help upgrade 9-11 emergency call centers. guess what? some of that money now being swapped to pay for other things, not to help us. we'll tell you where your money is going. >> also, iran's leadership making scarey claims about its defensive capabilities. >> president obama assisting that health reform plans on capitol hill will help small businesses insure their employees. you know it's controversial. critics claim if they go through, those same businesses may be forced to cut jobs just to stay afloat. molly live in washington with the latest on this controversy. how does the president say that the plan will now help small business when we've heard the opposite so far? >> hi. he said the reform plans in congress now will set up an insurance exchange for small businesses. >> they can compare the price, quality and services of a wide

variety of plans. many of which will provide better coverage at lower costs than the plans they have now. they can then pick the one that works best for them and their employees. >> the president says if the small business decides not to offer health insurance, then employees can use that insurance exchange to buy their own plan and low income workers will get government money to help pay for it. >> kind of complicated. he may be pushing it, but the republicans aren't buying it? >> no, the gop says the democrats 1 trillion-dollar plan will increase taxes on the wealthy and small businesses and and cost millions of jobs. republicans say they have a better plan. listen to this. >> the house of representatives, we've outlined an alternative that reduces costs by rooting out waste, fraud and abuse and reining in junk lawsuits that cost families millions each year in higher premiums. our plan let's small businesses purchase health insurance for employees at a lower cost. for those who are uninsured now,

it offers affordable choices. >> congress woman rogers says the democrats plan is too expensive and quote, prescription for disaster. >> strong words. the clock is ticking that the president wanted itha passed by august before the recess. that won't happen. what's the status now of where it stands before the recess? >> right. it's pushed into the fall. the house is supposed to go into recess next friday and democratic leaders there suggest it's unlikely they'll have is a floor vote before then. the senate leaves town the following friday and the top democrat there says that chamber is expected to take up health care reform again in september. we're pushing it to the fall. >> the blue dogs against the cost of this. so it looks like the fight will go on. live in washington. thanks, molly. >> the "new york times" reporting the bush administration considered using u.s. soldiers to conduct a raid on american soil. they would have been sent into a buffalo suburb back in 2002 to arrest these guys you see here. the times is reporting former

vice president cheney strongly urged the military to be used to capture these suspected terrorists. but president bush, it says, ultimately decided against it. now the story in washington. steve. >> in the wake of 9-11, the heightened security concerns in this country, the bush administration reportedly considered the idea of sending the u.s. military into a major american city. the "new york times" reports administration officials in 2002 debated the idea of sending troops into buffalo, new york to apprehend a group of men suspected of plotting with al-qaeda. that group became known as the lakawana6. president bush eventually ordered them arrested by the f.b.i., which had been monitoring that group of yemeni americans. five were arrested near buffalo in september of 2002. another was picked up in bahrain. they all pleaded guilty to terrorism-related charges. sending the military would have raised legal questions, since the constitution banned unreasonable search and seizure

and the 1878 law prohibits the military from acting as a law enforcement capacity. military man, if i was asked, i would have said no, i don't believe we need to do it because we're trained in the tactic, it's very important to us and we're not trained to be law enforcement. we're good at other things. my recommendation to them would be don't do it. >> where why is -- vice president dick cheney reportedly urged him to send the military, arguing national security in the wake of 9-11 warranted such an unusual move. he reportedly relied on a justice department memo saying the president, quote, has ample constitutional and statutory authority to make such a move. at least one top level meeting was reportedly held to debate the idea, but the meeting said there was strong opposition from condoleeza rice and f.b.i. director robert muller. >> thank you.

>> hillary clinton calling the honduran president attempts to return to his country reckless. he is defiant. he actually crossed a rural border briefly despite the interim government's threat to arrest him and put him on trial. now more from the capital of honduras with the latest. can you remind us when he was ousted, why he was ousted, it happened in the middle of the night. he was in his pajamas when the military came with weapon, bundled him on the plane and booted him out. >> that's right. the military threw him on a plane, still in those famous pajamas. he gave his first speech when he called a queue deta in those pajamas. he was trying to put to a referendum to allow him to stay in power beyond one term. it's something we've seen quite a lot of in this region. it started with hugo chavez. you get elected, you rewrite the constitution and then try to

stay in power forever. it's worked in venezuela and bolivia. it was a real concern here among the military and men middle class that that's what this ousted president was trying to do here in honduras. >> he's a real buddy of chavez as well as raul castro. what's he going to do next? >> it's hard to say what he's going to do next because his moves have been erratic. yesterday we saw him try and enter the country -- on foot. a few weeks ago he tried to enter the country by plane. they prevented that. right now negotiations are in a stand still, but that's what people are hoping for in the u.s. government and many allies as well. trying to get them back to the negotiating table. what we saw yesterday could have ended in disaster. you had a president and his civilian supporters, 25 yards away from the military and the police. a real tense stand-off. it was lucky there were no serious injuries on that border. >> he could have been arrested

immediately. from where you are, what do you think will happen? will the country be plunged into further crisis? how can they resolve this and do that over a negotiating table? >> it's going to be tough because the interim government here has taken a very hard stance, despite the pressures and the fact this is being condemned by every nation in the western hemisphere. they say this guy is not going to come back to power. if he does cross that border for real, we'll throw him in jail for treason. >> the crisis continuing. no resolution on the horizon. steve live in or duras. thank you. >> lightning storms are sparking dozens of new wild fires in eastern washington state. most of those fires, they say, are pretty small, no evacuations have been ordered so far. but the hot and dry conditions can create a big problem for the firefighters out there. domenica davis is live in our fox weather center with the

latest. >> looking at very hot weather moving in toward the beginning of the workweek here. let's start out with our tornado warnings. we do have a tornado warning right now from money co- county in new york. this is the only tornado warning out there. straight line winds are being reported with this storm. it has until 6:30 local time and then you can see this storm will be out into the lake. good news there. we are monitoring some severe thunderstorms that are really from new york pushing to the ohio valley. a few watch boxes up. kentucky, buffalo and going to the central part of pennsylvania. these will expire at 9:00 o'clock local time. both of these watch boxes and as these storms move off to the east, they'll start to lose some of their intensity that we have been seeing. not too bad, but with any of these storms, nickel size hail, and again, straight line winds. you do have is a few areas in the ohio valley and upstate new york, especially, where you have some tree limbs down. that will be the case for the rest of the evening.

this front pushes off after midnight to the new york area, to baltimore. you can expect showers, maybe some thundershowers for the first part of sunday. another area to watch, we don't see any watches pop up likely. but getting strong thunderstorms through the northern new mexico part, southern colorado. so watch out in this area. they're getting frequent lightning and pretty strong wind gusts. we'll keep monitoring for you and let you know if any tornado warnings come out. >> we want to know about that. thanks. >> now it's okay to talk to a lobbyist. that from the obama administration. the white house doing an about face on restrictions put on lobbying for the stimulus project. they will allow them to meet and actually speak on the telephone with the government officials on economic recovery projects. in march president obama said officials would not take into account the views of lobbyists when dealing with the projects. the ban now lifted with some strings attached.

government official says lobbyists have to identify themselves as speaking on behalf of a client or clients. agency officials have to put on the internet all their contacts with lobbyists. alaska governor sarah palin drawing a huge crowd in her hometown a day before she leaves office a year and a half before her first term ends of the she's getting the rock star treatment at her annual picnic on friday. she was mobbed by well wishers wanting her autograph, wanting her to autograph books, hands and in some cases, their babies. many in the crowd expressing hope that she will make a run for the presidency in 2012. >> you can wash that off with a baby wipe. democrats enjoy a filibuster proof majority in the senate. that magic number 60. that's only if they all vote together. we're now seeing major divisions within the democratic party, particularly over health care reform. you know about those moderate and conservative blue dog democrats.

what does this say about the democrats as we go forward from here? joining us now, jason scheckter, former spokesman for bill clinton, republican campaign manager. welcome. jay, let me start with you. setback for the white house. they wanted the vote. they're not going to get it. what now? >> the white house and the democrats have a really, really tough week. you saw fight erupt between waxman and the speaker of the house. waxman threatened to take the bill to the floor without going through his committee. you saw the blue dogs and waxman calling each other liars on friday. you had the white house demanding that this bill be passed by the end of august and the democratic leadership told the white house to go fly a kite. the worst thing is for president obama is they are down 16 points since the beginning of the year. the unfavorable up 21. for the first time in his presidency, his negative exceeds

his positive. they're on the defensive right now and under great pressure to pass a bill. >> jason, you just heard what that laid out and there is another point i want to make. they're going off on recess in august. this congress, they're going home and they're going to hear a mouthful from their constituents. >> i think there are some issues that democrats disagree about. but i think there are actually more issues that they agree on. i think they agree that insurers should be required to cover people with preexisting conditions and should agree that people allowed to choose their own -- >> they haven't agreed on a bill. the blue dog democrats and others are saying this is a one trillion dollars, there is too much money in that. others don't like the medicare cuts. but they haven't agreed. >> i think you're talk being a process focused debate that comes at the end of the legislative process. they have been able to get this far, two house committees have now passed legislation. the senate is talking and i think what's important is that they focused on are the broad

issues that they do agree on and i think they are, just yesterday, democrat leaders came out and said they are all together in cutting growth of medicare and i think that helps the legislation. i think we're talking about the very focus processed debate. >> do you think that will be enough? what will happen when they spend a month back home and hear from their constituents about the costs as well as the concerns over those who don't have insurance? >> i think the president and democrats will be out there promoting their agenda. i think they will stay focused on what's important about this debate. the fact that 16% of the gdp right now goes to health care costs and ten years, that's projected to grow to 25%. we pay 6 hounds more mere person than other countries that get comparable health care coverage. those are the types of discussions they'll be having out in the field during the august recess and i think that will keep people ultimately focused on what's important. >> you laid out some of the facts perfectly. but jay, is that enough?

>> here is the problem. it's not process, it's not coordination. what the speaker of the house is trying to sell is a lie, it's a fraud, it's a hoax and some of the blue dogs know it. doing the same thing with this that they did with the stimulus bill. let's give it to congress to write. let's ram it down the throats of all the blue dog democrats, a bill that did not work and is not working and let the american people saw is the economy got worse. not better. the problem with the health care bill is that you can not bring 45 million new people into the marketplace and not increase the supply of doctors, nurses and expect prices not to go up. prices are going to skyrocket. look at the congressional budget office, released yesterday. they're saying that the prices will not go down. there is a disconnect between what the president is saying and what people are reading. yes, the blue dogs are going to get an earful. >> and there seems to be a disconnect in the democratic party even though jason thinks

it may be settled sometime in the fall. the debate continues. thanks, gentlemen. >> thank you. >> president obama is trying to put out the flames sparked by the controversial remark on the arrest of harvard professor henry gates, junior. he is inviting now gates and cambridge police sergeant james crowley to the white house for beer. the president hoping his personal intervention will put the issue to rest. now live in cambridge, massachusetts. how are things going there? >> it's a pretty quiet weekend, but things could heat up really fast quickly if that 9-11 call is release where had the neighbor called in and said that she thought two black men were trying to black into her home or if the police transmission call of gates arrest is released. the police union wants them released. it's up to the city solicitor. it remains to be seen if it will be made public. sergeant crowley said on the

local news yesterday, nobody is speaking today, that during the arrest, gates was loud, ranting and he was refused to calm down. he said it was the professor was completely uncooperative and that's why he was arrested for disorderly conduct. the president called them and mr. gates said they would meet up for a beer. the president also said which race is still a sensitive issue in the nation and that's why this happened. but there are people here locally that said if he hadn't waited until a local issue, that he knew nothing about, it wouldn't become such a big deal. >> i read this morning in the newspaper that gates doesn't like beer. i guess he'll have to seek out another drink for him to have at the white house. thanks courtney. >> they talk about universal health care, the big debate. in massachusetts, it's turning out not to be so universal.

they got a huge budget short fall and that's now forced big cuts. we'll explain. stay with us.

>> welcome back. a look at some of the stouffers making news. a manhunt underway for two suspects in the killing of a border patrol agent in southern california. investigators are focusing on hospitals because the suspects might have been injured in the gun fire which killed that agent. robert rosas is the first border agent killed in the line of duty in almost a decade. today is the last full day in office for sarah palin. she's stepping down tomorrow. her next move, well, no one really knows. seems to be the biggest guessing game in politics. and harvard professor henry gates is accepting president obama's invitation to come to the white house for a beer with

cambridge police sergeant. president obama spoke to both of the men on the phone yesterday and after days of tension over the arrest of gates. >> congress has been looking to massachusetts as a model for overhauling health care. but a huge budget short fall is forcing the state to now cut coverage for about 30,000 legal immigrants. state officials say there is not enough money to pay for all the programs. now details from boston. >> facing a massive budget short fall, massachusetts lawmakers are cutting roughly 30,000 legal tax paying immigrants out of the state ground breaking universal health care system with a letter that they will lose their insurance. >> blood test. >> health care advocate at this groups are anxious -- getting anxious phone calls from people who has prostate cancer. >> they're going to send me the bills. there is no way i'm going to pay all these bills.

>> reporter: critics say those left without insurance will resort to the only option available to them. >> they will end up waiting until they get sicker, show up at the emergency rooms, being expensive and that cost will fall to the hospital or the health centers. >> reporter: cash strapped hospitals are already strapped. this week boston medical center filed a lawsuit against the state, claiming it's been short changed by 181 million annually of reimbursement rates dropped to 64 cents on the dollar to cover the poor. the biggest question asked about this landmark health program here in massachusetts, has always been how to pay for it. the plan to cut tens of thousands of legal immigrants out will save estimated $130 million a year, a difficult choice, they say, but one based on dollars and cents. >> it's onion envy i can't believe position to find ourselves in. but we're not even in a fiscal year where we can commit to solve the problem because we don't know if we'll reach the

revenue pledgemark. >> the governor believes the state made a commitment it ought to keep. >> if we're talking about hard working tax paying residents who are contributing to the system, it's only fair that health care for all is for all. >> he'll fight an uphill battle against a legislature constitutionally bound to balance a budget. cutting a program hailed as a national model. >> thank you. >> a horrifying scene, a major chunk of a bridge collapsing in china is caused by a landslide. it happened near the epi center of last year's earthquake. seven cars have been pushed into the river and at least three people are dead. 12 others injured. the bridge seems to be a key transportation link for construction and reconstruction work in the area for n biden says russia's economy is withering away. the vice president says that may force moscow to soften its approach with the west on a wide

variety of national security issues. he says including how it treats its former soviet republic and perhaps even shrinking its nuclear arsenal. the vice president just finished up that trip to the ukraine and georgia. and a new study finds more evidence of a link between your height and your risk of getting cancer. south korean searchers say for every additional two-inches of height, men have a 5% greater risk of getting cancer. that risk actually goes up 7% for women. why? they think environmental conditions. taller people have more body tissue, obviously, so they're going to get cancer probably easier. that's good, if you're a short guy, that's bothered you, your chances of getting cancer are lower. >> mixed messages on the economy. wall street is looking good. right? busted over 9,000 last week. but diferent scene on many main

streets where unemployment rates are up and consumer confidence on the decline. how will it affect the surging stock market?

it's the bottom of the hour for the top of the news. federal agents searching hospitals along the mexican border for suspects in the murder of u.s. border agent robert rosas, that happened thursday night. he leaves a wife and two young children. police say that the suspects were likely injured in the shootout. also the taliban launch a major attack on a police station in afghanistan. defense forces, they fight back just in time, killing all of those militants before they were able to detonate their exploding vests. >> and a final farewell, the last world war one british to fight in the trenches have died. he was 111 years old. he lived in southwest england. the controversy over an

incident between a black harvard scholar and a white police officer making headlines nationwide. you probably heard this story 1,000 times in the last few days. everyone from the president to bill cosby has weighed in on the arrest. some are saying they wish this story would fade away. but jim armstrong from our affiliate in boston, he's here to explain why we should still care. >> i think they should let it die. >> i think that it's gone on way too long. >> easy to find consensus here, everybody is familiar with the story. the people involved handled it so poorly. it began with henry lieu questions gates demanding an apology, saying officer crowley should beg for forgiveness, almost unbelievably it got worse. >> you ought to be able to raise your voice in your own house without arrest. >> the cambridge police acted stupidly. >> immediately the conversation

shifted away from race relations and tort nonsense. by the end of the week, it was who was offended by whom. more demands from police unions for someone to say sorry. >> i think the president should make an apology to all law enforcement personnel throughout the entire country p who took offense to this. >> the president took the blame for making things worse. >> 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. >> reporter: but now he's right on. instead of worrying about whose feelings are hurt, how about an actual discussion about race. how does a white police officer interact with a black suspect if he's afraid someone is going to call him a racist for doing his job? what about a black suspect confronted by a white cop and how he might have a lifetime of feeling like he's been unfairly targeted despite his innocence. those are hard questions. with a painfully difficult topic like race, it's easier to avoid

the big issue and focus on the trivial. >> yes, it can be an opportunity, but it depends on your audience as well. >> that was wfxt jim armstrong reporting. >> can you believe it, it was 40 years ago today when apollo 11 crew returned to earth. looking and reminiscing back to when man landed on the moon. that this was the day it splashed down in the pacific ocean. the uss hairnet plucked them from thecean. the uss hornet museum is the site of this year's splash down 2009 celebration. that's where we find casey stegall live in almeda, california with the latest. >> hey. good to see you. the ship is incredible. behind me in all its glory. but no doubt the pictures really tell the story. let's get right to it. we want to show you the video. we are talking about the uss hornet. it's docked in the san francisco bay and it's a 19-story floating aircraft carrier.

the ship fought nine major battles in world war ii, the cold war, then vietnam, but she is perhaps most famous for her mission in july of 1969, the splash down as it's called, 40 years ago, when the hornet and its crew plucked the astronauts and the space capsule from the apollo 11 mission from the waters of the pacific ocean. the world watched as the helicopter brought neil armstrong and the rest of his crew on board after spending eight days in outer space, more than 21 of those hours on the lunar surface. now some 40 years later, folks can tour that monster ship and see the replica of the says capsule, the quarantine unit, armstrong and the rest of his crew had to be in quarantine for 21 days to make sure they didn't bring back any moon germs to

earth. >> i can still see today exactly where neil armstrong put his first feet after walking on the moon. it's an amazing pie of history to have for us to have as a nation, for us to preserve and be responsible of maintaining and keeping for generations to come. >> of course, a lot of stuff going on this weekend to commemorate the 40th anniversary. but this thing has also opened year round for people to check out. i interviewed buzz aldrin a short time ago, a very neat man. he had a lot of cool stuff to say. we'll play it for you coming up tonight in the fox report. back to you. >> going to be looking forward to that. i look back to the days, it was so exciting had they stepped on that aircraft carrier. we got a call from the president welcoming them back. >> how far we've come. they landed in the pacific ocean? >> yeah. landed in the ocean. >> that was so exciting. >> thanks. iranian police respond to protests calling for the release of opposition activists taking

part in demonstration against the iranian government fallout from the disputed presidential election. some of the protesters shouted death to the dictator against ahmadinejab who they say won reelection through voter fraud. >> says iran would strike israel's nuclear facilitys if israel attacked iran. the commander says iran has the capability to target all of israel's nuclear site. that tough talk, nothing new from the head of the revolutionary guard or iranians. he says the nuclear facilities were in range of iran missiles. israel recently has played war games which experts think could potentially be practice runs for strikes at the facility. >> iranian reporting 13 of the 16 people killed in a plane accident yesterday belonged to the crew. the other three who died were

passengers. their plane veered off the runway in northeastern iran and slammed into a wall. there were 153 people on board at the time. the iranian media says the accident was because of a malfunction in the aircraft wheel. this has been a particularly deadly year for air travel after a string of safe years. on july 15, a russian aircraft crashed in iran on its way to armenia. it caught fire in midair and slammed into farm land and killed all the people. two weeks before that, on july 30, yemeni airways jet crashed. one 14-year-old girl was the only passenger to survive that accident. all the other 153 passengers were killed. on june 1, air france slight 447, that air bus went down in the atlantic ocean after taking off from brazil. the messages indicated it suffered electrical failure. all 228 people on board were

killed. so far this year, ties as the 21st worst accident year in aviation history. traders might be celebrating, the dow closing over 9,000 for the first time since january. while wall street is riding high, marking its best two weeks in nine years, but it is a totally different story on main street. as you know, unemployment is still up. consumer confidence is still down. well, erry is a business and financial analyst and author of getting good jobs in tough times, which is tough to do. folks need to read your book to find out how to do that. why the disconnect between wall street and main street, because we're seeing the numbers looking good on wall street. obviously on main street, unemployment is still at a record high. >> great to see you. i'm sorry you missed the memo to wear yellow. >> what are you thinking? >> you guys look great. that's a good question.

why is there a disconnect and the question should really be, is there a disconnect, because in the past, the stock market has never really been a barometer for where the economy is today. in the past it's lagged economic conditions or it's moved forward based on momentum which was not realistic. currently you can look at the economy and you can say to yourself, things are doing very poorly on main street, and everybody wants to know, why did the economy go from 14,000 to 6,000? i think it's important to look back. let's think back of where we were at 6600 at the low point. everybody was thinking about armageddon. people were thinking it's the end of the world. a whole way of life was over. today, that's not the case. that entire sentiment and idea that our -- that our system doesn't work and we should all sell everything and move, that's over. dnobody believes it's the end of

theth world. >> it changed quickly. what about as far as so many different types of traders. what does it mean for them? >> if we look at generalizing about the different types of traders, those who are essentially to get a specific exposure from their bank and they're almost like professional gamblers. they don't care that the stock market is up and the economy is down because essentially they have the right position, they survive on volatility. same with the market makers. they're the traders that essentially have a book of securities and need to provide pricing for salespeople who are accessing the institutional investors. the traders that do care about this are the ones that are issuing new securities, like equity capital market people who are underwriting new issues. they want the stock market to be high at all times so they can underwrite new issues and companies can get access to capital from new offering as. i think what's really important, if you look at what the traders need to evaluate today is they

have a very difficult job, traders and equity analysts, because they're looking at earnings and micro economic aspects of companies -- companies, but they have a back drop of difficult economic environment where nobody knows where the economy is going. you look at the economy, you got writeoffs and commercial real estate coming up. people are worried about recasting of interest rates with home mortgages. there are so many other issues, inflationary pressure, people just don't know where the economy is going. so the fact that earnings are coming out and you have better than expected earnings, it doesn't mean much. let's take one example. look at intel. they came out with better than expected earnings. should we be excited? the reality is their earnings are less than half of what they were the year before. we can't get excited. >> if these are better than expected earnings, can we really trust these guys, the analysts that are telling us the economy will be better or worse? they're not getting the --

they're not projecting the earnings correctly. how do we know who to trust? >> that's a great question. nobody has a crystal ball. i think the key thing here is we need to watch consumer confidence and consumer confidence is going to take a long time. i was tell ago friend of mine, consumer confidence is like going after a long lost girlfriend after a devastating breakup. you could write love letters, you can offer a -- >> you'll never get her back. >> it's going to take a long time to get them back and it will take a long time to put americans back to work and we just have to work very hard at it and be optimistic. i would like to be optimistic and hopefully we're on the right track now. >> your book is titled getting good jobs in tough times. for folks that don't have jobs right now, they're not really -- they don't care about the the stock market, they just want to make money, to be able to invest. what do you say to those folks, when are we going to see unemployment go down? >> that's a good question. i think we have several quarters of increased unemployment.

i think the unemployment rate is going to go up above 10%, but i think if you do the right thing, even in today's economy, you can find a good paying job. you need to network, you need to use access alumni from whatever college institutions you went to. i went to michigan, you went to university of south carolina. >> i'm impressed. >> you did your research. how did you know that? >> i read about you. >> by the way, pink actually does match yellow. you're doing okay. >> we look good together. >> you're welcome any time. thank you. >> it's summer. you look great. it's summer. nice and springy in summer. >> have you looked at your phone book lately? >> if you look at your phone bill, you may not have known about this, but there is a charge called e911.

supposed to help the 911 call system to make it safer so we can text police. but guess what? some states ain't spending will that money on 911 system. they're taking it and doing something else with that that they shouldn't do. coming up, we'll talk to an expert on why the states are spahning some of that money for other things when it should go help the police. ws

kelsey gramar is expected to expect the parole hearing for the man convicted of killing his sister. the hearing will be on monday at a location 90 miles south of denver. it happened in 1975 when 58-year-old karen grammar was abducted outside the red lobster restaurant after an attempted robbery and she was killed. 52-year-old freddy flynn was convicted and has been serving a life sentence for that crime, but now eligible for parole. colorado changed the law after his conviction, so first degree murders are now not eligible to

get out. a report by the associated press reveals some states are taking money that should be used to help keep us safe. that issue is what's called e911. it basically is a plan to upgrade our emergency call systems so we can text police, fire department and mott just use the telephone. if you look at a phone bill, you'll find on your phone bill there is small tax or surcharge. the they're using the money to plug budget holes and use it for other things that are surprising. john wall, vice president of public affairs for ctia, welcome here on fox news channel. it's unbelievable. >> it really is. >> can i say what this is being used for? money to help 911 is going to guy lollipops in one case? >> you'll have loply pop, those

were branded in one state. but the real sucker is the taxpayer, the consumer who is paying money into what should be a fund for emergency communication services. instead, 12 states as reported by the fcc yesterday in a very extensive report, use that money in 2008 for other purposes. and you mentioned the eap report. we're talking about $200 million in the last two years that have been collected under the premise of an e911 charge and then diverted over to general revenue purposes. >> is it legal? what do states say about this? >> couple of laws on the books right now. one called enhance 911, that is meant for accountability so that if y apply for federal grant money for your communication services, you have to prove that the money you're already collecting is being used for that purpose. for the 12 states that are on record right now of not doing so, deemed ineligible for that 911 money on the federal side is a reality right now.

so they're not going to be eligible for it. can they move that money around? well, they really can by virtue of legislative statute, but it's disingenuous, it's violating the intent of what that must be should be paid for, emergency communication services. those citizens across the country aren't getting what they're paying for. >> it's astounding. look at north dakota. they bought the lollipops, christmas ads and newspapers. in new york, they used it to buy police uniforms. you want the police to have uniforms, but not with the money to help the e system. why is it so important and how will this keep us safe to have an e911 besides what we're used to, to pick up the phone and dial 911? >> from a wireless standpoint, it can locate you in an exact location. so all those public service answering points around the country, 911 call centers, they have to have the technology in place so they can locate you.

very important for the wireless being a mobile technology. and then we have texting capabilities on the horizon here. video messaging, all those things that could be used in an upgraded system, but right now states are taking that money and going in a different direction for it. then they're not giving the citizens the bang for their buck they deserve. >> finally, how many states do you know offhand actually have is? i never think about it. >> everybody pays for it. we all pay it. all 50 states collect money, about a dozen are taking that money and spending it for other purposes. in this day and age when we're all paying on average about 15% of wireless taxes in fees, to say some of that money isn't being used for it intended, people should say enough of this. >> it sounds like a great idea. i hope the states use the money for what it's supposed to be using it for to keep us safe. thanks for shedding light on this. >> thank you. >> thanks. it's been a controversial topic for several years.

now also coming to a head during political campaigns, we're talking about stem cell research. now there is some new information that could break the debate wide open once again. we'll tell you about it coming up.

53 after the hour. time for a look at the latest headlines. the hunt is on for the suspects wanted for killing border patrol agent robert rosas, shot and killed on thursday of the federal investigators are combing hospitals along the u.s.-mexico border looking for at least two suspects who might have been injured in the gun fire which left that agent dead. what is next for soon to be former governor of alaska sarah palin? the ex republican vice presidential candidate, we know she leaves her post tomorrow. many wondering what her next move might be. she has announced she's writing a book. >> and harvard professor henry

lewis gates, junior will accept president obama's inveigh taking to visit the white house. would he be crazy if he didn't accept it? the police officer who arrested him was also invited over to the white house for a beer. and now to the new research thir could be vital to your health. several companies are now able to create stem cells from blood and skin. these stem cells could help cure a number of diseases, also we could see this is a way to avoid the controversy over using embryonic stem cells for research. now the story. >> from the street t doesn't look like the type of place that could cure cancer. alzheimer's or heart disease. but that's what they're working on at this lab in maryland. the biotech firm is taking cells from human skin and turning them into adult stem cells to treat disease. >> it really is an exciting time and the potential diseases are amazing?

>> they create stem cells and could one day make embryonic stem cell research unnecessary because they have similar miraculous qualities. >> these cells have the potential to be any cell in your body. for example, if we took these cells and put them in certain culture conditions that would favor them to become heart muscle or heart cells, they could do that. >> reporter: researchers say it's too difficult to tell how soon their technology might be used to treat patients. but they are optimistic, testing could begin in as soon as three years. first, however, a significant obstacle must be overcome. transplanted cells must not carry the same disease they are being used to cure. >> the f.d.a. will say to you, is this safe? >> renowned biologist says the stem cells are already being used to research new drugs. but he agrees, treating patients is years away. among the hurdles, effectively

transplanting the newly created cells. >> the cells for blood disease is eeasy, but for parkinson's, it's difficult. it depends on the disease. >> they have spent $100 million and are still waiting for a financial reward. but if they meet expectations, we all stand to benefit. >> that was david lee miller reporting. >> we're going to talk about the electric slide at a wedding. >> you've never heard of that? they do it at every wedding. >> they throw the rice, rose petals. >> what we talk being next? >> the bride slide. we'll talk about that coming up. >> during the break, i want to show you the electric slide.

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