>> i'm monica malpass on inside story fallout continues from the jerry sandusky pedophile case. a new wrinkle this week in the story that just won't go away. let's get the inside story. good morning i'm monica malpass, welcome to inside story, let's meet our insiders. ajay raju, good morning, welcome. nia meeks, christine flowers and jim eisenhower. kathleen kane said there were two more victims that nobody accounted for at the time of the trial. turns out that those two had

already been made aware to investigators one of had been part of the trial and sandusky was convicted of assaulting him the other didn't remember his date of the assault and were afraid he wasn't good enough to stand up to the trial process. did this do clatle damage -- 0 collateral damage to kathleen kane? >> she is in a difficult position, she has a lot of to deal with. to her credit she commissioned this investigation, the results of it were contrary the other own statements, but nevertheless she went forward with it. >> who came out smelling like a rose was tom corbett. he was in the middle of it. he did the right thing he stayed

quiet. basically she had to fall on her own sword. i have to say kathleen kane came in a with a a lot of goodwill and energy, she did wonderful things closing the florida loophole and stopping the lottery sale she has been making misstep after misstep threatening her credibility not just for people in other base and it is leaving hardware vulnerable. the -- at it is leaving her as a rule article. it's leaving her vulnerable. >> that's a problem. >> the big problem we're talking about kathleen kane here she has become the story, she has become the lightning rod for all of this criticism. i mean, i understand there are positives you can take from the situation that she did initiate the investigation. let's not forget this investigation was one of her

political this was one of the political platforms she made it into office primarily because she attacked corbett, she made a big deal built penn state case -- about the penn state case, i don't want to say much to do about nothing, because there was much to do about something. her position during the campaign was wrong headed. correspond bit did not -- corbett did not delay. >> maybe they took too long to go to jerry sandusky's home they found photos an identifiable photo of one of the victims and they went down the the basement where there was an assault. do you think this was political back and forth more than anything that she was trying to move she produced this -- trying to approve she used this as a platform point. >> nia came in waist goodwill

good -- came in wait goodwill. goodwill for democrats not republicans. that's what she campaigned on and turned out to be false statements maybe not malicious, but inadvent inadvertent statements. she was a rising star, one because she was a woman when she came on the political scene. even though clinton could not readvise this candidacy -- >> i have to say this, for her to have insinuated and made this a particular point because of the so-called delays of corbett other children were abused,

that's not decent because there was no evidence whatever is after 2009 there were additional victims that could have been saved had sandusky been taken out early. i think that's mall feesance. i don't think you can say in any shape or form that the commentaries of validated. >> does sandusky deserve his $5,000 a month pension payment back. however the state hearing officer said technically he was not a school employee when these attacks occurred so technically it should not impact his school pension money. >> do you want to go on technical or what people would feel about this. i don't feel there's a taxpayer that would feel comfortable we have a convicted pedophile and we should pay him $5,000 a

month. generally speaking when you have committed a crime generally speaking someone doesn't look well on you when you benefit from the breach of public trust that you have encountered. >> i've had clients who were convicted of far lessor offenses who were state employees particularly in bonusgate and lost all their pension 100%. >> even though they were on the dole. this is a different. >> it seems letter of the law, maybe. >> not to defend a pet file, the law entitles him to pension then he should get the pension even though we may not like him or wish harm on him, whatever. that's what makes america america. i'm surprised the two of you -- >> you ask any taxpayer should we pay him $5,000, i don't think

people will want their tax money which is what their money is going to this man. new jersey politics, governor chris christie made a trip to new hampshire as a friend to check it out. that's the first state where there's presidential movement going on a very important state to win, iowa being the other one. the polls showing he is gaining his popularity back versus hillary clinton. instead of being 15, he is only 8. it was a five percentage gain back in march when all the scandal broke about the girard point bridge. do you think he is on the come back. >> he is going to try to move it. hillary clinton had a few missteps in the early days. i still think if we go further down bridgegate is not done,

unfortunately. everything with hillary clinton is not done, all the early polls does not say anything, friend of new hampshire, friend of iowa, friend of florida, we'll continue to see chris christie until someone's steps up into this gaping hole on the republican side. >> the pulaski sky way is being rebuilt for a billion or so, people are starting to wonder if it was a miss start do you think there will be more smoke here? >> i think it was a bond disclosure issue, but look, chris christie is a national star and anything that could distract people from what's which is a large personality is going to be fodder for the media as it should, he has earned many of the negative criticisms he is

getting. having said that, there's fresh stain, once you're used to a stain it doesn't matter. what happens chris christie the bridge scandal happened a couple of months ago there's enough time to become that person who is a maverick and if hillary clinton's candidacy is going on a downward spiral, jeb bush is not reviving his candidacy -- >> her book sales after one week went down slightly. anybody bothering anybody who is a hillary believer. >> i think it's a temp iest in the teapot. >> ajay is right, if chris christie is still afloat at this point no pun intended if chris characterize is still there and

viable force who is, who is napping at hillary's heals. heals. i meant shows how time diminishes the media stain on you. >> i was one of the people in the 60% who was the favorable rating for hillary, i think she was fantastic secretary of state and one of the hardest workers. she also not bill clinton, i wonder if her candidacy will be as strong people admire her as secretary of state i don't think she has the same savvy as bill clinton. >> i think the election took a lot out of her. >> chris christie has a honest in your face style not taking anything from folks. >> i think he is recovering i'm surprised by that, my view he

has been resolute throughout the whole thing. people admire that. i don't think you saw there's a picture in the new york times him playing softball for a a charity in shorts sliding into second base. people like that. >> at the end of the summer we'll be able to gauge a little bit more you're looking at the reconstruction of the shore towns, they didn't get money when they thought they were going to get money. there's still a little anger out. out there. wait until the fall we'll see what happens to the shore towns, are they harmed or are they moving forward. if they forgive chris christie he is moving forward. >> he actually came out for the first time and said i'm pro life across the board. that's something he shied away from for a long time.

he was a typical conservative, i never talked about social issues, he came and said he was pro life. >> let's stay at the jersey shore, a double hit for atlantic city, if you will, we just got the announcement that the showboat was going to close in august. revel is going into -- it's been bankrupt twice it's going on the auction block in a short time in a month or so. two major casinos, two major employers in atlantic city taking a hit, they had hoped that sports betting would be the thing here, but the supreme court nicked the idea anymore betting outside the four states so there will be no sports betting in new jersey for now. can they survive this ajay? >> i don't think so, new jersey has a revenue short fall issue. we've had a record bull run in wall street in the past two years, they have 2.8 growth.

they need something to revive the imagery. now they are talking about increasing corporate taxes and taking away incentives for companies to come into the region. that sounds like a state in a downed ward spiral that is not attracting new business or have anything viable to offer. with atlantic city one gets the family it's back to the future. it's a snapshot of yesterday you when you go there it has the feel of the 70s and 80s. this town looks like it needs a makeover and the gambling would have been the makeover. >> two of the 11 casinos are in dire straits. >> it's never going to be las vegas. the idea was to take a city that had been a great tourist attractions for 100 or so years and try to revive it. i happened to be there last week

and very rarely go there it was bustle, it was filled with people. i noticed how many people are employed through the industry. >> 35 or 40 years ago gambling was seen as the magic bullet, the panasea, but it doesn't happen. those going to the atlantic city are gray haired and fixed incomes. it's not the las vegas of the east coast and we're seeing a dellane unless we have new industry coming into will also in new jersey overall -- atlantic city, in new jersey overall we'll watch a downward spiral. >> remember the four states that have the exception are oregon, nevada, montana and delaware. we have gambling in pennsylvania, delaware, you're talking about competition right across the border, that as you canned away the reserve -- as you canned away the revenue

>> welcome back to inside story, thenears for the pennsylvania and new jersey budgets july 1 for both. we have not much concensus on either. governor corbett is counting on a budget $380 million on the sale of the state stores to

privatize them. everybody three out of four shaking their heads like that's never going to happen. we have a 100 million-dollar deficit we have to deal. will this go down to the wire that folks will be hurt again and hurt parts of the state more than other parts. >> governor has no taxes on the shale companies. there's a move on the republican parties to impose that tax, i would believe he would veto it. youthe funny thing it's all republicans, the democrats in harrisburg are irrelevant. >> it gets to be difficult when money is shrinking and you don't have have the ready resources. the shale tax should come about,

if you talk to anybody it makes sense it doesn't have to be draconian but it should be a tool. selling the state stores the fiscal argument has not been made for anyone, we're going to selling the cow and buy the milk later on. it's one time quick fix. >> you can't factor that into any deal with a certainty, as you noted at the table nobody thinks this is going to happen within our lifetime. how you can build a budget on such a huge sum of money driving from that sale it's fool hearty. >> they are trying to think of ban aids here or there on this multimillion dollar budget what do you predict there and go to jersey as well. >> it's like patching up a

leaky roof and paying for sunshine. we'll sift through the proposals, because they are campaign promise and strategy. what we're going to see from what is proposed, even though it's not realistic is a statement of what i would like to do versus what we would like to do. >> across the river $2.5 billion payment to the state pension fund will be in the cross hairs of new jersey, the governor said he doesn't think the state can afford this any more. he has been working on that with the folks from the other side of the aisle pay it in full and raises taxes on businesses. which is worse tax businesses that will be the last straw for many in new jersey and you have a sort of fling of your business community or pay your pensions to the union. >> you have to increase revenue and one way to do that is to

encourage more descri to come into -- century to come into new jersey -- industry to come into new jersey, i would not raise taxes on the companies that could generate that revenue. the pensions are promises made to retirees. the hard conversation would be to ask them to delay. >> you defended jerry sandusky getting his pension, you you think these people, work would go people in new jersey -- >> let me explain why, because when detroit was falling apart there was a tough conversation to be had with with employees there to save the collective whole we have to make sacrifices at all levels. i know that the little man makes more sacrifices, ten dollars a sacrifice is a heavier burden than the millionaire taxes. i'm talking about finding the balance where you ask everybody at the table, even if it hurts,

look what detroit did, the employees took the pain in order to save detroit and gm even though the fat cats and the ceo got million dollars bonuses. >> if you share the pain, they have to be across the board. business owner's and millionaire taxes, they suck up everything. we'll see that with the sixers with their training facility. the fact remains that we have difficult choices. it will require leadership and sacrifice and investment. and we have to not look at that as a dirty word but we have to collectively invest, the business community has to poney up some and the pensioners have to pony up some. >> we're talking about the pension there were lawless you

can't do -- there are laws you can't do variances what's talking about encouraging people to part with their vested pensions. >> i'll take the antipedophile position. >> let's move on to a subject, a controversy in rule pennsylvania over defrocking a minister who maryland his gay son against the rules of the church. it fueled a national debate on several levels, certainly same-sex marriage on another level. frank shaffer was reinstated by the way by a panel who said he was wrongly defrocked. where do you think it leaves us on this issue. >> it can be appealed and might be appealed to a higher board. this particular decision was based on the fact saying you

can't punish someone for something they might do. minister shaffer, did violate a provision of the church which said we do not recognize same-sex marriage he married his son. beyond the reasoning there when they are saying he was being punished for being forced to promise not to continue marriages in the future. >> but they did uphold the 30 days he did serve. we'll have to leave it at that. inside stories of the week

time for inside stories of the week. >> let's talk about philadelphia, we have a percentage increase in population terms among the millennials, coming from britain and new york -- brooklyn and new york, it's great time for drexel having the innovation

corridor, we can absorb them. this week three civil rights workers were murdered by the klu klux klan. this week the airport will open its exhibit. it's important to remember. >> monica, democratic candidate governor tom wolf is getting positive reviews all over the state and raising a lot of money. naming katie ma -- mcgintty to his senior role has been positive. >> not only are the millennials come from brooklyn, they are coming from africa. they are looking at creating an office in harrisburg in dealing with new pennsylvanians and

corporate them more in our economy. >> thanks to all our insiders, i appreciate you being here, and thanks to you for watching, we'll see you here next week on inside story. >> i'm nydia han along with eva pilgrim. coming up next on "action news," armed robbers hit a wawa and a scherch in philadelphia overnight. -- scherch in philadelphia overnight. >> several fallen marines in the area are being remembered with a special event. >> a new device that quickly measures body fat in an effort to give people a better picture of their overall health. >> those stories

>> good afternoon it's sunday, june 29 i'm nydia han along