PBS NewsHour; March 18, 2010 7:00pm-8:00pm EDT

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Lehrer: GOOD EVENING. I'M JIM LEHRER. HOUSE DEMOCRATS REVEALED THE DETAILS OF THE HEALTH CARE REFORM BILL, SETTING THE STAGE FOR A SUNDAY VOTE.

>> Brown: AND I'M JEFFREY BROWN. ON THE "NEWSHOUR" TONIGHT: THE CONGRESSIONAL BUDGET OFFICE GAVE THE MEASURE A $940 BILLION PRICE TAG. WE EXAMINE ITS COSTS AND SAVINGS.

>> Lehrer: THEN, WE LOOK AT CIA DIRECTOR LEON PANETTA'S CLAIM AL QAEDA IS ON THE RUN.

>> Brown: THE SHORTAGE OF CLEAN DRINKING WATER FOR MILLIONS OF PEOPLE IN ETHIOPIA: FRED DE SAM LAZARO REPORTS.

>> PERHAPS A QUARTER OF ETHIOPIA'S POPULATION HAS ACCESS TO CLEAN WATER. MOST MUST DRINK FROM UNTREATED, UNSANITARY RIVERS AND PONDS.

>> Lehrer: AND THE LATEST ON A PROPOSAL TO ACT AGAINST MEN'S COLLEGE BASKETBALL TEAMS THAT DON'T GRADUATE. AT LEAST 40% OF THEIR PLAYERS. THAT'S ALL AHEAD ON TONIGHT'S "NEWSHOUR." MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> EVERY BUSINESS DAY, BANK OF AMERICA LENDS NEARLY $3 BILLION TO INDIVIDUALS, INSTITUTIONS, SCHOOLS, ORGANIZATIONS AND BUSINESSES IN EVERY CORNER OF THE ECONOMY. AMERICA-- GROWING STRONGER EVERYDAY. MONSANTO. PRODUCING MORE. CONSERVING MORE. IMPROVING FARMERS' LIVES. THAT'S SUSTAINABLE AGRICULTURE. MORE AT producemoreconservemore.com.

>> THIS IS THE ENGINE THAT CONNECTS ABUNDANT GRAIN FROM THE AMERICAN HEARTLAND TO HARAN'S BEST SELLING WHOLE WHEAT, WHILE KEEPING 60 BILLION POUNDS OF CARBON OUT OF THE ATMOSPHERE EVERY YEAR. BNSF, THE ENGINE THAT CONNECTS US. AND THE WILLIAM AND FLORA HEWLETT FOUNDATION, WORKING TO SOLVE SOCIAL AND ENVIRONMENTAL PROBLEMS AT HOME AND AROUND THE WORLD. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU.

>> Lehrer: HOUSE DEMOCRATS GOT DOWN TO DOLLARS AND CENTS ON THEIR HEALTH CARE REFORM BILL TODAY. AND PRESIDENT OBAMA DROPPED PLANS TO GO OVERSEAS, SO HE COULD STAY AND LOBBY FOR VOTES. "NEWSHOUR" CONGRESSIONAL CORRESPONDENT KWAME HOLMAN BEGINS OUR COVERAGE.

>> Reporter: DEMOCRATIC LEADERS UNVEILED THEIR SO-CALLED "RECONCILIATION" PACKAGE TODAY. IT ENCOMPASSED CHANGES TO THE BILL THE SENATE PASSED LAST DECEMBER. HOUSE SPEAKER NANCY PELOSI:

>> THERE IS MORE AFFORDABILITY FOR THE MIDDLE CLASS IN THE LEGISLATION, IN THE RECONCILIATION THAT WE WILL PASS.

>> Reporter: THE CONGRESSIONAL BUDGET OFFICE REPORTED THE BILL WOULD COST MORE THAN EARLIER VERSIONS, ABOUT $940 BILLION OVER 10 YEARS. BUT THE C.B.O. SAID IT WOULD CUT MORE FROM THE DEFICIT-- ABOUT $138 BILLION THROUGH 2019-- AND ANOTHER $1.2 TRILLION IN THE FOLLOWING DECADE. HOUSE MAJORITY LEADER STENY HOYER:

>> THIS BILL IS THE BIGGEST DEFICIT REDUCTION BILL THAT ANY MEMBER OF CONGRESS IS EVER GOING TO HAVE THE OPPORTUNITY TO VOTE ON.

>> Reporter: AND PELOSI SAID THE SUBSTITUTE PLAN-- POSTED ONLINE THIS AFTERNOON-- WILL CURB THE GROWTH OF MEDICARE COSTS AND MAKE MEDICARE SOLVENT FOR AN EXTRA NINE YEARS. AND IT ELIMINATES A SPECIAL MEDICAID FUNDING DEAL IN THE SENATE BILL THAT APPLIED ONLY TO NEBRASKA.

>> WE DIDN'T LIKE THE STATE INEQUITIES. IT'S A CATEGORY AND THIS BILL CORRECTS THE STATE INEQUITIES, MAKING MEDICARE, EXCUSE ME, THE MEDICAID REIMBURSEMENT FAIR TO ALL OF THE STATES.

>> Reporter: THE DEMOCRATIC LEADERS SAID THE COST ESTIMATES AND OTHER FEATURES GAVE THEM ADDITIONAL MOMENTUM TO PUSH AHEAD WITH A SUNDAY VOTE ON THE OVERHAUL LEGISLATION. BUT SPEAKER PELOSI WAS STILL WORKING TO DRUM UP THE 216 VOTES TO PASS IT. DEMOCRAT BARON HILL OF INDIANA IS ONE OF THE UNDECIDEDS. HE SAID TODAY'S REPORT WAS A STEP IN THE RIGHT DIRECTION.

>> I'M ENCOURAGED ABOUT THE NUMBERS. $1.2 TRILLION IN THE NEXT TEN YEARS. AND $130 BILLION IN THE FIRST 10 YEARS. SO I'M PRETTY HAPPY ABOUT THE NUMBERS.

>> Reporter: SO ARE YOU VOTING YES?

>> NOT SURE YET. I WANT TO MAKE SURE EVERY "T" IS CROSSED, EVERY "I" IS DOTTED.

>> Reporter: BUT REPUBLICANS DISMISSED THE C.B.O. REPORT. HOUSE MINORITY LEADER JOHN BOEHNER SAID THEY WOULD CONTINUE WORKING TO DEFEAT THE HEALTH CARE BILL.

>> THEY CAN TWEAK THIS THING, AND STILL IT'S A TRILLION DOLLARS THEY'RE GOING TO SPEND. WE'VE MADE CLEAR THAT ITS TIME TO SCRAP THIS BILL AND START OVER ON COMMONSENSE REFORMS TO MAKE OUR CURRENT HEALTH CARE SYSTEM BETTER. BUT NO, THEY ARE GOING TO CONTINUE TO RAM, RAM, RAM THIS BILL THROUGH THE CONGRESS. EVERY KIND OF SCHEME KNOWN TO MAN TO TRY AND GET IT THROUGH THE CONGRESS WITHOUT A VOTE.

>> Reporter: REPUBLICANS TRIED AND FAILED TODAY TO BLOCK ANY EFFORT TO LET THE HOUSE PASS THE CHANGES IT WANTS WITHOUT EVER ACTUALLY VOTING ON THE LESS- POPULAR SENATE BILL. FOR HIS PART, PRESIDENT OBAMA WELCOMED THE COST FIGURES OUT TODAY. HE SAID THE HEALTH CARE LEGISLATION WILL BE THE "MOST SIGNIFICANT" DEFICIT REDUCING EFFORT IN MORE THAN 20 YEARS.

>> AND THIS IS BUT ONE VIRTUE OF A REFORM THAT WILL BRING NEW ACCOUNTABILITY TO THE INSURANCE INDUSTRY, AND GREATER ECONOMIC SECURITY TO ALL AMERICANS. SO I URGE EVERY MEMBER OF CONGRESS TO CONSIDER THIS AS THEY PREPARE FOR THEIR IMPORTANT VOTE THIS WEEKEND.

>> Reporter: LATER, WHITE HOUSE OFFICIALS ANNOUNCED THE PRESIDENT HAS POSTPONED HIS TRIP TO INDONESIA AND AUSTRALIA UNTIL JUNE. SPOKESMAN ROBERT GIBBS SAID THAT WHILE MR. OBAMA HAD BEEN SCHEDULED TO DEPART ON SUNDAY, HE'S STAYING TO CONTINUE HIS LOBBYING EFFORT.

>> PASSAGE OF HEALTH CARE REFORM IS OF PARAMOUNT IMPORTANCE AND THE PRESIDENT IS DETERMINED TO SEE THIS BATTLE THROUGH.

>> Reporter: BOTH WHITE HOUSE AIDES AND DEMOCRATIC LEADERS TALKED OPTIMISTICALLY TODAY OF GETTING THE VOTES THEY NEED. THEY DID NOT SAY HOW CLOSE THEY ARE.

>> Brown: AND FOR A CLOSER LOOK AT THE BILL'S COSTS AND SAVINGS, I'M JOINED BY NEERA TANDEN OF THE CENTER FOR AMERICAN PROGRESS. SHE SERVED AS A SENIOR ADVISOR FOR THE OBAMA ADMINISTRATION AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES UNTIL LAST MONTH. AND GAIL WILENSKY, ECONOMIST AND SENIOR FELLOW AT THE "PROJECT HOPE FOUNDATION. SHE SERVED IN REPUBLICAN ADMINISTRATIONS AND ON MEDICARE PAYMENT COMMISSIONS. SHE ALSO SITS ON THE BOARD OF THE INSURANCE COMPANY UNITED HEALTH GROUP. FIRST, LET'S START BY HELPING PEOPLE UNDERSTAND WHAT THE C.B.O. REPORT IS. NEERA TANDEN, WHAT IS IT? WHAT IS IT AND WHAT ISN'T IT?

>> WELL, BASICALLY, THERE'S A NEW PACKAGE OF PROPOSALS THAT MERGE IT IS HOUSE AND SENATE HEALTH CARE BILLS. WE HAD A VOTE IN BOTH CHAMBERS, NOW THE NORMAL PROCESS IS TO HAVE A CONFERENCE BUT OVER THE LAST SEVERAL MONTHS THEY BASICALLY HAVE COME TO AN AGREEMENT BETWEEN THE TWO HOUSES AS TO WHAT THEY WOULD LIKE THE FINAL BILL TO BE. AND WHAT C.B.O. BILL DID WAS AN ANALYSIS OF HOW... OF THAT BILL, THE MERGED BILL, THE RECONCILIATION BILL AND IT TELLS US HOW MANY PEOPLE WE'RE COVERING, HOW MUCH IT COSTS, WHAT THE REVENUE ESTIMATES ARE. SO THAT'S WHAT C.B.O. FOUND TODAY.

>> Brown: GAIL WILENSKY, IT'S AN ESTIMATE, IT'S NOT SOMETHING THAT YOU CAN HANG YOUR HAT ON FOR TEN OR 20 YEARS OUT BUT IT'S A RESPECTED ESTIMATE.

>> LET ME FIRST EXPLAIN WHAT THE CONGRESSIONAL BUDGET OFFICE IS IN CASE SOME OF YOUR LISTENERS DON'T KNOW. IT'S AN INDEPENDENT GROUP. IT'S A BODY THAT'S APPOINTED BY THE CONGRESS. VERY WELL RESPECTED FOR INDEPENDENT ESTIMATES. WAS FIRST CRAFTED IN THE 1970s TO GIVE THE CONGRESS AN INDEPENDENT VIEW OF THE COST AND THE REVENUES ASSOCIATED WITH VARIOUS LEGISLATION SO IT WOULD HAVEN'T TO RELY ON THE BUDGET OFFICE OF THE ADMINISTRATION. IT'S VERY WELL REGARDED. IF YOU ACTUALLY LOOK AT THE LANGUAGE THAT THE CONGRESSIONAL BUDGET OFFICE PUT OUT, IT GOES OUT OF ITS TRY SAY THIS IS PRELIMINARY, THEY DIDN'T ACTUALLY HAVE THE LANGUAGE OF THE LEGISLATION. AND TO SAY BASED ON WHAT WE KNOW, THIS IS WHAT WE EXPECT. IT IS USUALLY REGARDED BY MOST PEOPLE AS BEING WITHOUT BIAS. FREQUENTLY WRONG, PARTICULARLY FOR VERY COMPLICATED LEGISLATION BECAUSE IT'S SO HARD TO BE ABLE TO ESTIMATE ANYTHING NEARLY AS COMPLICATED AS THIS.

>> Brown: SO WHEN YOU TWO LOOK AT IT, WHAT JUMPS OUT AS THE KEY THING PEOPLE SHOULD UNDERSTAND FROM THE LATEST VERSION HERE, SCORED OR MEASURED BY C.B.O.

>> WELL, MOST IMPORTANTLY, WE HAVE DEFICIT REDUCTION OVER THE FIRST TEN YEARS. YOU KNOW, A LOT OF MODERATE MEMBERS HAVE BEEN CONCERNED ABOUT THAT. A LOT OF AMERICANS ARE CONCERNED ABOUT ADDING TO THE DEAF IT? THESE DIFFICULT TIMES. SO THIS IS ACTUALLY A LARGE-SCALE DEFICIT REDUCTION BILL. IT SAVES OVER $100 BILLION. AND WHAT'S REALLY MOST CRITICAL IS FROM THEIR ESTIMATES-- AND THEY'RE LOOKING AT THE POLICIES OF THE BILL ITSELF-- THEY'RE FINDING THAT IN THE SECOND TEN YEARS WE WILL HAVE OVER A TRILLION DOLLARS IN SAVINGS. AND FOR THOSE PEOPLE WHO HAVE BEEN CONCERNED ABOUT COSTS, WHAT'S REALLY A CONCERN IS THAT WE HAVE SKYROCKETING COSTS OVER THE NEXT 20 YEARS, 30 YEARS, 40 YEARS. SO THE FACT THAT WE HAVE SUCH SIGNIFICANT SAVINGS IN THE SECOND DECADE IS REALLY PARAMOUNT IMPORTANCE. THEN WE HAVE THOSE SAVINGS FOUND IN THE HOUSE BILL.

>> Couric: SO THOSE ARE THE NUMBERS THEY PRESENT. WHERE ARE THE SAVINGS AND WHAT DO YOU SEE WHEN YOU LOOK AT THE SPECIFIC PROGRAMS?

>> I'M GLAD YOU ASKED ME THAT. MORE THAN HALF OF THE SPENDING IS FINANCE ED BY REDUCTIONS IN MEDICARE SPENDING. MORE THAN $500 BILLION OVER THE NEXT TEN YEARS. THE REASON THIS IS SO IMPORTANT IS WHAT'S NOT IN THE BILL. WHEN THE CONGRESSIONAL BUDGET OFFICE GIVES IT ESTIMATE, IT DOES AGAINST CURRENT LAW. THEY HAVE TO ASSUME THAT ALL LAWS THAT ARE ON THE BOOKS NOW OCCUR AND THAT THERE ARE NO OTHER CHANGES OTHER THAN WHAT THE LAW IS THAT THEY'RE ASKED TO ESTIMATE. NORMALLY, THAT'S PERFECTLY SENSIBLE . RIGHT NOW THERE'S A BIG PROBLEM AND THAT IS MEDICARE IS FACING A VERY BIG REDUCTION IN PAYMENTS TO PHYSICIANS IF NOTHING ELSE HAPPEN S PHYSICIANS WOULD HAVE THEIR FEES REDUCED BY 21%. THE CONGRESS HAS BEEN BUMPING THE DAY OUT WHEN THIS HAPPENS. FIRST IT WAS FEBRUARY, THEN MARCH, NOW APRIL 30. NOBODY EXPECTS THAT PHYSICIANS WILL ACTUALLY FACE THAT KIND OF REDUCTION.

>> Brown: AND THEREFORE WE SHOULDN'T GO BY THESE NUMBERS OR...

>> WELL, WHAT YOU IMMEDIATE TO KNOW IS THE C.B.O. ESTIMATE OF WHAT IT WILL COST TO FIX THIS IS $230 BILLION. ALMOST TWICE THE SAVINGS IN THOSE FIRST TEN YEARS . THE REASON IT'S SO IMPORTANT IS SO MUCH OF THE SAVINGS IS COMING OUT OF MEDICARE PAYMENT REDUCTIONS THAT CONGRESS IS GETTING EVERY SINGLE PENNY THEY THINK POLITICALLY THEY CAN GET OUT OF MEDICARE, BUT THEY'RE NOT PAYING FOR THE FIX TO PHYSICIANS. THAT OUGHT TO BE REGARDED AS A VERY SERIOUS PROBLEM.

>> Brown: YOU WANT TO JUMP IN HERE.

>> WHAT I WOULD SAY TO THAT IS THAT THAT IS AN IMPORTANT ISSUE. IT'S NOT NECESSARY TO HEALTH REFORM AND IT IS ONE THAT THE CONGRESS SHOULD ADDRESS, THAT CAN BE ADDRESSED AND WILL BE ADDRESSED. BOTH SIDES OF THE CONGRESS AND THE PRESIDENT ARE COMMITTED TO CHANGING THE S.G.R. AND THE PAYMENT SYSTEM AND THAT'S SOMETHING THAT CAN BE ADDRESS BUD THAT SHOULDN'T DETRACT FROM THE FACT THAT WE HAVE SUBSTANTIAL SAVINGS IN THIS BILL, THAT WE HAVE SUBSTANTIAL REFORMS IN THIS SYSTEM AND THAT WE'RE FINDING THAT THIS IS A BILL THAT WILL ARE HAVE SAVINGS TO THE SYSTEM, SAVINGS TO NATIONAL HEALTH EXPENDITURES AND THE FEDERAL GOVERNMENT.

>> Brown: ANOTHER AREA I KNOW YOU FOCUSED ON WHERE POSSIBLE SAVINGS ARE IN THIS BILL IS THE WAY HEALTH CARE IS DELIVERED. EXPLAIN HOW YOU SEE SAVINGS.

>> I ACTUALLY THIS THE CONGRESSIONAL BUDGET OFFICE ESTIMATE IS VERY CONSERVATIVE BECAUSE THERE ARE A RANGE OF SAVINGS PROPOSALS IN THE BILL THAT THEY GIVE VERY LITTLE CREDIT FOR. SAY IT WILL SAVE ZERO OR A FEW BILLION DOLLARS.

>> Brown: YOU MEAN IT SHOULD LOOK EVEN BETTER?

>> YES. OVER A LONG TERM I THINK THERE ARE MANY PEOPLE, MANY HEALTH ECONOMISTS WHO BELIEVE THINGS... THE WAYS IN WHICH WE CHANGE THE PAYMENT REFORM SYSTEM, BUNDLE PAYMENTS SO THAT WE'RE MOVING AWAY FROM FEE-FOR-SERVICE AND REALLY PUSHING TOWARDS PROVIDING CARE, PROVIDING REIMBURSEMENT FOR DELIVERY. SO IF YOU HAVE A HEART ATTACK, YOU ARE... THE PROVIDER SYSTEM HAS PAID FOR THAT. SO THOSE ARE... C.B.O. GIVES NO CREDIT FOR THESE DEMONSTRATIONS AND THESE PLANS WITHIN THE SYSTEM. AND I THINK A LOT OF PEOPLE BELIEVE THOSE ARE ACTUALLY WAYS OVER THE NEXT TEN, 20 YEARS, WE'LL HAVE MORE SUBSTANTIAL SAVINGS.

>> Brown: DO YOU BUY THAT? THERE THAT THERE'S ACTUALLY MORE SAVINGS THERE THAN THEY'RE GIVING CREDIT FOR?

>> THERE'S SOME PROMISE FOR THE SAVINGS. THE REASON IS THAT THESE ARE ALL PILOTS. THEY'RE ATTEMPTS TO FIGURE OUT HOW TO DO THINGS DIFFERENTLY, HOW TO PUT THE PAYMENTS TOGETHER FOR TAKING CARE OF SOMEBODY WITH A BYPASS SURGERY OR FOR CHRONIC DISEASE OR MAYBE COMBINING THE PAYMENTS FOR PHYSICIANS AND HOSPITALS THAT ARE NOT FORMALLY INTEGRATED. THE PROBLEM-- HAVING BEEN THERE, HAVING RUN MEDICARE AND ACTUALLY DONE A BYPASS DEMONSTRATION WHERE WE PAID A SINGLE AMOUNT IN THE EARLY 1990s-- IS THE HISTORY IS PROMISING PILOTS FREQUENTLY DON'T MAKE IT INTO LAW. SO I WOULD BE MUCH MORE CONVINCED THAT SOME OF THESE DELIVERY SYSTEM REFORMS MIGHT ACTUALLY SAVE MONEY IF WE HAD TRIGGERS. SO THAT IF A DEMONSTRATION OR A PILOT IMPROVES QUALITY AND DOESN'T INCREASE COST OR REDUCES COST AND IS AT LEAST NEUTRAL WHEN IT COMES TO QUALITY IF NOT IMPROVING IT, IT BECOMES PART OF THE MEDICARE PROGRAM. THAT WOULD BE MUCH MORE CONVINCING TO ME THAN WHAT WE SEE. THE REAL AREAS THAT WERE LOOKED AT AS REDUCING COSTS BY MOST ECONOMISTS-- I AM A HEALTH ECONOMIST, AS YOU HAD INDICATED EARLIER-- HAVE BEEN EMASCULATING, AT LEAST FOR THESE FIRST TEN YEARS. IT WAS THE TAX ON THE CADILLAC PLAN. THAT'S BUMPED OUT.

>> Brown: THOSE ARE THE HIGH-COST INSURANCE PLANS.

>> EXACTLY. THEY WON'T TAKE EFFECT UNTIL THE END OF THE NEXT DECADE. THEN THEY'RE SUPPOSED TO TAKE IN EFFECT A MAJOR WAY BUT, YOU KNOW, THAT'S A WHOLE LONG TIME AGO. OR TO HAVE THIS SUPERCHARGED MEDICARE PAYMENT ADVISORY COMMISSION THAT COULD MAKE DECISIONS ON ITS OWN. BUT BASICALLY EVERYTHING THAT COSTS MONEY HAS BEEN TAKEN OUT OF ITS PURVIEW. SO THE SAVINGS ARE BY REDUCING PAYMENT THEY'RE NOT BY REFORMING THE SYSTEM. THERE'S A BIG DIFFERENCE BETWEEN USING THE SAME MEDICARE SYSTEM WITH ITS NOT VERY HELPFUL INCENTIVES AND JUST REDUCING PAYMENTS.

>> Brown: LET ME ASK YOU BRIEFLY BEFORE WE GO. TO WHAT EXTENT IS THIS A POLITICAL DOCUMENT? WE SAW IN KWAME'S PIECE, OF COURSE, CONGRESSMEN ARE WATCHING CAREFULLY. HOW DOES THIS DOCUMENT LIKE THIS, WEIGHING THE NUMBERS, PLAY INTO THE VOTE WRANGLING THAT WE'RE SEEING?

>> I THINK IT'S CRITICALLY IMPORTANT. A LOT OF MODERATE MEMBERS IN THE HOUSE, A LOT OF MODERATE DEMOCRATS HAVE TALKED ABOUT FOR MONTHS THE IMPORTANCE OF COST SAVINGS. NOW THEY HAVE A C.B.O. SCORE THAT SHOWS THEM THAT WHAT THEY WILL BE VOTING ON, THE RECONCILIATION PACKAGE, ACTUALLY HAS GREATER DEFICIT REDUCTION THAN THE HOUSE BILL AND SO THEY HAVE A PATH TO VOTE YES ON THIS BILL. SO I THINK IT'S VERY IMPORTANT. BUT I WOULD ALSO SAY JUST IN RESPONSE TO GAIL THAT I THINK, YOU KNOW, WE HAVE AN INDEPENDENT PAYMENT ADVISORY BOARD. THERE ARE STEPS IN HERE THAT REALLY GIVE TEETH TO THESE SAVINGS AND WE'RE ALL HOPEFUL AND THE PRESIDENT'S WHOLE PRESTIGE IS ON SAVINGS OVER THE LONG TERM. I THINK THERE WILL BE A LOT OF IMPETUS.

>> Brown: WE'LL KEEP WATCHING AND DEBATING. NEERA TANDEN AND GAIL WILENSKY, THANK YOU VERY MUCH.

>> THANK YOU FOR HAVING US.

>> Lehrer: NOW, THE OTHER NEWS OF THE DAY, HERE'S HARI SREENIVASAN, IN OUR NEWSROOM.

>> Sreenivasan: AN AMERICAN MAN PLEADED GUILTY TODAY TO HELPING PLAN THE 2008 TERROR ATTACKS IN MUMBAI, INDIA. DAVID COLEMAN HEADLEY ENTERED HIS PLEA IN FEDERAL COURT IN CHICAGO. PROSECUTORS SAID THE 49-YEAR-OLD SCOUTED OUT HOTELS AND A JEWISH CENTER IN MUMBAI. 166 PEOPLE WERE KILLED WHEN ISLAMIC MILITANTS ASSAULTED THE BUILDINGS. HEADLEY ALSO PLEADED GUILTY TO PLANNING TO ATTACK A DANISH NEWSPAPER THAT RAN CARTOONS OFFENDING MUSLIMS. A PENNSYLVANIA WOMAN WAS ARRAIGNED TODAY IN PHILADELPHIA IN THE "JIHAD JANE" CASE. COLLEEN LAROSE ALLEGEDLY USED THAT NAME IN ON-LINE POSTINGS. SHE PLEADED NOT GUILTY TODAY-- IN FEDERAL COURT-- TO PLOTTING THE MURDER OF A SWEDISH CARTOONIST WHO DREW THE PROPHET MUHAMMAD. SHE IS ALSO ACCUSED OF CONSPIRING TO AID MILITANTS OVERSEAS. IN ECONOMIC NEWS, NEW CLAIMS FOR JOBLESS BENEFITS FELL SLIGHTLY LAST WEEK AND A NEW JOBS BILL BECAME LAW. PRESIDENT OBAMA SIGNED THE $38 BILLION MEASURE IN THE WHITE HOUSE ROSE GARDEN. IT INCLUDES TAX BREAKS FOR EMPLOYERS AND MONEY FOR HIGHWAY PROGRAMS. AND ON WALL STREET TODAY, THE DOW JONES INDUSTRIAL AVERAGE GAINED 45 POINTS TO CLOSE AT 10,779. THE NASDAQ ROSE TWO POINTS TO CLOSE AT 2,391. THE U.S. AND RUSSIA ARE GETTING CLOSER TO A NEW AGREEMENT TO LIMIT NUCLEAR ARMS-- KNOWN AS "START." THAT WORD CAME TODAY FROM SECRETARY OF STATE HILLARY CLINTON, AS SHE BEGAN A TWO-DAY TRIP TO MOSCOW. SHE MET WITH HER RUSSIAN COUNTERPART, SERGEY LAVROV.

>> WE ARE MAKING SUBSTANTIAL PROGRESS ON THE NEW START TREATY; THAT'S THE WORD FROM OUR NEGOTIATORS IN GENEVA. AND THE RESULTS FROM THE LATEST NEGOTIATING ROUNDS LEAD US TO BELIEVE WE WILL BE REACHING A FINAL AGREEMENT SOON.

>> Sreenivasan: ON ANOTHER ISSUE, RUSSIAN PRIME MINISTER VLADIMIR PUTIN SAID IRAN'S NEW RUSSIAN-BUILT NUCLEAR PLANT WILL START OPERATING THIS SUMMER. SECRETARY CLINTON HAD PRESSED FOR A DELAY UNTIL IRAN PROVES IT IS NOT PURSUING NUCLEAR WEAPONS. A U.N. WILDLIFE ORGANIZATION REFUSED TO BAR EXPORTS OF ATLANTIC BLUEFIN TUNA TODAY. THE U.S. AND A HANDFUL OF OTHER COUNTRIES BACKED THE IDEA. THEY SAID THE BLUEFIN POPULATION HAS DROPPED SHARPLY DUE TO OVER- FISHING. BUT JAPAN AND SCORES OF OTHER NATIONS OPPOSED A BAN. JAPAN IMPORTS 80% OF THE ATLANTIC BLUEFIN HARVEST. AND DEVELOPING COUNTRIES SAID IMPOSING A BAN WOULD DAMAGE THEIR FISHING ECONOMIES. THOSE ARE SOME OF THE DAY'S MAIN STORIES. I'LL BE BACK AT THE END OF THE PROGRAM WITH A PREVIEW OF WHAT YOU'LL FIND TONIGHT ON THE "NEWSHOUR'S" WEB SITE. BUT FOR NOW, BACK TO JIM.

>> Lehrer: THE CIA HAS OSAMA BIN LADEN AND OTHER AL QAEDA LEADERS ON THE RUN. THAT'S ACCORDING TO CIA DIRECTOR LEON PANETTA. HE TOLD THE WASHINGTON POST: "IT'S PRETTY CLEAR FROM ALL THE INTELLIGENCE WE ARE GETTING THAT THEY ARE HAVING A VERY DIFFICULT TIME PUTTING TOGETHER ANY KIND OF COMMAND AND CONTROL, THAT THEY ARE SCRAMBLING." AND PANETTA ATTRIBUTED THE SUCCESS, IN PART, TO IMPROVED RELATIONS WITH PAKISTAN, SAYING "WE DO A LOT MORE OPERATIONS TOGETHER." WE HAVE TWO VIEWS OF THIS: GLENN CARLE SERVED AS DEPUTY NATIONAL INTELLIGENCE OFFICER FOR TRANSNATIONAL THREATS, WHERE HE TRACKED TERROR NETWORKS LIKE AL QAEDA. HE RETIRED IN 2007 AFTER A 23- YEAR CAREER AT THE CIA. AND MICHAEL SCHEUER HEADED THE CIA TEAM RESPONSIBLE FOR HUNTING OSAMA BIN LADEN IN THE LATE 1990s. HE IS THE AUTHOR OF A FORTHCOMING BOOK CALLED, "OSAMA BIN LADEN, A BIOGRAPHY." MR. CARLE, DOES PANETTA'S ASSESSMENT ABOUT AL QAEDA'S WEAKENING ADD UP TO YOU?

>> IT DOES. I THINK THERE ARE TWO WAYS TO LOOK AT IT OR TWO ELEMENTS INVOLVED. FIRST THERE'S THE DOMESTIC POLITICAL ONE. DEMOCRATS ALWAYS ARE VULNERABLE OR PERCEIVED TO BE VULNERABLE ON NATIONAL DEFENSE AND SOFT ON TERROR AND THEY'VE BEEN BEATEN WITH THIS STICK FOR MANY YEARS SO CERTAINLY ADMINISTRATION IS BRINGING OUT ITS HEAVY POLITICAL PLAYERS TO COUNTER THAT, FROM JOHN BRENNAN TO LEON PANETTA. THAT SAID, I THINK IT'S A FAIR STATEMENT AND ASSESSMENT TO MAKE THE EFFORTS IN AFGHANISTAN HAVE INCREASED. COOPERATION WITH PAKISTAN HAS INCREASED. PRESSURE IS GREATER AND HAS BEEN SUSTAINED FOR A LONG TIME. SO I THINK IT IS FAIR TO SAY THAT COMMAND AND CONTROL IS WEAKER AND AL QAEDA IS SUFFERING SERIOUSLY.

>> Lehrer: SUFFERING SERIOUSLY, MR. SCHEUER?

>> WELL, IT'S CERTAINLY BEING HIT IN THE WAS AREA OF THE BORDER, MR. LEHRER. BUT THE BORDER IS 2,600 KILOMETERS LONG.

>> Couric:

>> Lehrer: YOU MEAN THE BORDER BETWEEN PAKISTAN AND AFGHANISTAN?

>> YES AND WE'RE NOT WORKING ALONG THAT ENTIRE BORDER. I THINK WE SHOULD ALL HOPE PANETTA IS CORRECT. BUT WE'VE HEARD THIS STORY FROM THIS ADMINISTRATION, PAST ADMINISTRATIONS ABOUT THE NOOSE TIGHTENING AROUND THE NECK OF AL QAEDA AND IT NEVER SEEMS TO QUITE TIGHTEN. THE OTHER POINT I WOULD MAKE IS SIMPLY THE ACT OF TRYING TO KILL THESE PEOPLE IS AN IMPORTANT ADVANCE. IF YOU'RE BEING CHASED AND SHOT AT, YOU MAKE MISTAKES. IT'S VERY CALLOUS TO SAY, BUT VIOLENCE CREATES INTELLIGENCE. AND THE MORE WE'RE OUT THERE SHOOTING, THE MORE PEOPLE ARE GOING TO MAKE COMMUNICATIONS MISTAKES, TRAVEL MISTAKES. SO THIS IS A GOOD NEWS STORY, BUT IT'S A GOOD TACTICAL STORY. IT REALLY HAS VERY LITTLE IMPACT STRATEGICALLY.

>> Lehrer: DO YOU AGREE THAT THE SHOOTING IS WHAT'S CAUSING THEM TO GO ON THE RUN, SO TO SPEAK? OR TO THEIR ABILITIES TO DIMINISH?

>> WELL, I'VE LONG SAID WHEN I WAS IN THE AGENCY AND SINCE THAT ONE OF THE MAJOR REALITIES THAT I THINK IS... HAS FOR LONG BEEN UNDERAPPRECIATED IS THAT IT'S VERY DIFFICULT TO BE A MEMBER OF AL QAEDA OR A JIHADIST. THE OPERATIONAL ENVIRONMENT EVERYWHERE IS REALLY HARD FOR THEM AND HAS BEEN BEFORE 9/11 THANKS IN PART TO MIKE'S AND OTHERS EFFORTS AND CERTAINLY SINCE. IT'S NOT EASY WHENEVER INTELLIGENCE ORGANIZATION, EVERY LAW ENFORCEMENT OFFICIAL, AND EVERY GOVERNMENT IN THE WORLD IS OUT TO GET YOU AND FREQUENTLY SUCCEEDING.

>> Lehrer: BUT WHEN SHOOTING, WE'RE TALKING ABOUT DRONES THAT HAVE BEEN HIRED BY THE... FIRED BY THE C.I.A.? WE'RE TALKING ABOUT, WHAT, SPECIAL FORCES TROOPS IN THE MOUNTAINS?

>> I THINK THAT'S PROBABLY WHAT WE ARE TALKING ABOUT, MR. LEHRER. SPECIAL FORCES TROOPS AND THE C.I.A.'S DRONE. CERTAINLY GENERAL McCHRYSTAL IN AFGHANISTAN SEEMS MORE INTENT ON NOT KILLING VERY MANY PEOPLE AND APOLOGIZING EVERY TIME SOMEONE DOES GET KILLED.

>> Lehrer: YOU'RE TALKING ABOUT NON-AL QAEDA CIVILIANS?

>> YEAH. ALL OF THESE THINGS, MR. LEHRER, THE DRONE, RENDITION, SPECIAL FORCES, ALL OF THESE ARE COMPLIMENTS TO A MAJOR MILITARY ACTION. AS LONG AS WE'RE DEPENDING ON THE COMPLIMENTS, WE'RE NEVER GOING TO REALLY TURN THE TIDE AGAINST THESE FOLKS.

>> Lehrer: WHAT DO YOU MEAN?

>> WELL, THE MILITARY OUGHT TO BE VERY MUCH INVOLVED IN DRIVING THE TALIBAN AS FAR OUT OF AFGHANISTAN AS THEY CAN. BUT NOW THEY'RE COMMITTED TO A HEARTS AND MINDS CAMPAIGN. WE'RE INVOLVED IN A WAR IN AFGHANISTAN WHERE THE ENEMY DOESN'T WEAR A UNIFORM, LIVES AMONG CIVILIANS WHO SUPPORT THEM. AND IF YOU HAVE RULES OF ENGAGEMENT THAT YOU DON'T ATTACK AT NIGHT AND YOU CAN'T ATTACK IF YOU MIGHT KILL CIVILIANS, YOU END UP GIVING THE ENEMY A TREMENDOUS OPPORTUNITY TO STAY ALIVE.

>> Lehrer: DO YOU SEE IT THE SAME WAY?

>> I DON'T, REALLY. AS CLOSE AS AL QAEDA AND THE TALIBAN HAVE BECOME PRIOR TO 9/11 AND CERTAINLY SINCE, I THINK IT'S AN ERROR TO CONFLATE THE TWO. I ALSO THINK IT'S AN ERROR TO IMAGINE THAT ANY SORT OF... OR ANY COMBINATION OF KINETIC MILITARY LETHAL STEPS-- WHETHER THEY'RE DONE BY INTELLIGENCE OFFICERS OR UNIFORM MILITARY-- WILL SUFFICE TO ACHIEVE OUR ENDS. I THINK WHAT'S HAPPENING IS INCREASED PRESSURE IN ALL WAYS, PRESSURE ON THE TALIBAN, A CHANGE IN POLICY... OUR POLICIES IN AFGHANISTAN. BETTER COOPERATION WITH PAKISTAN ACROSS THE BOARD. AND AS WE TALKED ABOUT SEVERAL MONTHS AGO, CONSCIOUS INCREASED PRESSURE IN YEMEN, TOO, THE MOST LIKELY OTHER SAFE HAVEN, IF THERE IS ONE.

>> Lehrer: SPECIFICALLY WHEN YOU SAY... AND PANETTA SAID THIS, THAT COMMAND AND CONTROL IS DIMINISHED AMONG AL QAEDA. WHAT DOES THAT MEAN? WHAT CAN THEY NOT DO NOW THAT THEY USED TO BE ABLE TO DO BECAUSE OF ALL THIS STUFF THAT'S HAPPENING?

>> WELL, ONE, THE ENVIRONMENT EVERYWHERE IS SIGNIFICANTLY MORE HOSTILE THAN IT WAS A DOZEN YEARS AGO. TEN YEARS AGO. TWO, WE HAVE TO KEEP IN MIND WHAT AL QAEDA REALLY HAS ALWAYS BEEN. IT HAS NEVER BEEN A TREMENDOUS ORGANIZATION. WE'RE TALKING ABOUT HUNDREDS OF PEOPLE, EVEN AT ITS HEYDAY, THOUSANDS BY A BROAD DEFINITION OF PEOPLE WHO HAVE BEEN TRAINED TO SOME EXTENT WITH A.K.-47s. AND THE COMMAND STRUCTURE OF AL QAEDA HAS ALWAYS BEEN VERY, VERY SMALL. IT'S AN ERROR TO THINK THAT BY KILLING AN OPERATIONAL LEADER THE QUALITY NECESSARY OF HIS REPLACEMENT WILL BE DIMINISHED. BUT OVER TIME-- AND THERE HAVE BEEN A LOT OF ACTIONS TAKEN IN THE PAST NINE YEARS-- THAT DOES HAVE AN EFFECT.

>> Lehrer: HOW DO YOU READ THAT. YOU WERE THERE DURING ITS "HEYDAY" AND YOU'RE LOOKING AT IT NOW.

>> I THINK WE GREATLY EXAGGERATE THE DAMAGE WE'VE DONE TO AL QAEDA.

>> Lehrer: GREATLY EXAGGERATE IT?

>> YES. FROM BOTH ADMINISTRATIONS, REPUBLICANS AND DEMOCRATS, WE HAVE KIND OF A HOLLYWOOD STORY. THEY'RE RUNNING FROM ROCK TO ROCK AND CAVE TO SAVE.

>> Lehrer: THEY'RE NOT DOING THAT?

>> WELL, THEY ARE NOW BECAUSE WE'RE SHOOTING AT THEM. AND I WOULD POINT OUT IF KINETIC AREN'T THE ANSWER, MR. PANETTA IS TALKING ABOUT THE FIRST SUCCESS WE'VE ADD IN A YEAR AND IT'S BECAUSE OF KINETICS. BUT THE OTHER POINT I WOULD MAKE ...

>> Lehrer: WHEN YOU SAY KINETICS, EXPLAIN WHAT YOU MEAN.

>> ARMS, DROPPING BOMBS ON PEOPLE AND SHOOTING THEM WITH...

>> Lehrer: THAT'S A KIN NET SNICK.

>> THAT'S WHAT I UNDERSTAND IT TO MEAN, MR. LEHRER. THE OTHER THING IS WE SAY THEY'RE ISOLATED AND CAN'T COMMUNICATE AND I WISH SOME REPORTER WOULD ASK THE PRESIDENT IF HE'D BEEN IN RADIO SHACK THE LAST 20 YEARS TO SEE THE OFF-THE-SHELF OUR PEOPLE CAN GET. OUR PEOPLE WHO INTERCEPT THINGS OUT OF THE WORLD ARE THE BEST IN THE WORLD. BUT THE WORLD IS SO FULL OF ELECTRONIC COMMUNICATIONS THAT UNLESS THEY KNOW WHAT THEY'RE LOOKING FOR, THEY'RE PROBABLY NOT GOING TO FIND IT.

>> Lehrer: SIMPLY AT THE END, SHOULD AL QAEDA STILL BE SEEN AS A THREAT O-TO-THE HOMELAND OF THE UNITED STATES OF AMERICA, MR. CARLE?

>> THE ONE-WORD ANSWER IS YES. BUT PRIOR TO 9/11 IT WAS A THREAT, AFTER 9/11 IT HAS BEEN A THREAT. IT WILL BE A THREAT SO LONG AS THERE'S ONE JUDGE WHO'S COHERENT ENOUGH TO PLAN AND TRY TO EXECUTE AN OPERATION. BUT AS AN INSTITUTION, AS AN ENTITY, IT IS SUBSTANTIALLY WEAKER THAN IT WAS AND IT WAS NEVER AS DRAMATICALLY STRONG AS OUR FEARS WOULD HAVE IMAGINED.

>> MY OWN OPINION ON THAT IS THAT AL QAEDA WOULD HAVE NOT SURVIVED 9/11 IF IT WASN'T A VERY STRONG ORGANIZATION.

>> Lehrer: TO BEGIN WITH?

>> TO BEGIN WITH. THEY TOOK ONE DEVIL OF A POUNDING AFTER 9/11 AND WITHIN TWO YEARS, THE NATIONAL INTELLIGENCE COUNCIL WAS SAYING THEY WERE BACK ON THEIR FEET AND A THREAT TO THE CONTINENTAL UNITED STATES. YOU DON'T REMAIN AN ORGANIZATION... A VIABLE ORGANIZATION AFTER THE UNITED STATES OF AMERICA POUNDS THE HECK OUT OF YOU UNLESS YOU WERE A STRONG ORGANIZATION TO START WITH.

>> Lehrer: GENTLEMEN, THANK YOU BOTH VERY MUCH.

>> THANK YOU VERY MUCH.

>> Brown: STILL TO COME ON THE "NEWSHOUR": SEARCHING FOR CLEAN WATER IN ETHIOPIA AND BENCHING BASKETBALL TEAMS WITH LOW GRADUATION RATES. BUT FIRST, THIS IS PLEDGE WEEK ON PUBLIC TELEVISION. WE'RE TAKING A SHORT BREAK NOW SO YOUR PUBLIC TELEVISION STATION CAN ASK FOR YOUR SUPPORT.

>> THANKS YOU FOR WATCHING TONIGHT'S EDITION OF "THE NEWSHOUR." HELLO, I'M DAVID GINDER WITH PATRICE PASQUEL.

>> A PROGRAM OF THE "PBS NEWSHOUR'S" CALIBRE DOESN'T JUST HAPPEN. IT TAKES VISION, TALENT, PLANNING-AND MONEY. THE PBS NEWSHOUR RELIES ON FINANCIAL SUPPORT IN PART FROM PEOPLE LIKE YOU. THAT'S BECAUSE WETA IS PUBLIC TELEVISION-WE'RE SUPPORTED BY THE VERY PEOPLE WHO WATCH AND APPRECIATE OUR PROGRAMS, SO THAT'S WHY WE'RE ASKING YOU TO TAKE A MOMENT RIGHT NOW TO GO TO THE PHONE AND MAKE THAT PLEDGE OF SUPPORT. JOIN THE RANKS OF MEMBERS ALL ACROSS OUR COMMUNITY WHO CONSIDER WETA TO BE AN IMPORTANT PART OF THEIR LIVES. JUST CALL THE NUMBER ON YOUR SCREEN OR PLEDGE ONLINE AT WETA.ORG PATRICE?

>> THANKS, DAVID. WE KNOW THAT THE NEWS HOUR IS AN IMPORTANT NEWS SOURCE FOR YOU AND SO DO OUR OLDER MEMBERS BECAUSE DURING THIS BREAK, ALL PLEDGES OF $35 OR MORE WILL BE MATCHED DOLLAR FOR DOLLAR THANKS TO CURRENT MEMBERS OF WETA. CALL THE NUMBER ON YOUR SCREEN AND TAKE ADVANTAGE OF THIS VERY SPECIAL INCENTIVE. YOU'LL INCREASE THE VALUE OF YOUR CONTRIBUTION, WHICH WILL FURTHER BENEFIT THE PBS NEWSHOUR AND ALL THE PROGRAMS YOU VALUE HERE ON WETA. DON'T WAIT, CALL NOW.

>> WHEN YOU DO MAKE THAT CALL, WE HAVE SOME VERY SPECIAL THANK YOU GIFTS. AS YOU KNOW, WHEN YOU PLEDGE $75 OR MORE, YOU CAN ASK FOR THE PBS NEWS HOUR CERAMIC MUG.

>> FOR A $100 DONATION, YOU CAN ASK FOR THE PBS NEWSHOUR H2GO STAINLESS STEEL WATER BOTTLE. IT WILL LAST A GOOD LONG WHILE, JUST LIKE THE PROGRAM.

>> WITH YOUR PLEDGE OF $200, WE'LL SEND YOU AN AUTOGRPAHED COPY OF HOT, FLAT AND CROWDED BY THOMAS L. FRIEDMAN. DAVID?

>> IF YOU ARE ALREADY AN ANNUL SUPPORTER OF WETA - THANK YOU. BECAUSE YOU HAVE INVESTED IN THE PBS NEWSHOUR, YOU HAVE HELPED SECURE ITS PLACE IN OUR BROADCAST SCHEDULE. PERHAPS YOU MIGHT CONSIDER MAKING AN ADDITIONAL GIFT - AT ANY LEVEL - TO SHOW YOUR APPRECIATION. MANY OF OUR FRIENDS GIVE SEVERAL TIMES A YEAR TO SUPPORT WETA BECAUSE THEY UNDERSTAND THAT THE MORE FINANCAIL SUPPORT WE HAVE, THE MORE WORK WE ARE ABLE TO DO ON YOUR BEHALF. OF WHEN YOU PLEDGE $35 OR MORE AND BECOME A NEW MEMBER OF WETA, YOU RECEIVE FIVE GIFTS, A ONE YEAR SUBSCRIPTION TO THE NEWSWEEK MAGAZINE, A SUBSCRIPTION TO THE WETA MAGAZINE, AND A LAPEL PIN.

>> WE HAVE THE MATCH IN EFFECT, AND THAT'S VERY IMPORTANT, BUT NEW MEMBERS ARE THE LIFE FLOOD OF WETA. AS PEOPLE MOVE IN AND OUT OF THE COMMUNITY, WE HAVE TO CONSTANTLY REPLENISH OUR MEMBERSHIP BASE. PEOPLE OFTEN SPEAK OF HOW TRANSIENT THE D.C. METROPOLITAN AREA IS -- IT'S SIMPLY A FACT OF LIFE. BUT RECEIVING NEW MEMBERSHIPS ON A REGULAR BASIS, HELPS OUR FAMILY OF MEMBERS STAY STABLE. THAT'S WHY YOUR NEW MEMBER PLEDGE IS SO IMPORTANT. WHEN YOU CALL THE NUMBER ON YOUR SCREEN AND BECOME A NEW MEMBER, YOU WILL HELP KEEP WETA STRONG AND HEALTHY FOR ANOTHER YEAR OF GREAT PROGRAMS. DON'T WAIT ANY LONGER. JOIN OUR FAMILY RIGHT NOW.

>> WETA IS HERE TO SERVE YOU BECAUSE OF MEMBERSHIP SUPPORT. OVER 60% OF OUR OPERATING BUDGET COMES FROM INDIVIDUAL CONTRIBUTIONS. YOUR FINANCIAL SUPPORT MAKES A DIFFERENCE IN THE "TYPE" AND "QUALITY" OF THE PROGRAMS WE'RE ABLE TO OFFER ON WETA. SO JUDGE FOR YOURSELF. THINK ABOUT THE PROGRAMS YOU ENJOY HERE. HAVE WE EARNED YOUR SUPPORT BY PRESENTING SUPERIOR TELEVISION? WHEN YOU CONSIDER THE FACTS, I THINK YOU'LL SAY WE'VE SUCCEEDED, SO HELP US CONTINUE TO SUCCEED AND CONTINUE TO BRING YOU GREAT PROGRAMS. CALL THE NUMBER ON YOUR SCREEN WITH A MEMBERSHIP CONTRIBUTION. BE ONE OF THE DISTINCTIVE INDIVIDUALS WHO VALUES AND SUPPORTS PUBLIC TELEVISION, OR PLEDGE ONLINE AT WETA.ORG. PATRICE?

>> THANKS. IT'S SO EASY TO GET INVOLVED RIGHT NOW. AGAIN, WE HAVE THE MATCH IN PLACE WHERE $35 OR MORE WILL BE MATCHED DOLLAR FOR DOLLAR. THAT'S AN EXTRA GOOD REASON TO SUPPORT THE NEWS HOUR RIGHT NOW. WHY DO IT? YOU VALUE THE NEWS HOUR. YOU APPRECIATE HAVING THIS NEWS SOURCE FOR YOU. IT'S EXPANDING AND INNOVATING. YOU KNOW HOW INNOVATIVE IT IS ON THE WEBSITE TOO, SO GET INVOLVED RIGHT NOW.

>> MEMBERSHIP SUPPORT IS A CRITICAL CORNERSTONE OF THE PBS NEWSHOUR'S ONGOING HEALTH, AND WE URGE YOU TO CALL AND BECOME A SUPPORTING MEMBER OF WETA RIGHT NOW. IF YOU HAVE CALLED, THANK YOU. IF YOU HAVEN'T, CALL THE NUMBER ON YOUR SCREEN OR LOG ON TO WETA.ORG, AND THANK YOU.

>> Lehrer: NEXT, THE FIRST IN A SERIES OF REPORTS ABOUT THE GLOBAL WATER CRISIS. IT'S A "NEWSHOUR" PARTNERSHIP WITH THE PULITZER CENTER ON CRISIS REPORTING AND "NATIONAL GEOGRAPHIC." THE MAGAZINE IS DEVOTING ITS ENTIRE APRIL ISSUE TO THE PROBLEM. SPECIAL CORRESPONDENT FRED DE SAM LAZARO BEGINS THE SERIES IN ETHIOPIA.

>> Reporter: FARMING MAY BE THE MAIN OCCUPATION IN REMOTE ETHIOPIAN VILLAGES LIKE THIS, BUT FETCHING WATER IS THE MAIN PRE-OCCUPATION. THESE PUDDLES-- COURTESY OF AN OVERNIGHT DOWNPOUR-- SAVED THESE WOMEN HOURS OF BACK-BREAKING WORK, WALKING MILES TO A CLEAN WATER SOURCE, EVEN THOUGH THEY SAY THEY KNOW IT ISN'T GOOD TO DRINK.

>> ( translated ): WE HAVE NO CHOICE, THIS IS THE ONLY OPTION WE HAVE. WE'RE REALLY DESPERATE. WE DON'T HAVE STRENGTH AND WE DON'T HAVE DONKEYS. YES, MY CHILDREN ARE ALWAYS GETTING ILL. STOMACH ACHES, STOMACH ACHES, STOMACH ACHES.

>> Reporter: KERIA SALO MUST BALANCE CONCERNS ABOUT HER KIDS HEALTH AGAINST THE PERILS OF WALKING TO WHAT IS CALLED A "COMMUNITY WATER POINT" OR WELL.

>> ( translated ): WE GO TO USUALLY THE TOWN TO GET WATER, BUT EVEN THERE WE ALWAYS HAVE TO FIGHT FOR A PLACE IN LINE. IF YOU'RE NOT FROM THAT AREA, YOU DON'T GET FIRST PREFERENCE WHEN YOU GO FURTHER OUT YOU ALWAYS RUN INTO CONFLICTS, THE PEOPLE WITH ACCESS TO WATER ARE STRONGER.

>> Reporter: PERHAPS THREE QUARTERS OF ETHIOPIA'S POPULATION DOES NOT HAVE ACCESS TO CLEAN DRINKING WATER. ( SCHOOL SINGING NATIONAL ANTHEM ) THAT CAUSES RIPPLES THROUGHOUT SOCIETY. AT A NEARBY SCHOOL, THE PRINCIPAL SAYS TRYING TO GETTING WATER MEANS HIS GIRL STUDENTS OFTEN COME LATE OR NOT AT ALL.

>> ( translated ): IT CAUSES SEVERE PROBLEMS LIKE DROPOUTS, COMING LATE, REPEATING CLASSES, JUST REGRESSING IN TERMS OF EDUCATION. PLUS, WHEN THEY GO FURTHER IN THE SUMMER WHEN THERE'S LESS WATER, THEY GET BEATEN UP OR ABDUCTED FOR MARRIAGE, WHICH IS ANOTHER PROBLEM.

>> Reporter: FOR YEARS, DEVELOPMENT EXPERTS THOUGHT IF THEY JUST PUT IN ENOUGH WATER POINTS, THE PROBLEM WOULD BE SOLVED. PROBLEM IS, IT DIDN'T TAKE LONG FOR MANY OF THOSE THEY DID INSTALL TO STOP FUNCTIONING, SAYS MESELICH SEYOUM, WHO WORKS FOR A BRITAIN-BASED NON GOVERNMENT ORGANIZATION CALLED WATER AID.

>> IN MOST CASES THOSE FAILURES HAPPEN BECAUSE THERE WAS NO INVOLVEMENT OF COMMUNITY FROM THE BEGINNING. THERE WAS THIS FEELING OF WE KNOW WHAT'S GOOD FOR THE PEOPLE AND THEN WE JUST GO IN, PUT THE SYSTEM AND LEAVE AND THERE WAS NO CAPACITY OF THE COMMUNITY NOT KNOWING HOW TO EVEN MANAGE THE SYSTEM, SO THAT IT CAN LAST FOR A LONGER PERIOD OF TIME.

>> Reporter: SHE SAYS HER AGENCY NOW WORKS IN PARTNERSHIP WITH GROUPS BASED IN THE COUNTRY AND WITH LOCAL COMMUNITIES. IN THE VILLAGE OF FALKA, THIS WELL-USED FACILITY WAS DESIGNED BY AN ETHIOPIAN NON-GOVERNMENT GROUP, WATER ACTION. BECAUSE ITS ARID HERE, THE WELL IS MORE THAN A THOUSAND FEET DEEP AND THE WATER PUMPED UP HAS TO BE TREATED FOR EXCESSIVE FLUORIDE. BUT IT WAS VILLAGERS WHO CHIPPED IN WITH LABOR AND WHO HELP MAINTAIN IT. EVERY HOUSEHOLD PAYS ABOUT 50 CENTS A WEEK, A RATE SET BY LOCAL LEADERS. HAVING COMMUNITIES PAY GIVES THEM A SENSE OF OWNERSHIP. SO FAR THE USER FEES HAVE GENERATED A FUND BALANCE OF ALMOST $1,000.

>> ( translated ): WE HAVE SEVEN COMMITTEE MEMBERS WHO COLLECT THE MONEY. THEY ALSO EDUCATE ON HEALTH ISSUES. THEY BRING IT IN ONCE A WEEK. SO FAR WE'VE NOT HAD ANY COMPLAINTS.

>> Reporter: ABARRASH MUNATI IS ON A COMMITTEE SET UP TO MANAGE THE WATER POINT. SHE LACKS MUCH FORMAL EDUCATION BUT SHE KNOWS ABOUT HER COMMUNITY'S SYSTEM AND WHAT IT HAS ACCOMPLISHED.

>> ( translated ): THE WHITE TANK TAKES WATER FROM DOWN BELOW, THE BLUE ONE TREATS THIS THING THEY CALL FLUORIDE, WHICH WE HEAR IS BAD FOR PEOPLE OUR KIDS USED TO SUFFER FROM DIARRHEA, TUMMY ACHE, TYPHOID. IT WAS ALSO DIFFICULT FOR US TO KEEP CLEAN BECAUSE WE COULDN'T GET WATER AND WE COULDN'T AFFORD IT. PLUS ALSO PREGNANT WOMEN WOULD HAVE TO GO A LONG WAY TO GET WATER, WE HAD A LOT OF MISCARRIAGES.

>> Reporter: THE FACT THAT ABURRASH MUNATI DOES NOT HAVE TO SPEND HOURS EVERY DAY FETCHING WATER ALLOWS HER TIME TO BE PRODUCTIVE IN OTHER WAYS. AND HER FAMILY'S RELATIVE AFFLUENCE IS IMMEDIATELY VISIBLE IN THIS HOME WHEN YOU SEE THESE BAGS, STOCKPILES OF CEREALS GOOD FOR MONTHS FOR HER FAMILY. HER HUSBAND, MUHAMMAD HAJI AGREES. WHEN THE KIDS WANT THEIR MOMMY WE HAVE TO TEND TO THEM. ALSO WHEN THEY ARE LATE, WE HAVE TO LEAVE THE HOME AND GO IN SEARCH OF THEM. NOW WITH WATER CLOSER BY, WE DON'T HAVE TO WORRY ABOUT SUCH THINGS.

>> Reporter: SOME DAY THE VILLAGE OF FALKA PLANS TO BUT THIS ONLY REACHES ONE THIRD

>> FUND SCARCITY ON ONE HAND IS A PROBLEM BUT IN REALITY FUND ABSORPTION IS ALSO A PROBLEM. THIS IS BECAUSE OF A LACK OF CAPACITY. CAPACITY IN TERMS OF MANPOWER AND SKILLS.

>> Reporter: THAT SHOWS UP IN THE REPORT CARD FROM REGIONS LIKE HALABA, WHERE THE VILLAGE OF FALKA IS LOCATED, SAYS A REGIONAL GOVERNMENT EXECUTIVE

>> ( translated ): SO FAR WE HAVE 16 DUG WELLS. IN ADDITION, WITH HELP OF GOVERNMENT AND OTHER DONORS WELL BUT THIS ONLY REACHES ONE THIRD OF POPULATION, TWO THIRDS REMAIN WITHOUT CLEAN WATER ACCESS.

>> Reporter: AT THE RATE THEY'RE GOING, HE SAYS, IT WILL TAKE 40 YEARS TO GET A SOURCE OF CLEAN WATER INTO EVERY VILLAGE IN HIS JURISDICTION. SO MUD PUDDLES AND RISKY TREKS WILL CONTINUE TO BE A WAY OF LIFE.

>> Brown: AND FINALLY TONIGHT, COLLEGE BASKETBALL'S BIG TOURNAMENT IS UNDERWAY WITH THRILLS ON THE COURT. BUT WHAT ABOUT THE CLASSROOM? JUDY WOODRUFF HAS THE STORY.

>> Reporter: MARCH MADNESS, A MODERN RITE OF SPRING, BEGAN IN EARNEST TODAY. AND AMERICANS FROM THE PRESIDENT ON DOWN HAD THEIR BRACKETS READY.

>> HERE, WHAT I THINK MAY BE THE BEST GAME OF THE TOURNAMENT: KENTUCK/ WEST VIRGINIA.

>> Reporter: THE N.C.A.A. MEN'S BASKETBALL TOURNAMENT GOT ROLLING WITH 65 TEAMS. EVENTUALLY, TWO WILL PLAY FOR THE NATIONAL CHAMPIONSHIP ON APRIL 5. BUT THIS YEAR, THERE ARE NEW QUESTIONS ABOUT ANOTHER MEASURE OF SUCCESS-- COLLEGE GRADUATION RATES. U.S. EDUCATION SECRETARY ARNE DUNCAN-- HIMSELF A ONE-TIME COLLEGE PLAYER-- WANTS TO BAN TEAMS FROM POST-SEASON PLAY UNLESS AT LEAST 40% OF THEIR PLAYERS FINISH DEGREES. BY THAT STANDARD, A DOZEN SCHOOLS IN THIS YEAR'S TOURNAMENT WOULD BE INELIGIBLE. THAT'S ACCORDING TO THE INSTITUTE FOR DIVERSITY AND ETHICS IN SPORT AT THE UNIVERSITY OF CENTRAL FLORIDA. IT TRACKED FRESHMEN WHO ENTERED SCHOOL BETWEEN 1999 AND 2002 AND HOW MANY GRADUATED WITHIN SIX YEARS. THE LIST INCLUDES KENTUCKY-- A NUMBER ONE SEED THIS YEAR AND WINNER OF SEVEN NATIONAL TITLES- - WITH A GRADUATION RATE OF 31%. AND THE UNIVERSITY OF MARYLAND, WITH A RATE OF JUST 8%-- LOWEST IN THE TOURNAMENT FIELD. THE SCHOOL DISPUTED THAT FINDING. THE STUDY ALSO FOUND WHITE PLAYERS HAVE A MUCH HIGHER GRADUATION RATE THAN DO BLACK PLAYERS. ON A TELECONFERENCE CALL YESTERDAY, SECRETARY DUNCAN SAID: "IF A UNIVERSITY CAN'T HAVE TWO OUT OF FIVE OF THEIR STUDENT- ATHLETES GRADUATE, I DON'T KNOW WHY THEY'RE REWARDED WITH POST- SEASON PLAY." THE STATEMENT-- ON THE EVE OF THE "BIG DANCE"-- DID NOT PLAY WELL WITH COACHES. TENNESSEE'S BRUCE PEARL, WHOSE TEAM WOULD BE INELIGIBLE UNDER DUNCAN'S STANDARD, SUGGESTED THE PROBLEM LIES WITH SECONDARY SCHOOLS THAT SEND STUDENTS TO COLLEGE, UNPREPARED. "I DON'T WANT TO DENY THE OPPORTUNITY TO STUDENTS THAT AREN'T PREPARED. I'M GOING TO FIGHT FOR THE STUDENT-ATHLETES THAT COME IN AND AREN'T AS PREPARED."

>> Reporter: AND WHILE SECRETARY DUNCAN'S PROPOSAL HAS MADE HEADLINES, HE CAN DO LITTLE MORE: THE FEDERAL GOVERNMENT HAS NO POWER TO MANDATE GRADUATION RATES FOR POST-SEASON ELIGIBILITY. THAT DECISION IS UP TO THE NC DOUBLE A, WHICH IS RUN BY THE SCHOOLS THEMSELVES.

>> Woodruff: FOR A CLOSER LOOK AT WHAT'S BEHIND SOME OF THESE GRADUATION RATES AND WHAT'S BEING CONSIDERED. WE TURN TO KEVIN BLACKISTONE, A PROFESSOR OF SPORTS JOURNALISM AT THE UNIVERSITY OF MARYLAND. HE IS A REGULAR COMMENTATOR ON ESPN AND SPORTS COLUMNIST FOR "A.O.L. FANHOUSE." KEVIN BLACKISTONE, THANK YOU FOR BEING WITH US. FIRST OF ALL, TO CLARIFY, WE'RE JUST TALKING ABOUT BASKETBALL PROGRAMS AND WE'RE JUST TALKING ABOUT MEN'S SPORTS, IS THAT RIGHT?

>> THAT'S PRETTY MUCH ARGUMENT, THE DEBATE, THAT COMES UP EVERY TIME THIS YEAR WHEN THE TOURNAMENT STARTS. THEY BRING OUT THE NUMBERS ABOUT THE GRADUATION RATES OF THE TEAMS AND SCHOOLS THAT ARE INVOLVED AND IT ALWAYS LOOKS PRETTY DISMAL.

>> Woodruff: BUT, AGAIN, IT'S JUST BASKETBALL, IT'S JUST THE MEN.

>> IT IS JUST BASKETBALL, IT IS JUST MEN'S. IT HAPPENS DURING FOOTBALL SEASON WHEN THE BOWL SEASON STARTS UP JUST THE SAME. AND I THINK REASON WHILE ... WOMEN ARE GENERALLY EXCLUDED FROM THIS CONVERSATION IS THEY GENERALLY DON'T RUN INTO THIS VERY PROBLEM.

>> Woodruff: SO IN THIS PARTICULAR STUDY, 12 OUT OF THE 65 SCHOOLS IN THE CURRENT TOURNAMENT WOULDN'T BE ELIGIBLE. HOW WIDESPREAD IS THIS PROBLEM?

>> WELL, IT'S A BIG PROBLEM AND I SHOULD POINT OUT THAT ACTUALLY NUMBERS ARE SLIGHTLY BETTER THAN YEAR THAN THEY WERE LAST YEAR AT THE SAME TIME. IT'S A BIG ENOUGH PROBLEM THAT THE LATE MILES BRANT, WHEN HE WAS RUNNING THE N.C.A.A. FOR SEVERAL YEARS EARLY IN THIS MILLENNIUM, HE SET OUT TO TRY AND GET PEOPLE TO CHANGE THIS CULTURE OF PRODUCING ATHLETES FOR THE PROS BUT NOT PRODUCING PEOPLE WHO ARE QUALIFIED TO GRADUATE FROM ALL THESE UNIVERSITIES WHOSE BANNERS THAT WE SEE THIS TIME OF YEAR. AND HE ACTUALLY PUT IN PLACE A PROGRAM TO TRY AND GRADE THE GRADUATION RATES ON SOME EVEN LEVEL AND TRY TO HOLD SCHOOLS OR THREATEN TO HOLD SCHOOLS TO BE ACCOUNTABLE FOR IT. BUT THAT HAMMER HAS REALLY NOT FALLEN WITH MUCH THUNDER YET.

>> Woodruff: SO THEIR EFFORTS HAVE BEEN OUT THERE. WHEN DID THIS BECOME A PROBLEM OR HAS IT ALWAYS BEEN LIKE THIS?

>> I THINK IT'S BECOME A PROBLEM EVER SINCE THIS BECAME A MONEY-MAKING BUSINESS. I DON'T THINK THAT COLLEGE ATHLETICS AT THIS LEVEL HAVE MUCH TO DO WITH A COLLEGE EDUCATION ANYMORE. I THINK WHEN YOU HEAR THE STUDENT ATHLETE PHRASE BANDIED ABOUT, I THINK IT'S MORE WINDOW-DRESSING THAN ANYTHING ELSE. THE BASKETBALL TOURNAMENT THAT IS BEING SHOWN ON CBS RIGHT NOW IS BEING SHOWN UNDER A $6 BILLION CONTRACT WHICH SOON MAY BE TORN UP AND SOLD TO THE HIGHEST BIDDER WHICH THIS TIME MAY BE ESPN AND THEY MAY DOUBLE THE RATE FOR WHAT'S BEING PURCHASED. SO I JUST DON'T KNOW THAT THE MISSION OF COLLEGE EDUCATION AND THE MISSION OF COLLEGE ATHLETICS ARE ON THE SAME PAGE, LET ALONE IN THE SAME BOOK. MONEY IS WHAT IS DRIVING EVERYTHING RIGHT NOW.

>> Woodruff: TAKE US INSIDE THESE SCHOOLS. WHY HAS IT BECOME THE PROBLEM THAT IT IS, KEVIN BLACKISTONE? AND INCLUDING AT THE SCHOOL WHERE YOU TEACH, THE UNIVERSITY OF MARYLAND.

>> I'VE BEEN TEACHING AT MARYLAND NOW FOR TWO YEARS AND ONE OF THE THINGS COLLEGES ARE UP AGAINST RIGHT NOW ALL ACROSS THE COUNTRY, WE SEE WHAT'S GOING ON IN THE CALIFORNIA SCHOOL SYSTEM RIGHT NOW IS MONEY FROM THE STATE. IT'S DRYING UP. IT'S BEEN DRYING UP FOR YEARS AND ALL OF A SUDDEN PEOPLE WHO RUN UNIVERSITIES ACROSS THE COUNTRY ARE HAVING TO LOOK FOR ANOTHER STREAM OF REVENUE. AND ONE OF THOSE STREAMS OF REVENUE IS COMING FROM THEIR ATHLETIC DEPARTMENTS. YOU LOOK AT A SCHOOL LIKE OHIO STATE OR A SCHOOL LIKE TEXAS WHERE THEY'VE HAD ATHLETIC BUDGETS OVER $100 MILLION FOR A FEW YEARS NOW, THEY BASICALLY OPERATE THEIR ATHLETIC DEPARTMENTS AS SEPARATE ENTITIES. AND THOSE ENTITIES AT THE END OF THE YEAR GENERALLY CUT A CHECK BACK TO THE UNIVERSITY. A CHECK THAT THE UNIVERSITY IS SEEING LESS ANDLESS FROM THE STATE COFFERS THAT ARE SUPPOSED TO SUPPORT THEM. SO THIS IS A VERY PERVERTED AND CONVOLUTED PROBLEM THAT ALWAYS SEEMS TO REAR ITS HEAD DURING THE N.C.A.A. TOURNAMENT AND DURING THE BOWL SEASON IN FOOTBALL.

>> Woodruff: AND THE PEOPLE WHO'VE LOOKED THAT THE SAY WHAT'S PARTICULARLY TROUBLING IS THE RACIAL DISPARITY HERE.

>> RIGHT.

>> Woodruff: THAT THERE'S A MUCH HIGHER GRADUATION RATE AMONG WHITE ATHLETES THAN AMONG BLACK ATHLETES.

>> RIGHT. AND UNFORTUNATELY THAT GAP SEEMS TO HAVE WIDENED THIS YEAR AND THAT'S WHAT'S TROUBLING TO A LOT OF PEOPLE. NOW, ON ONE HAND WE HAVE A SITUATION WHERE THIS IS ONE OF THESE DREAMS THAT SO MANY KIDS HAVE, PARTICULARLY BLACK KIDS, BE THEY IN URBAN AMERICA OR OUT IN THE SUBURBS OR IN RURAL AMERICA. THEY ALL WANT TO BE THE NEXT MICHAEL JORDAN, THE NEXT MAGIC JOHNSON, THE NEXT LEBRON JAMES. WE'VE ALL HEARD THOSE STORIES AND UNFORTUNATELY THEY FOLLOW THOSE DREAMS AND THOSE DREAMS ARE FED BY COLLEGE RECRUITERS WHO WHISPER SWEET NOTHINGINGS IN THEIR EAR, GET THEM INTO COLLEGE, MAKE THEM DO ANYTHING AND EVERYTHING THEY CAN TO MAKE THE BASKETBALL TEAM BETTER AND SOMETIMES-- OFTEN TIMES-- DON'T LOOK OUT FOR THEIR WELFARE WHEN IT COMES TO THE CLASSROOM. AND THIS IS REALLY WHAT NEEDS TO END. I'M NOT SO CONCERNED ABOUT THE KIDS WHO GO ON TO FABULOUS PROFESSIONAL CAREERS WHETHER THEY STAY IN SCHOOL ONE YEAR OR TWO YEARS OR DO THEIR ENTIRE FOUR YEAR-YEAR MATRICULATION. BUT I'M MORE CONCERNED ABOUT THE KIDS WHO GO THERE, DON'T REALIZE THAT DREAM, AND THEN DON'T HAVE THE EDUCATION TO FALL BACK ON, WHICH IS SUPPOSEDLY THE REASON YOU WENT TO COLLEGE ANYWAY.

>> Woodruff: IN A NUTSHELL, WHAT CAN BE DONE ABOUT THIS? WE HEARD, OF COURSE, THE SECRETARY OF EDUCATION. THE GOVERNMENT DOESN'T HAVE THE POWER TO AFFECT THIS.

>> RIGHT. AND I TOTALLY DISAGREE WITH ARNE DUNCAN ON THAT. GOVERNMENT DOES HAVE POWER TO AFFECT CHANGE HERE. THERE'S HARDLY A UNIVERSITY IN THE COUNTRY-- BE IT PUBLIC OR PRIVATE-- THAT DOESN'T TAKE SOME FEDERAL MONEY. AND JUST TO SAY THAT YOU WOULD KICK OUT SOME SCHOOLS... KICK SOME SCHOOLS OUT OF THE TOURNAMENT WHO DON'T MEET WHATEVER STANDARDS YOU MEET FOR A GRADUATION RATE I THINK IS PRETTY SHORT-SIGHTED. IF GOVERNMENT WANTS TO GET INVOLVED IN THIS, THEY CAN START TO THREATEN SCHOOLS WITH LOSING THEIR FEDERAL FUNDING IF, IN FACT, THEY'RE NOT LIVING UP TO WHATEVER STANDARD THEY'RE GOING TO SET. SO DISAGREE WITH ARNE DUNCAN ON THAT, THEY CAN DO MORE.

>> Woodruff: DO YOU THINK THAT'S LIKELY TO HAPPEN?

>> I DON'T THINK THAT'S LIKELY TO HAPPEN BUT AT LEAST HE'S RAISED THE CONVERSATION WITHIN THE CABINET AND MAYBE PEOPLE CAN START TALKING ABOUT IN THE A SERIOUS LIGHT.

>> Woodruff: KEVIN BLACKISTONE, WE THANK YOU FOR TALKING WITH US.

>> THANK YOU.

>> Lehrer: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY: HOUSE DEMOCRATS LAID OUT A FINAL HEALTH CARE BILL, COSTING $940 BILLION OVER 10 YEARS. THEY POINTED TOWARD A VOTE ON SUNDAY. A CHICAGO MAN-- DAVID HEADLEY-- PLEADED GUILTY TO HELPING PLAN THE 2008 ATTACKS IN MUMBAI, INDIA. AND A PENNSYLVANIA WOMAN PLEADED NOT GUILTY TO A TERROR CONSPIRACY IN THE SO-CALLED "JIHAD JANE" CASE.

>> Lehrer: THE "NEWSHOUR" IS ALWAYS ONLINE. HARI SREENIVASAN, IN OUR NEWSROOM, PREVIEWS WHAT'S THERE. HARI?

>> Sreenivasan: WATCH A CONVERSATION WITH FRED DE SAM LAZARO FOR MORE ON HIS REPORTING ON WATER ISSUES IN ETHIOPIA. PLUS, FIND LINKS TO THE PULITZER CENTER'S WEB SITE AND "NATIONAL GEOGRAPHIC'S" SPECIAL EDITION. THAT'S ON "THE RUNDOWN." ON HEALTH CARE REFORM, CHECK OUT OUR REEL OF VIDEO HIGHLIGHTS WHERE WE'VE DISTILLED THE MOST MEMORABLE AND CRITICAL POINTS ON THE PATH TOWARDS A FINAL VOTE. AND ANOTHER PREVIEW OF RAY SUAREZ'S UPCOMING REPORTS FROM PERU. TODAY'S DISPATCH: PERU'S BOOMING ECONOMY, ITS NATURAL RESOURCES AND TRADE PARTNERSHIPS. ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. JEFF?

>> Brown: AND THAT'S THE "NEWSHOUR" FOR TONIGHT. I'M JEFFREY BROWN.

>> Lehrer: AND I'M JIM LEHRER. WE'LL SEE YOU ON-LINE AND AGAIN HERE TOMORROW EVENING WITH MARK SHIELDS AND DAVID BROOKS, AMONG OTHERS. THANK YOU AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> WHAT THE WORLD NEEDS NOW IS ENERGY. THE ENERGY TO GET THE ECONOMY HUMMING AGAIN. THE ENERGY TO TACKLE CHALLENGES LIKE CLIMATE CHANGE. WHAT IF THAT ENERGY CAME FROM AN ENERGY COMPANY? EVERYDAY, CHEVRON INVESTS IN PEOPLE, IN IDEAS-- SEEKING, TEACHING, BUILDING. FUELING GROWTH AROUND THE WORLD TO MOVE US ALL AHEAD. THIS IS THE POWER OF HUMAN ENERGY. CHEVRON. THE NATIONAL SCIENCE FOUNDATION. SUPPORTING EDUCATION AND RESEARCH ACROSS ALL FIELDS OF SCIENCE AND ENGINEERING. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS Captioned by Media Access Group at WGBH access.wgbh.org

>> GOOD EVENING AND THANK YOU FOR JOINING US FOR THE "PBS NEWSHOUR." I'M PAUL ANTHONY WITH LYN MAY AND WE'RE TAKING JUST A FEW MINUTES TO ASK YOU TO DO SOMETHING VERY IMPORTANT. FINANCIALLY SUPPORT THE "PBS NEWSHOUR" AND ALL THE PUBLIC AFFAIRS PROGRAMS YOU ENJOY RIGHT HERE ON WETA BY CALLING THE NUMBER ON YOUR SCREEN. LYN

>> WITH THE MULTITUDE OF DIFFERENT MEDIA OUTLETS THAT ARE POPPING UP EVERYWHERE IT IS HARDER AND HARDER TO SEPARATE OPINION FROM FACT IN NEWS REPORTING AND THAT'S WHAT DISTINGUISHES THE "PBS NEWSHOUR" FROM SO MANY OTHER NEWS SOURCES. THE PROGRAM CAREFULLY SEPARATES OPINION AND ANALYSIS WITH STRAIGHT NEWS STORIES. NOW, IF THIS IS A DISTINCTION THAT MATTERS TO YOU IN NEWS COVERAGE WE ENCOURAGE YOU TO INVEST IN THIS SERVICE HERE ON WETA. YOU CAN DO THAT BY CALLING THE NUMBER ON YOUR SCREEN OR LOGGING ON TO WETA.ORG RIGHT NOW. PAUL?

>> DURING THIS BREAK WE HAVE A VERY SPECIAL INCENTIVE TO ENCOURAGE YOU TO GO TO THE PHONE RIGHT NOW. CURRENT GENEROUS MEMBERS OF WETA WILL MATCH ALL PLEDGES OF $35 OR MORE DOLLAR FOR DOLLAR. THIS IS ONLY FOR THE REMAINDER OF THIS BREAK SO DON'T WAIT AND CALL NOW. AND WHEN YOU DO MAKE THAT CALL, WE HAVE SOME VERY SPECIAL THANK YOU GIFTS TO OFFER YOU. WHEN YOU PLEDGE $75 OR MORE, YOU CAN ASK FOR THE "PBS NEWSHOUR" CERAMIC MUG. FOR A $100 DONATION YOU CAN ASK FOR THE "PBS NEWSHOUR" H2GO STAINLESS STEEL WATER BOTTLE. WITH YOUR PLEDGE OF $200 WE'LL SEND YOU AN AUTOGRAPHED COPY OF HOT, FLAT AND CROWDED, 2.0 BY THOMAS L. FRIEDMAN.

>> PUBLIC TELEVISION IS A SPOT ON THE DIAL THAT YOU TURN TO WHEN YOU WANT ANALYSIS, UNDERSTANDING AND INSIGHT. WETA REPRESENTS QUALITY, ENTERTAINMENT AND NEWS AND PUBLIC AFFAIRS AND AN EDUCATION. THE WORD "PUBLIC" IN PUBLIC TELEVISION DEFINES HOW THIS INSTITUTION IS FUNDED. THE LARGEST SINGLE SOURCE OF OPERATING FUNDS IS MEMBERSHIP. A POOL OF INDIVIDUAL VIEWERS WHO TOOK THAT ACTION STEP TO BECOME A MEMBER. THIS KIND OF TEAMWORK HELPS US PAY FOR THE QUALITY PROGRAMS YOU COME TO EXPECT FROM WETA. WE ARE ASKING TO YOU CALL THE NUMBER ON YOUR SCREEN WITH YOUR CONTRIBUTION TO WETA TODAY SO THAT WE CAN KEEP GIVING YOU QUALITY MUSIC, DRAMA, SCIENCE, MYSTERY.

>> WHEN YOU PLEDGE $35 OR MORE AND BECOME A NEW MEMBER OF WETA YOU'LL RECEIVE FIVE GREAT GIFTS. A ONE YEAR SUBSCRIPTION TO "NEWSWEEK" MAGAZINE. A WETA ECOTOTE. THE WETA MAGAZINE. AND A MEMBER DECAL AND LAPEL PIN. CALL RIGHT NOW AND SUPPORT PUBLIC TELEVISION BY BECOMING A WETA MEMBER TODAY.

>> AND DON'T FORGET DURING THIS BREAK WE HAVE A VERY SPECIAL INCENTIVE TO ENCOURAGE YOU TO GO TO THE PHONE RIGHT NOW. THESE ONLY POP UP DURING THESE MEMBERSHIP DRIVES. CURRENT GENEROUS MEMBERS OF WETA WILL MATCH ALL PLEDGES OF $35 OR MORE DOLLAR FOR DOLLAR. THIS IS ONLY FOR THE REMAINDER OF THIS BREAK SO DON'T WAIT. CALL US RIGHT NOW. THE PROGRAMS ON WETA ARE EXCEPTIONAL BECAUSE THERE ARE COMMITTED INDIVIDUALS WHO PROVIDE FINANCIAL SUPPORT TO KEEP THE QUALITY OF OUR SHOWS HIGH. THEY UNDERSTAND HOW VALUABLE PROGRAMS LIKE "THE NEWSHOUR" ARE AND THEY'RE WILLING TO DO THEIR PART TO HELP SHARE THE COSTS OF GREAT PROGRAMS AND THAT'S WHERE YOU COME IN, TOO. IF YOU TAKE JUST A MOMENT NOW AND CALL THE NUMBER ON YOUR SCREEN WITH A PLEDGE OF $75 OR $120, $150, THIS IS FOR A WHOLE YEAR NOW, YOU TOO CAN BECOME A SUPPORTING MEMBER OF WETA.

>> IT MAY SEEM UNBELIEVABLE WHEN ASKED HOW MANY PEOPLE SAY THEY DON'T CONTRIBUTE TO PUBLIC TELEVISION ONLY BECAUSE THEY DIDN'T REALIZE WE NEED THE FINANCIAL SUPPORT. THAT'S RIGHT. THEY DID NOT UNDERSTAND HOW IMPORTANT INDIVIDUAL MEMBERSHIP CONTRIBUTIONS ARE TO SUSTAIN A COMMUNITY STATION LIKE WETA. YOUR PLEDGE RIGHT NOW IS VERY IMPORTANT. THESE FUNDS KEEP WETA FINANCIALLY VIABLE IN THE MARKETPLACE. YOUR PLEDGE GIVE US THE MEANS TO PURCHASE AND PRODUCE NEW PROGRAMS. AND SERIES THAT DEMONSTRATE HOW TELEVISION CAN BE AN EDUCATIONAL RESOURCE BUT WE CAN'T DO IT ALONE. YOUR HELP IS CRUCIAL SO COME ON GIVE US A CALL RIGHT NOW AND MAKE A GENEROUS PLEDGE. PAUL?

>> THERE WAS A NEW ROPER POLL THAT SAID FOR THE SEVENTH CONSERVATIVE YEAR PEOPLE AROUND THE NATION THAT WERE POLLED SAID THEY HAD MORE TRUST THAN ANY OTHER SOURCE OF INFORMATION WHICH I THINK IS REMARKABLE. WE'D LIKE TO THANK YOU IF YOU CALLED WITH A PLEDGE DURING THIS BRIEF BREAK. IF YOU HAVEN'T TAKEN THAT STEP YET THERE'S STILL TIME TO CALL THE NUMBER ON YOUR SCREEN WITH VO:GEICO, COMMITTED TO PROVIDING SERVICE TO ITS AUTO INSURANCE CUSTOMERS FOR OVER 70 YEARS. MORE INFORMATION ON AUTO INSURANCE AT GEICO.COM OR 1-800-947-AUTO ANY TIME OF THE DAY OR NIGHT.