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President Obama Speaks at the National Governor's Association Meeting; NASCAR Fan Safety Questioned; "Cannibal Cop" Trial Begins Today; Spotlight Shines on Hollywood

Aired February 25, 2013 - 11:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Under our concept of tax reform, nobody's rates would go up, but we'd be able to reduce the deficit by making some tough, smart spending cuts and getting rid of wasteful tax loopholes that benefit the well-off and the well connected.

I know that sometimes folks in Congress think that compromise is a bad word. And they figure they'll pay a higher price at the polls for working with the other side than they will for standing pat or engaging in obstructionism. But as governors, some of you with legislatures controlled by the other party, you know that compromise is essential to getting things done. So and so prioritizing. Making smart choices.

That's how Governor O'Malley in Maryland put his state on track to all but eliminate his deficit while keeping tuition down and making Maryland's public schools among the best in America five years running. That's how Governor Haslett balanced his budget last year in Tennessee while still investing in key areas like education for Tennessee's kids. Like the rest of us, they know we can't just cut our way to prosperity. Cutting alone is not an economic policy. We've got to make the tough, smart choices to cut what we don't need so that we can invest in the things that we do need.

Let me highlight two examples of what we do need. The first is infrastructure. This didn't used to be a partisan issue. I don't know when exactly that happened. It should be a no-brainer. Businesses are not going to set up shop in places where roads and bridges and ports and schools are falling apart. They're going to open their doors wherever they can connect the best transportation and communications networks to their businesses and to their customers. And that's why I proposed what we're calling fix it first. I talked about this in my State of the Union Address.

To put people to work right now on urgent repairs like the nearly 70,000 structurally deficient bridges across the country and to make sure taxpayers don't shoulder the entire burden, I also proposed a partnership to rebuild America that attracts private capital to upgrade what our businesses need most. Modern ports to move our goods, modern pipelines to withstand a storm, modern schools that are worthy of our children.

I know that some people in Congress reflexively oppose any idea that I put forward, even if it's an idea that they once supported, but rebuilding infrastructure is not my idea. It's everybody's idea. It's what built this country. Governor Kitzhaber, a Democrat, in Oregon has made clean energy infrastructure a top priority. Governor Brownback. Kansas, a Republican, has been fighting to upgrade water infrastructure there. And folks who think spending really is our biggest problem should be more concerned than anybody about improving our infrastructure right now.

We're talking about deferred maintenance here. We know we're going to have to spend the money. And longer we wait, the more it's going to cost. That is a fact. I think Matt Mead, Republican, put it pretty well in Wyoming's state address. He said failing to maintain our roads is not a plan for being fiscally conservative. Well, it's true in Wyoming, it's true all across the United States. And we could be putting folks back to work right now. We know contractors are begging for work. They'll come in on time under budget, which never happens. And we could make a whole lot of progress right now on things that we know we're going to have to do at some point. It's like fixing the roof or replacing a boiler that's broken. It will save us money in the long term.

I know that one of the biggest hurdles that you face when it comes to fixing infrastructure is red tape. And oftentimes that comes out of Washington with regulations. In my first term, we started to take some steps to address that. And we've shaved months, in some cases even years, off the time line of infrastructure projects across America. So today I'm accelerating that effort. We're setting up regional teams that will focus on some of the unique needs each of you has in various parts of the country.

We're going to help the Pacific Northwest move faster on renewable energy projects. We're going to help the Northeast Corridor move faster on high-speed rail service. We're going to help the Midwest and other states like Colorado move faster on projects that help farmers deal with worsening drought. We're going to help states like North Dakota and South Dakota, Montana move faster on oil and gas production.

All of these projects will get more Americans back to work faster. And we can do even more if we can get Congress to act.

The second priority that I want to talk about is education. And in particular, education that starts at the earliest age. I want to partner with each of you to make high-quality preschool available to every child in America. This is an area where we've already seen great bipartisan work at the state level. I was just in Governor Deal's state to highlight this issue because Georgia has made it a priority to educate our youngest kids, and in the school district where I visited in Decatur, Georgia, you're already seeing closing of the achievement gap, kids who are poor are leveling up, and everybody is seeing real improvement because it's high-quality, early childhood education.

Study after study shows that the sooner children begin to learn in these high-quality settings, the better he or she does down the road. And we all end up saving money. Unfortunately today, fewer than three in ten 4-year-olds are enrolled in a high-quality preschool program. Most middle-class parents can't afford a few hundred bucks a week in additional income for these kinds of preschool programs. And poor kids who need it most lack access. And that lack of access can shadow them for the rest of their lives. We all pay a price for that. Every dollar we invest in early childhood education can save more than $7 later on, boosting graduation rates, reducing teen pregnancy, even reducing incidence of violent crime. And again, I'm not the first person to focus on this.

Governor Bentley has made this a priority in Alabama. Governor Schneider is making it a priority in Michigan. Governor Tomlin has made this a priority in West Virginia. Even in a time of tight budgets, Republicans and Democrats are focused on high-quality early childhood education. We want to make sure that we can be an effective partner in that process. We should be able to do that for every child everywhere, Democrat, Republican, blue state, red state, it shouldn't matter. All of us want our kids to grow up more likely to read and write and do math at grade level, to graduate high school, hold a job, and form more stable families of their own. That will be better for every state. That will be better for this country. That's what high-quality early childhood education can deliver. And I hope that you're willing to partner with us to make that happen. Let me just close with this. There are always going to be areas where we have some genuine disagreement. Here in Washington and in your respective states. But there are more areas where we can do a lot more cooperating than I think we've seen over the last several years. To do that, though, this town has to get past its obsession with focusing on the next election instead of the next generation. All of us are elected officials. All of us are concerned about our politics, both in our own parties as well as the other parties. But at some point we've got to do some governing. And certainly what we can't do is keep careening from manufactured crisis to manufactured crisis. As I said in the State of the Union, the American people have worked hard and long to dig themselves out of one crisis. They don't need us creating another one. And unfortunately, that's what we've been seeing too much out there. The American people are out there every single day meeting their responsibilities, giving it their all to provide for their families and their communities. A lot of you are doing the same things in your respective states. We need that same kind of attitude here in Washington. At the very least, the American people have a right to expect that from their representatives. And to I look forward to working with all of you. Not just to strengthen our economy for the short term but also to re- ignite what has always been the central premise of America's economic engine. And that is that we build a strong, growing, thriving middle class where if you work hard in this country no matter who you are, what you look like, you can make it. You can succeed. That's our goal, and I know that's the goal of all of you as well. So I look forward to our partnering. And with that, what I want to do is clear out the press so we can take some questions. All right? Thank you.

(APPLAUSE)

(END LIVE FEED)

ASHLEIGH BANFIELD, CNN ANCHOR: Well, we never like to hear "clear out the press." We want to hear those questions, and more interestingly, the answers. But that's the way it goes when it's the National Governors Association meeting with the president. The president just wrapping up his remarks to that group that's been meeting since Friday in Washington, D.C.

Also in D.C., our Wolf Blitzer who's joining me for a little bit of his take on what all this means.

Wolf, I want to repeat one line that stood out for me most, and that was this: "While you're in town, I hope you will speak with your congressional delegation and remind them of what's at stake," obviously referring to the looming sequester and those cuts that are set to take place if a budget deal can't be reached. That was the whole point of this set of remarks, wasn't it, to pressure these governors to push their Republican leaders to get a deal his way.

WOLF BLITZER, HOST, THE SITUATION ROOM: But the whole issue right now, Ashleigh, as you know, is coming down to increasing taxes, tax revenue, as the president is firmly demanding. Unless he blinks on that, I don't see the Republicans once again going ahead and raising taxes. They're not going to raise tax rates, but they're not going to eliminate these loopholes that the president is talking about, these exemptions for the wealthy or corporations. They're open to tax reform but as part of a grand bargain that would also include entitlement reform, reforming Social Security, Medicare and Medicaid. As part of that kind of deal, then you can have tax reform which would eliminate some of these loopholes and some of these exemptions and restructure the tax code, if you will. I don't think that's going to happen in the next four days by any means. So unless the president walks away from increasing tax revenue or the Republicans for some reason, I don't think they will, will say, you know what, we raised taxes in December as part of avoiding the fiscal cliff. We're going to do it again now. I don't think they will. This is going to -- the country's going to go into what they call forced spending cuts or sequestration.

There is one out that a lot of people in Washington now are talking about, and that is giving the executive branch of the government, the president specifically, flexibility, passing legislation either now or maybe as part of a continuing resolution to keep the government going by the end of March, which will say, you know what, you don't have to do these across-the-board, meat cleaver kind of cuts. We're going to let you cut in a more artful, more specific way so that TSA security officers, meat inspectors or Head Start programs aren't going to be cut, but you can cut -- go after some of those truly wasteful spending cuts. And that would bring up to $85 billion.

So if they give the administration that kind of leeway, the question would be, Ashleigh, will the president sign that into law? Will he reverse himself and go ahead and walk away from those increased tax revenues? That's what we'll see over the next four days.

BANFIELD: And that would not be at all anything like this careening from crisis to crisis, which I heard Dana Bash bring up, and I heard the president quote the careening from one deadline to another and kicking the can. That executive option is completely different. BLITZER: Right. It would give the president and the executive branch, whether defense spending or domestic spending, much greater freedom to go ahead and not just do that across-the-board, meat- cutting kind of --

BANFIELD: Like a scalpel.

BLITZER: Yes. Just do it with a much more precise way so it's not as painful.

We're talking about, what, 2.5 percent out of the nearly $4 trillion budget, $85 billion. But when you eliminate Social Security and Medicare, when you eliminate interest that has to be paid, you know, that's a big chunk of the federal spending right there. So it could be 6 percent, 7 percent of what's called domestic discretionary spending. That's a lot of money. But they could do it in a more artful way if they have the desire.

BANFIELD: You would have thought that Congress would have done that in the more artful way up until this point.

But let me ask you about this address to the governors. Do the governors have any sway over their members, that, obviously the president is urging them to speak positive while they're in Washington, D.C., or is this just an opportunity for the president to address the cameras and do what Republicans say which is just a whole bunch of campaigning to try to get people on his side as opposed to compromising or negotiating?

BLITZER: The governors have influence on their congressional delegations, certainly, on their Senators. There's no doubt that there's going to be pain in all of these states, and that's why the White House this morning released this long study -- how much pain there's going to be in each state, how many jobs are going to be lost, which jobs are going to be lost, which schools are going to be eliminated, and all these kinds of painful cuts. The president is trying to keep the pressure on these members of Congress.

I'm still not ruling out the possibility, based on my years here in Washington, of the president and John Boehner and Mitch McConnell and Nancy Pelosi, Harry Reid, getting together, sitting down this week, recognizing that this sequestration or these forced budget cuts, that's the worst way of cutting spending, coming up with some alternative. You know, it's remote. It's not necessarily, you know, likely, but it's still doable if there's some goodwill on both sides.

BANFIELD: Well, we'll see. We'll see what the Republicans have to say. John Boehner and the House GOP leaders have scheduled a news press for 4:00 p.m. today.

Wolf, you'll have a lot live on your program later today.

BLITZER: Thank you.

BANFIELD: Thanks for being with me. That story continues. And then also, a horrific crash at Daytona sent dozens of fans to the hospital. You probably saw the pictures. But do those injured fans have a case against the speedway or anybody else for what happened to them? We're going to ask our legal experts next.

(COMMERCIAL BREAK)

BANFIELD: Top stories now. Remember those tasty Swedish meatballs at IKEA? Now they're pulling them from shelves in 14 European countries over fears they may contain horse meat. A test done in the Czech Republic found horse meat was in the beef. IKEA says their own tests showed no horse in those meatballs. Test results are expected in just a few days. Just a reminder, there is no horse meat in the United States.

Congratulations to Jimmie Johnson who won the Daytona 500. It was a weekend that was however marred by a pretty bad crash. It was a wreck that sent debris flying into the stands as high as 75 feet. 28 people were hurt by all of this. None of the drivers hurt, just the fans. So what about those fans?

I want to bring in our legal panel now, because whenever you hear about fans getting hurt, you think about fans suing.

(LAUGHTER)

Sunny Hostin, our legal analyst, as well as Darren Kavinoky, trial lawyer and host of the program "Deadly Sins" on the Investigation Discovery Network.

Hello to both of you.

SUNNY HOSTIN, CNN LEGAL ANALYST: Hello.

DARREN KAVINOKY, TRIAL LAWYER & HOST, DEADLY SINS: Hello.

BANFIELD: Let me start with what's written on the back of the ticket because nobody ever reads what's on the back of the ticket, but they should. Let me go. "The holder of this ticket expressly assumes all risk incidents to the event and agrees that all participants, sanctioning bodies and all employees, agents, officers and directors of Daytona International Speedway, its affiliates and subsidiaries are hereby released from any and all claims arising from the event, including claims of negligence."

You don't have to be a lawyer to know that that sounds pretty darn complete.

Let me start with you, Sunny?

Is it good enough to keep the track and the drivers and the manufacturers of the cars and all those parts absolutely immune from any kind of legal case?

HOSTIN: Yes, I actually really think it is enough. It's sort of the opening statement of the defense team, if a case comes forward in this regard. I mean, bottom line is, when you go to a baseball game, you may be hit with a baseball going into the stands. You kind of assume the risk when you sit in a stadium that something that could happen during a sporting event, could happen. And so I think you assume the risk when you're sitting there. They've got a crash fence up that appears to have done somewhat of a job.

I see Darren shaking his head as --

(CROSSTALK)

BANFIELD: And Darren --

(CROSSTALK)

BANFIELD: Darren, makes me think thaw have a reasonable expectation of safety. Don't you?

KAVINOKY: Yes, well, reasonable minds can differ about this. It actually is, as sunny points out, two legal distinctions going on. First the boilerplate legal blah blah, or what lawyers call contract of adhesion. To can often be -- they're often enforced but they can be set aside if it's found that there's unequal bargaining power or they're fundamentally unfair or they lack what we lawyers call consideration, which is some bargaining that happens.

Obviously, when you pull into a parking lot or go to your dry cleaners or go to a sporting event, you don't have the ability to bargain for those terms. But what Sunny points out I think will ultimately carry the day is the assumption of the risk, when you make voluntary contact with a known risk like, I don't know, if I step into a boxing ring with Mike Tyson, I can't complain when he beats me up.

(CROSSTALK)

BANFIELD: Bunks me in the noggin or --

HOSTIN: Or a fly ball hits you in the face. It happens.

BANFIELD: So let me --

(CROSSTALK)

KAVINOKY: But the problem is --

BANFIELD: Make it quick.

KAVINOKY: -- what kind of risks are people assuming when they go to a sporting event? I don't know that it's flying auto parts. And I think that's what lawyers --

(CROSSTALK)

BANFIELD: Let's leave that case there, because I have another case I want you both to weigh in as well. This is great. This is one where a guy says he was just role playing online, fantasizing online but federal authorities are saying that the man known as Gilberto Via (ph) was plotting to kidnap, cook and eat young women in New York City. It's gross, start to finish. The opening statements start in a couple of hours. This guy is a former New York City police officer. He's pled not guilty.

But here's the thing -- Sunny, start here -- he's going off online on all these crazy fantasies about rape and cannibalism, but he didn't do it. So where does it become illegal if you're fantasizing?

HOSTIN: You know, it's a difficult case. It's a federal case. It's something -- a type of case I would have handled when I was a federal prosecutor. But I have to tell you, I think they have an uphill battle. There are so many fetish sites out there, there are so many people that have these really weird sexual proclivities, but they don't go any further. And there's a lot of research that's been put into it to show they don't typically go further. He's also been charged with using the police -- law enforcement database to get addresses for women. I think that's probably a slam dunk for the prosecution.

(CROSSTALK)

BANFIELD: Darren, he's not only been charged with that --

(CROSSTALK)

HOSTIN: The kidnapping piece makes me uncomfortable.

BANFIELD: He compiled an online dossier, discussed targeting. He met a woman for brunch, improperly used the database, searched online for chloroform. Aren't those actions that say conspiracy?

KAVINOKY: Those are steps beyond fantasy. I'm hung up on the idea of the police motto of "protect and serve" has somehow become a cookbook.

(LAUGHTER)

BANFIELD: Ew!

HOSTIN: Crazy.

KAVINOKY: But the problem that he has, all joking aside -- forgive me -- the problem that he has, and I faced this in representing law enforcement officers, is that generally when you're on the side of law enforcement, you want to be able to get up and talk about your client being a law-abiding bastion of responsibility. The idea of this kind of fantasy suggests more of a double life than his lawyer would like to see.

BANFIELD: Troublesome.

KAVINOKY: This will ultimately be a tough one. You lose it in the court of public opinion, I believe.

BANFIELD: I wish we could speak more about then, then I wish we couldn't. Gross.

(CROSSTALK)

(LAUGHTER)

BANFIELD: I know.

Sunny, Darren, thanks you both.

Back right after this.

HOSTIN: Thanks.

KAVINOKY: Always a pleasure.

(COMMERCIAL BREAK)

BANFIELD: Catch the road to gold last night? The Academy Awards. It was a late night. Seth MacFarlane was great, or not, according to some people. If you missed it, I've got you covered. There were dramatic falls on stage, a huge comeback of a certain director with a beard, and I have all the highlights for you right now of Hollywood's biggest night.

(BEGIN VIDEOTAPE)

MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: And now for the moment we've all been waiting for --

NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT: First Lady Michelle Obama gave the Oscars a huge surprise when she appeared from the White House to announce the night's biggest prize, best picture.

MICHELLE OBAMA: And the Oscar goes to "Argo."

TURNER: It was an especially sweet victory for Ben Affleck, who wasn't even dominated for directing the Iranian hostage thriller.

BEN AFFLECK, DIRECTOR: I think everyone in the movie, on the movie, did anything with this movie.

TURNER: "Life of Pi" about a boy adrift at sea with a tiger, won the most Oscars, four, including best director, Ang Lee.

ANG LEE, DIRECTOR: Thank you, Academy. (SPEAKING FOREIGN LANGUAGE).

TURNER: He played one of the greatest men in history and Lincoln's leading man, Daniel Day-Lewis, made history, becoming the first male actor to win three Oscars.

DANIEL DAY-LEWIS, ACTOR: So grateful to the academy for this beautiful honor.

TURNER: She took a tumble heading to the stage but everyone else was on their feet when "Silver Lining's Playbook's" Jennifer Lawrence won for best actress.

(APPLAUSE) JENNIFER LAWRENCE, ACTRESS: You guys are just standing up because you feel bad I fell and that's embarrassing.

SETH MACFARLANE, PRODUCER: And the quest to make Tommy Lee Jones laugh begins now.

TURNER: Seth MacFarlane securing stars and poking fun at himself during a visit from Captain Kirk.

MACFARLANE: Seth MacFarlane, worst Oscar host. It's that bad?

WILLIAM SHATNER, ACTOR: Uh-huh.

TURNER: Music, though, was the theme of the night, and the show boasted full-throated performances from the cast of "Chicago," "Dream Girls" and "Les Miserables."

(SINGING)

TURNER: And music was a memorable part of Oscar's 50th anniversary tribute to James Bond. Shirley Bassi (ph) got a standing ovation after belting out "Goldfinger."

(SINGING)

TURNER: While chart-topper, Adele, sang the latest 007 theme, "Skyfall," which won the Oscar for best song.

(SINGING)

TURNER: Barbara Streisand returned to the Oscar stage to sing "Memories."

And, indeed, the night's biggest winner remembered his last time earning Oscar gold.

BEN AFFLECK, DIRECTOR, "ARGO": I was here 15 years ago or something and I went out, you know, and I never thought that I would be back here. And I am. And it doesn't matter how you get knocked down in life, because that's going to happen. All that matters is that you've got to get up.

TURNER: Nischelle Turner, CNN, Hollywood.

(END VIDEOTAPE)

BANFIELD: Ben Affleck.

Hey, thanks for watching, everyone. AROUND THE WORLD is next.