Gerri who should pick up the tab for federal Flood Insurance . Homeowners, or taxpayers . The house approving a bill to block premiums from spiking for government sponsored Flood Insurance. The senate could vote on the legislation by the end of this week. Here to weigh in, republican congressman michael grim of new york, who cosponsored the bill. Congressman, welcome to the show. So here you are, you sponsor this bill. Looks like taking a step closer to becoming law. Why did you back this piece of legislation . It is absolutely needed. As you just mentioned were talking about skyrocketing premiums. Premiums going up 20, 30,000, which, simply are not affordable. So we have already seen what is happening. Closings being stopped at the table. People walking away pro their homes and foreclosures because their mortgages are being called. This would devastate the Real Estate Market and hurt all these communities that are anywhere near a flood zone jo congressman, clearly people in your district and people all over the region in new york hit by sandy facing huge increases in their premiums but only go years ago, republicans led the charge to bring a little sanity to the Flood Insurance program which is 24 billion in deficit spending. Will this legislation put us further into the deficit . No, not at all. In fact, this bill, unlike the Senate Version which, you know there was a lot of discussion over the Senate Version, this bill is actually 100 paid for, and, generates about 165 million, according to the cbo, of revenue over five years. So it pays for itself. It is not a tax because it, it pays for itself only for those within the national Flood Insurance program. So if youre not in a flood zone and you dont have Flood Insurance, this doesnt affect you. But if you are in the Flood Insurance program and your primary residence you will pay a user fee to pay in the program of 25 a year. Very reasonable. That will pay for the program. Gerri i got it tell you, 200 million over five years . That doesnt do anything over4 billion in debt the program is already n how will we pay that off . Well it is still better than nothing. Had we done nothing, there wouldnt be 165 million toward that debt. That is number one. Second thing that number is not completely accurate. People dont tell you against the bill, every time there was ever a surplus in the Flood Insurance program, that surplus was raided and used for the general spending of government. You will always be at somewhat deficit keep raiding any year there is surplus. That is unone of the problems gerri how long has it been since we had a surplus . It has been a long, long time. Katrina hurt us. I had think we can privatize a lot of the national Flood Insurance program. Will that take a year or two of serious debate within the committee and hearings, yes . I think we get to the point where we privatize moats of it. Almost just have a backstop by the federal government so we protect taxpayers even more. But to get there, we needed to at least do this patch, because this would have destroyed local economies, hurt the economy tremendously and did away with the Flood Insurance program, you know, almost immediately. That wouldnt have helped anyone. Gerri congressman grimm, thanks for coming on the showandtell us about this tonight. Appreciate your time. No problem, thank you. Gerri now i want to bring in tim carney, senior Political Columnist for the Washington Examiner and a scholar at the American Enterprise institute. Im shaking my head over this because, wouldnt just two years ago the republicans said, my goodness, we need to reform this entire program. It is hugely expensive. Cost overruns. The american taxpayer paying for homes of wealthy people. And now, congressman grimm walking away from that. Well, yes. 400 members of the house of representatives voted for the reform that now this congressman grimms pillaringly takes apart. He is not killing the whole reform. It is pulling out a lot of the ways in which this was getting closer to what he talks about, a private thing, where insurance is supposed to be priced based on risk. The reform was saying if you live in riskier place based on all studies done by the government, then you will pay higher premiums and we will slowly ease you into the higher premiums but the even that slow, easing in, got homeowners to throw their hands up in the air and those people apparently got ears of members of congress. Gerri tim, lets face it, what it does, limits any premium increases to more than 11 on annualized basis. Cost of that insurance can be no more than 1 of the homes value. Reality is, insurers have been walking away from this market for a long time. Youve seen what happened in florida where it has been so difficult to get homes insured down there. Certainly now in the new york city area, it will be the same thing because of sandy. Do you really think you can rebuild a private market for insurance for these very, very, very risky areas . Well, there is a couple questions there. One can a private market be built . And two, if weve got a government market should it resemble a private market . That is what the idea of the reforms from 2012 were. You pay per risk. If you cant get insurance for building a house on a certain piece of property, that is a market signal that you shouldnt build that house on that piece of property. Gerri right. It might have really nice views, if the insurance, cant get anybody to insure at all, well, maybe i just have to either risk losing my whole home entirely, or, more sensibly, build someplace a little bit safer. Gerri you make a very good point. And another point that know a lot of our viewers think about, particularly taxpayers, particularly taxpayers who dont live with views of the ocean every day, they know that 9 of homes with subsidized Flood Insurance rates are owned by people in the bottom 30 of income earners. Yep. Gerri so in reality, these tend to be wealthier people, not all, but many of them. Wealthier people who get this government backstop and ultimately get the government to help them rebuild their homes when their views are just destroyed. What do you say to that . And this is, yeah, this is the way a lot of Government Programs work, right . Government program, government is supposed to increase apbenefit regular person and it does, in congressman grimms district, Staten Island a lot are middle class families threatened by floods. Gerri correct. On net, the benefits ends up going to the wealthy people. That is often what happens with Government Programs. What the congressman said about, well, were going to pay pour this bill, it pays for it with this weird 25 fee on everybody. As a way of preventing them from having price in the risk. And people who believe in the free market believe that prices are signals. They tell us something. They tell us how risky it is. And congressman grimms bill takes away for ability of the price to be signal. Gerri 25 bucks on every insurance policy. Not enough to pay off 24 billion in debt. Got a long way to go. Tim, thanks for coming on. Interesting to hear what you have to say on it. Thank you. Thank you, gerri. Gerri we want to know what you think. Here is our question tonight. Should taxpayers foot the bill for Flood Insurance . Log on to gerriwillis. Com. Vote on the righthand side of the screen. I will share results at the end of tonights show. Another overhaul in totally different part of the world. This time the s. A. T. College entrance exam. The College Board announcing it is giving the test a make make it more connected to the high school curriculum. Here with details, rob with the princeton review. Thanks for being here. Thanks for having me. Gerri what is going on here . Why are they making changes to the test. Last time they changed s. A. T. In march 2005 when they added a essay section. It is removed to the essay question. Going back to the scoring grid. 800 points for verbal and 800 points for math. A couple things will happen. More common vocabulary words, a big coup for students. No penalty for wrong answers. No penalties for guessing which i think is a great coup for kids. Gerri you know, i know a lot of people out there sitting back, saying what does it mean for students . That is who really will be impacted. Youre right. There is huge value when we start to think about a change for the s. A. T. The s. A. T. , weve long been critical s. A. T. At princeton review. It need to be overhauled because it needs to be predictive of college success. When we herd today at News Conference was s. A. T. Was not predictive of college success. Weve been talking about this a long time. Gpa in high school is better indicator how well we do in college. Gerri use that. Get rid of all the nonsense with the testing. When we start it think about it, some schools are doing that. Test optional schools. 2 3 of solidly 4,000 Colleges Universities looking at s. A. T. Or standardized test indicator. Schools looking at tens of thousands of students. Hard to look for one pretick predictor. Gerri s. A. T. Is losing competitive ground to the s. A. T. All about market share. Absolutely. Two years in row. Gerri why is that happening . Two years in a row s. A. T. Trumped s. A. T. In amount of test take is. 1. 6 Million Students taking act. Slightly less an s. A. T. That same number six years ago was 700,000 test takers for s. A. T. Theyre grabbing share. Act long been an exam that is so connected to what a student will learn in high school. So the s. A. T. Today is pushing on those same levers, saying well connect the s. A. T. To directly what kids are learning in high school. Gerri rob will this be fairer system for students at end of the day. You know, i think, when we start to think about it, what will really help students providing them formore resources. More access to more data early on as probably best indicator. S. A. T. Will be around. 2 3 of fouryear colleges are still looking at them. It is a Necessary Evil in the eyes of lots of admission offices. Were watching closely at princeton rye you. Great to talk with you, rob. Happened just today. Didnt realize you were pushing for it. Good to see. Advice before you buy the next car that may save you money. Next a shocking report on some charity telemarketers, pocketing some of the donations. Well tell what you you need to know next. 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Try poligrip for partials. Poligrip helps minimize stress which may damage supporting teeth by stabilizing your partial. Care for your partial. Help protect your natural teeth. Predibut, manufacturings a prettin the United States do. Means advanced technology. We learned that Technology Allows us to be craft oriented. No ones losing their job. Theres no beer robot that has suddenly chased them out. The technology is actually creating new jobs. Siemens designed and built the right tools and resources to get the job done. Gerri americans have always opened their hearts and wallets to charities. Were very, very generous. In fact last year we gave more than 300 billion, 316 billion to charities. Thats the booed news. The bad news is, if telemarketer was involved, much of that money didnt even go to the charity. Here to explain Charity Navigator ceo, ken berger. What is going on here. Report came out, called pennies for charities. Pennies for charities and 10 of millions for telemarketers. Essentially it shows in most cases 2 3 of the money or more is going to the telemarketers when somebody calls you asking for a donation. These telemarketing firms that they hire to do this, and in some cases, none of the money gets to the charity at all. They lose money. Gerri that is unbelievable to me. Lets go over couple of examples. For example, the canner survive fund, again from the report from the new York Attorney general office. Telemarketers kept 89. 9 of the money. Only 7. 1 of money raised went to the charity itself. Same trend with firefighters charitable donation and committee for missing children. Happens over and over again. According to the report, telemarketers kept 62 of Charity Donations in new york. 62 of your dollars, kept by these telemarketing operations. What i think you should do, if youre at home and telemarketer calls you soliciting for some charity, hang up. Dont even talk to them. That is exactly the right advice. We urge people to do that. And to a little it about research. You know, were a resource for that but a charity that is engaged in that kind of activity is either showing really poor judgment, or, worse still, in some cases they may be involved in fraud. The Attorney Generals Office has closed some charities in prior years after these investigations and hopefully they will do some investigations following up to this and do that yet again. Gerri i think the problem with this, if you are giving to charities and youre interested in doing the right thing and contributing to some really good cause, you want to be proactive. You want to go out and research the charity youre most interested in. Great way to do that with your website, Charity Navigator. Org. Thank you. I think the whole idea is to have a plan in place. We talked about that before. That it is really important to know what you want to give to and not just react to these, they may pull on your heartstrings, may tell a great story but they can lie, they actually lie on the phone it is really bad. Gerri are they exempt from the do not call list too . Yes, theyre exempt from that list. There is one Supreme Court case said the states could go after deceptive practices but the ability to find it out when they appear to be like theyre working for the charity. They make claims that you have to follow up on. It is not easy to catch them. Gerri kind of things you want to look for, the amount of money going to the actual cause. On your website you actually grade people how well they do. What proportion of ever dollar should go to sick kids, should go to cancer research, whatever the issues is . We like to see at least 3 4 of the money ideally going to program services, very important, money for overhead and administrative costs you have to spend money to raise money. We like see clearly of money, 2 3 of money going to telemarket, we would like to see 2 3 or more going to the program, the other way around. Gerri watch out for bloated salaries for executives. What are other red flags you see . Sound alike names for a charities, that you have to watch out for. There are, people who will meet you, same thing on the street. You can run into the same kind of problem with somebody on the street. You find these websites where it is not even a charity at all. It is a dotorg. Doesnt mean its a charity. Gerri has to be 501 c 3 because you dont get Tax Deduction. We want the Tax Deduction at end of the day. Exactly right. Gerri ken, thanks for coming on. Great to see you. My pleasure. Gerri how obamacare could be putting Childrens Health at risk. Which answer the question how do you do that . With advice on buying a car and if those extended warrants are worth it. Up. A short word thats a tall order. Up your game. Up the ante. And if you stumble, you get back up. Up isnt easy, and we ought to know. Were in the business of up. Everyday delta flies a quarter of Million People while investing billions improving everything from booking to baggage claim. Were raising the bar on flying and tomorrow we will up it yet again. Gerri dont get the shaft when buying your next car. Why the added cost of car warranties might just drive your investment into the ground. What is this place . Where are we . This is where we bring together the Fastest Internet and the best in entertainment. We call it the x1 entertainment operating system. It looks like the future we must have encountered a temporal vortex. Further analytics