you wanted to talk to me about that. we only have five seconds. go for it. >> the reason i did, he wanted his seven straight or seventh event called the bridgestone, the first golfer ever to win one event seven times, he's won 70 events total. economic impact in this area, this region, $30 million. it's huge. >> you'll have to end on. that thank you, rick. thank you for watching us. see you back here at 10:00 p.m. "state of the union" with john king starts right now. i'm john king and this is "state of the union." >> the war in afghanistan, fallout from president clinton's trip to north korea and tonight, presidential summit in mexico. what about the president obama's administration's pressing global business? we'll speak to the u.s. ambassador to the united nations. congress heads home to face americans anxious about the economy and divided over proposed health care sanctions.

we'll have two key senators, john cornian of texas and dick durbin of illinois. plus, arlen specter gets "the last word." our american dispatch from eugene, oregon, recession puts a squeeze on many community support organizations just when strig willing parents and hungry children need the help moment the state of the union report for sunday, august 9th. president obama heads to mexico for a summit with the leaders of mexico and can d.a. a reminder of the mounting international pressures as he tries to fix health care here at home. elsewhere in the world stage, afghanistan. iran and north carolina with difficult policy choices. full and frustrating list for the president and his ambassador to the united nations. susan rice.

welcome. there are reports in the "new york times" that hold this up. this massive trial under way of those who are accused of illegal conduct in iran after the election, including some people who say they were simply filing diplomatic reports back to their embassies. what do we make of the trials? >> these show trials. and they are clearly demonstrationst fact that the iranian leadership is not reconciled to the concerns of its people. and regarding the validity of the elections. and it's unfortunate. it's to be condemned. and our view is that if iran wants to demonstrate that it is prepared to be responsible member of the international community, then it needs to treat its people with respect and adhere to the rule of law. a prosecutor in iran acknowledged that some of those taken into custody were tore surd. do you view that as a responsible step? they made respects or conceding them.

>> i think there's a great deal we don't know about how the demonstrators and those arrest vd been treat. reports of torture are of grave concern and suggest that the regime in iran is not reconciled to the concerns of its people. >> back in march the president said in the early days that they wanted a new chapter that included dialogue. >> my administration is now committed to diplomacy that addresses the full range of issues before us and to pursuing constructive ties among the united states, iran and the international community.

>> the united states and the international community have been appalled and outraged by the threats of the beatings and imprisonments of the last few days. >>. >> this past week we saw ahmadinejad sworn in for term. there are some who say if you're so critical of the reaction after the elections, the protests there. there has been no demonstratable progress when it comes to the nuclear program that united states, zpits the help for engagement has no choice for you to pick up from the united nations and say we need tougher sanctions now. >> obviously, we're deeply concerned by the elections and they're had math. this is not a regime that was a golden child prior to the elections and suddenly turned evil. this is a regime with which we've had grave concerns for many, many years. we're committed to preventing a ransom, obtaining a nuclear

weapons capacity. and we believe there is a prospect through engagement and through dialogue to try to negotiate with our partners the other permanent members of the security council plus germany the permanent end to its nuclear weapons capability. that option remains on the table. it's not out there forever. indeed if, there are not indications that iran is prepared to engage constructively to open up and dismantle. consistent with the proposition and proposal that the united states and others put on the table in april. then we're not going to impose any artificial deadlines. the g-8 indicated with what we did with iran in september. we'll do that and consider appropriate next steps in light of iranian's sponsor nonresponse. >> another story this week was

form former president clinton. he came back with laura ling and euna lee. there are those very critical of this. they say essentially the united states gave up too much. a man who once held your job at the united nations, john bolton, saying it comes close to negotiating with terrorists, sending bill clinton over there and giving north korea certainly a propaganda victory of those photographs. close to negotiationing with terrorists? >> absolutely not. that is a ridiculous statement. we don't negotiate with terrorists. that is the policy of the united states. this is a unique opportunity for the former president on a private humanitarian mission to obtain the release of two american women who had been held for many months. it would have been disgraceful for the united states having verified that this was a real opportunity to obtain their release.

it was a private humanitarian mission. it accomplished the release of these two women were relieved and delighted to see them reunited with their families. it no no way changes our policy or approach to north korea. and we were pleased with the outcome. >> he is former president of the united states and his wife happens to be the secretary of the state of the united states. he went over there with his former chief of staff and others who worked on the korea issue. so it was a high powered delegation. did we gain anything from it? he spent more than three hours talking to kim jong-il. a people in your job and elsewhere say we don't know a lot about. he is such a reclusive leader. did we gain any new information? was there a message back to this administration about what next? >> this was a private humanitarian mission. >> people talk, no? >> president clinton did not convey any message from president obama. >> did he bring one back? >> obviously he listened. and we're still in the process

of continuing our debriefings with president clinton. and he obviously heard what kim jong-il had to say and what that contributes to our understanding, what's going on in north korea, i'd rather not get into in this discussion. but obviously we look forward to a full analysis of the observations and analysis of what president clinton brought back. >> respecting. you want to have further conversations. does it leave you hopeful that there is a diplomatic opening? >> i don't think either. the north core evens know what they have to do if they want to rejoin and be responsible members of the international community. our goal is a complete and verifiable denuclearization of the korean peninsula. they made commitment that's they haven't fulfilled. so they need to uphold their international obligations, return to the six-party talks. in that context, we, we have said we'll be prepared to have a direct dialogue as was the case during the bush administration.

but north korea can't continue to make commitments and then violate them and expect to start from where they left off. >> okay, we're going to take a quick break. there are calls to add more troops to the u.s. battle fields. (announcer) this is nine generations of the world's most revered luxury sedan. this is a history of over 50,000 crash-tested cars... this is the world record for longevity and endurance. and one of the most technologically advanced automobiles on the planet. this is the 9th generation e-class. this is mercedes-benz. - hello! - ha! why don't you try a home cooked meal... with yummy hamburger helper? oh! tada! fantastically tasty, huh? ummm, it's good. what would you guys like? hamburger helper. what?! one pound... one pan... one tasty meal!

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take peace and dignity. we're ready to lead once more. >> we're back at the united states ambassador rice. we are ready lead once more. the president of the united states is it ambassador to the united nations. his diplomatic core around the world. what you are doing differently than the previous add sngs. >> we're doing a lot differently, john. what i think is so striking is six months into the new administration the president and his national security team have made enormous progress. we see that in a very changed approach in iraq where we are redeploying our forces responsibly and we're on track to have all of our forces out by 2011. we have a completely new approach in afghanistan and pakistan. we're focused very concretely on disrupting and dismantling and

deceiving al qaeda and denying the safe haven in pakistan. >> i have to stop you. i want to get on one of the points you're making. you're talking about strengthening alliances. i want to pull up the map here of afghanistan. of course, more u.s. troops are involved in tough battle. the capital kabul up here. if alliances are so renewed, why can't the president -- and president bush had the same problem, but why can't president obama convince other nations to add to that number in this fragile delicate part of the world? >> in fact, john, the number has increased substantially. our parties. there are contributions of troops. and they've also made critical contributions in other areas, training afghans and security forces and police. investing in development and providing for the human needs of the african people.

there is a comprehensionive strategy that is the president is pursuing. >> we clearly have thought and have obtained additional contributions from our nato partners. they might delay the elections scheduled for 11 days from now. will the united states tolerate that? >> we expect the elections to be held august 20th as planned. and our aim is to give the afghan people a chance to really secure them. >> there is a story -- a comprehensive story about afghanistan in "washington post." the lead of the story makes the head snap back. experts expect another decade of u.s. u.s. commitment. and they have a pricetag of the iraq war. are you prepared to tell the american people that? >> no. we're prepared to say this is

hugely important to america's national security. we need to defeat al qaeda in afghanistan and the extremist allies. we need to say that afghanistan is not operating as a safe haven. that is what this strategy is about. it's insuring the most critical aspect of our national security. we have been very clear that we want to invest what is necessary to achieve that. and do it as efficiently and quickly as possible. the president has been very clear that we're going to measure our progress every stech the way. >> we're out of time. ambassador rice, thank you so much. >> good to be with you. >> up next, the health care debate up close. members of congress head home for a summer break and hear sometimes loudly from their constituents. two leading senators discuss their hopes of a bipartisan health care plan are fading and whether they see the economy bouncing back. the $100 cream. flabbergasted when we creamed the $700 cream! for under $30 regenerist micrm

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i think i'll go with the basic package. good choice. only meineke lets you choose the brake service that's right for you. and save 50% on pads and shoes. meineke. another 240,000 americans lost their jobs in july. in that bad news, a glimmer of hope. president obama says the worst may be behind us. the past month was not as encouraging from the president's perspective when it comes to the health care debate. the house and senate missed deadlines for action and now members of congress are using the august break to get a firsthand assessment to look at the sweeping change that's president obama are critical. let's talk about it with dick durbin of illinois and john cornyn of texas. i want to start with the economy and directly you to, senator cornyn.

will republicans support something the white house and democrats say is critical and that is another extension of unemployment benefits even though there is a bit of a glimmer of hope in the economy. you would support that extension and will republicans make that an easy issue? >> i think we need to provide a safety net for those who find themselves out of work momentarily. white house projections are that unemployment, even though it dipped by one tick, will go over 10%. it looks like we're in for tough day as head. we don't want to provide a disincentive to work. but where people need work, sure, we're open to that. >> the big issue on your side is whether there will be a public option, a government plan to compete with private plans in the health insurance spectrum. the chairman of the budget committee, kent conrad, raised doubts on this program. he said this in the "washington post" on thursday. the hard reality is that a public option does not have

enough support in the senate to pass. >> i can't speak for the caucus, but there are three republican senators and only three who are still negotiating with us. and we want to keep them negotiating. some of them are opposed to a public option. some want to co-op approach to it. but we're determined, despite the kind of pressure that they're under to stop negotiating and stop working on it. we're determined to get a bill to the floor. it doesn't have to be a perfect bill. but it should move forward through the amendment process and at the end of the day, we got to make sure we have health care reform that really helps middle income. >> if you're determined to get a bill that three republicans support and i assume you hope would go to senator cornyn and others and say, look, you might at least try to give this a good look, then you're open to having a bill because senator grassley, senator enzi and others don't want another public option f you want to keep them in the room, then you're open to a bill

without a public option. fair? >> i support a public option. yes, i'm open. just understand that after we pass this bill and hope we do in the senate, it will go to conference committee. we'll have a chance to work out all of our differences. so we'll see how this ends. i don't want the process filibustered to failure. that's what many senators are trying to do. i want to make sure we do something positive for the american people. >> senator cornyn, let me come in on that point. senator ensign and others are trying to reach agreement on a co-op plan they think would get health care to people in rural areas. are you open to a co-op that doesn't have a full government option? we have to see what the details are. the problem is that there is a lot of middle ground where we can meet where insurance reform,

it's realigning incentives to provide value rather than insent vized volume of procedures, providing continuity of care, medical homes and the like which i think have a lot of hope out there providing better quality of care at hopefully a lower price. >> senator durbin, the man leading the bipartisan negotiations, just talked about, the chairman of the finance committee. he said this this past week. he wants to keep going. he has to make a decision f republicans aren't there, it could get to the point where sometime after the recess democrats may have to go in a different direction. i hope not. but we have to face facts. facing facts would be going it alone with a democratic bill. as you know, many of your own conservative democrats think that is a bad idea both from a policy standpoint and politically to have one party shepard and use its muscle to move through such a dramatic change because of the role of health care in our economy. >> i can just tell you, john, we need to take the time to get

this right. but understand, max balkous has been working tirelessly for almost a year getting ready for this negotiation. for months he's been in a room with the three republicans. these senators are under intense pressure from the senate republican leadership. i respect them so much for it. if they can't reach a bipartisan agreement, i den want to see health care reform fail. we only get a chance once in a political lifetime to do something. we got to make sure that at the end of the day we're going to come up with health care reform that really serves middle-income families across america. >> let's get to the mood out there now that you're all back home trying to take the pulse of your constituents. i want to begin and senator cornyn's home state. lloyd dogget is there. he had a town hall and quite a loud town hall. he says this is all part of some orchestrated effort by criticsst

president's plan. >> i have a script. i think this is disseminated through web sites that they're going to and through some of the private organizations that are helping orchestrate all this. >> other democrats are gone as far as saying there are angry mobs out. there senator durbin, your colleague in the senate, a democrat from missouri says wait a minute. i disagree. the people are concerned over health care proposals are manufactured. she says there are real folks with strong opinions. who is right? they're right that there is a large group in america stuck right smack dab in the middle. they have honest questions about health care reform. questions that need to be asked and answered. in the meantime, we have these screaming groups on either side. that isn't helpful.

this is clearly being orchestrated and these folks have instructions. they come down from a texas lobbyist in washington. >> let me ask you something. let me interrupt, senator. is there anything wrong with that? this country was founded on a whole series of events including the boston tea party in my hometown where people were organized and instructed to go somewhere and raise hell. is there anything wrong with that? >> i'll tell you what's wrong with it. when there is a group of people honestly it issing in the middle trying to ask the important questions and get the right answers and instead someone takes the microphone and screams and shouts to the point where the meeting comes to an end. that isn't dialogue. that isn't the democratic process. when these people come in to disrupt the meetings, no, that isn't right. >> do you agree with senator durbin that some of the people are overstepping? >> i was with the congressman yesterday at a community health clinic here in austin.

there are those who said that this is -- they're scared to death that what they have now they won't be able to keep. and that medicare which is the safety net health care system for so many seniors is undercut by $500 billion, cut from that program just to pay for this fast expansion of the government's role in health care. the latest projection by the budget there are those that cost 2.4 there are trillion in the house bill and are funded by the medicare. there are tax increases on small business and during a time of recession that would kill the ability of small businesses to allow to retain and create new jobs. as we said earlier, i'm glad we had this august recess. we can talk to our constituents and hear from them.

that is something that makes sense. >> gentlemen, i'm sorry, we're out of time. can you both come back here as this debate continues. senator durbin, thank you both gentlemen. >> up next, we'll get analysis on where this health care debate is heading. political strategist donna brazile.

i'm don lemon. we want to give you headlines. swine flu. climate change and drug trafficking all on at agendaa. north american leader summit in mexico, president obama arrives tonight for talks with mexican president calderon. and canadian prime minister stephen harper. seven bodies and parts of a manning willed helicopter have been pulled out of the hudson river after a violent mid air crash above new york. the search goes on for two more

victims and more wreckage and explanation. and a small plane recommended a sight seeing helicopter just before noon yesterday sending boats plunging into the river. all nine people onboard died including -- including three teens. investigators are asking for pictures and videos of yesterday's crash. i'm don lemon. "state of the union" continues right now. >> joining me, former republican national committee chairman ed gilespie and donald brazil. let's start with that statement from dick durbin that is startling and reflection of reality. he says he doesn't like it. he wants a strong public option in the bill. but if the democrats don't have the votes, that he thinks maybe, pass a bill that doesn't have a public option gets a conference at house and restore it there. that is a concession of a bit of a problem, isn't it? >> four out of five of them have

passed real strong health reform. we know that at some point the democrats will have to get together and try to figure out how to make sure that these bills are consistent. the public would like to see some option in the reform package that will lower costs and be sure they don't get dropped from the current system. they can discuss pre-existing conditions and get the best possible insurance. there is a lot of debate going on right now within the democratic process. i think the president would like to see the principles on the table. remain intact. but i also believe that the democrats, majority of democrats would like to see that option in. there. >> what does it tell you? again, i want to be clear and fair to senator durbin. he wants it. he hopes it's there in the end. if we can't get it in the first sweep in the senate, let's do something, lay out a marker and then try to get it later. that is not what the president hoped we would be talking about. >> it's not what the president

hoped we would be talking about. this reflects the drop in support and understandable skepticism about a public option that voters are bringing to bear right now on their elected officials. i think where this is heading is to have a bill that is scaled back, focused on those who are involuntarily uninsured. they drop the tax increases, drops the slashing of the medicare system. you get a health care bill that gets some republican votes and doesn't have all of the president wanted in it. but he finds it and tries to claim victory. i think it will be a victory for those who are opposed to these massive government intervention. >> let's stay on health care. i want to bring more sound into the conversation. they open the door a little bit. governor dean, former chairman of the democratic national committee who also happens to be a long-time practicing doctor in the state of vermont. he said you need to keep the

public option. let's listen. >> if you're voting against the public option, it is something that is 72% of americans and two polls want which is the choice. most of them aren't going to sign up for the public option. they think they have the choice. >> they think they should have the choice. this is largely a debate among democrats over what the next step is. is it not? >> well, look, john, the democrats have offered plans. the republicans, while there are some plans on the table, they have not clearly embraced it. don't put forward your plans and what the democrats. what we do know, john is that they should continue to go up. and they get less bang for the buck. the uninsured have the best insurance program in the world. they can go to an emergency room and they have to pay for it. if we want to lower costs, you

know, we want continue to sure choice and make sure that patients run their health care system, we need to keep that public option in the debate. >> donna is right about the cost. and that is the central focus. that's where the white house got off on the wrong foot. it made people realize they're going to raise my cost if i have insurance. my cost is going to go up in order to pay for those who have no insurance right now. there are other ways to do this. to make sure that we can help get those who are involuntarily ininsured covered in the system. but raising the cost of those who have insurance now, private or sprapt insurance or even medicare insurance is the wrong way to do it. they have goat the kids out of the private run system. a friend of mine, best friend, runs a couple car dealerships in harrisburg, pennsylvania. he did the math. paying the 8% surtax on his employees would be cheaper for him than providing the insurance he currently provides for 74

employees. people know that and are starting to figure it out. >> the cost goes up $1800 a year. and because, in fact, we have more americans retire. and the government program, the medicare, medicaid program will continue to rise over the next 10, 50 years because more and more americans will start to retire. so we have to do something to control costs and continue to provide choice. >> this is a legitimate and very interesting policy to buy. what are your choices? what should they cost? where should the money come from? >> there is a political situation that the white house and democrats have to go through as we move through august. they have to be adamant to happen this year and for him not to get a health care bill is a huge failure. so one of the options is let's have bipartisan negotiations and work on that in the senate. that should come back in a month from now. the democrats try to mus this will through. they found an 80-seat majority in the house. so dick durbin also earlier this morning said if necessary, you

do it the democrats' way. >> fit reaches a point where we cannot reach a bipartisan agreement, i don't want to see health care reform fail. we only get a chance once in a political lifetime to do something. >> it would be a major challenge. you have the democratic president, the democratic majority muscling through on the republicans. could they do it? >> i don't think they can, john. the american people don't want to see something of this significance to be done with one party only support. they want to see something that reflects bipartisan consensus. they understand that that probably protects their interests. i think what will result in a huge backlash against democrats. i don't think they get it done. >> we've had 16 years to do something. and nothing happened even when the republicans controlled both the congress and the white house. what the democrats want to do is to provide a choice for all americans and to keep the existing insurance that they have. we have the votes. everyone knows that. and we're moving it to committee. everybody sees that. but the white house must revamp

their message this coming fall to insure the american people are brought along so they understand what's in in it for them and how they will benefit from it. >> donna brazile and dan gillesp gillespie, thank you. our next guest is challenged for his senate seat by a fellow democrat. pennsylvania senator arlen specter gets "the last word." kelly saunder's nature valley. ♪ the place that inspires her to go faster...

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27 muz neighboringers around the morning shows, only one gets the last word. that honor today, democratic senator arlen inspector in pennsylvania. >> thanks for the invitation. nice to be here. >> you were among the members of congress this week who went home to a health care debate that was a little loud. and had a town hall, you had some boos and some heckling when you were there with the secretary of health and human services. you know the debate about this. is this grassroots democracy people coming out to voice their opinion or is it orchestrated and manufactured by maybe deep pocketed interest groups that don't like the president's plan? >> there's no doubt that they boos and cat calls were orchestrated. but there were many people there who wanted to talk about health care and i didn't -- it is just

unfortunate that so much time was spent away from the issues. but in my line of work, you have to be prepared for whatever comes. >> amen to that. >> let's talk about the issues. one of the big questions is are there enough votes in the senate for this public option? a government insurance plan that would compete against private insurance plans? is there a public option health care reform? >> i think public option would be very helpful. it is true that many who don't agree with that. and there is exploration on an idea of a co-op advanced by kent conrad. you have to remember this john, we do not yet have a bill. it has not been formalized.

i think we may find sufficient votes. all that has to be determined when we really get down to brash tax and see the details. >> you're a veteran of the senate. you've been in negotiations for many. let me ask you a simple question. dick durbin said the number two democrat said he very much wants a public option. but that if you need it just to get a bill through the senate and then get to the negotiations with the house, he said he could see himself supporting legislation without one. if the senate passed a bill without a public option, it could come back in kpropgs negotiations or would that kill it? >> there are a lot of hypotheticals in what you say. if he can't get a bill with a public option, he'll take the best he can get. i'm not prepared to go that far at this stage. i think that is premature.

i think we should fully explore the public option to see if we can make it work out. >> i'm fascinated by your role in this debate. if we go back in time, i was there with you and this debate, it was arlen specter and a republican senator from pennsylvania who helped change the dynamic in the clinton care debate back in the old days. you brought this chart out. and your leader at the type bob dole adopt the it as his best friend and what hillary clinton was proposing with this bureaucratic nightmare. when you look at what's on the table now, is the plan significantly different? >> it is totally different plan, john. the clinton administration had single pair. hit a gigantic bureaucracy between the doctor and the patient. there is a lot of interest in single payer.

everything ought to be on the table. but the bureaucracy which was set up on the clinton plan that was detailed in that chart with allst agencies, boards and commissions. so what we're talking about now is totally different. >> as you know, your role in that debate back in 1993-1994, it's one of the things that the man now challenging you in the democratic primary raised what he questions is whether arlen inspector is really a democrat or whether he decided for political survival reasons he had to leave the republican party and go to the democratic party. this is what he said about you, sir. >> is he a good enough democrat? >> i'm not sure he's a democrat yet. >> what is the principal you're running for. he is suggesting you were not a democrat. >> i've been with the democrats

all during my tun you're. pro-choice, support a woman's right to choose. i broke with bush on embryonic stem-cell research and the nuclear test band treaty. president obama thinks that my principles and values are right in line with his which is why he's backing me. and joe biden and ed rendell when congressman -- he lives in a big glass house. and the congress from the pennsylvania delegation missed 104 votes this year. he talks about his military record. he was still in the service. he would be a court-martial. he's been awol. absent without leave. i don't want to get involved in those facts. i'd rather talk about the issues. but in congressman's position, he is battling toe to toe.

let me zmu closing if you look at the polling in your state right now, the poll recently came out of the field, does senator specter deserve to be re-elected? 40% of republicans said yes. 49%, sir, said no. what is it about you or the issues debate that would have nearly half of the residents of your state who know you so well saying no? >> well, it is common when it's candidate x versus no one that no one does well. the real -- >> let me interrupt you on that point. we're almost out of time. there is someone. there is a likery republican candidate f do you a general election matchup with him, you led by 20 points. that is a dead heat now. >> well, i don't want to get into details. but that poll had a lot of problems. it polled the same number of democrats as republicans. and democrats vastly outnumber. but even that poll showed me in the lead. but getting back to your prior

question, re-elect figures for incumbents are characteristically low. listen, john, there is only one poll that will pass. i've been in a lot of elections and a lot of primaries. i didn't ask the president to clear the field. i'm prepared to take on all comers. and i think that when the final tallies are in, i feel confident. but it's a campaign. and starting tomorrow, i'll be traveling the state. my practice is to hit all 67 counties to take my record to the people. and got elected five time. so far, it's been successful. and i'm going to continue to work at it. >> great race and a great state. we'll check back in as the race goes on. take care, sir. we'll talk you to in the near future. when we come back, our american dispatch. so she can watch me cook. you just love the aromas of beef tenderloin... and, ooh, rotisserie chicken. yes, you do. [ barks ] yeah.

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we traveled to eugene, oregon for this week's american dispatch. one in every six residents is living on food stamps. unemployment rate is 12.2%. we went to relief nursery. it is a remarkable, inspiring place. but as it tries to serve more families in need, it, too, feeling the toll of the recession. >> lunch time at the relief

nursery, salad, english muffin pizza and a little pineapple. gabriel washes his down with a cold glass of milk. but three hours a day, chance to learn and play. invaul ubl interaction for a young boy working to overcome a speech impediment and a safety net for a struggling mother. i lost my apartment. and no money coming in. no money to pay rent. >> so for a bit, this van was julie's home. >> it's kind of hard to see your house not running and knowing that this is where you sleep.

>> that is a car, huh? >> now she rotates among friends with an available couch and her three children stay at her ex-husband's apartment n a packed but organized file, the road map to recession survival. >> this is a sheet that tells me where free lunches are in the community. so that my kids can eat for free. i try to stay up on that. i try to carry it so if i hear somebody that is struggling, it's like wait. i know where you can find help. somebody needs food boxes. there are places to get food boxes in here. and so i'm not the only person that needs the help. >> relief nursery is proof of that. within the three months of 2009, it helped as many families as it did in all of 2008. >> this is over 1,000 children last year. so that is telling you how drastic the increase is. there are newly needy families. what i mean by that is families who have had jobs, who have had

one or two parent incomes, have had a home. might have even been small donors for the relief nursery or volunteers here. what we're finding in oregon is that early childhood and hunger is drastically increased. >> increased demand for relief nursery and organizations like it often can't meet. waiting list of more than 200 families here. cool irony of this recession is government and private funding sources seem as hard to find as jobs. >> every single funding source that typically supports us is having a challenge right now. when wh we have people calling and saying my family doesn't have food or i'm losing my home and i don't know where to turn, that is difficult if we can't help them. >> there are encouraging signs. food donations surged when vandals destroyed the nursery's mobile food bank. >> we've also started doing what we call family fun in food night.

families come and gather and have fun meal together. the first time that we held it. and we had over 100 needy families come. >> you want to spin? >> uh-huh. >> really? >> julie has been coming since the beginning, usually after another frustrating day hunting for work. >> it's really tough. i'm finding that i'm competing with when you apply for a job now, you have 200 other people standing in the same line. >> no jobs, no room in the shelters. which makes julie all the more grateful for the relief nursery safety net. >> it is awesome. >> i know their faces that they're well taken care of. >> i have to stay positive. my kids count on me. if i don't give them a positive face, nobody else is going. to