. we can't ignore data. that's why any state that makes it unlawful to link student progress to teacher evaluations will have to change its ways if it wants to compete for a grant. that's why the race to the top grants will go to states that use data effectively to reward effective teachers, to support teachers who are struggling, and, when necessary, to replace teachers who aren't up to the job. and we also need to reward states that are placing outstanding teachers in schools in subjects like math and science where they're needed most. that's one way to foster the next generation of math and science teachers. and, by the way, everyone has a role to play in training these teachers. so, universities and nonprofit organizations can launch programs like you teach at ut austin that allows aspiring teachers to get a math or science degree and teaching certificate at the same time.

and businesses can follow the example of intel and microsoft by developing the software tools and cutting-edge technologies that prepare today's students to be tomorrow's teachers. so, we know we need better standards, and we know we need excellent teachers. but we also know that a number of chronically underperforming schools will require an extra effort to get back on their feet. roughly 5,000 schools across this country, the bottom 5%, fall into this category. in fact, just 2,000 high schools produce over 50% of america's dropouts. now, there's no silver bullet when it comes to turning these schools around. we know that many of these schools are in very tough neighborhoods, and kids are coming to school already with some significant problems. and the most effective and innovative approaches will be developed outside of washington, in communities across this country. the best ideas will come from

educators, who are helping a young man who is far behind to catch up or helping a young woman master the english language or going the extra mile for a student with special needs. change will come from the bottom up. but what we can do, all of us in the federal government, is reward states that are pursuing forceful and effective and consistent approaches with race to the top grants. there are a number of different strategies that school districts are employing to fix these schools that are in such tough shape. one strategy involves replacing the principal, replacing much of the staff and giving the school a second chance. another strategy involves inviting a great nonprofit to help manage a troubled school. a third strategy involves converting a dropout factory into a successful charter school. these are public schools funded by parents, teachers, and civic or community organizations with broad new way to innovate. now, we can't hold charter to schools to lower standards than

traditional public schools. if a charter school is falling short year after year, it should be shut down. but if we're holding charmer schools accountable and we are holding them to a high standard of excellence, then i believe they can be a force for innovation in our public schools. that's why i've encouraged states to lift caps on the number of charter schools that are allowed, something being done in louisiana, indiana and across the country. and that's why we will reward states that pursue rigorous and accountable charter schools with race to the top fund grants. better standards, better teaching, better schools, data-driven results. that's what we will reward with our race to the top fund. but, as i've said before, fixing the problem in our schools is not a task for washington alone. it will take school administrators, board presidents, and local union leaders, making collectively bargaining a catalyst and not an

impediment to reform. it will take business leaders asking what they can do to invest in education in their communities. it will take parents asking the right questions at their child's school and making sure their children are doing children are doing their homework at night and it will take students, i'm not worried about matthew but all the other ones, including my daughters showing up for school on time and paying attention in class. ultimately, their education is up to them. it is up to their parents, their teachers. it is up to all of us. i'll never forget a school i visited one day when i was a community organizer in chicago. as i walked around the school with the principal, i remember saying to her how wonderful it was to see the kids full of energy and hope and the spark in their eye and when you asked them what they were going to be, they said, we are going to be doctors and lawyers and they all had big dreams for the future. i remember the principal saying

that soon all that would change. in a year or two, something would shut off inside as they began to realize their hopes wouldn't come to pass. not because they weren't smart enough. not because they weren't talented enough. because they didn't see a pathway to success. that's true of too many children in this country. maybe they don't have a great teacher. maybe they don't find their classes exciting. maybe they aren't being challenged at school. maybe their parents aren't pushing them the way they need to. maybe nobody is setting high expectations for them. maybe they can't afford a college education. maybe they don't know anybody who has ever gone to college. the reason you are here, the reason arnie is here and the reason i am here is to make sure that we are giving all of those children, all our children the pathways they need to make the most of their abilities, to make the most of their opportunities, to make the most of their lives.

i am absolutely confident that if i do my part, if arnie does his part, if our teachers do their part, if you do yours, if the american people do theirs, then we will not only strengthen our economy over the long run and we will not only make america's entire education system the envy of the world but we will launch a race to the top that will prepare every child everywhere in america to the challenges for the 21st century. i am convinced we can do it. it is not going to come easy. it is not going to come quick. we are going to have to have staying power and be consistent and put the interests of our children ahead of our own parochial interests. we have no choice. i am absolutely confident we can make it happen. god bless. he was talking about health care reform. today, it was education reform the president of the united

states, the department of education. he and secretary arnie duncan, you saw there live talking about putting out more than $4 billion in stimulus money to bank roll reform in america's schools. it's called race to the top. we will follow up on those grants. if, indeed, this goes through and how they are working out as the president pushes for health care reform and education this week. now, we are pushing forward to the next hour. you are looking at an alleged -- we will take a quick break. more from "cnn newsroom" right ahead. i apologize. i think i'll go with the preferred package.

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minimum wage went up today, 7:25 an hour. a hike of 70 cents. it could add up to a huge burden for some mom and pop businesses. businesses like slice-o-rama

pizza shop, the owner hoping and praying she can make the wage hike. she is joined by her daughter, kimberly, who is about to get a raise, show she he is is pretty happy. guys, thanks for waiting through the president's speech i sure appreciate it. kimberly, we had a chance to talk to you. you are excited about a pay raise. it helps you pay the bills and keeps mom happy on that front. at the same time, mom, you are pretty stressed out about this, because day by day, you are just trying to make ends meet. why are you concerned about the minimum wage increase. >> i think it's a mom and pop store. it hurts us. it increases our payroll so much where we are already pinching every penny. out of the last couple years, we've seen our commodities almost double. we held out with our prices as long as we could, finally going up a year ago. so now i'm in this position where i am forced to raise minimum wage. does that mean i go up on my prices? do i let employees go or do i

finally clothes my doors? >> that's a tough position to be in. what are you going to do, have a family meeting or go over all the bank books. how do you do this, terry? >> i think it's a matter of, we're going to have to sit down and look at our books, look at where we cut every way we can. we count on our loyal customers. we do very little advertising. it is hard making the minimum wage make our bottom line go up a minimum of $4,000 last year. we had that last year so i have $8,000 on my bottom line. >> kimberly, this has to be so hard as you look at your mom and you see the family business struggling but at the same time, that's 70 cents more an hour that can go towards your books, your cell phone bill. it helps you, right, in many

ways? >> yeah. it is going to mean a little more money where i can afford things easier. at the same time, i don't want to be happy that it is hurting moo i mom. since it is our family business, it is hurting me too. it's kind of not fair. >> no, it isn't fair. it is a struggle. terry, i know you feel this really forces your hand in a time where you are all really struggling right now. >> it does. >> another important thing, most of the people we hire are younger school kids. most of those kids live at home. they don't depend on this money to survive. where as, some of our older workers, they depend on that. so when i am mandated to give minimum wage at 7 clo:25, that s away from what i can give my long-term employees and it cuts back on them as well. >> i am going to do this for you on national television. everybody that's watching right now, go to lilburn, georgia,

slice-o-rama pizza. kim pear kimberly, stay in school. terry, stay strong. we will follow up on your business. >> terry and kimberly odom, you are so welcome. go get some pizza at that shop. we are going to order for the team. we're moving ahead at the top of the hour. a shocking crime scene, all the more shocking because of the age of the alleged victim and the age of the suspects. we are pushing forward on a story we first brought you yesterday. a 14-year-old boy and three younger boys accused of gang raping an eight-year-old girl in an empty shed near an apartment building. all five are liberian refugees. they call it one of the most horrific crimes. the police took the girl away from her family saying relatives blamed her for the rape. the three younger boys have been charged as juveniles but the 14-year-old is being charged as

an adult. this story is far from over. now, friends and relatives of the older boy say that prosecutors are going way too far. here is christine harrington from phi knicks' affiliate ktak. >> thank you. i want to see my son. i want to see my son, my son. >> reporter: a mother heart broken. her 14-year-old son behind bars charged with kidnapping and sexual assault, making his first appearance in court where prosecutors say he not only participated in but initiated the sexual assault of an eight-year-old girl. >> the defendant was the person who gathered people together, bribed the other individual who actually committed the majority of the assault and held the victim down while she was sexually assaulted. >> reporter: the other three boys, nine, ten, and 13 years old, are being charged as juveniles. this mom doesn't understand why her son is being tried as an

adult, unwilling to believe the charges against him. >> i want to see my son. i want to see my son. >> reporter: he and his family are liberian refugees having been here since 2005. his family worries -- >> whether he did it or not -- >> reporter: in court, this teenage boy was a man of few words, opting not to speak when asked if he had anything to say regarding his being held on no bond. >> he does not speak english very well. he does not understand english very well. he did not go to school. i started going to school when he came to the united states and so we deduced that he cannot really understand what is going on right now. so everything that is being said to him, he has no choice but just to accept it even though he did not understand. a follow-up to that. we did talk to sources close to the investigation, sources that

actually spoke with this young boy. we are being told that he does speak english. we want to make that clear. this story is sending shock waves around the world as you can imagine, especially to liberia, where the alleged victim and attackers are originally from. the president of that african nation has always been a friend to our news program. she is actually going to call in and join us on the phone. also joining us from washington, the liberian ambassador to the u.s., milton barnes. let's start with you while we wait for madam president. do you believe that what we are seeing here originates from your country, a country where, you know, often the woman is blamed for rape, shamed for rape, and, as you and i well know, rape was used as a tool during the civil war and still is on many levels? >> well, there is quite a bit of trauma involved all around. you are right, rape was used as a weapon of war during our

crisis. so our hearts go out to the young victim, the 8-year-old child. our primary concern is for her well-being and her welfare. we have been in touch with the authorities in phoenix, arizona, particularly the police department. so far, we are confident that they will use every resource within their power to ensure that things are done in a very quick, expeditious, fair and most importantly sensitive manner, particularly given the age of this child. >> it is heartbreaking an eight-year-old child being blamed for rape. ambassador barnes, stay with me. we do have president ellen johnson sirleaf, the president of liberia. i know you are well aware of the rape case that has happened here in the united states. what do you have to say about what you have heard with regard to these young liberian boyce allegedly gang raping this

8-year-old girl? >> let me say that we are deeply distressed at this behavior on the part of our young liberians and very saddened at this 8-year-old child who has been so victimized. we appeal to the parents to protect their children, protect their child and make sure that those who have enfringed upon her in this manner. let me say that rape is a problem in liberia also. this is why we have made it a criminal offense. there is a strong law regarding that. you cannot even get bail. so those parents should know that things have changed in liberia. no longer do we tolerate this.

this is not a question of shame on the family. it is the question of an assault on a young child. that cannot be tolerated. >> madam president, that's what's so heart wrenching about this case is it is this battle with culture and with crime. we don't know why these boys committed this crime. we want to ask that question. did they learn this type of behavior in liberia where rape is used as a tool during wartime and where the young women are blamed for rape in that country? we hope to answer that question. what would be your message to the family of this 8-year-old girl that has been interviewed on camera saying we are shamed by this. it is her fault. we don't want her back. what would you say to that family? >> i think that family is wrong. they should help that child who has been traumatized and they should make sure they work with

the u.s. authorities to see what can be done with the other young boys who have committed this offense. not only should they abide by the law but they too need serious counseling. they are doing something that is no longer acceptable in our society here. it is a problem but it is a crime and people bear the brunt of the penalty for such crimes. they should be working with the authorities on this. i will ask them to work with famtly to let them know what needs to be done and to work with the legal authorities in phoenix to make sure that this matter is handled, recognizing that we do not condone this, and we must ensure the protection of that. >> ambassador barnes, while we have madam president on the line, can you tell us here at cnn and to our viewers and to madam president, that you will personally get involved in

making sure this 8-year-old girl, whether it is with her family or another family, is cared for, loved, and embraced and that these young boys will be taught that this is not per mi permissible here in the u.s. there is an understanding that it is wrong. >> absolutely, absolutely. our primary concern is this child. i am personally concerned about her well-being and her welfare. we are in touch with the authorities this phoenix. we intend to work with the authorities and the family to make sure she is safe, protected and there is certain sensitivity exercised towards her considering that she is a child and doesn't know any better. she certainly should not be blamed. she is only an eight-year-old kid, a baby, and doesn't know any better. we will work with the authorities. we will, of course, also try to be in touch with the families of the three defendants, the young

boyce and make sure they do get their probate counseling. they do understand what they have done is wrong and they will have to pay the penalty for what they have done. >> madam president, steven topay, the 14-year-old boy that's being charged with rape, he is being charged as an adult. do you support that? >> if that's what the laws dictate, then we will have to follow the law. i do hope, however, ta there will be counseling introduced into whatever happens. these are also young people who clearly have had their value systems wrong. it does come from the practices of war. many of them also have trauma from the war and are carrying on some of the same malpractices from the war. they have to pay the penalty. we also want to make sure that

they are counseled so that whenever they have already done time or whatever it is in accordance with the law, that they do will have an opportunity to change and become useful citizens, not only in the united states but when they return home. >> madam president, before i let you go, your message, please, to the 8-year-old girl, the young rape victim and also to her family. what do you say to them? >> just say to them that we are so saddened. we are so sorry about that. we just want to make sure that the parents take okay of that child and if they don't, roach out to others facilitate by our ambassador to make sure she is placed in a situation where she can be administered to, that she can be loved and cared and call upon the parents to do right by that child.

cannot allow her life to be so interrupted by this incident and take away the future that is so bright for her. we will be working with her through our ambassador to make sure that not only is she attended to but that she can then continue in her education and we can make sure that this particular incident is removed from her. so thank you all for following this and bringing attention to it. we will continue to work with the families and make sure that child is safe and protected. >> madam president, we thank you. you have truly been a trailblazer there in liberia, standing up for the rights of women and have been an incredible asset obviously to our news coverage. madam president, thank you so much. an ambassador, milton nathaniel barnes, we would like to talk to you again as we find more

resolution for this family and all the liberian refugees here in this country, in particular the focus in phoenix, arizona. may we do a follow-up with you? >> thank you very much. you are most welcome. i will be available. >> we will be in contact. ambassador, thank you. an arrest in a college town becomes an issue in the nation's capitol. three men drawn into a controversy that just keeps getting big ter. new details from the policeman and reaction from the professor's camp. y long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. hme bheraly long.and itnos. and it's not a airway announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid.

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would take to select a puppy to reside in the white house. it took the president six months to decide how long and which puppy he was going to have. to expect congress to do something on major health care reform in six days is totally irresponsible. >> brianna keeler is watching all this up close. what's the latest? >> reporter: this standoff, democrats versus democrats, it is starting to reach a fever pitch here. a key democrat, henry waxman, the chairman of the energy and congress committee has said that if he can't reach agreement with some of these conservative democrats, these blue dogs, in his committee, there is consideration that democratic leaders may scrap the whole committee process and take the health care reform bill as it is to the house floor for a vote. this is a sign the democratic leaders are considering that if they can't get these blue dogs on board, they may just bypass them. kyra, we have talked about this, for their part, the blue dogs have concerns about basically the cost of the health care

reform bill, how it is going to be paid for. there is quite a few of them. there is 52 blue dog democrats in the house. my colleague, dana bash, and our producer, deer dra walsh, just spoke with mike walsh. he told them he has enough votes to stop this bill on the house floor if it comes to a vote. so you can see this is really heating up here. >> they are taking their fight to the house floor with a visual aid. what is it? >> republicans have really been capitalizing on the fact that there is all of this infighting. they are hitting hard and they are hitting the democrats plan pretty hard and they are doing it with a visual aid that i have right here. i want to show this to you. it is kind of scary looking. this is a flow chart that republicans have put together of the democrats health plan. they are saying that between you, the patient, and your doctor, there is all of this red tape basically that you will

have to go through in order to get your health care. for their part, democrats say this is not true. they say this is exaggerated. they say what they are really doing, kyra, is streamlining the process to make it easier for you to get health care so you don't have to go through the tape you would have to go through with the health insurance company and democratic aids are floating their own version of what they say is the house republican plan, if we can show you that. it is a flow chart in itself with a lot of question marks, if we have that. waiting to see if we can pull it up. this is tongue and cheek. the house republicans do not have a bill. we don't know when it is going to come out. there is a bit of a feud overflow charts, if you will, going on between house republicans and democrats, kyra. >> thank you, brianna keeler. i was thinking to myself, we have the magic wall, the touch

screen. wolf blitzer has the chalk board and you have the schematic from hell. we will keep trying to figure it all out. job seekers trying to corner the market passing out resumes on the side of the road. how did it work for them. they will give us their 30-second pitch? d it's not a st. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day longies who need assistance getting around their homes. there is a medicare benefit that may qualify you for a new power chair or scooter at little or no cost to you. imagine... one scooter or power chair that could improve your

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millions of americans are getting a raise today, the final stage of the federal minimum wage passed by congress two years ago. can the economy handle it now? allison has been breaking it down for us. >> there is a lot of debate about how this is going to impact the economy. the federal minimum wage rises 70 cents to $7.25 an hour. that comes to a little more than $15,000 a year. workers in 29 states will get the raise. in 21 other states, workers aren't going to feel it because those states already pay more than $7.25 an hour. the economic policy institute is estimating it will mean higher wages for 4.5 million people. >> unemployment is at 9.5%. it's a 26-year who i. how does raising the minimum wage effect the job market? >> exactly. some economists are worried this could bring more job cuts. companies are weighing every position these days. when workers get too expensive,

they may let some go or cut their hours. this could be true in the retail or restaurant businesses. both rely heavily on low wage workers. it is possible businesses could pass the higher cost on to consumers. advocates say workers need a higher minimum wage now more than ever. it could even boost the economy by getting more money into the pockets of people who spend it, rather than save it. what do you think? >> we are getting lots of comments on cnnmoney.com. >> james writes, i work in fast food right now. the increase in the minimum wage will raise my salary. it is far from a living wage. raising the minimum wage is self-taxation through inflation on everyone. there is no free lunch. minimum wage should be abolished. you can always count on strong opinions on both sides of this issue. >> thanks. if you can't get a job, maybe you should hit the road literally. a couple of recent college grads

took their job search to the corner of eighth an vine in westmont, new jersey. passing motorists gave them waves. a few nice gestures and not so nice gestures. they are hoping that one of them gives them a job. we are doing our part to help a.j. and sean with their questions the for employment. today's 30-second pitch. >> hey, guys. >> how are you doing, kyra? >> i am curious, whose idea was this, a.j. or sean? >> this was actually my uncle's friends idea. his name is jeff lee. he did this about 20 years ago. he is in the same profession or was in the same time. >> did it work for him, sean? >> yes, it did. he is in medical sales out in san francisco doing real well. >> it happened by standing on the street corner. someone took his resume and the rest is history? >> a.j., did you think sean was nuts when he suggested this? >> no, i have known him too long.

>> you are long-time buddies? >> since grade school. >> a.j., you went to rutgers, john, la salle, no alumnis or career counselors are helping you with the job. >> we have reached out to all kinds of alumni at la salle and rutgers. they have been very accommodating. we felt like where we wanted to know, we needed to go out and do it ourselves so that's where we are off to. >> a.j.,what kind of response have you gotten? >> everything from obscene just yu jest yurs to you are going far in life. >> a.j., any bites for what you want to do? >> i have a couple of offers right now. none of them happened to come from this particular event but this event helped fuel the interest in myself. we seal from there. >> what about you, sean? >> it's been a whirlwind the past couple of days trying to

get back to people. i have a couple prospects out there. looking pretty good right now. >> let's get down to business. >> a.j., why don't we start with you? are you ready for your 30-second pitch? >> yeah. you know, i think i am. i think i am ready. >> what do you mean, you think you are ready? >> i practiced a little. i'm not going to lie. >> here we go. we are going to start the clock, rather. get ready and go ahead right now. >> hello, my name is a.j. mally. i'm a recent graduate from rutgers school of business. i was a three-year tap in. i am a very successful men's soccer program while maintaining a 3.56 g.p.a. during my stint at rutgers, i had two internships with an asset management firm. i am looking for a career in the financial sector of the business world, somewhere that i can sink my teeth into and show my dedicated nature and i am

looking to -- oh. >> a.j., you are a piece of work. >> sean? >> so close. >> you got it. you got all the important stuff in there. >> a.j., you are a soccer player. beckham could use some consulting. maybe you could make some money there. he has plenty. >> very true, very trud. >> sean, are you ready for your 30-second pitch? >> yes, i am. it will be tough to follow that but i think i am ready to go. >> you can beat your best friend from childhood. go ahead. start. >> good afternoon, america. my name is sean cristman, i recently graduated from la saul university with a bachelor degree in finance. through an internship and several years of service, i have prepared myself to thrive in the professional environment. i am looking to advance my career operations with a challenging full-time position that expands my knowledge in both finance and accounting. as a passionate and driven individual, i am confident that i will make a positive impact on a willing firm. >> look at that. three seconds.

anything else? >> no. just an inspiring individual, punk you'l punctual. you name it, i've got it. >> a.j. o'malley, john krist man? >> one more thing. i am going to be in washington, d.c. tomorrow afternoon. president obama, if you would like to meet up and discuss any possible opportunities you might have in the white house. >> i think i got a phone call from obama now. so i might have to take that. >> i love it. a little friendly competition among the two. you saw their e-mails, a.j., sean, great job guys. thank you so much. >> have a great one. >> you too. >> that was a highlight. their e-mail address and their pitches are on our blog, cnn.com/kyra. if you want to be part of the pitch, you can also reach out to us there or tweet me at kyra, cnn. meanwhile, a.j., sean, you couldn't find two better employees there. somebody in finance give them a

call or an e-mail. pounding the pavement to are a cause close to her heart, how a knock on this door by this breast cancer survivor could save a life.

stormy skies in parts of the midwest. some travel delays in the northeast. chad myers watching the maps and the radar for us. what's up? brand new tornado watch for parts of iowa and minnesota, the red box. not that there are tornadoes happening. that would be a tornado warning. this is just watch box. i will zoom in here and take my little square and zoom into that one cell. literally, this whole box is for one cell west of the quad cities. probably a rotating supercell at some point. right now, too linear and flat for that. we will keep watching. a severe thunderstorm warning. hail is going on, wind going on, lightning going on. across the northeast, airport delays, especially for boston. i think the airport delays have been cleared up because of a couple of canceled flights.

you are not going to have a problem in the northeast, unlike yesterday where it rained and rained. i sat and tried to watch the yankees game. 68 in boston. not a hot one. even a little bit of a break for phoenix at 103 today. kyra? >> chad, thanks. time to reveal our hero of the week. as the nation debates health care reform, we focus on the uninsured and a horrific killer, breast cancer. uninsured women are less likely to get annual ma'am grams and, therefore, are at greater risk. lack of insurance is one of the reason black women are 37% more likely than whites to die from the disease. this week's hero is fighting to better those odds for all women and she is doing it by hitting the streets. >> in 2004, i was diagnosed with breast cancer. i realized how blessed i was to

have health insurance. it made me think about all the women who didn't have health insurance. i wanted to make a differences in their lives. i'm andrea ivory. i am fighting breast cancer in south florida one household at a time. the florida breast health initiative is an outreach organization, targeting working class people. we are going to make a difference and save some slifs. we have a take it to the streets approach. we feel like little pixies spreading breast cancer awareness. we target women 35 years or older and make appointments on the spot for free mammograms. >> i look forward to seeing you. bringing the mobile ma'am oggraphy van into the neighborhood. one of the most important facets of the work we do. we provide a service that is so needed. i know i am saving lives. >> you said it was free. so come right over and get it. >> is the lady of the house at home? >> we are giving free mammograms on the 25th.

>> thank you so much. i was saved from breast cancer to serve other women. every time i knock on the door, it is another opportunity to save a life. >> we can find out more about andrea's work and nominate a cnn hero of your own on our website at cnn.com/heroes. next week is your last chance to tell us about your hero. nominations close august 1st. if you know a hero, go to cnn.com/heroes. each guy says he was calm and the other guy was acting crazy. provocative new details from the cambridge come and rebustle from the professor's camp.

@@t a ster. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. the president holding the white house briefing, no robert gibbs. >> over the last day and a half, obviously, there is all sorts of controversy around the incident that happened in cambridge with professor gates and the police department. i just had a conversation with sergeant jim crowley, the officer involved, and i have to tell you that as i said yesterday, my impression of him that he was an outstanding police officer and a good man. that was confirmed in the phone

conversation. i told him that. because this has been ratcheting up and i obviously helped to contribute ratcheting it up, i want to make clear that in my choice of words, i think, i unfortunately gave an impression that i was mallining the cambridge police department or sergeant crowley specifically. i could have calibrated those words differently. i told this to sergeant crowley. i continue to believe, based on what i have heard, there was an overreaction in pulling professor gates out of his home to the station. i also continue to believe based on what i heard that professor gates probably overreacted as

well. my sense is, you have got two good people in a circumstance in which neither of them were able to resolve the incident in the way that it should have been resolved and the way they would have liked it to be resolved. the fact that it has garnered so much attention, i think, is a testimony to the fact that these are issues that are still very sensitive here in america. so to the extent that my choice of words didn't illuminate but rather contributed to more media frenzy, i think that was unfortunate. what i would like to do then is to make sure that everybody steps back for a moment, recognizes that these are two decent people, not extrapolate too much from the facts but as i said at the press conference, be

mindful of the fact that because of our history, because of the difficulties of the past, african-americans are sensitive to these issues. and even when you've got a police officer who has a fine track record on racial sensitivity, interactions between police officers and the african community can sometimes be fraught with misunderstanding. my hope is that as a consequence of this event, this ends up being what's called a teachable moment, where all of us, instead of pumping up the volume, spend a little more time listening to each other and try to focus on how we can generally improve relations between police officers and minority communities and that, instead of

pointing accusations, we can all be a little more reflective in terms of what we can do to contribute to more unity. lord knows, we need it right now, because over the last two days, as we've discussed this issue, i don't know if you've noticed but nobody has been paying much attention to health care. i will not use this time to spend more words on health care, although i can't guarantee that that will be true next week. i just wanted to emphasize that -- one last point i guess i would make. there are some who say that as president, i shouldn't have stepped into this at all, because it's a local issue. i have to tell you that that part of it i disagree with. the fact that this has become such a big issue, i think, is indicative of the fact that race is still a troubling aspect of

our society. whether i were black or while, i think that me commenting on this and hopefully contributing to constructive as opposed to negative understangs about the issthe issue is part of my portfolio. at the end of the conversation, there was discussion about my conversation with sergeant crowley. there was discussion about he and i and professor gates having a beer here in the white house. we don't know if that is scheduled yet. but we may put that together. he also did say if there was a way of getting the press off his lawn. i informed him that i can't get the press off my lawn.

he pointed out that my lawn is bigger than his lawn but if anybody has any connections to the boston press as well as national press, sergeant crowley would be happy for you to stop trampling his grass. thank you, guys. >> that is just -- do we want to listen to gibbs or should we focus on the fact that -- do we want to listen to gibbs? we do. >> we are going to get back to the fact that the president held truly a unique moment there but let's listen to gibbs and see what he says. >> he handed me my folder and said the week ahead is in the front pocket. i have a sneaking suspicion we will get to that toward the end. he has not spoken to professor gates. >> did anybody from the white house reach out to mr. gates to

let him know that mr. obama was going to do this? >> an apology from the president. >> i think the president characterized most of their conversation as something that he wanted to have with the officer. i will keep it that way. >> how real was this offer? he said a beer. that's one thing to throw out there. >> i think it was the suggestion of the sergeant. i think the president in their five-minute phone conversation -- >> is he expecting the sergeant to come to the white house? is he inviting the sergeant to come to the white house? >> a five-minute conversation. >> in about a five-minute conversation, i have to check my notes, i think it was sergeant crowley's suggestion about the beer. i think the president thought it was a good idea. >> is he serious? >> he said, he doesn't know if is scheduled but they will work on it. >> so is he inviting the sergeant to the white house?

>> you don't have to talk into the microphone. we all heard your question. >> again, i think, as the president said, and i think that's why the invitation is a real invitation, is that a moment like this can be used to teach us and be used to have a communication and a dialogue that's constructive outside of the moment. >> when did the president decide to make this phone call and was it any particular event or conversation that prompted him to do that? >> none that i'm aware of. sometime earlier, earlier today, but i don't know the exact time that he decided. the call happened. it lasted about five minutes. it was, let's see, my watch is set ahead. so it was probably around just

recently, 2:15, 2:20. >> do you know if he planned to speak with professor gates? >> i don't. >> this is significant that the president had to come back and address a question from a press conference because of race. what kind of communiques or letters or calls have you gotten here to the white house and what kind of outpouring have you gotten for the community for the president to make this decision and did police organizations from around the country help to make this decision, for him to come out? >> i was on the road yesterday, april. so i don't know what engagement the white house had yesterday with groups or individuals. i think i did see on the correspondence chart that we get that health care was the biggest topic in terms of comments and concerns. that's all the information i have on that.

>> a follow-up also. since he acknowledges that race is still an issue and there are sensitivities still about race, is he thinking about possibly doing something along the lines of what bill clinton did, possibly having a conversation on race? >> i think in many ways, the question, the answer, the events, i think we are having that conversation. i don't think it is a separate initiative, i don't think it is an announcement. i think the president would say that these are important issues that play out in our daily lives and will and should be discussed in our daily lives. >> from listening to him, it sure sounded like he had made an apology to the officer. wouldn't it be fair to characterize it as that? >> i think he -- steve, i think

he understood that as he told you all that his words contributed to this being ratcheted up. i think there is a reason that the news media is on the sergeant's lawn. i think he wanted to make sure that -- to let him know that that word choice was not one that he thought was probably in hindsight the best choice. >> were you in the room? did you hear him issue an apology? we are not asking -- >> you don't have to pars it. you can quote me and quote him. i feel comfortable with the answer i just gave, steve. >> did you hear him make an apology? >> i am not going to get -- if the president doesn't want to characterize the conversation he is having with you all, i am not

going to get ahead of him. >> robert, prior to the president going out for that press conference, obviously, you sit down. you go over the questions that are going to be asked for the evening and you rehearse answers or discuss how he will answer a question. did this come up as part of the preparation, the gates matter, and if so, was the word choice stupidly ever -- >> i am not going to get into the process of all this. >> what was discussed about that question when that came up? >> i am not going to get into that. >> what's your opinion? >> my opinion doesn't matter. >> will there be a meeting here at the white house? >> i think the president hopes so i think the president hopes that, again, this is a moment that can be used to discuss these issues. >> and when do you expect him to reach out to mr. gates? >> i said i would check on that. i don't know the answer. >> robert, what part of his statement would he take back, anything other than the word

stupidly? >> again, you just heard from the president. i would quote him liberally. i don't want to get into parsing here. jonathan? >> you said that because of our history, african-americans are sensitive to these issues. i want to make sure he is referring -- is he referring to mr. gates and his response or is he referring to the president's own response to the issue and to the question? >> i think he is talking about at-large -- i know that statement does not -- he is not speaking about an individual situation. he is talking about the reason that he came to work on an issue like this in the state senate was because of historical attention but that's not an individual thing. >> that's what i mean. when he asked the question, he

could have dodged it? he jumped into it. i wonder if he is saying that is because of the sensitivity. >> i think he addressed that up here in saying that he has heard those that said maybe because it was a local issue, it's something that he should have or could have steered around. i think he was clear on that here. >> robert, i have two questions. one, as far as health care issues are concerned, most of the indian-americans, physicians and doctors in this country -- >> okay. let's take you back to the most remarkable part of this news conference. it happened just about five minutes ago. unexpectedly, the president of the united states surprising reporters and saying, you know, before robert gibbs begins, i need to say something. without going further, let's take a listen. >> i actually just had a conversation with sergeant jim crowley, the officer involved.

i have to tell you that as i said yesterday, my impression of him was that he was an outstanding police officer and a good man and that was confirmed in the phone conversation. i told him that. because this has been ratcheting up and i obviously helped to contribute ratcheting it up, i want to make clear that in my choice of words, i think i unfortunately gave an impression that i was maligning the cambridge police department or sergeant crowley specifically. i could have calibrated those words differently. i sold this to sergeant crowley. i continue to believe based on what i've heard that there was

an overreaction in pulling professor gates out of his home to the station. i also continue to believe based on what i heard that professor gates probably overreablthct td well. >> i think this was what everybody was waiting for, not only the cambridge police department but professor skip gates and journalists across the country. this became such a big story. we want to talk more about that now with t.j. holmes also at the white house and ed henry also in washington, suzanne malveaux. the president went on to say, if anything, this whole entire story goes to show that issues of race are sensitive in america. african-americans are very sensitive to these issues. race is a troubling aspect in our society. this is a teachable moment. we should all listen to each other, focus on improving relationships between minorities

and police officers. if anything, we need more unity right now. lord knows, we need it. t.j., your sitting right here next to me. i think you and i both, are getting ready to talk about professor gates that you just had an interview with. the president steps out and you and i both went, finally. >> this is what was needed. the past couple of days, it has been amazing to see this reach a fever pitch. every black man, prominent or otherwise has been talking about some experience he has had with the police. it is bringing up a bunch of old wounds and memories. it speaks volumes that the president had to step out and calm everybody down, because that is what has been happening. i spoke to charles you are talking about. he is also a fellow professor at harvard and the attorney representing professor gates. he too seems like he was trying to back this thing down a bit as well i was asking him about what this whole thing about race and racial profiling. he said this is not about race.

this is about bad judgment on the part of the police officer. i have got one clip i am going to let you listen to. i spoke to him a bit ago. he is trying to back it down. i will see if you can tell as well. >> he says, why are you doing this, is it because i am a black man and you are a white police officer? >> was he saying it as calmly as you are saying it. >> the recordings will show. you can imagine he is feeling this sense of in dignity that people feel every day. it has nothing to do with race. there are people that feel powerless when they have done everything they can legally do to protect themselves and find what professor gates found, in a moment, you have been arrested. >> he said there, it is not about race. it is about anybody in it country who has ever felt powerless. you do everything you are supposed to do but still you find yourself being arrested. this is not about race. in the next breath, he said, the reason race came into it was when the phone call was made and she said, i'm looking at two black guys breaking into a place. that's when it became about raes. that puts something into the

minds of the police officers, he believes. still, trying to give sergeant crowley the benefit of the doubt. we don't know yet if it is about racial profiling. still up in the air that that's a possibility. need some more investigation. >> the issue you of race was brought up in the police report. you asked the question, the fact that professor gates said, because i'm a black man and you are a white cop, it just added fuel to the fire. suzanne malveaux, you were in the room when the president stepped out to the mike instead of robert gibbs and you and i jokingly in your live shot, okay, and then don lemon and i were talking about it. was the president listening to us? we were saying, you have really intelligence folks, the leader of the free world, who is african-american. you have got professor skip gates, who is renown on this issue and an academic and a successful african-american in this country and then you have a police sergeant with an incredible reputation who taught about racial profiling to other officers totally respected.

don lemon was telling me the black officers had tears in their eyes because they felt their buddy was getting the shaft here in all this. what an opportunity, like the president said, to have a teachable moment and pab this can be put to rest the and the issue you of race relations can be talked about in a much more intelligent way. >> we heard the president joking about having all of them together for a beer at the white house. you had just joked about that before. i want to tell you about what happened this morning, what this kind of felt like from the white house. there was a gaggle we had off camera, on the record, a briefing with robert gibbs in his office earlier this morning and we peppered him with questions about this, whether or not the president regretted getting involved with this, whether or not he was going to reach out to professor gates, whether or not he was going to apologize to sergeant crowley, any of these things. robert gibbs consistently said, no, no, no, that he is not going to do any of those things, that

the hat ter wmatter was essenti closed that he felt he addressed this fully and completely. fast forward to five hours later, we. president walking into the briefing room. clearly, they have been watching what has been happening. they have been hearing the dialogue. they know that many, many people have been talking about this. it really is a touch stone for so many people that he needed to come out and address this in a fuller manner. we had a two-minute warning. i heard an anxiousness, a nervousness from one of the white house press folks saying, two-minute warning, two-minute warning. i thought, maybe something is going on. i thought, where is the president right now? where is he? sure enough, he walked out just minutes later to address this more fully. so in one way, it is shocking surprising. in another way it isn't. they are watching and listening to what the country is talking

about and people have been talking about this. it was clear that the president unintentionally wading into this muddied the waters a bit and perhaps brought some negative attention to himself and was not necessarily helping the debate. you will note, too, kyra, that he did say that this was something that was taking away from the health care debate. this is something that he has been wanting to talk about health care and getting that message across. that was the other part of it. this is a huge distraction during this time when he is trying to move the ball forward. so that was important to do as well. >> point well made. that was sort of funny. i think we all thought, he is going to talk about health care. he stayed on message, which was great. ed henry, don lemon just sent me an e-mail and said he spoke with the officers and they are with sergeant crowley watching the president there make his comments. he said, they were happy with what the president was saying. you know, t.j. and i were listening to the questions there

in the press room. people harping on this apology and, you know what, move forward. i mean, it sounds like everybody, all the players in this situation, including the president said, okay, everybody used words maybe they should have not used and things were misconstrued and maybe we all should have handled this differently. there is a much larger discussion to be had here, one on unity and tackling race relations is still very sensitive in this country. >> if you take a step back from the whole thing, it was probably a very smart political move for this president to say, you know what, i'm not going to throw robert gibbs out there. how many times in politics have we seen either a president, a senator sort of hide in their office, not answer the media question, have their press secretary go out there and face the meeting. this president said, i am just going to walk out there and step up to the mikes, myself, and acknowledge that maybe i

misspoke a bit at the news conference. back to the campaign, there was a lot of heat on race. the reverend right issue. what did the president and then senator do? he stepped up with the race speech in philadelphia and obviously won a lot of praise around the country for trying to bring the country together. i think once again if you take a step back from all the back and forth, the fact that he stepped up himself and sort of took it on his shoulders and said, all right, i get it, we need to dial this back and sort of urged e p everyone to turn the temperature down. while he and robert gibbs stopped short of the word apology and we will see if there is any fallout from that, to not say, i apologize, nevertheless, it is interesting he did do something he didn't do wednesday at the press conference to say, maybe, professor gates didn't act perfectly here either. he had put it all on the officer. now, maybe he is being a little more evenhanded there. i'm wondering, do you know what beer the president drinks, anybody? suzanne, ed, t.j.?

>> yes, ed. >> the last time i had a beer in public was at washington wizard's game. we will have to interview somebody at the verizon center. >> suzanne, any suggestions? >> we want to be there when this all happens. >> we all want to share. >> sergeant crowly, if you are listening, what kind of beer do you drink? i say in light of boston, bring the guiness. >> sam adams. >> the bottom line, it was fascinating to watch the president step up to the mikes. it will be interesting to see where this discuss goes from here. hopefully, in the broader scheme of things, it will be a very positive conversation with race in america and, hey, black in america, part 2, our special documentary that's been airing this week, soledad o'brien doing a great job. meanwhile, that does it for us. rick sanchez takes it from here.