in the "situation room" tomorrow. we want you to check out our political podcast to get the best political team to go subscribe rat cnn.com/"situation room." >> i'm wolf blitzer in the "situation room," up next do you dob lou. >> conservative democrats ended rebellion against health care plan. other democrats are criticizing the deal that ended the revolt. we'll have the latest on the continuing showdown, perhaps a breakdown over health care. also, president obama strongly defending his economic policies, and his massive stimulus package. but critics say that package is damaging the economy. and that's the subject of our face-off debate here tonight. troubling new evidence that tanning beds are a major threat to public health along with cigarettes and asbestos. it's that bad. we'll have a special report. and among our guests one of the senate's top republicans.

senator john barasso is also a physician. we'll get the assessment of president's health care plan, economy and other issues, first, top democrats, some so-called blue dog diplomats in the house. today cut the cost of president's 1 prldz health care plan. those democrats immediately faced criticism from other blue dogs. liberal democrats and also republicans. meanwhile, still a deadlock in the senate on the issue of health care, dana bash has our report from washington. >>. >> conservative democrats didn't get everything they wanted but enough. we got significant concessions of long talks day and night. >> concessions about delaying a full-house vote until the fall.

>> we believe every member of congress should have the opportunity to not only read the bill but spend the month of august visiting with constituents about it. >> not all conservatives are on board. ford did reach a deal with democratic leaders and white house chiefs of staff that lift the brakes they put on committee action. specifics on the deal, first there's overall cost. >> it cuts the cost of the bill significantly by over $100 billion. >> conservative democrats say they trim the price tag to just under 1 a trillion dollars. much of that comes from saving health care subsidies to low income americans. another issue many conservative americans their parties mandate businesses provide or help pay for health coverage hurts small businesses. democratic leaders exempt small businesses with payle ros of 500 thousand or less. or there's this. government-run health care plan in the party's proposal would have an aun fair advantage over

private insurers because it ties payments to hospitals and doctors to medicare rates which tend to be lower. democratic leaders agree to change that and allow the secretary of health and human services to negotiate rates for a government-run plan. and conservative democrats say party leaders agree to allow state-run noncooperatives to offer health coverage in addition to a government-run plan. but this deal has not even come close to ending the ugliness and division among house democrats. some conservative democrats within minutes said it didn't go far enough to control health care costs on the other side. some liberal democrats say it cuts too much. everyone, lou, is still watching, waiting to see what happens in the senate whereby bart san negotiators are reporting progress. today one of three under gop pressure to bail from talks, republican senator mike emphatically enqvists there are still a lot of outstanding

issues. >> dana, thank you very much. congressional republicans immediately hammering that so-called group of blue dogs for reaching a compromise on health care administration. house minority lead john boehner said, quote, this deal will increase health care costs for families. also said it's a raw deal for the american people and sadly improves once again the so-called blue dogs have no bite when they're forced to comooz between constituents and radical leadership of their party. president obama today blasted critics of health care legislation. president in fact accused his opponents of misleading americans saying his plan will lead to a government take-over of health care. the president made his remarks in two town haul meetings in virginia and north carolina. ed henry, traveling with the president, has our report. >> on the road again, in north carolina, fighting back critics

for the health reform push. >> nobody talking about the government take overof health care i'm tired of hearing that. >> if you like your doctor, you keep your doctor. if you keep your health care plan, you keep your health care plan. these folks need to stop caring everybody. >> some people are scared. at his second stop in rural virginia. frozen food clerk, a mccain voter feels health reform is being rushed like the stimulus. >> like the last package, i think it was too hurried. a lot of mistake, a lot of things that shouldn't be. >> kathy montgomery assisted produce manager voted for the president and pumped up, he's getting tough with congress. >> i like the fact that he stepped up and being aggressive. i really do. i'm all for that. but like most employees in this kroger supermarket. produce manager gets generous health benefits. despite being an obama voter

he's nervous they're taxed to become unsured and demanding specifics from the president. >> he's going to have to spit out number and let them know what they have to give up. >> shiplet says if the president steps up and sells it, he's willing to step up himself. >> we have to do something. if it means paying taxes to get this reformed fluid' begrudgingly do it. yes. >> in the frozen food aisle this republican is ready to do his share too. >> comes down to us. people working and paying taxes will have to pay for it one way or the other. i just hope we can come up with a plan that's worth paying for. >> not everyone here, at the supermarket, buying the president's sales pitch today. one protester out in the parking lot, no fed med. now the president just laned at andrews air force base in the washington, d.c. area. basically today insisted again, he does not want a federal

takeover of the health system and say he needs these supermarket workers among others to fight what he called misinformation. lou. >> how many times has the congressional budget office come up with a different conclusion on the effect of health care proposals. >>ive' lost count several times. when they analyzed a democratic plan. senate health committee, aus know that diplomatic plan as well. estimates, much worse than the white house as expected. late last night, you'll remember the president had a suggestion that squeezed big savings out of medicare. coming out with another report saying probably only going to save $2 billion. obviously means something. but a drop in the bucket compared to the amount of money they need here. luke. >> out of a trillion dollars, i think we can safely say it isn't much. it seems like the president

should spend a lot of time in krogers. looks like a pretty friendly country. thanks a lot. appreciate it. traveling with the president. got left behind today, though e-didn't you? >> that's right. thanks a lot. >> i'm on the way home now. look forward to it. you have a good trip. new evidence as he tries to sell the health care plan. new gallup poll shows 44% of the americans believe it would show the president's approval rating slumping again down to 53%. a decline of 6% over the past ten days. turning to international news tonight, the obama administration is increasing support for ousting president of honduras. he's a close ally of venezuela's leftist strong man. hugo chavez and state department revoked diplomatic visas of the

officials serving in the new honduran government. he's in nicaragua one month after reov moved from power over a dispute over the constitutionality of his actions. new government said he'll arrest him if he tries to enter honduras. coming up next, rising concern about the danger to all of us from antibiotics being put in animal feed. also a startling new warning about the risk of serious cancer from tanning beds and comedian george lopez having a little fun at my expense in an interview with cnn. are you sure this is cnn? lou dobbs is on your station, right? i don't think lou dobbs is thrilled i was going to be on tv. >> oh, yes, i am. we'll tell you what else lopez has to stay. stay with us.

we know why we're here.

toto build tomorrow's technology iin amazing ways.@w and reshape the science of aerospace... forever. around the globe, the people of boeing... @w are working together -- for the dreams of generations to come. that's why we're here. every year, more than a million americans are diagnosed with skin cancer. health experts have long warned

of possible dangers of tanning beds. now experts say health risks are clear and they are dramatic. in a new report today. cancer researchers reporting that dancing beds are so dangerous, in fact they should be in the highest cancer risk category. along cigarettes and asbestos. brian todd with our report. >> they look enticing for those who want to tan without excessive sun exposure. genevieve is one of the millions that routinely use tanning beds. >> when i go tanning i feel good about myself, i have confidence, look healthy, feel great. >> now the u.n.'s cancer research arm is ranking tanning beds in the top group of cancer causing substances, right up there with cigarettes and arsenic. an official with the international agency for research on cancer tells cnn, people who consistently use tanning beds before the age of 30 increase the risk of getting skin cancer by 75%.

>> to illustrate the real effect of tanning beds on skin we came to this place called radiance spa. has a digital skin analysis device like an x-ray machine. we'll test it out with genevieve and katherine who does not use tanning beds. they go through the scan. and some images tell the story. we look at results with dr. howard brooks. a term toll gist not affiliated with the spa allowed to come in as independence analyst. first katherine. >> much less uv damage. >> this brown image of genevieve does reveal the real damage. >> this is perfect illustration. genevieve is a 20-year-old young woman. she admits using tanning beds. this is the result of tanning bed use. you see brown spots that indicates uv damage that is

directly related to tanning bed use. >> change it change your perspective at all? >> the results were shocking. i look horrible. as much as that's a deterrence. tanning is addicting. i don't know if i'll stop going right away. >> indoor tanning association, advocacy group for tanning spas says media report living tanning beds are overhyped. it's tan out a newspaper add saying indoor tanning put in the same category of sunshine, duh. it's also emphasized moderation. brian todd, cnn, washington. >> in this country the percentage of people that developed melanoma, the most deadly form of skin cancer doubled in the last four years. risk of developing skin cancer increases 75% using a tanning bed. another threat to our health tonight. congress moving to restrict the use of antibiotics in live stock

feed. meat producers have long been adding antibiotics for animal feed to encourage rapid growth. they've been doing so for decades. health experts have warned overuse of eye tie biotics in animal feed can lead to the spread of dangerous bacteria and drug-resistant disease in humans. kitty pilgrim has our report. >> animal feed in this country is routinely laced with antibiotics to promote growth, quell diseases in closely packed animal lots. but overuse of antibiotics promotes bacteria, stronger and more resistant than antibiotics. so-called super bugs. >> bacteria associated with people are resistant to an antibiot antibiotics. dr. levi said the bacteria in meat gets transposed into

kitchens and contaminates counters and hands, co-mingling other bacteria. result drug resistant strains of e. coli. he's a microbiologist with a master's degree of public health. >> they did a study on meat for sale on the supermarket and found that 20% testify was contaminated still, with salmonella. and of those 20%, 80% were resistant to antibiotics. so it is in the meat that you eat every single day. >> the american medical association and some u.s. companies are on board. in 2003, mcdonald's, the world's biggest restaurant company ask its suppliers to limit the use of growth antiby at is in the live stock. some meat producers say antibiotics are important in presepr

venting disease in animals. >> we have a number look at the risk of public health by using antibiotics. those assessors said it's minimal risk to public health. >> the concern of scientists said 70% of antibiotics are fed to an nationals and congress womanwoman is introducing legislation to ban antibiotics for animal use. >> there's also discussion of antibiotics being put intoed food system. how much research is going into that? >> researchers we talked to said there's not much attention going into the issue. that the introduction of antibiotics to prevent disease is not the way you should be using them, they should be used to cure disease. we're now using them to prevent disease. they say that's really a big problem. >> thank you very much. kitty pilgrim. still to come a nasty new fight over michael jackson's will. also new york mayor michael

bloomberg said he doesn't believe in deporting illegal immigrants but is happy to deport homeless people. what's that about? and the woman who made the 911 call that led to the arrest of harvard professor henry louis gates. absolutely besmirrched and attacked. ble the government's cash for your old car. now get up to $4,500 for your old car... plus, up to an additional $4,500 cash allowance. no turn-in? no problem. your dodge, chrysler, and jeep dealer guarantees everyone up to $4,500 cash allowance... on virtually every model. get to your dodge, chrysler and jeep dealer on the double, and get double cash for your old car! i had a great time. me too. you know, i just got out of a bad relatio... it's okay. thanks. goodnight. goodnight.

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new developments tonight in the battle over michael jackson's estate. jackson's mother, katherine is now demanding she be put back in control of that estate. she was granted custody of jackson's three children. meanwhile the los angeles police department and drug enforcement agency are investigating jackson's physician. dr. conrad murray. authorities rated murray's las vegas home and office yesterday and a source close to the jackson family tells cnn that murray gave the singer a powerful drug that may have killed him. the los angeles coroner's office said results of the autopsy will be released last week. the woman that made the 911 call

that led to the arrest of henry louis gates made her first comment on the controversy. lucia said that it was painful to her that people wrongly labeled her a racist after she reported a suspected break-in. we apologize. there's obviously we're having problems with the sound. we'll get that back to you here in just a minute. tomorrow, president obama meets with professor gates and officer who made the arrest, sergeant james crowley. lucia whalen was not invited to that meeting. new york city mayor michael bloomberg apparently had some sort of change of heart or mind when it comes to the issue of deportation. the mayor calls for amnesty of immigrants. he's the mayor of the country's

largest sanctuary city but deporting some in new york. city is paying the homeless to leave new york. >> we've tracked something like 500 families that we've sent to -- back where they wanted to go. given the cost of providing shelter for family, this saves the taxpayers of new york an enormous amount of money. >> homeless family of three cost new york city $36,000 a year. instead the city is spending an average of $218 for a one-way ticket to transport the homeless out of new york. most families have been sent back to puerto rico, florida, georgia and the carolinas. well, i'll have a few thoughts about that and all of the stories we reported on here and throughout the day. join me on the radio monday through friday for the lou dobbs show each afternoon on wor 7:10

radio in new york and go to loudobbs.com and get the local listings for the lou dobbs show on the radio. also follow me on lou dobbs news on twitter.com and i hope you will. comied yan george lopez returning to late night week night television when the new show called lopez tonight premieres in november on our sister network, pbs. in an interview with k.j. matthews, lopez had a little fun with me with a little urging from k.j., while we may not see eye to eye on some issues, we have one thing in common. we both enjoy a sense of humor. >> i'm so thrilled you're coming back, you'll have your own talk show we'll get more george lopez. >> are you sure it's cnn? lou dobbs -- i don't think he's thrilled i'll be on tv. >> what do you have to say about

lou? >> he's mr. independent. he's married to a latina. fantastic. he's got his own troubles, because i'm married to one too. >> i'm a george lopez fan and delighted -- well, i'll say this with my wife watching, i am delighted you commiserate with me on marriage. also delighted you're going to be on tbs beginning in november. much success. lopez tonight. i think you borrowed part of our title here, didn't you, george? up next, president obama returning to washington after a day of defending economic and health care policies. what are those policies doing? good or ill. that is the subject of our face-off debate and obama administration pushing volunteer community service is actually compulsory voluntary service. national service, compulsory service. is it indoctrination? what is the deal? we'll continue in a moment. a great deal gets even better.

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well, president obama is using all of the powers of his office possible to sell his massive health care plans. today, no exception, the president held two town hall

meetings in virginia and north carolina. the president, however, isn't the only one pushing an agenda when it cops to health care. as candy crowley now reports. >> have microphone, will travel. >> if you like your doctor, you keep your doctor. if you like your health care plan, keep your health care plan. >> nothing like a pulpit to push an issue but there's other ways you might have noticed. >> you can bureaucrats making choices getting in between you and your doctor. >> now congress should slow down? because if something goes slow enough, it's easy to kill it. >> reporter: so far $50 million has been spent on tv adds related to health care reform aired by 50 different groups, insurance, pharmaceutical associations. music, soft drink industry, republicans, democrats all with two things in common, a vested interest and deep pockets.

half are aired nationally. >> really trying to reach the most engaged party activist, legislative law makers, reporters, bloggers, most americans right now are -- >> reporter: the adds fall into four different categories. for and against the package. pro health care reform. >> it's about time. >> reporter: and ads from stakeholders. autism speaks. >> call speaker pelosi and leader ried. >> reporter: the soft drink industry. >> this is no time for congress to add tacks on simple pleasures we enjoy like juice drinks and soda. >> reporter: in general the ads are soft edged. as summer moves into fall and kids go back to school congress begins a debate on the health care bill, can he bar the door or turn offer the tv? >> you see distinct lines.

much more emotional and becomes more politicized. >> reporter: it has already begun. here's what eric cantor will see when he hits the remote at home. >> now i find out that congressman eric cantor voted against health care reform that steps companies from denying coverage for pre-existing conditions like cancer. >> reporter: this union ad is not about getting congressman cantor to vote for the house bill, this is a warning shot. county on health care reform and issue of 2010 hardball to come. during the august recess, pity the blue dogs and other conservative diplomats all likely to get buffeted from both sides. one expert who follows where ads are bought. anybody in the middle will be a fruit basket from the local tv station. >> the idea of being in the

center is not a popular idea in washington, d.c. that's where most of the country does live. these congressman will hear from their constituents over the next month. aren't they? >> they are. in many ways, this is why those conservatives did push to put off the house vote until after the august recess, and it's also, in many ways, why the president wanted them to act before the august recess, simply because the longer this goes on, and longer it takes to pass, the more difficult it becomes to get precisely what the president wants, what the democrats want. >> that's becoming increasingly clear that the congress and president, this president and previous presidents as well don't want to be bothered with that meddle some public that wants to the consider themselves a group of american citizens. nasty stuff i'm sure. thanks a lot. candy crowley. president obama strongly defended his economic policies and poked a little fun at news

week. the president particularly fired up about the latest newsweek cover declaring the recession is over. >> i don't know wetter you've seen the latest cover of "newsweek" magazine on the rack of the grocery store but the cover says the recession is over. now, i imagine that you might have found the news a little startling. i know i did. >> well, the president, of course, apparently not too excited about it being over there. but he is claiming credit from presenting the recession from getting even worse. we'll see what credit is spread around for the actual end of the recession, should this be the end -- well, he could have an early decision to make, wouldn't he? joining me to debate the health care plan and stimulus plan, whether that's living up to promise of creating millions of

jobs, author of the how republicans can save the american dream. he says the president's economic stimulus plan exacerbated the job crisis and profess percent wol ffrd says he supports the stimulus plan and says the administration is doing more things right than wrong. thank you both for being here. you said things are getting worse. how so for the result of the president's policies? >> i wouldn't say the stimulus plan, that's the problem. i would say there's a lot of well intentioned ideas. for example, helping people who lost income say in their home. the famous means tested loan programs. i think also the stimulus package itself was very careful not to create so-called make-work jobs but it's possible that's exactly what we need in

countries like france and singapore, put in place low-wage subsidies to help them obtain low-wage employees. >> you think he's doing the right thing then? >> no, i think he's not designed -- the stimulus is not designed to maximize employment. i think that's very dangerous. >> let's turn to you. do you believe the economic stimulus plan is quote, unquote, working? >> i think it's a step in the right direction. it's too early to say it's working. we know the economy isn't doing well. we know fiscal policy can do something about it. the broad plan, i think is spot on. if i polled the president for anything, it's probably doing too little. the economy turns out to be a lot worse than we thought it was three, four months ago. i mean how bad did you think it was three, four months ago? we heard the president say it was worse than he thought. for god sake, go back to october

and november. whether john mccain or barack obama, i mean the rhetoric was pretty clear. they were trying to prevent crisis from turning to catastrophe. greatest recession since the great depression. my god, how bad would you say it is? i want to be a little quantitative about that, lou. back in january when the plan was put together, we thought unemployment might hit 8 1/2, 9%. today it's 9.5. looks like it might hit 10, 10.5. i think the real problem is looking out, three -- sure things might turn around and get better. i'm worried it will be a long, slow recovery. three, four, five years later where we we see unemployment rates descend. what would you have the president do reihan? what could be done? i would ask you both. snake an economic stimulus package that ever worked. >> it's hard to say what else we

can do at this point. we know things are bad. monetary policies all tapped out. interest rates down to zero. only thing we know how to do is try to prime the pump and get people back to work. i think the real issue here is that the risk of doing too little, is -- it's not that important. it's much bigger than the risk of doing too much. >> do you agree with that, ryan? >> i think there are actually stimulus plans that have worked pretty effectively. singapore is a very different country from ours. >> no, no, no. thank you for the global tour, i'm talking about the american economy. >> the works progress administration works incredibly well in the 30s and 40s. that's a program that put people directly to work. in tennessee, democratic governor is taking an approach very different than the approach has taken to the federal level. he's tried to put people directly to work by doing things that are refurbishing forest

land, and so that's something that is really putting money directly into people's pocket. but the bigger thing is, there's a danger when people are unemployed for six months or longer. they get misdirected from the main stream economy. we need to emphasize job creation as directly as possible. i agree with professor wohl ford. >> let me ask you both. health care at least at margin, a small break through. may be procedural, given the four blue dog democrats are the ones that came together with the speaker of the house and her group led by congressman mike ross. blue dogs reaching some sort of an agreement. this health care plan that is being pushed by the administration, there have not been extensive hearings, have not been extensive testimony. there's been very little in the way of analysis outside of congressional budget office. we've seen all of the major think tanks, i mean all of them avoid the issue in washington, d.c. usually suspects, i guess we

could add the cato institute. not brookings, not the american enter surprise institute. none of them stepping into this. why is there this -- seems to be, if you will, just a confluence of disinterest in what is a trillion dollar, at least trillion dollar issue. ryan, you, first, if you will. >> well, i think that there is a lot of intent but i also think there's a lot of uncertainty. i think they're being misrepresented to some degree. they're acknowledging we don't know how the revenue side will play out. we don't know what final legislation will look like. what we know, there's a lot of contradiction, for example, when looking at different proposals for an employer mandate. how will this play out in terms of job creation. does it make the employment picture worse than it would be in the absence of new employer mandate? it's hard to tell. that's the reason people are gun shy. >> you get the last word here. >> i think i seem to remember this election campaign that went

on forever. this was a big part of obama platform. >> forgive me, professor, but a platform, a campaign talking points are hardly analysis. i'm talking about independent judgment. by the way, including academia which has been absolutely silent on this issue, as far as rigorous analysis of the issue. >> two more things here. it's hard i think the health care market is probably the most difficult market for any of us to think about. second, for some of us, for some of the political think tanks in particular. this is embarrassing. this is a domain where -- >> we shouldn't be embarrassed. would we? >> some think tanks say markets get it right. >> my friends at brookings are subtle about these things, that's true. all right. thank you very much, we appreciate it.

we thank you. thank you very much, gentlemen. always good to have you with us. up next, mandatory community service. that's what the president wants or at least his chief of staff wants it. we'll see whether he gets it in our special report and the president says he insists he does not want government-run health care. republicans john barassa, a physician is our guest here next. some lunch.

you hungry? yeah. me too. (door crashes in) (broadview alarm) (gasp and scream) go! go! go! go! go! go! (phone rings) hello? this is mark with broadview security. is everything okay? no. someone just tried to break in. i'm sending help right now. thank you. (announcer) brink's home security is now broadview security. call now to install the standard system for just $99. the proven technology of a broadview security system delivers rapid response from highly trained professionals, 24 hours a day. call now to get the $99 installation, plus a second keypad installed free. and, you could save up to 20% on your homeowner's insurance. call now - and get the system installed for just $99. broadview security for your home or bususess - the next generation of brink's home security. call now. the obama white house and

congress are sharply expanding programs for national and community service. but so far, lawmakers have not usa rised sufficient money to pay for that expansion. white house chief of staff rahm emanuel wants to go even further. he believes there should be compulsory civilian service for everyone 18 to 25. bill tucker with our report. >> there's no question that president obama believes in government-run community service perhaps. the former community organizer campaigned on the promise of an expanded what he then called a civilian national security force. >> we cannot continue to rely only on our military in order to achieve the national security objectives that we set. we've got to have a civilian security force that's just as powerful, just as strong, just as well funded. >> it's an idea very similar to a mandatory national service

program that the president's chief of staff rahm emanuel called for in the 2006 block "the plan" where, quote, all americans between 18 and 25 will be asked to serve their country. earlier this year, president obama signed into law the serve america act which dramatically expands national service and volunteer programs like americorps, providing allowances and educational grants but it's not mandatory. serving one's country is a problem few have a problem with. but an idea of national service run and potentially mandated by a government is a nightmare come true according to brian darling of the conservative heritage foundation. >> americorps aa program for kids that pays them to volunteer. you'll not have charities, religious organizations and other individuals who want to come out go out and do so

because they know americorps and federal government are serving the needs to the american people. >> reporter: darling worries instead of helping the communities, the communities become dependent on the grace of the federal government. >> now fight for funding for these programs is going on in congress now. senate appropriations sub committee today approved full funding but over in the house, they're coming up short and not fully funding what the president wants. lou, with the federal deficit more than a trillion dollars, a lot of fiscal conservatives think coming up short is a blessing. >> this is really quite something. the possibility of compulsory civilian service. i mean, aspy read that, civilian national security force, that would be as well-funded as the military. i mean that is a bizarre concept that now apparently is morphing into well-funded, large sale of

community organizing efforts. it's not volunteerism, because they're being paid. >> exactly. it's undermining efforts by a lot of organizations. there's people who volunteer there time. meaning they do it for free and contribute back back to the community in time and effort. >> thank you very much, bill tucker. appreciate it. >> joining me for more on the president's health care plan, new developments, new compromise reached by blue dog democrats and democratic leaders, one of the leading republicans in the u.s. senate senator john barasso of maryland. great to have you with us. let me ask you, what appears to be -- at least it's a compromise that you have to put a checkmark. speaker of the house nancy pelosi's column. don't you? >> i think it's a good checkmark for the people of america that they get a chance to talk to elected representatives at home in august before they come and vote on the bill. here you look at it over a

thousand cases, very complicated. one of the members said are you going to encourage the members to read it? he said there's no reason to. takes two days and two lawyers to explain it to you. i think the people all across this country ought to go to town meetings, demand legislatures show up and explain the bill. i think there's a lot of things that the president has promised that are not going to be covered in that bill. there are a lot of things he said we'll never lose as americans that will be stripped for us in the government take-over, which is the way i read this bill that the house has to vote on when they return in september. >> i want to ask you, let me inquire of the control room. do we have, because the senator is referring to a statement to a statement by congressman john conyers, senate of the house judiciary committee, the one who said would be absurd spending two days reading the legislation, do we have what we could share with our audience? and i'm going to assume we can

get that rather quickly. could we? >> let's listen to congressman john conyers. >> i love these memories. they get up and say, read the bill. >> what good is reading the bill if it's a thousand pages and you don't have two days, and two lawyers to find out what it means after you read the bill. >> i mean, that's quite a statement to come from any one of our elected officials, but the chairman of the judiciary committee, my god. i mean, as you raised what he said, there, senator. the statistics in the senate are just about 95% of legislation there goes unread. and the american people are supposed to have confidence in a thousand pages as you just demonstrated, that, you know, i mean this is just a peculiar time to move forward legislation that apparently no one has read,

many of the top congressional leaders both in the senate and house have no intention of reading. that's befuddling. >> look what happened with the stimulus package. a lot of extra amendments that came in late. capping tax bill. 300 pages dropped in at 3:00 in the morning. they had to vote that day. i'm interested to see what kind of amendments they throw on to that. if members of congress don't read it and people can't understand it without two lawyers is this something we really want with a decision, lou that's so personal? someone's health care is a personal thing. i got back from the weekend overseas in kuwait visiting the national guard, wyoming national guard. number one question they ask is not about the war, it's about health care. what the impact of these bills will be on them and their families and kids. what's going to happen with huge expenses when looking at an economy that's still having issues, they want to focus on the economy. they want to focus on jobs, they want to focus on the growing

deficit, budget with the debt doubling in five years, tripling in ten years, people are concerned. even though they may have in the house gotten the number down to a little lower than a trillion, that's a trillion dollars, lou, that we don't have and can't afford to spend. what the president promised and what's delivered are two very different things. >> as you say, an agreement based on a 10% reduction in the cost, which, by the way, is not, as you well know. finite at all. subject to immense change, once it were to go to conference, should it be passed. we feel a certain amount of gamesmanship in washington. i'm sure that's an misimpression on my part. >> a lot of games, a lot of gimmicks. you know who else is concerned are the governors. republican and democratic alike. they're concerned of unfunded mandates shifted to the states. as the governor of tennessee called this mother of all mandates. hundreds and hundreds of millions of dollars in many

states. >> senator, good to have you with us. thanks very much. >> thanks, lou. >> i want to point out. we did extend an invitation for all democrats to join us on the issue of health care. not accepted. but of course that invitation remains open for any of them to join us here at any time. up next, governor schwarzenegger signs a budget for california. i said it's like the good and the bad and the ugly. but somebody else paid for that movie, i believe. they're apparently a lot more leg than good. we'll have a report for you. (announcer) take your time to find the right time with cialis for daily use... a clinically proven, low-dose tablet for erectile dysfunction you take every day so you can be ready anytime the moment is right. tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. don't drink alcohol in excess with cialis.

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governor schwarzenegger in california signed a budget that apparently closes the state's

record $26 billion budget deficit. does it stop the state's dependence on borrowing? casey wian with our report. >> california laymakers didn't even wait for the ink to dry on the state's $24 billion budget deficit reduction deal, before criticizing each other for its short comings. governor arnold schwarzenegger blames the legislature for not cutting spending enough. leaders and some unhappy residents accused the governor of slashing too much from slashing health care and welfare. >> it's like feeding off the weak. >> few are talking about the fact even with the deal, california is spiralling deeper into debt. the state has already issued more than a billion dollars in ious to taxpayers and venders. officials don't know if the deal will allow them to resume payments in cash. >> first priority is stop ious. can't be something that happens overnight. >> state finance director says california will still need to

borrow 8 to $10 billion more this year to meet short-term cash flow needs. >> i think the p financial community will look at the budget in a positive way. we're fiscally responsible and we had the majority of really good solutions. >> in fact two bond rating agencies dropped california's debt rating to the lowest of any u.s. state meaning california's borrowing costs are rising. a third agency says she's still studying the budget deal. one focus billions of dollars in accounting gimmicks such as the state payroll that lawmakers use to reduce the deficit. in all governments borrowed $31 billion during the first half of this year. more than $800 for every person in the state in just six months. the state is so reliant on debt its treasurer put out a primer on the subject, it's 606 pages long. >> reporter: for residents who

may be feeling smug about california's problems not so fast. duncan hunter from san diego wrote, quote, what's happening in california way well forecast our nation's fiscal future if we don't prevent the same effects results from the same fiscal responsibility. lou. >> congressman hunter in all respect that's a cold comfort. and this solution with governor schwarzenegger and legislature patting themselves on the back. by my count 40% of solution requires borrowing. some solution. thanks very much. casey wian. at the top of the hour. campbell brown. campbell. >> hey, lou, we have two big news makers. coming up. rudy giuliani, former presidential candidate talking to me about president obama and future of gop. and then a look of life behind bars for fraud mastermind p. burney madoff. you hear how he pulled offer the

scheme and how he's spending his days in prison. plus today's big stories coming up, lou. >> thanks, campbell. we'll be right back.