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oh, you made it. good friday morning. good to have you with us. i'm erica hill. >> i'm harry smith. a busy news day. >> it is. straight to our breaking news this morning, out of northern california. a giant fireball there last night just around dinner time, dozens of homes destroyed after a huge explosion last night. it was apparently caused by a broken gas line that happened in a san francisco suburb, very close to san francisco international airport. priya david clemens has the latest. priya, good morning. >> reporter: good morning to you. we're right at the edge of where the fire stopped. look at the devastation behind me. you'll see burned out cars, the firefighters still working to make sure all the smoldering flames are out completely. we're seeing little pockets of flames still pop up here and there. see this home has been completely flattened. this is a scene that has been repeated dozens of times throughout this neighborhood. parts of san bruno, california, were turned into a raging inferno around dinner time thursday evening. flames roared some 60 feet into the air as block after block in this residential neighborhood, about five miles from san francisco's airport, were engulfed. witnesses reported hearing and feeling a large explosion, leading to early speculation that a plane may have gone down. >> it sounded like a jet almost, like a giant roar and the biggest boom i've ever heard in my life. >> reporter: but it was a high pressure natural gas line that ruptured, caused the explosion and then fueled the spectacular blaze. the local utility company, pacific gas and electric, says they will be accountable if it is determined they were at fault. >> terrible, terrible tragedy has fallen on our city this afternoon. our main concern as public officials here, making sure our citizens are safe. >> reporter: the view from the sky revealed a large swath of the neighborhood reduced to embers and ash. more than 50 homes were destroyed, and more than 100 damaged. >> i lost everything, everything. it's gone. it's history. >> reporter: as firefighters fought the blaze from the ground, airplanes swooped in, dropping flame retardant in a desperate attempt to keep the blaze contained. images were accustomed to seen during fires in the forest, not the suburbs. >> we're asking anyone that is evacuated, get on to the bus. >> reporter: more than 100 people were evacuated to two nearby shelters. long time resident bob pellegrini didn't need anyone telling him to leave. >> i've never, ever felt heat that intense, ever. it was -- >> reporter: was there any way to describe what you were feeling? >> like hell on earth. it was. it was like hell on earth. all you see is 80 foot flames and intense flames. >> reporter: we're hearing that several people have been treated and released for minor injuries. about eight are at a burn unit in san francisco being treated in critical condition. and three people have lost their lives to this blaze. erica? >> priya, thanks. that picture tells a tale. priya in san bruno this morning. as you heard from priya, there are shelters set up by the red cross because there are immediate needs in that area, still smoldering as you saw behind priya. we want to get more about the damage on the ground. excuse me, in san bruno, also how it unfolded from some of the folks there and experiencing it. woody baker cohen joining us from the american red cross this morning with adam broadway who saw the explosion as it happened. good to have both of you with us. if you could, give us an idea at this point, what are the immediate needs for folks in the area? >> well, the immediate needs obviously people got out of the area, those that could, and the fire department, police department were very quick at getting people out. we then assessed anybody that had injuries that needed treatments, people that were maybe missing life, sustaining medications, things of that nature. and then we quickly set up a couple of shelters to house people overnight, brought in some mental health professionals as well as some nursing staff to help with the medical needs and so forth. we have now got them in shelters. many of them had places to go of their own, friends and family. >> luckily. it is amazing considering the time of day, just around dinner time, with flames that were hot enough to crack the windshields of a fire truck, amazing that there wasn't in fact more damage that we're not hearing about more. pardon me. adam, you were picking up your 8-year-old son from a soccer game. describe to us what you heard and what you saw. >> well, i was actually just dropping my son off to a game of soccer in a nearby oval and it was just around 6:00. i didn't actually see the explosion, but i did see subsequently a smoke plume building up from the hill over the side. and having just moved over from australia, and experienced major bush fires that devastated my home over there, i was really paranoid. i quickly jumped in the car, got up to the road, and people were everywhere. there was fireballs bellowing up out of the ground, and we could see the smoke plume just building and building and building. all of the residents were coming out, people were talking about how their homes had shaken. it was a lot of confusion. and police were just coming on the scene. there was suggestions that it was a light aircraft that had crashed. that had been then subsequently -- san francisco airport had accounted for all the planes so we realized it was something else. and there is just a real confusion in the air. people everywhere, on phones, talking about, well, are my friends and family okay, and a lot of organized panic. >> boy, what a scary situation, especially when you're dealing with a bunch of kids at a soccer game. rough for them as well. we're glad you are doing well this morning and glad to hear that the numbers are not worse from this tragedy as we continue to follow it. woody baker cohen and adam broadway, thank you for your time this morning. >> thank you. now to the ongoing controversy over a florida pastor's plan to burn a koran on the anniversary of 9/11. that plan could be on hold, at least for now, after a day of negotiation and confusion. cbs news correspondent kelly cobiella is in gainesville, florida, and she has the latest. kelly, good morning. >> reporter: good morning, harry. and the confusion continues. pastor terry jones now says his protest is suspended until he hears more about a supposed deal that led him to change his mind. reverend terry jones called off his threat to burn copies of the koran this saturday, claiming he was promised that a planned islamic center near ground zero would be relocated. >> the imam has agreed to move the mosque. we have agreed to cancel our event on saturday. >> reporter: the so-called deal was brokered by orlando imam muhammad musri. >> i have made this morning contact with the office of imam and got the commitment to fly out to new york and meet with him in the company of pastor jones. >> reporter: but soon thereafter, islamic center officials in new york denied there was any agreement to move it. saying in a statement, i am glad that pastor jones has decided not to burn any korans, however i have not spoken to pastor jones or imam musri. musri says he only told jones he had arranged a meeting, but it is now unclear whether jones will change his mind once again about his planned protest. kelly cobiella, cbs news, gainesville, florida. pastor terry jones joins us now from gainesville, also with us from orlando is imam muhammad musri. good morning, gentlemen. >> good morning. >> good morning. >> pastor jones, let me ask you first, what is the status of the event to burn the koran on 9/11? what is the status of it this morning? >> right now we have called the event off, based upon the offer that the imam gave us. he came here yesterday after hearing a radio program in which i mentioned that we would be willing to cancel our event if they were willing to move the mosque from ground zero location. >> right. >> he came to me yesterday with that proposal, saying that would be done. >> all right. did you feel like you were lied to yesterday? >> i did not feel like i was lied to yesterday as he was talking to me, no. he is a man of god, according to his faith, and i did not expect him to lie to me. i took him at his word. >> all right. imam musri, help us understand the root of this misunderstanding then. >> there should be no misunderstanding. we simply are in the process of a moving situation. and the first part was the understanding with the pastor about what is being done in gainesville, and the second part was to arrange for the meeting and fly over to new york and sit down with the imam responsible for the project over there. >> do you have a meeting with abdul rauf. >> we have a commitment for a meeting and we spent the day actually answering the question not being able to sit down and call and secure the exact time of the meeting, but we have a commitment that the imam will be meeting with us and we will be going up there, myself and pastor jones, to discuss the nature and the idea of moving the mosque. >> pastor jones, that there is a meeting planned, that you will have the opportunity to have this conversation, is this satisfactory to you? >> i am, of course, as you can imagine, very, very disappointed because that is not what the imam told me yesterday. we were very, very clear. i had witnesses in the office with me. we discussed it three or four times, the proposal was very, very clear. we would cancel the event on saturday if they would move the mosque from the ground zero location. it is something that the american people want. and the muslim people do not want us to burn the bible, so actually it was a perfect compromise. i am very disappointed that he has now either reneging on that or saying that it never took place. >> but even in the news conference yesterday, the imam said, imam musri said that was not something he himself could guarantee. i guess the good thing in the short-term is that these books are not going to be burned tomorrow. pastor jones, i guess what i'm not sure is do you understand what you have wrought here? do you understand that the furor this has caused and the dangerous ground on which you tread? >> i understand clearly what it has revealed. i understand that it has revealed that there is a violent element of islam that is much violent -- that is much more violent than what we had anticipated. >> and finally, imam musri -- >> yes. >> is this a man with whom peace can be made, pastor jones? >> i think pastor jones is a good man that has misread the situation and the gravity of the actions he was about to take. i tried my best to help him understand that his actions here in gainesville, florida, would affect our troops overseas. it would affect every american abroad, and it is a very dangerous situation. he would be offering the terrorist groups the perfect tool to recruit more young people and radicalize them. so we have worked hard to try to help and understand that and back off that propaganda tool that they need. >> well, do you have a world of people praying that this comes to a good resolution. gentlemen, thank you, both, for taking the time to talk to us today. >> thank you. >> thank you. >> erica. more news to get to on this friday morning. jeff glor standing by at the news desk for us. good morning. >> erica, good friday morning to you. good friday morning, everyone. in philadelphia, a suspended worker returned to her company last night with a gun. yvonne hiller had been escorted away from the kraft food plant in northeast philadelphia, only ten minutes earlier. she opened fire then and killed two of her co-workers, injuring a third. a bloody standoff ended when s.w.a.t. team members took her into custody. in wisconsin, pretty incredible video of a bank robbery attempt that became a dangerous wrestling match. surveillance video from wednesday shows a mass robber demanding cash from a teller, but a customer notices what is happening, and decides to take action. watch this, he gets behind the robber, and tries to put the robber in a headlock. as they struggle, the suspect dropped the gun, but was able to escape after they tumbled out the door. police are still looking for that would be robber this morning. a federal judge says the military's ban on openly gay service members is illegal. u.s. district judge virginia phillips says she'll issue an order to stop don't ask, don't tell. phillips ruled the ban is unconstitutional and she says it has a direct affect on the armed services. president obama will be be asked about don't ask, don't tell at the news conference this morning. you can see that on cbs at 11:00 eastern. iran says it will free an american hiker it held for more than a year. sarah shourd will be released tomorrow according to an iranian diplomat. she was one of three hikers captured in july, 2009. there is no word when or if the other americans will be released. many in boulder, colorado, are on fire alert this morning if that monster wildfire heads their way today. they might be forced to evacuate. high wind gusts over 40 miles an hour could hamper firefighters, though. the fire is now 45% contained. in texas, at least three people are missing in flooding caused by the remnants of tropical storm hermine. there are already three confirmed deaths in texas and one in oklahoma. a devastating mud slide swept through a small town on italy's coast last night. this one swept down streets between buildings and engulfed parked cars. dramatic video. one person is missing. in new orleans, the super bowl champion saints kicked off the nfl season last night. new orleans unfurled its championship banner and then in surprisingly low scoring game beat minnesota 14-9. 16 minutes past the hour now. football season is here. it is a happy time. all right, make it a great day wherever you are. harry, erica, it is all yours. >> lonnie, thank you very much. coming up, california now has chelsea's law locking up dangerous sex offenders, possibly for life. we're going to talk exclusively with the parents of the teenage victim the law was named for. also ahead this morning, it is now britney versus the bodyguard. the pop star fighting back against charges of sexual harassment and child abuse. this is "the early show" on cbs. child abuse. this is "the early show" on cbs. sometimes getting our kids to eat the way they should requires a little magic from mom. 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police officers. every way in right now is being blocked even for people who live there so best we can get is a look above the scene from chopper 5. we shot piece pictures earlier this morning. the area is called a crime scene rather than an accident scene. police and firefighters are putting out the ends of the spot fires. no power in the area, though. pg&e is there as well, assessing the area and making sure it is safe. a cadaver dog is also being brought in to find out how many other people might possibly be dead in some of these houses. we spoke with a woman this morning who had just gotten back from a trip and she is not allowed in to see if her home is still standing. >> we were in hawaii, we cut our vacation short. my daughter called me at 6:10 crying saying that there's been an explosion, a plane crash, she didn't know what happened. we got and a flight as fast as we can and here we are with what is this, 5:15 in the morning. we can't get to our home. we don't know anything that's happened. we just are devastated. >> reporter: here's the scene from chopper 5 last night. a huge fireball burning in this neighborhood surrounding glenview, skyline and san bruno avenue. a natural gas explosion is what we're being told left a crater in the ground. at least 53 homes destroyed, 120 damaged when the explosion happened at just after 6:00 p.m. so this morning, the investigation is going to take place involving police officers, the ntsb, it's going to be a big investigation to figure out what caused this. it does appear to be the natural gas line but what exactly caused that to rupture is going to be coming out. but it can take several days for that to happen. john and sydnie? >> anne, thank you very much. as we mentioned, we're waiting for the lieutenant governor who is scheduled to speak in san bruno at 7:30 this morning. he is the acting governor right now. governor schwarzenegger is over in asia. we will bring that to you in just a couple of minutes from right now. >> and as anne mentioned, at least 53 homes destroyed by the explosion. yesterday late evening about 6:00, there are two shelters though for people put out by the fire displaced by the fire. someone at the bayhill shopping center on cherry avenue. the other is the veterans memorial recreation center on city park way. the red cross has brought in cots, blankets, food and water, other basic health services also available. arrangements are being made to bring in crisis counselors as well to for support. julie watts reports. >> reporter: good morning. there were 12 evacuees that stayed here in this building last night. another 6 stayed at a retirement center down the road and there have actually been mo volunteers and evacuees here the last 24 hours. in fact, so many showed up last night they had to send some home. now, since we have been here, since about 4:00 this morning, we have seen dozens of people coming in with supplies. you can see behind me, supplies range from food to clothing, local businesses have been donating food, costco, safeway, local restaurants. fresh fruit here as well. the local lions club is outside right now cooking a warm breakfast for any of the evacuees. 12 stayed here, six down the road. 100 people registered with the red cross yesterday to let them know they're all right. they are put on a list so family members could locate them. they are saying, the red cross is saying, if you want to donate, if you want to get involved, don't bring down any more supplies. they have more than they can handle right now. and not enough space to store it. what they would like you to do is go to their website and donate money. you can ear that money care of the san bruno fire to be sure it goes to this relief effort. they are also requesting that any of the evacuees go to the red cross website safe safeandwell.org. let folks know that you're okay and family members looking for those folks to have been evacuated can go through the same website. after breakfast there will be city and red cross service here for folks who have been impacted by the explosion. we'll be here throughout the day checking on the efforts to help the victims. >> thank you, julie watts in san bruno. >> there is also an urgent need for blood donations by the red cross. find out how to donate by calling this number: that's for the blood centers of the pacific and the most urgent need is "o" negative. a number of people are hospitalized some in serious condition from burns. several schools closed today including all san bruno park elementary schools and parkside junior high, but capuchino high school will be open and so will skyline college. we have been mentioning lieutenant governor abel maldonado about to speak in san bruno regarding the explosion and the fire. simon perez joins us now. however, simon, i guess we're hearing that the lieutenant governor has yet to arrive at that location. >> reporter: he has not arrived yet, john. we do have all of our cameras and microphones set up waiting for him. we're also waiting to hear from the san bruno fire chief who is supposed to give us an update this morning. if you take a look at this video, you can see there is a whole lot to talk about. the devastation just dramatic right there in that neighborhood. today we are hearing already that as many as 6 people may have died in this fire and this explosion. but now that the sun is up and the rescue crews are going to go through, they say that they are very likely to find even more bodies. we are going to have to take cadaver dogs in as well because unfortunately, it's quite likely that the remains of those people are just reduced to ashes like many of the houses. nothing left but chimneys and foundations. dozens of houses incinerated in the four over 50. three national transportation safety board is on scene. they are designated to investigate gas explosions like this one. we have emergency services crews and, of course, the fire crews, as well. all kinds of people up there sifting through the rubble trying to figure out exactly how this started. people are buried in the rubble. >> it's amazing. >> some people driving through the flames with their cars melting as they went. so anyone who made the his stake of trying to rescue a pet, rescue an important document or photograph, could have cost our life by doing that. >> it was interesting, we were talking to a former fire captain who had said we were wondering how that fire got to be so big, a hole from one explosion, so many house caught fire. he was talking about the radiant heat is just -- then you're saying you saw cars almost melting, the bumpers melting. they just exploded, the flames, after that. simon -- >> reporter: i was -- okay, all right, go ahead, yes. >> no, no. >> reporter: we'll be back to you as soon as we hear from the lieutenant governor. >> i want to let people know that we may be in programming here on cbs 5 but we will carry the lieutenant governor's speech and the comments he has on cbs5.com. so quick recap on what we have been covering all this morning from san bruno. it was a natural gas pipe line that exploded into flames. this was just after 6:00 yesterday evening. simon mentioned the ntsb now investigating. >> we also have reports that six people were killed that started as one then three confirmed and now we are hearing at least six reported dead. search teams though are going through the rubble this morning. dozens of people were injured, several of them are in critical condition and again, there is a huge call out for blood donations. >> and you can see the spots, each little spot of fire right there used to be a home, 53 homes destroyed. 120 others were damaged. the exact cause of the explosion not yet known. people in the area though have told us that they noticed a gas odor for several days before this explosion. >> and pg&e has acknowledged that it is or it was a ruptured gas line and they are investigating though on how that happened because they say there were no crews working in the area. and again, we want to let you know, acting governor abel maldonado is visiting the disaster area. we are waiting for him to speak any minute now. and we will carry his briefing live on cbs5.com. >> and also, if you live in the fire area, you're being asked to contact san bruno officials. they are still trying to account for everyone there and schools in the area, san bruno park elementary schools and parkside intermediate are closed today. however, skyline college is open, which is near this, as well as capuchino high school. >> it is open as well. and as we follow this story in san bruno, there is some breaking news out of san francisco's financial district now. there are reports of possibly two-man hole cover explosions. these are live chopper 5 pictures of the area. this is on sutter street near montgomery in san francisco's financial district. we have reports of smoke in the area. san francisco fire crews are on the scene. power is out in that area. pg&e has been called to the scene. so we will keep you posted on that situation, as well. again, manhole covers reports of explosions in the san francisco financial district. also want to let you know that president obama this morning is holding his first solo white house news conference. that's since may. he is expected to focus on the economy. and that news conference begins at 8:00. we will bring that to you here on cbs 5 and we're going to stream it as well as on cbs5.com. >> stay with us, traffic and weather. 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[ sneezes ] ...and walk-ins welcome everyday, we're making it easy for everyone to get their flu shot, no matter how small their motivation may be. ♪ so stop by and get your flu shot today at walgreens. there's a way to stay well. good morning. chopper 5 is showing us an area of san francisco's financial district. we got a stretch of montgomery completely shut down for a couple of blocks between sutter and bush. fire crews are out there blocking the street where smoke is reportedly coming up from a pair of manhole covers. one caller reported hearing an explosion. this is a breaking situation in san francisco's financial district. we'll continue to watch that. in the meantime back out to san bruno. we can go to our maps and show you the latest road closures in regards to yesterday's gas main explosion and fire. sneath lane san bruno avenue both shut down between 280 and skyline. it's their biggest closures now all on city streets. more in the location of exactly where the fire was. as far as the freeways go in the area, 280 is okay all the on- and off-ramps have once again re-opened. they have been open for a couple of hours. just a little slow through that area because earlier reporters or callers were saying you could see smoke from the freeway. that is your traffic. for your forecast, here's tracy. >> hey, thanks, elizabeth. so here's a look outside this morning looking towards the transamerica building. and there you go, plenty of blue skies. plenty of sunshine. not much in the form of clouds to talk about this morning. we do have just a few along the coastline, but otherwise it has been a mostly clear start to the today leading to sunny skies well into the afternoon. seven-day forecast: saturday and sunday both weekend days, pretty nice. saturday is expected to be the warmer of the two days. and sunday will be a lot like today. monday and tuesday, we are looking at temperatures cooling down ever so slightly. and we'll take those cooler conditions into wednesday and thursday. that's a look at your weather. back up to you. >> thank you. once again, we are waiting for the lieutenant governor, abel maldonado, to brief us on what has been going on in san bruno with the fire and the explosion. it was expected at 7:30. he hasn't arrived yet. so we will not break into programming for the lieutenant governor. however, if you are interested, cbs5.com, we will stream his news conference live for you. >> and also, at 8:00, we are breaking in with president obama's remarks, another solo press conference. he is expected to talk about the economy, his comments coming at 8:00. so, "the early show" continues in just a moment. the latest hollywood showdown pits a pop star against the man paid to protect her. britney spears is rejecting charges made by a former bodyguard who has now filed a sexual harassment lawsuit against her. fernando flores claims spears repeatedly exposed herself to him. he also claims she hit her two young sons with a belt. in a statement, spears says the charges were investigated and nothing came of it. the suit, though, has hollywood buzzing. here to talk about the case is bonnie fuller, editor in chief o of hollywoodlife.com. this is a statement that britney put on her website, the lawsuit is another unfortunate situation where someone is trying to take advantage of the spears family and make a name for himself. went on to say, they have every expectation the matter will be dismissed. is that the consensus at this point that this guy is just trying to make a quick buck because these are serious allegations. >> they're very serious allegations. i think it is also very serious that the department of child and family services in l.a. did investigate it, and they dropped the -- they completely dropped the investigation because they came to the conclusion that there was nothing there. and, you know, at hollywoodlife.com, we have done a lot of research into this and they take these charges extremely seriously. so i don't think this guy's going anywhere with this suit. >> it's interesting, though, then that he would follow through with it because as you mentioned these charges apparently because the investigation was done, and nothing was found, kevin federline has come out, the father of her two young sons and said there is nothing here, i don't have a problem with her, she's doing fine, she seems to really be putting her life back together. we hadn't heard anything from her. >> which is fantastic. all we have heard about her is that she's out with her children. she just came back from a romantic vacation with her latest boyfriend and she's been with this boyfriend, jason trawick, for quite some time. there were a lot of photographs of them on the beach. and so she -- and she looks terrific. she had circus was straeexcelle >> the tour she was on. >> that's right. she put her life back together. >> she could be back in the tabloids, which i guess she's not too excited about. >> i'm sure this is the last thing she wants. however, i do feel she and her camp are very confident that this will go away. and i don't think that people are going to pay too much mind. i mean, celebrities are often the victims of these kind of suits. >> this is -- there are -- this is being filed in california. a lot of laws in california look at employees to make sure everything is okay. obviously especially when it comes to things like sexual harassment. this gentleman, however, in filing the suit, is going to have to prove that. >> he's he -- i believe he has an uphill battle because he doesn't have, you know, anything except his own allegations on his side. and, in fact, we heard he was not an employee, that he was actually -- he had been hired by an outside company and he was only with her for a few months and apparently he didn't say a word about any of this until some time after he left. >> well, we will all be watching to see what happens with this one. bonnie, appreciate you bringing us the scoop on it. just ahead, it is not a speed bump, it's something totally different. a hologram. check that out. one canadian school is scaring drivers into slamming on the brakes. that gives you one idea of how they're doing t you're watching "the early show" on cbs. atching "the early show" on cbs. female announcer ] why do we offer flu shots at walgreens every day? because we're big on sharing. our pens... our snacks... everything... and one of the best ways to protect yourself and your coworkers is with a flu shot from walgreens. with the most pharmacists certified to immunize and walk-ins welcome every day, we're making it easier for everyone to get their flu shot. get yours at walgreens and take care clinics today. walgreens. there's a way to stay well. 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[ marcia ] new motts medleys. looks and tastes just like the motts juice kids already love. but has two total fruit and veggie servings in every glass. at least six people are dead... after a pipeline explosion in we have with us today mayor jim ruane, vice mayor rico medina, councilmember ken ibarra, councilmember irene o'connell, councilmember michael salazar, city manager connie jackson, police chief neil sellford, there he is. chief dennis hagg from the fire department and our incident command leader last night, president chris johns from pg&e, senator leland yee, assembly member jerry hill who represents this district, and, of course, one of my most important partners harold brooks from red cross who is always out there and doing a fantastic job. as we monitored with assets to this fire, abel maldonado our lieutenant governor also our acting governor in the absence of governor schwarzenegger has been an important partner with this and leadership role. after we had the local, state of emergency declared, we also declared a state of emergency for the -- by the state, lieutenant governor and acting governor abel maldonado also directed me to reach out to fema and ask for federal management assistance grants because of the size and scope of the fire and i'm pleased to announce that last night, our important fema partners and nancy ward and craig that they granted that which will help us in the operational costs. so it's my pleasure now to introduce to you my friend and our partner, the lieutenant governor abel maldonado. >> good morning, everybody. as you know, governor schwarzenegger is in asia this morning. i talked to him about 25 minutes ago and i have kept him on par of what's happening here in the city of san bruno. i asked him if he needed anything for me to say and he said to thank the men and women who are on the front lines helping the people of san bruno so i'm here to do that. and i also want to thank the mayor who when i came here late last night he was here obviously with a sad face because this is a horrific tragedy. our hearts go out to those impacted by this horrible disaster. without warning, many of these people's lives have been changed forever. and my deepest prayers go out to everyone. we know that a natural gas line ruptured yesterday around 6:24:00 p.m. but we don't know what caused it or what happened. we will find out soon. here's what we do know right now. the fire has burned 15 acres in the city of san bruno. it is 75% contained. 38 structures have been destroyed. 7 structures have been damaged. we have had 52 patients, three critical burned folks that have gone to the hospital with third- degree burns, four firefighters have been transported to the hospitals, four people have been killed. and we have one shelter at this moment open and at the evacuation center with approximately 25 people as of this morning. i want to say what we did last night. we deployed 67 pieces of fire apparatus including 21 local fire engines, 18 cal fire engines, 20 mutual aid engines, 4 air tankers which were very, very important that were deployed immediately here to san bruno, one helicopter. we deployed dozers and obviously many water tenders and this morning, we have 12 k- 9s on site. today, we are as also deploying 30 more engines here to san bruno. california emergency management agency opened the coastal regional emergency operations center and the state operations center in sacramento last night. fema approved a fire management assistant grant. we call it f-mag that will help pay for the firefight. the city of san bruno last evening proclaimed a local emergency. and right after the city proclaimed a local emergency, i with extraordinary impact of this disaster declared the state of emergency last evening for those affected by opening the door to pay for firefighting and recovery. i also want to thank the local volunteers, the red cross, and everybody who has been here to help. i want to say a few words just briefly in spanish on what we do in right now. [ speaking spanish ] [ speaking spanish ] >> so thank you very much to everybody that's been here. as i stated last night, mayor ruane and i were here early in the morning, late evening, and i'm here to welcome him to the podium for a few words on behalf of the people of san bruno. mr. mayor. >> thank you very much, lieutenant governor. this is very difficult for the city of san bruno. the sun is shining over there. but there is still a dark cloud over this city. you have heard the numbers, unfortunately the numbers are going to get higher. we'll know that as the day progresses. i have to thank the men and women who have been trained for this and unfortunately had to execute their training. all the first responders. it was extraordinary yesterday afternoon. just extraordinary. on behalf of the entire city council, i want to tell you that we have heard the numbers and what we have to deal with in the very near future is the stress and uncertainness in the minds of always people affected. those who lost their homes and those who will be out of their homes and residences for months to come. i tell you now we're prepared to do that to deal with it all as of yesterday afternoon and we'll continue. thank you very much. i'd like to introduce to you our city manager connie jackson. >> thank you for being here today. the mayor said that the dark cloud is over san bruno. unfortunately, that's true. but san bruno is not only a wonderful community, it is a strong and resilient community. we are proud to live here and we will be proud to respond and to restore the vitality and the safety that san bruno is known for. the damage that has been experienced in the glenview area of our community is particularly on the following streets. we would like residents to know this information in order that they can be prepared to pay attention during the coming hours as we begin to identify areas where people can return. damage is most serious on the 16 and 1700 block of claremont, the 900 block of glenview, 1700 block of earl, 1100 block of fairmont, and the 2700 block of concord. early this morning public safety personnel opened a formerly evacuated area that remained evacuated all night. east of crestmore and continuing eastward. so that's the significant segment of the area impacted that is now safe for residents to return. our city organization will be working continually as we work through the night into this morning to secure the needs of resources that our residents will need. we are in the process right now of establishing a local assistance center that will be established within the next day at our veterans memorial recreation center adjacent to crystal springs road in city park. we are still asking those individuals who have been evacuated from the heavily impacted area to check in with us at the recreation center. we are trying to find all the individuals. at this time i'm going to introduce the police chief. >> basically, our law enforcement efforts have been to secure that scene to ensure property to make sure we assist fire on any rescue efforts to make sure that those residents stay safe. our efforts will continue to provide security safety in that area to provide perimeter control to that affected area, and again, to assist fire with any search and rescue operations. , as well. at this point, i would turn it over to chief dennis hagg. >> good morning. as the lieutenant governor gave you most of the details on the fire, i was especially proud of the california mutual aid system and the san mateo county automatic aid system. we made a terrific effort in stopping the fire to where we did. obviously we always want to do better but it was a great joint effort between cal fire and oes, state ems, cal ima, all the agencies came together, in spectacular fashion. and devastating as this was, it could have been so much worse in my opinion. we had four minor firefighter injuries and they have been released from the hospital. at this time -- >> at this time i'd like to have harold brooks from the american red cross here in the bay area come up and provide you with the information about sheltering and helping our blood drive and volunteer donations. >> first, i'd like say a hearty thanks to the many, many red cross and other community based organizations that were out here working with people to alleviate suffering throughout the night. we have heroic heroic volunteers who do this in a very selfless sort of a way. we have wonderful partners and, of course, the firefighters and pg&e, who we will be partnering with to make sure that peep are taken care of. as it turns out, many. folks in this community didn't need sheltering overnight. there were maybe a dozen folks. but we had evacuation centers and shelters available so people could get the kind of comfort and care that they needed in this very tragic moment when they've lost everything. so please know that red cross and the community-based organizations will be in place to see to it that people are well cared for. we'll be working in collaboration with blood centers of the pacific and the red cross blood program to make sure that the blood supply is going to be sufficient for all those who need it. thank you very much. >> thank you, harold. we're also joined today by our friend congresswoman jackie speier. she is here to speak with us next. thank you, congresswoman. >> good morning. i want to commend the city of san bruno, the firefighters, all law enforcement who have done an extraordinary job under difficult circumstances to bring this fire to a conclusion and to help those in need. fema has not yet been engaged to provide for a national state of emergency. we are seeking that designation. upon receiving that designation, the residents who are impacted are going to be benefiting from an array of services not the least of which is housing, medical care, small business loans. i will be setting up a district office at the evacuation center so that local residents will be able to access our office and have questions answered immediately. we will also assist in filing claims for insurance and i'm calling upon all of the state insurance companies to create desks at the evacuation site so they can begin that process, as well. this is an extraordinary community. it's very tight-knit. generation of families have lived here for forever. and we will all come together. we will restore these homes and the lives of all of these people, and we will once again see san bruno thriving. thank you. >> thank you. senator leland yee, who represents san bruno. >> thank you very much. first off, let me thank my former colleague, lieutenant governor abel maldonado, for his quick action along with the governor. the fact that we were able to call this issue and this incident state of emergency, opened up a array of assets at the state level to deal with this. as someone who has lived through the oakland hill fires, one of the things that i remember and i know very, very deeply is the fact that you have to act and you have to act quickly. and that's what we did. now that there is daylight, there is going to be even i think more heartaches and more difficult times ahead. individuals are going back and really seeing the devastation of this particular fire. we are committed to doing whatever we can to help this city and this county to rebound as i think congresswoman jackie speier mentioned, this is in fact a rather tight-knit community. but it's a large community. there are victims who have suffered tremendously who are now in burn centers in san francisco. there are individuals who are no longer living in their homes who are living with friends and relatives in daly city and in pacifica. when i went to the service center last night, there were about 30 individuals there. there are still many, many individuals, many friends and relatives and strangers to who came to the center and had all kinds of supplies and all kinds of donations. and i will tell you, it was rather gut-wrenching to me that these strangers and these individuals would come out in the middle of night and bringing all kinds of different equipment and materials, supplies, to help their fellow neighbors. and so in the months and years to come, there are going to still be a lot of needs and i know that this community, the state and the locals here, will need to work together, all of us will work together to try to do whatever we can to bring back some sanity in these individuals' lives. thank you. >> thank you, senator. and we also have with us today assemblyman jerry hill, who represents san bruno. jerry. >> thank you, matt. and thank you too to the lieutenant governor and the governor for their support. it's interesting in looking at the response last evening. the resources that were used when the city of san bruno came together with their leadership and the fight that they had, and they came together and then brought the county and the other responses of mutual aid then cal ima which did an outstanding job of responding with cal fire and the responses that they have brought forward. this community came together from a public safety standpoint and it's coming together now from a personal standpoint. as we go through the recovery and trying to pick up the lives of those who have been so devastated by this loss. this is a unique community san bruno has. it's a family. it's one family that really works hard to maintain its quality of life. and that character has been hit hard and painfully last evening and today. and as the search goes on, it's going to be more painful. it's going to be devastating. and we have to come together. as we saw today, with the resources that the community came together with, last night and today, the blood banks that now are overwhelmed with people who are willing to give that lifeblood to their community and their neighbors. so we have a lot to be thankful for. we're thankful for the great response of public safety. thankful for the state and in talking with the lieutenant governor a few minutes ago, he outlined the state resources for those individuals that have become homeless, for those individuals who are displaced, will be starting today. and that's we need and that's what we appreciate. so it's been a tough struggle but this city will rise again through this and it will be stronger than ever. >> thank you, jerry. and finally, from pacific gas & electric, the president, chris johns. >> thank you. obviously, our -- our hearts and prayers go out to all the families and friends and neighbors that have been impacted by this tragic event. we do appreciate all of the hard work by the hundreds of first responders and emergency officials that responded very quickly, got on site, worked diligently last night and throughout the night. they did a tremendous job. we also have been working very closely since last night with the red cross, trying to help and make sure that there are adequate supplies and shelter for all those folks who are in need. in fact, we have dedicated to red cross to make sure there is funding to be sure we'll be able to provide shelter and resources for anybody who is in need from this. we continue to work throughout the night to make sure national area was safe. we worked with the emergency officials to secure the area, gas lines and electricity. we have yet to be able to get close enough to the actual source to be able to determine exactly why this happened. we are committed to work as quickly as to be get the answers that i know all of us want to get to and understand. but i want to make sure everybody knows that we are committed to do what's right and what's appropriate to help all of the families and others who have been impacted by this tragedy. a couple of things that i do know. we have secured the transmission line so that there is no longer gas flowing through that line. we have also secured the local distribution line so that there's no gas flowing in those lines. we have teams out today, we had over 40 people working last night and we'll have them out today to survey the integrity of the lines in this area to continue to make sure that it is safe. as of 6:00 this morning, we had approximately 700 electric customers who were still out of service and about 300 gas customers who are still out of service. we anticipate getting about 300 electric customers back on by around noon today. because of the concern for safety, we are walking block by block, house by house to make sure it's safe to reestablish service. we are trying to do that as quickly as we possibly can. i will mention also that i have heard news accounts about customers reporting that pg&e -- to pg&e that they smelled gas in the area previously. we have reports going back right this minute to tryconfirm what exactly those phone calls look like and when they occurred. we will report back as soon as we know something. we appreciate the hard work everybody put into it with these folks today. >> is there any speculation on what might have caused it at this point? >> we have not been able to get close enough yet to be able to to get a good look in and see exactly what it might be so it's very hard to speculate what it would have causeed. >> how about records of construction going on in the area? >> yeah, because the -- the reason that we haven't been able to get in there yet close enough is because the source is still -- has been unstable throughout the night. and we had to make sure that it was safe for anybody to get in there. we have been looking closely with the fire officials here to clear the area make sure it's safe before we could get in and look at that area. >> the pipes exploded at 6:24. do you know how long after that the gas was turned off? >> i, uhm, i don't know exactly what time the gas was turned off. i know it was probably a couple of hours later. but i don't -- i don't know the exact time. and we can get that for you. >> is there a disparity -- there seems to be a disparity in the numbers of the homes destroyed and damaged. earlier i think we were told it was 53 and 120 damaged. and i believe the lieutenant governor said it was something like 38 destroyed and 7 damaged. is that correct? >> 38 is the accurate number. we did that by a flyover on the initial estimation. we did a walk through early this morning to verify the 38 and 7. >> how did it go from 120 to 7? >> well, we did not include in the -- in the secondary survey any type of damage they went through and did it from the air, so if they saw siding, if they say reported that from the air. we went through by foot this time and examined every home. [ inaudible ] >> yes. >> does that mean there were only 7 with any fire damage? >> there were 38 homes destroyed. >> but only 7 that -- >> 7 had significant damage and there's obviously there's other homes damaged, paint siding, roof, so forth and so on that we didn't include. >> so 7 significant damage? >> right. >> how many people are missing or unaccounted for? >> at this time, no, we don't. we are trying to match up with our registration to the adresses. >> do you know when home owners will be able to get in to see if their houses are still there? >> we are working diligently this morning to try get as many people back into their homes as possible. [ inaudible ] >> as soon as we can clear as many houses as possible we'll be notifying them. >> how are you going to notify them? >> either by -- >> we don't know where to go. >> report back to the shelters on any clearances that we have, we'll be happy to do that. [overlapping speakers] >> unfortunately, as the chief said, we will not know for some hours to come what houses have been damaged and to what extent. that information will be available through our local assistance center which will be up and running at 10:00 a.m. at the san bruno city park veterans memorial recreation center. we will not have the information on specific home other than properties at that time. but the information will be available through the local assistance center as soon as the public safety personnel have verified. [ inaudible ] >> doors are wide open, front doors are unlocked. >> the area has been completely secured. it is a investigative area. it is being monitored and patroled by public safety personnel. the chief can give you more. >> we have had officers and several units throughout that area throughout the entire night and as we speak now, and we will continue to do so for as long as it takes. [ inaudible ] >> doors are all unlocked. [ inaudible ] >> can you explain how deep that gas line is, or was, and the operating theory is it possible that there was construction or digging in that area? i assume that's one way it would rupture. >> the gas line that has the rupture in it is a 30" gas pipe and it is generally going to be somewhere between 2.5 to 3 feet deep. we are not aware of any of our crews doing any work in that area. but we do not currently know whether there was other construction in the area. we don't have any reports of any. >> how old is that line? >> i don't know exactly how old that line is. i believe it is probably could be around 40, 50 years old. but i need go back to the records to confirm. >> diameter -- in terms of engineering, is there a situation where there can be pressure within the line that can cause an explosion or does it require sort of a physical force to create the explosion? >> again, we haven't been able to get close enough to tell. but we do make sure that we have a large amount of room from a safety perspective with the pressure on the line. so there will be fluctuations in the pressure in any pipe, but we always make sure that even at the highest level there is a tremendous amount of room for safety purposes in accordance with the laws and regulations that we follow. >> have you had any problems on that pipe? >> on that pipe specifically, we'll go back to validate but we weren't aware of anything readily on the pipe. >> when people smelled gas, did anybody from pg&e stop by and -- >> our procedures and processes are if somebody calls in and says that there's a smell of gas, then we immediately try to respond and get out. so again, i know there have been news reports of folks that had -- that report that people had called in. we are trying to confirm that and we're looking through our records to see that. >> is that the kind of thing that requires physical force to cause that rupture as opposed to a pressure problem in the pipe? >> i mean, unfortunately, there is a lot of different ways to speculate as to what could have caused and we just -- we're trying to find that out and we're trying to get in so we can get some evidence to give us some insight on that. i know that's frustrating for people and for us but we are trying to get in as close as we can. we're looking forward to -- the ntsb is supposed to be here this morning and we are looking forward to working with them on trying to get that information as quickly as possible. [ inaudible ] >> we didn't hear you. [ inaudible ] >> the perimeter are telling us this is a crime scene. can anyone speak to this? >> until we know what caused this rupture and what caused it, we want to take every precaution and preserve any evidentiary value up at the scene. so that is why we're taking such precaution up there. >> i apologiz if this was asked already, was there any looting in the area? >> we have not heard of any looting and that was parts of our briefing this morning. and that's why we have law enforcement out there and considering it a crime scene and so forth. [ inaudible ] >> they will do the investigation, absolutely, yes. and that's why they will be out here. >> why is the ntsb involved? >> can you talk about -- >> because it's a gas leak. >> what's that, ma'am? >> i was wondering if you would talk about what you saw as you walked through. >> explain what you -- would you describe what you saw through your walk through in the fire at the incident. >> at the incident, it was -- pretty devastating. it compares to the oakland fire. it looked like a moonscape in some areas. but again, i want to emphasize that the crews made a fantastic stop. >> when will the fire be completely out? you said 75%. >> what we have right now is really hot spots that we're trying to contain and we have a wild land fire containment that we want to make sure that we mop up very well as approaches the canyon. >> what were the injuries -- [ inaudible ] >> all four firefighters experienced smoke inhalation at the beginning of the fire. they were transported to local hospitals and released about two hours later. >> talk about what it was like... gas line... >> it was very difficult to approach. it was that hot and that flame length was probably 70, 80 feet. and we really couldn't really be successful putting out the fire without the pipeline being shut down. >> one more question. >> the initial response -- i mean, immediately after the pipe burst, we were hearing reports from people who live close that it may have taken 15, 20 minutes. can you tell me we the first emergency responder showed up and if there were any problems with water mains breaks or lack of water, anything like that? >> we certainly responded on a second alarm assignment on the nature of the call. immediately it went to a fourth alarm probably five minutes into it. and finally went to a six-alarm assignment. plus we brought in special task force and resources to supplement those crews. >> duff any problems with water -- did you have any problems with water? >> we believe a water main was damaged in the explosion. and we currently probably have a sewer problem also down there that we're trying to repair as soon as possible. thank you very much all for coming. this will conclude the press conference. >> thank you. deadly gas explosion.. here's you have been watching a news conference in san bruno on that deadly gas explosion there. just a recap, here's what we know so far. a natural gas line exploded into flames just after 6:00 yesterday evening. the national transportation safety board is now part of the investigation. we understand at least six people have died, search teams are going through the rubble this morning looking for more victims. dozens of people were injured, several of them in critical condition in area hospitals. 38 homes were destroyed, several others are damaged. now, the exact cause of this explosion is not yet known. people in the area though have told cbs 5 that they had noticed a gas odor for several days before the explosion. pg&e says they are looking into those reports. this morning, acting governor abel maldonado is visiting the disaster area. governor schwarzenegger overseas on a trip so abel maldonado is the acting governor. people who live in the fire area, they are being asked to contact san bruno officials who are trying to account for all the residents in that neighborhood. want to let you know that san bruno park elementary school and parkside mediate are closed today. i'm sydnie kohara in the cbs 5 newsroom. thanks so much joinin us. now we join president obama's news conference in progress from washington, d.c. d rates are and they can't jack up existing balances in arbitrary ways, whether it's making sure that we've got clean water and clean air for future generations, whether it's making sure that tax cuts go to families that need it as opposed to folks who don't, on a whole range of issues over the last 18 months, we've put in place policies that are going to help grow a middle class and lay the foundation for long-term economic growth. now, if you're asking, why haven't i been able to create a greater spirit of cooperation in washington, i think that's fair. i'm as frustrated as anybody by it. i think part of it has to do with the fact that when we came into office we came in under very tough economic circumstances. and i think that some of the republican leaders made a decision, we're going to sit on the side lines and let the democrats try to solve it. and so we got a lot of resistance very early. i think what is also true is that when you take on tough issues, like health care, or financial regulatory reform, where special interests are deeply entrenched, there's a lot of money at stake for them, and where the issues are so complicated that it drags on for a long time, you end up having a lot of big fights here in town and it's messy. and it's frustrating and so, you know, there is no doubt that an option that was available to me when i came in was not to take on those issues. i mean, we could have decided, you know what, even though we know that the pace of accelerating health care costs is going to bankrupt this economy and bankrupt businesses and individuals, and even though we know that there are 30 million people and that's a growing number of people who don't have health insurance, we could have said, you know what? that's just too controversial. and we could have said, with respect to financial regulatory reform, you know what? we're just going to get too much resistance from republicans. we shouldn't take that on. i don't think that's the kind of leadership that the american people would want from their president. and are there things that i might have done during the course of 18 months that would at the margins have improved some of the tone in washington? probably. is some of this just a core difference in approach, in terms of how we move this country forward between democrats and republicans? i'd say the answer is a lot more the latter. ann? >> thank you, mr. president. nine years after september 11th attacks, why do you think it is that we're now seeing such an increase in suspicion and outright resentment of islamists with the muslim world? >> you know, i think that at a time when the country is anxious generally and going through a tough time, then fears can surface, suspicions, divisions can surfaces in a society. and so i think that play as role in it. one of the things that i most admired about president bush was after 9/11, him being crystal clear about the fact that we were not at war with islam. we were at war with terrorists and murderers who had perverted islam, had stolen out the banner to carry out their outrageous acts. and i was so proud of the kournts tree rallying around that idea, that notion, that we are not going to be divided by religion, we're not going to be divided by ethinicity. and that's what we've done over the last nine years and we should take great pride in that. and i think it's absolutely important now for the overwhelming majority of the american people to hang on to that thing is best to none. i believe in religious tolerance, clarity about who are enemies are. our enemies are al qaeda and their ties who have killed more muslims than just about anybody on earth. you know, we have to make sure that we don't start turning on each other. and i will do everything i can as president of the united states to remind the american people that we are one nation under god and we may call that god different names but we remain one nation. and as somebody who relies heavily on my christian faith in my job, i understand that the passions that religious faith can raise but i'm also respectful that the people of different faiths can practice their religion, even if they don't subscribe to the exact same notions that i do and that they are still good people and they are my neighbors and they are my friends and they are fighting alongside us in our battles and i want to make sure that this country retains that purpose. i think tomorrow is a wonderful day for us to remind us of that. natasha? is she here? there you are, back there. >> mr. president, the leaders historic compromise. the president, for example, said the palestinians won't recognize the state. the question is, if it fails at an early stage, will they disengage or step up the personal involvement? >> prime minister netanyahu was here last week and came with a sense of purpose and seriousness and corgiality that, frankly, exceeded a lot of people's expectations. what they said was that they were serious about negotiating. they affirmed the goal of creating two states living side by side in peace and security. they have set up a schedule where they are going to meet every two weeks. we are actively participating in that process. secretary of state hillary clinton will be flying to the middle east for the first series of next meetings on september 14th and 15th. and so what we've done is to bring the parties together to, try to get them to recognize that the path for israeli security and palestinian sovereignty can only be met through negotiations. and these are going to be tough negotiations. there are enormous hurdles between now and our end point. and there are going to be a whole bunch of folks in the region who want to undermine these negotiations. we saw it when hamas attacked these innocent civilians. and they are going to be rejectionists who suggest that it can't happen and there are also going to be cinics who just believe that the mistrust between the sides is too deep. we understood all of that. we understood that it was a risk for us to promote these discussions. but it is a risk worth taking. because i firmly believe that it is in america's national security interests, as well as israel's national security interests as well as in the interest of the palestinian people to arrive at a peace deal. part of the reason that i think prime minister netanyahu was comfortable coming here is that he's seen, during the course of 18 months that my administration is unequivocal in our defense of israel security and we've engaged in unprecedented cooperation with israel to make sure that they can deal with any external threats. but i think he also came here understanding that to maintain israel as a jewish state that is also a democratic state, this issue has to be dealt with. i think president habask came here because he understood the window for creating a palestinian state is closing. and there are a whole bunch of parties in the region who purport to be friends of the palestinians and yet do everything they can to avoid the path that would actually lead to a palestinian state, would actually lead to their goal. and so the two parties need each other. that doesn't mean it's going to work. ultimately it's going to be up to them. we can facilitate. we can encourage. we can tell them that we will stand behind them in their efforts and are willing to contribute as part of the broader international committee in making this work. but ultimately the parties have to make she's decisions for themselves. and i remain hopeful but this is going to be tough. and i don't want anybody out there thinking that it's going to be easy. the main point i want to make is, it's a risk worth taking because the alternative it is status quo that is unsustainable. so if these talks breakdown, we're going to keep on trying. over the long term, there is the opportunity, by the way, to change the strategic landscape in the middle east that would be very helpful. it would help us deal with an iran that has not been willing to give up it's nuclear program. it would help us dealing with terrorist organizations in the region. so this is something in our interests. we're not just doing this to feel good. we're doing it because it will help secure america as well. >> jay? >> thank you, mr. president. a couple questions. first, from you concerned at all when you -- when the administration had secretary of defense gates call this pastor in florida that you were elevating somebody who is clearly from the fringe and more substanley, on health care, it's been more than six months since health care passed. you pledged that you would, a, bend the cost curve and democrats would be able to ko campaign on this and the cost curve is actually bending up from 6.1% to 6.3% and the only democrats i've seen talking about health care legislation are saying that they voted against it. thank you. >> with respect to the individual down in florida, let me just say -- let me repeat what i said a couple of days ago. the idea that we would burn the sacred texts ever someone else's religion is contrary to what this country stands for. it's contrary to what this nation was founded on. and my hope is that this individual prays on it and refrains from doing it. but i'm also commander in chief and we are seeing today riots in kabul, riots in afghanistan that threaten our young men and women in uniform. and so we've got an obligation to send a very clear message that this kind of behavior or threats of action put our young men and women in harm's way and it's also the best image nabl recruiting tool for al qaeda. and although this may be one individual in florida,. part of my certain is that we don't start having a whole bunch of folks across the country thinking this is the way to get attention. this is a way of endangering our troops, our sons and daughters. fathers and mothers, husbands and wives who are sacrificing for us to keep us safe. and you don't play games with that. so i hardly think we're the ones who elevated this story. but it is in the age of the internet something that can cause us profound damage around the world. and so we've got to take it seriously. with respect to health care, when i said during the debate is the same thing i'm saying now and it's the same thing i will say three or four years from now. bending the cost curve on health care is hard to do. we've got hundreds of thousands of providers and doctors and systems and insurers and what we did was we took every idea out there about how to reduce or at least slow the costs of health care over time. but i said at the time, it wasn't going to happen tomorrow. it wasn't going to happen next year. it took us decades to get into a position where our health care costs were going up 6, 7, 10% a year. and so our goal is to slowly bring down those costs. now, we've done so also by making sure that 31 million people who aren't getting health insurance are going to start getting it. and we have now implemented the first phase of health care in a way that, by the way, has been complimented even by the opponents of health care reform. it's been smooth and right now middle class families all across america are going to be able to say to themselves, starting this month, you know, if i've got a kid who is under 26 and doesn't have health insurance, that kid can stay on my health insurance. if i've got a child with a pre-existing condition, an insurer can't deny me coverage. if i get sick and i've got health insurance, that insurance company can't arbitrarily drop my coverage. there are 4 million small businesses around the country who are already eligible and in some cases will be receiving a 35% tax break on health care for their employees. and i've already met small businesses around the country that say because of that, i'm going to be able to provide health care for my employees. i thought it was the right thing to do. >> a study from february predicted a 6.1% increase and now post health care, 6.3%. so it seems to have bent it up. >> no. as i said, jacob, i haven't read the entire study. maybe you have. but, you know, if -- if what the reports are true, what they are saying is that as a consequence of us getting 30 million additional people health care, at the margins that's going to increase our costs, we knew that. we didn't think we were going to cover 30 million people for free. but that the long-term trend in terms of how much the average family is going to be paying for health insurance is going to be improved as a consequence of health care. and so our goal on health care is if we can get, instead of health care costs going up 6% a year, it's going up at the level of inflation, maybe just slightly above inflation, we've made huge progress. and by the way, that is the single most important thing we could do in terms of reducing our deficit. that's why we did t that's why it's important and that's why we're going to implement it effectively. >> and the house democrats running against health care, if you could comment on that. >> well, you know, there are -- we're in a political season where every candidate out there has their own district, their own makeup, their own plan, their own message. and in an environment where we've still got 9.5% unemployment, you know, people are going to make the best argument they can right now and they are going to be taking polls of what their particular constituents are saying and try to align with that often times. that's how political races work. april? >> thank you, mr. president. i want to ask a couple of questions. on the economy, could you discuss your efforts at reviewing history as it relates to the poverty agenda, meaning lbj and dr. king, and also since senate republicans are holding up the issue of colbell, can you make any assurances before you leave office that you will make sure that those awards are funded? >> let me take the second question first. for those who are not familiar, that relates to a settlement surrounding historic discrimination against minority farmers who weren't oftentimes provided the same benefits as everybody else under the usda. it is a fair settlement. it's a just settlement. we think it's important for congress to fund that settlement. we're going to continue to make it a priority. with respect to the history of fighting poverty, you know, i got my start in public service as a community organizer working in the shadow steel plant that had been closed in some of the poorest neab poorest neighborhoods on the south side of chicago. that's what led me to want to serve. and so i am constantly thinking about how do we create ladders for communities and individuals to climb into the middle class. now, i think the history of anti-poverty efforts is that the most important anti-poverty effort is growing the economy and making sure that there are enough jobs out there. the single most important thing we can do. it's more important than any program we could set up. it's more important than any transfer payment that we could have. if we can grow the economy faster and create more jobs, then everybody is swept up into that virtuous cycle. and if the economy is shrinking and things are going badly, then the folks who are most vulnerable are going to be those poorest communities. so what we want to focus on right now is broad based job growth and broad based economic expansion. we're coming out of a very difficult time. we've started to turn the corner but we're not there yet. and so that is going to be my central focus. how do i grow the economy? how do i make sure that there's more job growth? that doesn't mean that there aren't some targeted things we can do to help the communities that are especially in need. and some of the most important thing that we can do on growing the economy generally is how can we improve school systems in low-income communities? and i am very proud of the efforts that we've made on education reform, which have received praise from democrats and republicans. this is one area where actually we've seen some good bipartisan cooperation. and the idea is very simple. if we can make sure that we have the very best teachers in the classroom, if we can reward excellence instead of mediocrity in the status quo, if we can make sure that we're tracking progress in real, serious ways and we're willing to make investments in what was going on in the classroom and not the school bur ra kyeah kra see, the have schools in the toughest city neighborhood that are now graduating kids, 90% of whom are going to college and the key is, how do we duplicate those. and so what the program has done is that in every state around the country, instead of just getting money based on a formula, we want to you compete. show us how you are reforming your school system based on proven ideas out there. and if you do that, we're going to reward you with some extra money. and just the competition significance alone has actually spurred 46 states so far to initiate legislation designed to reform the school system. so we're very proud of it. and that, i think, is going to be one of the most important things we can do. and it's not just, by the way, k-12. it's also higher education. and as a consequence of a battle that we had and it was a contentious battle in congress, we've been able to take tens of billions of dollars that were going to banks and financial intermediaries and said, we're going to give that money directly to students so that they get more help going to college. and obviously poor kids are the ones that are going to benefit the most from those programs. all right. elaine? >> thank you, mr. president. two questions. one on afghanistan. how can you lecture karzai about corruption when so many of these corrupt people are on the u.s. payroll. and on the middle east, do you believe that israeli prime minister benjamin netanyahu should extend a moratorium as a gesture of peace and if he doesn't, what are you going to do to stop the palestinians from walking. >> on afghanistan, we are in the midst of a very difficult but very important project. i just want to remind people why we are there. the day before september 11th. we're there because that was the place where al qaeda launched an attack that killed 3,000 americans. and we want to make sure that we dismantle al qaeda and that afghanistan is never again used as a base for attacks against americans and the american homeland. now, afghanistan is also the second poorest country in the world. it's got an illiteracy rate of 70%. it has a multiethnic population that mistrusts oftentimes each other. and it doesn't have a tradition of a strong central government. so what we have done is to say, we are going to, after seven years of drift, after seven years of policies in which, for example, we weren't even effectively training afghan security forces, what we've done is to say, we're going to work with the afghan government to train afghan security forces so they can be responsible for their own security. we are going to promote a political settlement in the region that can help to reduce the violence. we are going to encourage an afghan government that can deliver services for its people and we're going to try to make sure that as part of helping president karzai stand up a broadly, accepted, legitimate government that corruption is reduced. and we've made progress on some of those fronts. when it comes to corruption, i'll just give you an example. four years ago, 11 judges in the afghan legal system were indicted for corruption. this year, 86 were indicted for corruption. we have seen afghan-led efforts that have gone after police commanders, significant business people in afghanistan. but we're a long way from where we need to be on that. and every time i talk to president karzai i say, as important as it is for us to help you train your military and your police forces, the only way that you are going to have a stable government over the long term is if the afghan people feel that you are looking out for them. and that means making sure that the tradition of corruption in the government is reduced. and we're going to keep on putting pressure on them, on that front. is it going to happen overnight? probably not. are there going to be occasions where we look and see that some of our folks on the ground have made compromises with people who are known to have engaged in corruption? you know, we're reviewing all of that constantly and there may be occasions where that happens. and i think you're certainly right, helene, that we've got to make sure that we're not sending a mixed message. so one of the things that i've said to my national security team is, let's be consistent in terms of how we operate across agencies. let's make sure that our efforts there are not seen as somehow giving a wink and a nod to corruption. if we are saying publicly that that's important, then our actions have to match up across the board. and -- but it is a challenging environment in which to do that. now, with respect to prime minister netanyahu and the middle east, a major bone of contention during the course of this month is going to be the potential lapse of the

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