Down fall of c. I. A. Director David Petraeus was rooted in jealousy. The f. B. I. , uncovered evidence of an affair between petraeus and his biographer Paula Broadwell after she sent harassing messages to another woman who broadwell thought was too close to petraeus. Source have identified the second woman as 37yearold jill kelley of the tampa area. Cbs news has been told kelley is a civilian who does work for the u. S. Central command. Petraeus headed the Central Command from late 2008 to mid 2010. And during that time presented kelley and her husband an award for raising money to pay for junior enlisted men and women to attend military balls. Petraeus has told friends that he had no romantic involvement with kelley. And only saw her when she was with her husband. Law enforcement Officials Say they found no evidence to refute that. And described kelley as a victim who received and reported threatening messages. Some close to petraeus say hes told them the affair with broadwell began about two months after he took over the Central Intelligence agency in september 2011. And the affair ended about four months ago. Friends of petraeus say he described the trysts with broadwell as infrequent and he say he never pursued her after the affair ended. Now Law Enforcement officials stress to us that kelley is in no trouble at all. In fact no one is going to face any criminal charges here. The fbi investigation in the end found only a personal affair and no concerns about national security. Glor bob orr, thank you. After 52 days away members of congress get back to work on tuesday to the exact same place they left, the edge of a fiscal cliff. Unless action is taken by january 1st, the bush era tax cuts expire and acrosstheboard spending cuts automatically take place. The total cost 1. 2 trillion in spending cuts over a decade. The Congressional Budget Office says that contraction would lead the Unemployment Rate to rise to 9. 1 . On face the nation today Lindsey Graham said while republican was not support raising taxes, they would consider other ways of raising revenue as part of a comprehensive plan. Failure is not an option for the country when it comes to fiscal cliff. Glor House Speaker john boehner held a Conference Call with his members telling them compromise was needed. Obama Senior AdvisorDavid Axelrod called boehners comments to members encouraging. I think there are a lot of ways to skin this cat so long as everybody comes with a positive, constructive attitude toward the task. Glor if the automatic spending cuts happen, exactly 50 of the board without fall on the pentagon. National security correspondent david martin lays out what that would mean. E reporter the dreaded sequestration would double the 500 billion in cuts the pentagon is already planning to make over the next decade. Defense secretary panetta has not minced words about what that would mean. If a sequestration is allowed to go into effect it will be a disaster for national defense. Reporter according to panetta the new american strategy of pivoting away from the wars in iraq and afghanistan toward the pacific and an emerging chinese superpower would come undone. All of that can go to hell if this congress doesnt face up and deal with the issue of sequestration. Reporter in this letter to senators panetta warned that by the time sequestration was over the u. S. Would have its smallest ground force since 1940, Smallest Navy since 1915, and Smallest Air Force ever. A bleak prediction which ignores the quantum leap in Weapons Technology between then and now. As the president pointed out in the debates, no other country comes close. We spend more on our military than the next ten countries combined. China, russia, france, the united kingdom, you name it, next ten. Reporter sequestration would not change that according to the center for strategic and budgetary assessment, it is not the size of the cuts, about 50 billion a year that would be so damaging but the fact that they would be acrosstheboard. Panetta adds that except for military pay every program from the joint Strike Fighter military band was be cut by the same amount, 23 . Its absolutely a foolish thing to do. If you want to cut the Defense Budget thats fine. This is a foolish way to do it. Reporter in other words, if the pentagon were allowed to pick and choose its cuts sequestration might not be the disaster secretary panetta is predicting. David martin, cbs news, the pentagon. Glor pentagon contractors arent the only one in with a stake in this debate. 120,000 small contractors take part in the federal marketplace. A market worth 500 billion. Lowell vant slot is scrambling to run every conceivable raanning scenario for 2013. Hes the military contracts manager for u. S. Technologies which does 60 of its business with the defense department. Not knowing exactly what to expect is not a position anybody wants to be in because were affecting peoples lives here. We dont want to lay people off. We ran them all through. The 12 million new Jersey Based Company makes parts in electronics for Defense Systems but with the potential for deep cuts in spending looming on january 2nd, orders from the military are slowing down. They were supposed to order 400 of something, so far theyve ordered two. This Year AmericanCompanies Made 36 million meals readyto eat or m. R. E. S. Nine million combat uniforms, nearly a million pairs of combat boots. Even the giants depend on thousands of smaller companies. 1,300 suppliers in 45 states build lockheed martins 535. Boeings c17 contain parts in 44 states. All of it could be affected by the possibility of 1. 2 trillion in spending cuts. When you suddenly stop that, that is when you are going to see catastrophic impacts on businesses and terms of their ability to survive, even. If the automatic cuts happen the Congressional Research service predicts a loss of 1. 4 million jobs next year. Now the Recovery Efforts from sandy. Tonight more than 166,000 customers in three states remain without power. Nearly two weeks after the storm. The death toll rose by one today to 113. Fema says its approved more than 411 million in housing and other individual aid. Mark strassmann is in brooklyn, new york where help is still needed. New yorks veterans day parade was also a salute to the citys recovery from sandy, at least in manhattan. I feel like im back in vietnam. But 14 miles away in brooklyn vietnam veteran danny smith walked to a gas line to wait for an hour for National Guardsman to give him five free gallons. Without the gas for this generator, you would be in trouble. I wouldnt be able to charge a cell phone. And the cell phone is your life line to the Insurance Companies and to other families who are trying to find out are you okay. And a cold night you wouldnt have heat. No heat. Reporter in brooklyns working class gerrittsen Beach Community all the streets were flooded by sandys storm surge. Almost two weeks later no one here has power. Tough . Very tough, it is scary it is dark here at night with no lights. Reporter 1700 of the 2400 homes were damaged or destroyed. And residents complained they have been forgotten in the citys recovery. Smith showed us the neighborhood. He got wiped out. She got wiped out. They got wiped out. Reporter his cousins house is wet and cold. Bathroom used to be over here. Reporter insurance inspectors is have yet to survey the damage caused by seven feet of floodwater in the basement. In this close knit Multigenerational Community many families lost everything. Ruined heirlooms sit before many houses. But smith salvaged Something Special this veterans day, letters he wrote to his moth mother from vietnam. December 24th, 1966. Yup, how do you put a price tag on that. Reporter many houses here look like this inside. Dark, dank and depressing. This family has lived here for 42 years. They say they want to rebuild. But theyre still waiting for the insurance adjuster and the power to come back on, jeff. Glor mark strassmann, thank you. New jersey was the state hardest hit by sandy. As tony guida shows us tonight people along its famed shore are trying to salvage what remains. Reporter no place took a stronger punch from sandy than ortley beach, new jersey. The town has been closed, off limits since the storm hit. Today kim rosa got a Police Escort to see her home for the first time. It wasnt much to see. We were hoping to prepare ourselves and have an idea of what to expect. But i done think it could prepare you when you see it in person. Reporter the entire ground floor of rosas house was washed away. A sorrowful sight for a woman coming here since she was a child. She hopes her children will be able one day to visit a rebuilt beach house. I hope we can go back and create new memories. Reporter 40 miles up the coast in union beach, reclamation is well under way. Carol doherty lost everything inside her home to sandy. But mennonites from pennsylvania are among the many volunteers who have been here for a week helping her and other homeowners recover. I think its starting to hit me today. But i still have to be grateful. There are friends that i work with that dont even have a home. Reporter of the 2300 homes here in union beach, fully 1400 sustained damage, 50 were destroyed. But homeowners here as with those across the jersey shore vow to rebuild if they can. Tony guida, cbs news, union beach, new jersey. Glor later insider attack. The sorrow and anger of an American Family whose son was killed by an afghan soldier. The chinese businesswoman criticizing her countrys leadership at a very delicate time. And californians decide to raise taxes on themselves. The implications of prop 30. Those stories when the cbs evening news continues. Continues. Sometimes life can be well, a little uncomfortable. But when its hard or hurts to go to the bathroom, theres dulcolax stool softener. Dulcolax stool softener doesnt make you go, it just makes it easier to go. Dulcolax stool softener. Make yourself comfortable. Is efficiently absorbed in small continuous amounts. Citracal slow release continuously releases calcium plus d with efficient absorption in one daily dose. Citracal slow release. When the doctor told me that i could smoke for the first week. Im like. Yeah, ok. Little did i know that one week later i wasnt smoking. [ male announcer ] along with support, chantix is proven to help people quit smoking. It reduces the urge to smoke. 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Online pricing starts at 5. 15. Only from the postal service. Jeff an explosion likely caused by a gas leak destroyed part of an indianapolis neighborhood last night. At least two people were killed. Seven taken to the hospital. The blast was felt three miles away and was followed by a fire. Some three dozen homes were damaged or destroyed. California started the antitax revolution but after years of budget budget cuts and surging deficits this week voters in california reversed course. Heres carter evans. One, two, three, four. Reporter for drama teach ter will krubsack and his l. A. Middle School Students the show would not have gone on ifical call voters rejected proposition 30. Dance shows, choir shows, instrumental and band shows. Reporter all were on the chopping block. As part of 6 billion if cuts that even a 7th grader like zachary all var ease knew could hurt his future. We need more education for kids because we want to get smarter. We want to have a good lichlt we want to have great careers. Reporter but prop 30 doesnt actually increase education funding. It is intended to stabilize budgets after years of cuts. Cuts that were so severe governor jerry brown said today new taxes were the only option. In california you can only cut schools and university so much. Nd then people say enough already. Prop 30 temporarily raises the state sales tax in some areas to more than 9 . It also hikes state income taxes for those making more than 250,000 a year to the highest levels in the nation. But parents and educators now have another concern. Prop 30 doesnt guarantee that all new tax money will actually end up going to schools. Thats because the mun goes money goes into the states general fund where there are many computing interests. Whats your name . So parents like Shana Landsberg are going to be watching closely. If they think that the money is not actually getting to the schools, i dont think will you be able to go back and ask for money again for education for a long, long time. Lets go, lets win. Reporter it was a hard fought campaign. And many teachers woke up wednesday morning unsure if they would get a taxpayer reprieve. But the measure passed with 54 of the vote. At first i was really surprised and then relieved and hummably grateful to the voters. Grateful because california voters did the unthinkable. Increasing their own taxes, hoping to save public education. What you want. Carter evans, cbs news, los angeles. Jeff up next a woman who dares to push limits in a country with crushing calls for change. This isnt just a headache. Trust me, this is new bayer migraine. [ male announcer ] its the power of aspirin plus more in a triple action formula to relieve your tough migraines. New bayer migraine formula. Yeah. Yeah. Then howd i get this. [ voice of dennis ]. 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Dulcolax stool softener doesnt make you go, it just makes it easier to go. Dulcolax stool softener. Make yourself comfortable. This week China Ruling Communist Party will formally annoint the countrys new leadership. Dissent is rarely tolerated in china but as Bill Whitaker reports tonight one prominent woman is not afraid to voice her criticism of the government. In a country of 1. 3 billion people hung huang stands out. Shes a debting mother, a come up nist, a blogger. She owns a high end fashion boutique, publishes a magazine. A tastemaker and opin