i'm kristen sze. >> i'm eric thomas. >> the chief of n.t.s.b. will tour the site of last fall's san bruno pipeline explosion and fire. n.t.s.b. is investigating the cause of the blast which killed 8 people and destroyed dozens of homes. i'm aim is live in san bruno with more. >> reporter: this is her first visit to the scene. the explosion happened nine months ago there is plenty of

i'm kristen sze. thank you so much for joining us. we'll see you back here next time.

. >> i'm kristen sze. thank you for joining us. kids and parents and video game sellers are watching the u.s. supreme court today. the high court is expected to rule on a california law that bans the sale of violent video games to children. our amy hollyfield is live in the newsroom with the latest. amy? >> the video game industry says governments can't monitor who buys comic books and movies so they shouldn't able to restrict who buys video games. federal judges have agreed with them. they have struck down the law. saying it violates first amendment free speech rights. but lawyers for california argue states can restrict the sale of pornography. so why not violent video games. state senator leland yee of san francisco authored the bill in 2005 and says he is cautiously optimistic about today's ruling. he believes children should be protected and parents should have the tool to keep them from harmful effect of ultra violent video games. the justs the seem -- justices seemed split. some were hesitant to carve out the exception. othe

i'm kristen sze. >> i'm eric thomas. >> in the news. antioch couple who kidnapped jaycee dugard and held her for 18 years. philip and nancy garrido could spend the rest of their lives in prison. terry, everybody wants to know will jaycee be there. >> reporter: that is the question. the sentencing, will jaycee dugard, raped by garrido be there to confront her attacker. take a look as dugard as an adult. she was kidnapped at age 11 by philip and nancy garido 20 years ago this month. they raped her and forced her to have his children and nancy was an accomplice. philip will get 400 years in prison and nancy will get 40 years to life. dugard's side will be told whether she appears or not. she has a book coming out next month called "a stolen life," some are calling raw and powerful. we may have drama by an appearance by jaycee dugard but there will be plenty when her book comes out. >>> the san jose police department may now lose hundreds more officers after contract talks broke down with the financially strapped city missing a budget deadl

i'm kristen sze. >> eric: i'm eric thomas. in a few hours, a chief of the national transportation safety board will tour the site of san bruno pipeline and explosion. they are investigating the cause of blast that killed 8 people. >> this is the first visit to the scene but homes are still boarded up. there is still empty places that are fenced in. it killed 8 people and stroid destroyed 38 homes. the ntsb has not released the cause of the blast. the chief says the fire exposed a pattern of safety problems. she has hinted that reforms may be necessary. she will visit with pg&e today along with victims of the fire. the investigation has stumbled into some questions that are turning out to be tough to answer. the san francisco chronicle reported over the weekend that federal investigators can't even figure out where pg&e got the piece of pipe that ruptured. so that could explain why it's taking so long to make conclusions. likely hershman will have many questions for pg&e and face questions from the victims. live in san bruno, a

. >> i'm kristen sze. begin here, san jose police officers laid off over the city budget crisis are turning in their badges this morning. nearly 70 are losing their jobs at time when public safety demands more of them. amy hollyfield is live at the police department. amy? >> reporter: it will be a somber morning at the police department. they're due here at 8:00 a.m. to turn in their badges. the city has a $15 million budget deficit to deal with. the city couldn't reach an agreement with the police union on pension reform. so layoffs are the result. this comes as the homicide rate is on the rise here in san jose. there have been 28 homicides this year. that is more than they had all of last year. also, this is happening right before a busy holiday weekend. >> we have stepped up, we have overtime positions that are available. so that we can respond to events over this one weekend as a holiday weekend. that doesn't touch the weekend after that, which is still going to be a hot summer night. >> mayor chuck re

i'm terry mcsweeney. >> i'm kristen sze. thank you for joining us. begin with a harrowing overnight rescue off the san francisco coast. the coast guard saved three men whose boat capsized. amy hollyfield is live at's beach with their story. >> the fishermen are okay. they say the load shifted and that's why the boat capsized. the men are all from arcadia according to the coast guard. the boat capsized at 12:30 this morning. it had 270 crab pots on board and 80 were full. they say the load moved at the last minute. it was very quick, that's why think all ended up in the water. they were well prepared, though. when the coast guard found them, they were all okay. >> they had survival suits and they had a life raft. i'm not sure if it automatically deployed or they deployed it themselves but they're lucky it had it. >> the fishermen said it all happened very fast. they're not resting at the coast guard station, waiting for the wife of one of the men to come and pick them up. here is a live picture, you can see what is left of the boat. you have can't see

. >> i'm kristen sze. topping the news, firefighters are holding vigil outside san francisco general hospital where one of their own hangs on to life. critically injured in a ferocious house fire yesterday that killed another firefighter. the city's first for a firefighter in a line of duty in eight years. abc7's amy hollyfield is live outside the hospital. amy? >> firefighters are here pulling for their colleague. they are upstairs on a floor reserved for staff. the guard tells me some of them have been here all not long. they are here for 53-year-old anthony valerio who is in critical condition. he is suffering from severe burns. doctors are worried about his lungs. all of the hot air he inhailed. he was with 48-year-old vincent perez who was pronounced dead at the hospital. colleagues say perez dreamed of being a firefighters and loved his job. >> he had a good sense of humor. as a firefighter, he was always the first guy in the fire and the last guy out. he was a real firefighter's firefighter. >> his

. >> i'm kristen sze. >> we're also following a major sig alert on southbound. this is at oregon expressway. we'll have more on that in a moment. >> top news story, san francisco investigators are trying on determine in a suspected bank robber shot and killed in a confrontation last week had a gun. they believe he was from southern california, serial robber that the f.b.i. had been looking for. john alstorn explains how they are tracking him down. >> officers from the san francisco pd robbery unit have been staking the car out after getting a call from the f.b.i. the suspect got in the car at 5:40 about half a dozen plainclothes officers approached the vehicle. >> the officers moved in to make a traffic stop. when they exited the vehicle. driver positioned his vehicle and drove at the officers from what i understand endangering their life putting them in danger. they discharged their weapons in an attempt to stop the suspect. >> multiple shots killed the suspect. the bmw was stm from pasadena on may 15. they believe it was used in a pair of bank robberies in irv

. >> i'm kristen sze. >> i'm eric thomas. >> they believe missing nursing student michelle le was murdered. she was last seen kaiser hospital in hayward. vic lee reports on the evidence and exclusive details on a person of interest whose home was searched for a second time. >> after breaking the sad news to michelle le's family members, a captain told reporters police will now investigate le's disappearance as homicide. >> we realize this is the worst possible news that michelle's family and friends and everyone who has been looking for her would want to hear. >> they believe she was murdered in the kaiser hospital garage where her car was parked on friday. they say it was not a random answering that the killer targeted her. her honda was found half a mile away. police say there is compelling evidence that leads to a homicide. >> forensic examination of the car in the area of the parking struck where it was parked, information gleaned from multiple interviews including those of friends, family and of persons of interest. >> investigators were searching the apartment of one person of intere

. >> and i'm kristen sze. >> topping the news the bay area couple who kidnapped 11-year-old jaycee dugard two decades ago will face justice today. any word that jaycee will be there at the sentencing? >> that is the big question. philip and nancy garrido expected to show up in court and media will be there, too. if she does make an appearance it will be one incredibly dramatic moment. take a look at fairly recent video, as a girl, she was forced to have his children. she was kidnapped at the age of 11, june 20, 1991. part of that she spent at antioch home. philip is sentenced 400 years in prison, his wife will get 36 years to life. they do not believe philip garrido will make any statement. but will dugard show up in court today? we may soon many of darkest details of her days as sex slave. a new book, called raw and powerful and tell-all book. all eyes will be on the courtroom if jaycee dugard wants to face the people that kidnapped her one more time. >>> more details emerging from the woman call person of interest in the missing bay area nursing student. she was a friend of michelle le.

>>> i'm kristen sze. >> i'm cheryl jennings. san jose police officers are turning in their badges. >> this is the day department layoff take effect with fear of more casualties soon due to budget crisis. amy hollyfield is live at the san jose police department. amy? >> kristen, we're here at the union hall. this is where it will happen. first they will serve the officers lunch, italian food just arrived. they are going to have lunch and turn their badges in. i'll let one of the officers you for himself how he's feeling. >> we expected to be here 30 years and it's cut short unexpectedly. there is sadness at the san jose police department. another strong emotion surfaced, that's anger. >> i have never seen a relationship as bad with the city and the police department. i worked in new york before i came here a long time ago. back there, the city management did street the police officers the way they -- didn't treat them they're being treated here. >> the police union president is furious that the city is laying off 6 # officers tod

i'm kristen sze. get the latest on the massive crash overnight that has northbound 880 shut down through downtown oakland. caltrans crews are racing to finish cleaning up the diesel that was spilled when a big rig and two cars collided in a hit-and-run. abc7's amy hollyfield is live at the scene near 7th street. amy? >> reporter: i have good news for commuters. bad news for us reporters. they want all of to us get off of this highway. as soon as i finish the report, we have to get off the highway. they still want to clean our leap that we're taking up -- clean our lane that we're taking up. but the good news for commuters this is the last lane they have to clean and then they can reopen the highway. they're make progress gress and will probably get it open before the original expectation of 7:00. they had quite an accident to clean up. look at the vehicles involved. it's surprising no one was seriously hurt. four people suffered minor injuries from aches and pains to a broken ankle. one reckless drive

. >> i'm kristen sze. the bay area is getting hit today with a rare june storm. a powerful one at that. >> check out the wet commute on the golden gate bridge. and all the fog there. windshield wipers getting a work-out. as rain falls on the span to make walking treacherous and walking equally challenging. >> you drove across it. after today's rain, this june is the third wettest on record in downtown san francisco. here is what it looks like in the north bay city of novato coming down hard. >> mike nicco in the weather center. records today? >> i think so. especially in san francisco. took us 15 minutes to get .12 of an inch and it's still raining heavily as you can see by the yellows moving through downtown san francisco. if it rains at the same clip for 15 minutes, we set a daily record maximum rainfall for june 28 here. looks like it will remain pretty dry, at least as far as the records go in the north bay. we had to get to .07 around santa rosa. you can see the minority around there. still an impressive day. east bay, going rain, what rain? it's coming. it

i'm kristen sze. >> i'm eric thomas. good to have you back. >> thank you. >> in the news, kids, parents, video game sellers are watching the supreme court. high court is expected to rule on a california law that bans the sale of violent video games to children. amy hollyfield is live in newsroom. amy, the video game industry would like to tell us this is a first amendment case. >> yeah. they say governments can't buy who buys comic books and movies so they shouldn't restrict who buys video games. federal judges have agreed. they struck down the law saying it violates first amendment free speech rights. lawyers for california argue states can restrict the sale of pornography. so why not violent video games? state senator leland yee of san francisco authored the bill in 2005 and he says he is cautiously optimistic about today's ruling. he believes children should be protected and parents should have the tool to keep them from the harmful effects of ultra violent video games. the supreme court justices seem split in novembe

. >> i'm kristen sze. the bay area is bracing for something we don't see often. >> the possibility of rain in late june. 28th of june right now. we're having rain right now. look on the map behind mike. >> live doppler7 h.d., cranking on top of st. helena. let me get out of the way to see the sea. ranch, from cloverdale, bodega bay, that's where we have the likelihood of light rain now. the whole line is marching east to southeast. eventually, this entire cold front in the wet weather with it will make it in the south bay by the evening hours. look for bull income the north bay and the rest of us in the peninsula and the east bay hills will have the drizzle to con tepid with. heavy rain to -- contend with. and heavy rain is to the north. we have record heat in the forecast. but now, danielle has traffic. >> thank you, mike. we'll head to the north bay where this is a live look in san rafael, 101 at lucas valley. the taillights are headed in the northbound direction. traffic moves well in both directions. g

. >> i'm kristen sze. the bay area is getting hit today with a rare june storm. a powerful one at that. >> check out the wet commute on the golden gate bridge. and all the fog there. windshield wipers getting a work-out. as rain falls on the span to make walking treacherous and walking equally challenging. >> you drove across it. after today's rain, this june is the third wettest on record in downtown san francisco. here is what it looks like in the north bay city of novato coming down hard. >> mike nicco in the weather center. records today? >> i think so. especially in san francisco. took us 15 minutes to get .12 of an inch and it's still raining heavily as you can see by the yellows moving through downtown san francisco. if it rains at the same clip for 15 minutes, we set a daily record maximum rainfall for june 28 here. looks like it will remain pretty dry, at least as far as the records go in the north bay. we had to get to .07 around santa rosa. you can see the minority around there. still an impressive day. east bay, going rain, what rain? it's coming. it

i'm kristen sze. >> i'm eric thomas. we begin with grim news. friends and family are holding a vigil for injured san francisco firefighter while mourning the loss of another. meantime, fire investigators are trying to figure out what could have gone so terribly wrong. abc7's amy hollyfield is live at san francisco general hospital where that injured firefighter is this morning. amy? >> reporter: good morning, eric. the firefighters did spend the night here at san francisco general waiting to hear about their colleague. they are not here in the main waiting room. they are upstairs in an area reserved just for staff. but security guard tells me there are some firefighters who have been here since yesterday. they're here pulling for 53-year-old anthony valerio. he is in critical condition. suffering from severe burns. he was found on the ground inside the burning house. he was next to 48-year-old lieutenant vincent perez who was pronounced dead at the hospital. san francisco's fire chief says the department has a heavy heart right now. and san fran

. >> i'm kristen sze. you ready for more june rain? >> wasn't she an actress in '40s and '50s? june rain? >> here we go. talking about the wet stuff. it returns this morning. >> find out when it will hit you. mike? >> hitting part of the north bay. good morning. up in sonoma and the northwest corner of sonoma county, we have it down to bodega bay. the radar showing the rain falling there up to cloverdale. this is moving from the southwest to the northeast. individual storms, has this entire line marches off to the east. very impressive looking system. it's something we would see back in december or maybe even february. more developing to the south. with the whole line moving east. it looks like more of us will see this rain than maybe we originally thought yesterday. so we'll talk about how much you're going to get in the neighborhood and how long it will last in a minute. just know right now, if you run into any rain, it's up in sonoma county. danielle has traffic. >> thank you, mike. all right, we have an accident in berkeley. westbound 80 as you are approaching gilman street

. >> i'm kristen sze. thank you for joining us. begin with a fatal fire in el cerrito that investigators believe may have been started by a cappedle in a -- candle in a bedroom. an elderly woman, not man, was killed in the fire. it happened around 6:30. fire crews say they small smoke in the hills as soon as they left the fire station. >> the arriving engines arrived and found fire blowing through every window in the corner of the building. the neighbors were reporting that there was one person trapped inside. >> firefighters say downed power lines on the driveway also blocked the access. the victim's middle age son was injured trying to rescue her. he was rushed to the hospital. his 11-year-old granddaughter was also in the house. fortunately, she was not hurt. this morning, san jose will see a visible effect of the budget crisis. nearly 70 police officers are turning in their badges. as abc7's lisa amin gulezian reports, both the officers and city residents are worried about the future. >> i do feel worried about where the city i

i'm kristen sze. >> i'm terry mcsweeney. one of the wettest junes in bay area history is still with us, but the wet will give way to warm. >> maybe not today but for the big holiday weekend, right? meteorologist mike nicco joins us with more. >> look at live doppler7 h.d. good morning to you. a look at what is a pretty dry radar. compared to yesterday's record-setting rain. now, as we put this in motion and broadp out the perspective, you can see that the wet weather is moving away. notice the low is sitting on top of us. when the counterclockwise show, some of the showers could wrap around the backside and move in the north bay this afternoon. with so much moisture in the ground and the strong sunshine, we could get instability showers in the afternoon hours. 95% of us not a big worry. unless you are heading to sierra. we'll talk about the warming trend in a minute. first, turn it back to terry and kristen. they have the news. >> thank you. our top story. coast guard rescued three men from a crab boat that capsized this mor

. >> you are not kristen sze. i'm carolyn tyler. good morning zmoo. >> johannes mehserle was reached from jail for shooting and killing a bart passenger two years ago. protestors believe the sentence was too short set to the streets of oakland last night. amy hollyfield has more on the peaceful protests. >> some businesses were prepared for chaos take a look at the foot locker is boarded up along with a few other businesses. the protest was calm. there were no reports of any broken windows. the rally started at the fruitvale bart station yesterday afternoon. that is johannes mehserle shot and killed oscar grant. protestors marched to city hall and had only one disrugs when two men were disrupted. mehserle was released from jail just after midnight today. he served one year. he was sentenced to two. it was one of the harshest sentences for an officer-involved shooting here in california but grant's supporters feel like mehserle got off easy. >> a crime was committed but it wasn't paid for. this needs to stop and the only way it going

>>> i'm kristen sze. >> i'm cheryl jennings. san jose police officers are turning in their badges. >> this is the day department layoff take effect with fear of more casualties soon due to budget crisis. amy hollyfield is live at the san jose police department. amy? >> kristen we're here at the union hall. this is where it will happen. first they will serve the officers lunch, italian food just arrived. they are going to have lunch and turn their badges in. i'll let one of the officers you for himself how he's feeling. >> we expected to be here 30 years and it's cut short unexpectedly. there is sadness at the san jose police department. another strong emotion surfaced, that's anger. >> i have never seen a relationship as bad with the city and the police department. i worked in new york before i came here a long time ago. back there the city management did street the police officers the way they -- didn't treat them they're being treated here. >> the police union president is furious that the city is laying off 6 # officers today

i'm kristen sze. >> eric: i'm eric thomas. >> today thousands of firefighters will join local mourns in memorial services for two san francisco prior to men. the two were killed battling a diamond heights house fire last week. amy hollyfield is live at st. mary's cathedral at the site of today's funeral. >> reporter: the governor the lieutenant governor is expected to be here. nancy pelosi it's expected about 6000 people will be here to remember the two firefighters last night it was a little more intimate hundreds gathered for a vigil. it was a joint service which will be the case today. today's service will be an impressive show of solidarity. firefighters from as far away as canada and mexico are expected to come here to remember vincent perez and firefighter paramedic tony valerio. the they were killed while fighting a fire in the diamond heights neighborhood. we spoke to a fireman and he remembers when firefighters attended his colleagues funeral. >> i remember when they did so it's important to do this. >> we want them never to be forbeaten. so i that san francisco understands

good morning i'm kristen sze. >> i'm cheryl jennings. there was a brief gun battle, a short car chase and then the crash. it happened in the 1,000 block of gulf street and ellis. parolee was hit. terry mcsweeney joins us with the story. >> i'm right here looking up goff street. on eddie looking up to ellison. in the middle of the block of goff you can see the gray honda four-door, the center of attention. police still swarming this. this has been going on now for three hours. taking a look at the car, the suspect was driving. all of this is taking place right in front of sacred heart cathedral college preparatory. this is the summer session. not a lot of students. we are told that there was never any lockdown and no students were threatened. police say officers were tipped that a parolee they had been looking for spot in the a garage out here. police say the suspect violated his parole firing the automatic weapon in the air, in the neighborhood a few days ago. officers considered him arm and dangerous, and when two plain clothes officers

. >> i'm kristen sze. >> hayward police are expected to give a statement after declaring the case now a murder investigation. we have exclusive video of another police search last night of the apartment of one person of interest. i'm aim is live at the hayward police department. >> reporter: they are paying a lot of attention to a close former friend of michelle le's. they search gizelle esteban's house yesterday afternoon and they visited her home after le's disappearance. esteban said that she openly hates michelle for stealing her husband but she says she had nothing to do with her disappearance. she has moved out saying she is going to her parents' home in san diego. they have not named her or anyone as a suspect but investigators now think its murder case. >> we realize this the worst possible news that michelle's family and friends and everyone that is looking for her would want to had a hear. >> she was last seen two weeks ago at kaiser hospital. she said she was going out to the garage to get things out of her car and she was never seen again. her car was found half a mile awa

i'm carolyn tyler, in for kristen sze. >>> i'm eric thomas acre. there could be further protests in oakland today now that former bart police officer johannes mehserle is out of jail. as you know, mehserle was convicted in the shooting death of an unarmed passenger two years ago. amy hollyfield is live in oakland where, a protest was held last night and it was peaceful? >> it was. businesses downtown are prepared just in case. they are worried about angry protests. foot locker set up boards to protect its windows. a few other businesses did the same. protest was calm. there were no reports of broken windows. rally started at the fruitvale bart station where mehserle shot and killed oscar grant. protestors marched to city hall and only had one disruption when two men were arrested, one suspected of spray painting graffiti the mehserle was released from jail just after midnight today. he served one year nor the shooting of oscar grant. it was one of harshest sentences for an officer involved in the shooting in california. the grant supporters feel li

i'm kristen sze. >> and i'm eric thomas. >> police are pulling out all the stops for two men who shot and killed a three-month-old baby boy and wounded his parents. tomas ramon is live in the east palo alto police department with the latest developments. >>> good morning. east palo alto police are making a major effort to solve the crime. it has left a three-month-old baby boy dead and mother and father recovering from bullet wounds. yesterday, local religious leaders gathered at the site of the shooting. it occurred on the 400 block block of wisteria avenue. the couple was leaving the baby shower when police say two young men opened fire on their car fatally wounds go the three-month-old boy. the shooting has outraged and shocked the community. >> these young perpetrators are not respective women or children and we are not going to tolerate any kind of deaths. >> captain will not stop until we find the perpetrators of this heinous act and until we bring them to justice. >> police released the two sketches of the young men. they have arrested two juveniles on weapons charges. this may

. >> kristen: and i'm kristen sze. thousands of people from firefighters to the citizens they protect will be paying final respects to two san francisco firefighters. anthony valerio and vincent perez died last week. the service will be at st. mary's cathedral and that is where amy hollyfield joins us live. >> reporter: the funeral is expected to be see huge they are going to shut down city streets and even a section of the freeway this afternoon to handle the crowds, they think 6,000 people will be here. a more intimate service will was held last night at st. mary's cathedral. there was a vigil and hundreds of people attended. it was a joint service just like today's service will be. today you'll see firefighters from across the country and even from mexico and canada. they'll be here for the two firefighters who were both found on the floor of the burning home. they were first once to rush into the home in the diamond heights neighborhood. crews are filling in that are scheduled to work so san francisco firefighters

i'm kristen sze. >> the antioch couple that kidnapped jaycee dugard will be sentenced today. they could literally spend the rest of their lives in prison. terry mcsweeney is live in the newsroom and terry, question number one -- will jaycee be there? >> that is question. philip will spend the rest of his life in prison and nancy garido may. both appeared in court. media will be there. if jaycee does make an appearance it would be one dramatic moment. releasing video of dugard who was raped by garido and forced to have his children. she was kidnapped at the age of 11 by the garridos. it was 20 years ago this month. part of that time she spent at antioch home. philip will get more than 400 years in prison, his wife will get 36 years to life. her attorney says he does not believe philip will make any statement and his client is too afraid to speak in court. will dugard show up in court, but we soon may know many of the darkest details of her years as a sex slave. she has a book coming on out. it's called "a stolen life," and they say it's raw and powerful but all eyes today will

. >> kristen: a lot going on. thanks for joining us, i'm kristen sze. >>> i'm eric thomas. thousands of firefighters from all over north america will join local mourners at funeral services for two san francisco firefighters killed in the line of duty. up to 6,000 people will pay their last respects to anthony valerio and vincent perez. amy hollyfield is live at st. mary's cathedral. you mentioned that the fire chief has arranged it so almost all the firefighters can attend? >> every single one will be here if they want to come. it will be an incredible sight of solidarity here. expect to see hundreds of fire trucks. governor is going to be here, lieutenant governor, nancy pelosi, it will shut down city streets and an section of interstate 280. but last night, hundreds of people gathered here for a vigil. it was a jointed service. today service will be an impressive show of solidarity. firefighters from as far away as canada and mexico have come to san francisco to remember lieutenant vincent perez and paramedic tony valerio. they were killed while fighting a fire. we spoke

i'm kristen sze. >> i'm eric thomas. >> the chief of n.t.s.b. will tour the site of last fall's san bruno pipeline explosion and fire. n.t.s.b. is investigating the cause of the blast which killed 8 people and destroyed dozens of homes. i'm aim is live in san bruno with more. >> reporter: this is her first visit to the scene. the explosion happened nine months ago there is plenty of drugs for her to see, boarded up homes, empty fields that are still fenced off. the september explosion killed 8 people and destroyed 38 homes. n.t.s.b. still hasn't announced the cause of the blast. a report is expected later this year. the head of the n.t.s.b. been bra hershman has said the fire expose add pattern of safety problems. she has hinted that reforms may be necessary. she will visit with pg&e today along with victims of the fire. the investigation has stumbled in questions that are turning out to be tough to answer. san francisco chronicle reported that federal investigators can't even figure out where pg&e even got the piece of pipe that ruptured. that

i'm kristen sze. >> i'm terry mcsweeney. in a couple of hours dozens of san jose police officers will turn in their badges, victim of the city's budget cut. this is happening in a city that has seep a recent spike in homicides, even with a fully staffed police force. amy hollyfield joins us live from san jose with more. amy? >> reporter: i asked an officer heading to work how morale is today. he says it's low. it will be a somber day. 68 officers will turn in the badges at 8:00. the city is dealing with a $15 million budget deficit and couldn't agree on pension reform so layoff is the result. this comes as the homicide rate is on the ride. 28 homicides this year in san jose. more than all of last year. this is happening before a busy holiday weekend. >> we staffed up and we have overtime positions available to respond to events over the one weekend, holiday weekend. it doesn't touch the weekend after that, a hot summer night. >> mayor chuck reed released a statement saying, "we have some of the finest police officers in the

i'm kristen sze. >> i'm eric thomas. firefighters are holding a vigil near hospital bed of a san francisco firefighter mourning the loss of another. meantime, fire investigators are trying to figure out what could have gone so terribly wrong. >> we have live team coverage beginning with amy hollyfield live at the san francisco general hospital where the injured firefighter is. his friends and colleagues are around. >> reporter: they have been here all night. the firefighter burned over 12% of his body. he is on a ventilator and they worry if he will ever breathe again on his own. >> there is nothing new to say. so we're just waiting. because i just, we are in shifts and i came on duty. so they are giving us updates that he is doing okay as far as i know. so, we're just kind of waiting. >> he says it's very quiet inside that waiting room. they're here pulling for 53-year-old anthony valerio, who is in critical condition suffering from severe burns. he was found on the ground inside the burning house next to 48-year-old li

kristen sze there, eric thomas here. we're going to take you live right now to the new york stock exchange. >> stocks rebounded in yesterday's trading, sending the dow 109 points higher to open this morning above the 12,000 level. the nasdaq gained 35 points. today's economic report include gauge for mortgage prices saying they are up. san francisco saw some of the biggest price increases according to the case-shiller report. we go live to the new york stock exchange in about 15 minutes. >>> a budget break-through will be voted on today. governor brown announces a new deal to cut deficit requiring no republican support, and no voter input on sales tax extensions. abc7's terry mcsweeney is live in the newsroom with details. terry? >> two weeks ago, governor brown vetoed a budget because it included too many accounting gimmicks. now he is agreeing to one that counts on billions of dollars that don't exist right now. governor brown and democratic lawmakers say the deal assumes $4 billion additional dollars in the upcoming f

i'm kristen sze. >> i'm terry mcsweeney. it has been a busy morning for the coast guard. it's had to rescue three men off waters off the cliff house. one in bad shape and now the focus shifts to the boat itself. amy hollyfield has the story. >> it's light outside and we can get a good look at the boat or what is left of it. most of it is submerged here in the ocean where 600 yards offshore at the cliffhouse restaurant. the coast guard now wants to head out there to see what they can recover. the three fishermen who were on board are okay. the boat capsized at 12:40 this morning. all three of the men went in the water. they had a life raft on board. the coast guard found them and they were floating safely. they were okay. they had 270 crab pots on board. 80 of those were full. they said the load shifted and it caused them to shift. >> we had a load of gear and it shifted on the deck. it went over and wouldn't come back. that's all of that, it happened real quick. >> they don't think weather was to blame. they say it was a clear night and they think it was a load shifting i

i'm kristen sze. >> eric: i'm eric thomas. police on the peninsula say they'll put every resource they have into the search for the gunman who killed a three-month-old baby. shooting in east palo alto also woind the baby's parents. tomas ramon is live the east palo alto police department. >> they are making a major effort what they are calling a possible gang-related shooting. it left a three-month-old baby dead. >> the unidentified couple were leaving a baby shower around 1:00 a.m. in this car when two young men opened fire. shots fatally wounded the three-month-old boy. three-year-old boy was unharmed. they gathered at the site and they denounced the violence that took the young life. city is putting out a major effort to solve the possible gang-related shooting. >> it's too early to say those that are in custody are tied into the case. >> a captain or police chief will not stop until we find the perpetrators of this heinous act. >> reporter: police released these sketches of the two young men suspected in the shooting. they

i'm kristen sze. >> hit-and-run driver created a traffic nightmare on northbound 880 in oakland. all northbound lanes are closed. but hopefully for not too much longer. amy hollyfield has more. >> reporter: it looks ready. they cleaned up the 200 gallons of diesel fuel that spilled out here. all the debris from the accident is gone. the street-sweeper isn't even out here anymore. you may see the cars pass through here while we're on the air. it should be opening any minute. but they did have quite a mess to clean up. a three-vehicle accident that happened around midnight. look at the cars involved. it's a surprise there were no major injuries. four people suffered minor injuries but they're all expected to be fine. this happened on northbound 880 around 7th street in oakland. reckless driver was speeding through here. he rear-ended a car. shoving it in a big rig. the big rig then ran into the guardrail, which ripped open the fuel tank. >> the big rig hilt, went off on the shoulder. hit the guardrail there. went across the lanes of the freeway and hit the guardrail on other side r