>> smith: ben tracy in tucson tonight, thanks. in arizona and across the country jobs and the economy are big election issues. today the labor department reported that unemployment fell in only four states in february compared to a year earlier. cities are struggling. nine out of ten were forced to make spending cuts last year and national correspondent dean reynolds tells us there's a lot more to come. >> reporter: five fires broke out in flint, michigan, this week, on the very day the city began laying off 20 of its 94 firemen. running an $8 million deficit, flint has no money to pay them. or 46 of its 193 police officers also receiving pink slips. a tough thing for the city with the second-highest crime rate in the state. >> they didn't just trim a little bit, they just cut our throats. >> reporter: but flint is hardly alone. some much bigger towns are deeply in the red and facing painful choices. los angeles and san francisco have $400 million shortfalls. dallas $190 million. boston $130 million. baltimore $120 million. overal

ben tracy, cbs news, los angeles >> smith: now to those who currently have insurance. 176 million of us get it through our employers. that's nearly 59% of the population. president obama has long said if we have it and like it we can keep it. but mark strassmann tells us it's still going to cost us. >> reporter: for most americans insured through work, coverage is expected to stay the same or improve. with no lifetime caps, no denial of benefits if people get sick and continued coverage if you lose or change jobs. but premiums will continue to rise. how much? no one's certain. to pay for all this sweeping reform, here's what will change. tax-free flexible spending accounts will be cut in half. they reimburse the medical bills not covered by insurance. the new cap? $2,500. and if you make more, you'll pay more. starting in 2013, individuals earning more than $200,000 a year and families earning more than $250,000 will pay almost 1% more on their medicare payroll tax. for a family earning $500,000, it means an extra $2,250 a year. those same high earners will face an extra 3.8% medicar

ben tracy, cbs news, los angeles. >> chelsea's law is expected to be introduced in the california stateegislature next month. >>> after a massive recall, toyota announces it will replace accelerator pedals for free. drivers will have the choice to get the new pedals. the move is in response to dozens of complaints about the feel and general replace -- operation of the replacement pedals. the arc cellerators can get stuck in floor mats. >>> in wjz's healthwatch tonight, the issue of tanning bed safety reaches capitol hill. the government is considering additional regulations to make things safer. >>> 19-year-old rachel donahue says she goes to the tanning salon to feel good about herself. >> i think it makes me look slim and more perky, being tan. 30 million americans visit tanning businesses every year. but there are increasing questions about tanning beds and skin cancer. so tomorrow, the food and drug administration will consider stricter regulations about their use. today, lawmakers discuss what changes they think the fda should make. >> the food and drug administration, still classi

cbs news correspondent ben tracy has the story of an eyewitness who now says that as the king of pop lay dying, his doctor was busy hiding evidence. >> we have a gentleman here that needs help and he's not breathing. >> reporter: in the final frantic moments of michael jackson's life, the man who called 911 claims dr. conrad murray stopped cpr and started bagging up vials of drugs. this a document, alvarez told investigators that murray asked help to put the vials along with an i.v. into duffle bags. >> this witness if believed has evidence that dr. murray at the moment of crisis you wered away from his patient, michael jackson, and decideded to hide evidence. this is explosive. >> reporter: the document obtained by ap describes a grim scene at jackson's rented mansion. his two children, prince and paris, came into the room and cried as murray was trying to save their father. the singer's mouth and ice were reportedly open, but there was no sign of life. last month dr. murray was formally charged. he's accused of giving pro follow to help him sleep, but it ultimately killed pim help

ben tracy, cbs news, los angeles. >> all right. now let's take you back to maggie and harry. >> all right, thanks very much, betty. >>> now to a controversial double-sided decision in the case of a mississippi high schooler who wanted to bring her girlfriend to the prom. she sued after school officials canceled the dance, and cbs news correspondent mark strassmann has the result. >> reporter: for constance mcmillen, the prom is still off, even though a federal judge ruled her high school violated her rights by refusing to let the 18-year-old take her girlfriend to the big dance and wear a tuxedo. the type of speech that falls squarely within the purview of the first amendment. mcmillen openly lesbian since the eighth grade was pushing that same point. but itawamba agricultural high canceled the prom, rather than allow a same-sex couple to attend. >> it hurts me that they would rather punish everybody than just do the right thing. >> reporter: the school insisted same-sex couples would be too distracting. >> we allow each school to,