good evening. i'm gasia. this is bay area news at 7. the state budget is 7 days overdue. at midnight tonight, it will tie the record for the longest budget impact in state history. leaders are meeting behind closed doors, but a breakthrough is not anticipated tonight. democrats say they wont agree to any more service cuts, while republicans say the budget must

be balanced without new taxes. >> it's frustrating. it's maddening, and it's embarrassing. >> it could have been done in july if the democrats would have dropped their demands for too much spending in the $4 and a half billion tax increase. >> the governor has proposed borrowing $2 million from call pers, the state worker retirement fund. democrats say that is not a good idea. well, the legislature's inability to get the job done has had a ripple effect on countless individuals around our state. some are without services. others are without paychecks. we're live in oakland with the story. jenna? >> reporter: that's right. imagine getting no paycheck because your employer has no money. that's what happened to thousands of vendors because the governor and lawmakers have no budget. >> larry speaking. >> reporter: every day, staff at this oakland nonprofit have been reporting to work and doing their johns.

the allied fellowship service provides temporary housing for 43 patrol lees, released from prison, giving them support and job training to get back on their feet. the only thing is the staff of 25 workers haven't received a single paycheck for two months. >> almost depleted my savings as a result of my not getting paid. so i've been going through each month to get funds for rent, for a car payment, for car insurance, for groceries. >> reporter: allied fellowship can't make their payroll, because the state has stopped paying its vendors. >> it's very frustrating, because you feel like you don't have a voice and that no one is listening to you, and there is no sense of urgency. >> the budget delay left thousands of their employees bearing the burden. >> we're at a meltdown at this time. we're on the brink of possibly closing our doors, because we don't have any funds coming in from the state at this time. we want to be compensated; but

by same token, if you are not dedicated to the work, you will have a whole population that will go unserved. >> reporter: and for many of these clients, this home is their safety net. >> i know a family out there or nothing, you know. so when i got released, i really had nowhere to go. they didn't have the programs; it would be awful. there would be all these homeless people on the street. >> the public knows that these services are really working. >> reporter: and so far, the state has more than $3 billion in overdue payments to social services, schools and local agencies. a vigil getting underway in san francisco for two of the victims of the san bruno. they are being remembered at saint cecilia catholic church. the funeral for mother and

daughter will be held at the same church tomorrow morning. vanessa was in the eighth grade. she was president of the student body. a vigil taking place in san bruno to remember another young victim of the disaster. 20-year-old jessica morales died in the fire while watching football with her boyfriend, who was severely burned while trying to save her. about 30 people gathered to pay their respects tonight, exactly one week after the blast. a memorial service for jessica will be held saturday night at the church of the highlands in san bruno. >> within the past two hours, the council unanimously approved a disaster declaration, vowing that every penny spent will be carefully scrutinized. there's an estimated $38 million in damage to the homes in the community. some we spoke with today said the prospect of rebuilding in a place where they lost so much so painful. they may decide to rebuild their lives somewhere else. >> one week after the blast, seven people remain

hospitalized with burn injuries, four undergoing treatment in san francisco, and three are at san francisco general. doctors say it's a long road to recovery, detailing three stages of burn care, emergency, acute, and recovery rehabilitation. they say the patients have entered the acute stage, which usually involves multiple surgeries. authorities are warning con artists to stay away from san bruno. they don't want anyone taking advantage of residents as they go about the daunting task of rebuilding. claudine wong reports. >> nellie bishop never used to see the sunrise from her kitchen window. she used to look out and see her neighbor's house. that house is gone. >> when we woke up this morning and looked out, we couldn't believe it. still can't believe it. it's surreal. >> we're used to seeing our neighbors go to work in the morning. we're waving at them. >> we hope they all come back. >> the bishops say the city, their insurance company and peg have been there for whatever

they've needed since this has happened. >> they're right there. we've never had to look around to find these people. they were always there. >> reporter: but local authorities say not everyone has good intentions and say the victims of this disaster are at risk of being victimized again, by people who are looking to make a dime off of this tragedy. >> i've worked so many other fires in northern california; and, you know, these people will come in and just wreak havoc upon these people. >> licensing board investigators say the scam artists and unlicensed contractors will hit a neighborhood ravaged by disaster about a week after the incident, which is right about now, and they are warning people to be careful. >> one of the best things for people to do is to check the web site for the contractor state licensing board, run the license number they have, make sure it's the same person being represented. >> the california state license board says, over the next several days and weeks, residents will see more and more people knocking on their doors, leaving fliers, trying to get their business.

they say some of the people will be legitimate, but others will not. in san bruno, claudine wong, ktvu, channel 2 action news. >> a san bruno elementary school was evacuated this morning after a parent reported a smell similar to natural gas. we're told elementaries less than a mile from the explosion site. the school superintendent said they didn't want to take any chances and evacuated the 200 students. appears to have been a false alarm. peg inspected the schools and said the parent likely smelled carbon dioxide that had built up in one of the school's -- >> in san francisco galileo high school near fishermen's wharf was evacuated this afternoon. a spokesperson for the fire department said crews checked out the campus, but could not find the leak. everyone was allowed back on campus a half hour later. >> across the bay in oakland, peg said it punctureed a 3-inch steel gas pipe about 1:00 this afternoon. it happened in front of a

building at the echols and east 18th street intersection. several people evacuated, and streets were closed. peg officials say the gas leak was capped about two hours ago. a cargo ship arrived at the port of oakland today with a dead whale stuck in the vessel's valve. the ship, called the northern vitality came into port from long beach. you see what crews found here. they realized there was a whale carcass stuck to the ship. unclear when the ship struck the animal. crews came out and took samples of the animal. >> appears to be approximately 50 to 60-foot whale at this time. and currently, we're working with no with, who deals with these types of issues on how we're going to remove and take care of the whale car cuss. >> experts speculate the animal had been dead for days based on what appear to be shark bites on the carcass. you can see more news on our home page at ktvu.com.

san jose police are now investigating a fatal crash that followed a chp chase. officers say they stopped the driver at 1:30 this morning in downtown san jose; but as they approached, they said the driver sped off. the officers pursued, but lost sight of the vehicle. a short time later, they spotted the explorer driving erratically. the driver lost control, crashed near two parked cars and overturned. two passengers in the back seat were killed. the driver and another passenger suffered non-life- threatening injuries. the driver will likely face a number of charges, including vehicular manslaughter and felony dui. police identified a man wounded this morning after pointing a gun at officers. 25-year-old brian white of concord was wanted on a $900,000 arrest warrant for armed robbery in san jose. investigators say he took off running after an officer potted him at about 2:30 a.m. on clayton road. during the foot chase, brown white stopped and allegedly pulled a realistic looking

replica gun. that's when officers fired. he is being treated for multiple gunshot wounds. in federal court today, a san francisco man pled guilty to threatening house speaker nancy pelosi. gregory junsi admitted to making threatening and harassing phone calls to her offices. he was allegedly angry about her support of health care reform. he initially pled not guilty in april. under the plea deal he'll be sentenced to 21 months in prison and ordered to stay 100 yards away from pelosi when he's released. pope benedict xvi began a visit to great britain, met with the queen in scotland. the first ever visit by the pope to the united kicking. on his way to the uk, he made his strongest comments yet on the child abuse crisis within the catholic church. he told supporters the church had not acted quickly enough to remove priests who had abused children.

one activist says the comments came too late. >> i think they're hollow statements. we heard the statements before. and they had decades to correct the problem, which they didn't do. >> the pope's comments today were characterized as damage control, calling it a desperate attempt to keep people from leaving the church. san francisco getting a new hospital. it will be the city's first new hospital built from the ground up in more than 40 years. the d.c. board of regents voted to approve plans to break ground on the new medical center at mission bay. the $1 and a half billion project will rise near an existing cluster of bio medical research buildings. ucf said it will be one of the first in the nation dedicated exclusively to the care of children and cancer. . the medical center set to open in the year 2014. sobering new numbers show how deep the recession hit people across america. also ahead bay area leaders marked a new era involving a 14- mile stretch of interstate and your pocketbook.

with the race in nearly a dead heat, carlos arena makes a push for votes in the south bay. and in weather, currently tracking more fallen coastline already pushing back into the bay. but a big change in your weather forecast. coming up i'll tell you when we can expect rain chances in the bay area. that's coming up.

a gunman killed himself after shooting his mother and wounding a doctor at james hopkins hospital. police say warren davis became distraught as the doctor briefed him on his mother's condition. davis pulled a gun and shot the doctor in the stomach, then barricaded himself in his mother's hospital room. police say, sometime during the standoff, davis shot and killed his mother, then himself.

the doctor is expected to recover. a new poll shows a surprisingly tight race for oak mayor with 10 candidates vying for the city's top spot. emc research conducted the poll for the oakland chamber of commerce, showing state president don corrada is leading the race with 26% support. the other develop top candidates are city council members gene kwon and rebecca kaplan. the poll shows kwon has 22% support and kaplan 12%. california's u.s. senate race between incumbent barbara boxer and ceo carlos arena came to silicon valley today. a key endorsement was picked up. questioning the silicon valley performance. robert honda reports. >> reporter: he took part in a round table discussion, but san jose silicon valley chamber of commerce, which announced its official support for her campaign.  >> let me say how proud that we are to endorse you for the u.s.

senate, and we wish you all the best, and we look forward to new leadership. >> well, thank you so much. >> reporter: the round table of business leaders asked the candidate questions about her plans to create jobs and cut government spending. she said the keys are targeted tax relief for businesses, creating jobs that will be kept in america, and regaining leadership in high-tech innovation. >> we are destroying jobs in this state and in this nation because of the policies that barbara boxer has pursued. >> reporter: that has been the theme of the ads against boxer, and last night, boxer released what analysts call her first negative ad, pointing out thierini out sourced thousands of jobs. >> she doesn't understand that companies all throughout this valley are having to make the agonizing choice to go someplace else where were san jose state university political science analyst melinda jackson says outsourcing is still a sore point among silicon workers, but says ultimately this race will be decided by

the independent voter. >> whether they have more trust in a new face, someone who's new to politics and with that business background, or whether they want to stay with the tried and true and give boxer another chance. >> reporter: the latest poll shows thierina with a 1 percentage point lead. ktvu, channel 2 action news. one in seven americans is living in poverty, new figures indicate. census numbers show 14.3% of americans are living below the poverty level, the greatest number since 1959. the percentage translates to almost 24 million americans. the number of people lacking health insurance also increased from 46 million to 50 million. analysts say the jump is mostly due to loss of employer provided health insurance during the recession. redwood city based oracle announced its latest earnings were greater than expected. the software maker said its first quarter profits was $1.#35d billion dollars. the total revenue came to 42

cent per share, which beat analyst expectations. >> a layoff announcement from fedex cooled enthusiasm today on wall street. the shipping giant said it will shed 1,700 jobs. stocks shed in negative territory most of the day, but rallied late. the nasdaq rose 1 point. a special ceremony today marked the imminent opening of a new bay area fast lane that will cost commuters some cash. as sal castaneda reports, some carpoolers say it's not fair to them. >> reporter: bay area political leaders were on hand today to celebrate next week's opening of the 14-mile express lane, a first for the bay area. it will allow solo drivers to use the carpool lane for a fee, about 4 to $6 during the peak commute. >> other parts of the state in southern california do have the hov lanes. they've been very successful, very well accepted by the public, and, you know, lead to less congestion, and hopefully that's what will happen here. >> i think people understand that this gives them a choice to make their life easier.

>> tolds will be collected electronically using fast track. carpoolers with fast track will have to disable their transponders by using the myelar bag to avoid being charged. caltrans also says special sensors will keep drivers in other lanes with transponders from being charged. chp chief teresa becker says officers will check for proper payment using a variety of electronic devices and will increase enforcement as needed. >> beats doing a lot of training with our officers over the next couple of weeks, just in terms of what the lanes look like, what the entry points are, what the exit points are. >> reporter: not everyone likes the new lanes. >> sucks for the people who go through the extra effort to pick people up or find the stuff on craig's list to have their privilege bought out by people who can afford it. >> reporter: the lanes open for all drivers on nights and weekends. the myelar bag will be available from fast track service centers or by calling

fast track. in fremont, sal castaneda, ktvu, channel 2 action news. for the first time since 2004, the oakland raiders failed to sell out their home opener in time to meet the broadcast deadline. that makes the game this sunday against the rams will not be televised in the bay area. the san francisco 49ers are planning to retire. rice's number 80 during halftime of the home ohmer in monday night against the new orleans saints. rice will serve as honorary captain. he steps into the pro football hall of fame. and the voters have spoken. this week's high school game of the week on tv 36 and ktvu channel 2 will feature -- we'll have a live preview of that game tonight on bay area news at 7, and then have game highlights tomorrow night on the 10:00 news. imagine traveling by bike hundreds of miles through the

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indicate the cool waters ofel nina. while la ninas mean less winter rain for southern california, long range forecasters say it's really a toss-up as to how it will act the weather in the bay area. our meteorologist mark the my here to help us plan the weekend because it will be tricky here. >> that's right. we have an active storm track offshore, gasia, impacting our forecast over the next two to three days across the bay area including your week. as far as the maps, we just have typically the low clouds and fog that we have developing now along the immediate coastline. coming in tighter, a few patches moving into the bay. a look outside. we can show you this. there's the low cloud deck moving in. san francisco currently checking in, 60 degrees. most of the bay area warmed up a few degrees over yesterday's

highs. we'll notice a cooling trend into friday. temperatures today, santa rosa topped out at 83, livermore at 82 and san jose in the upper 70s, and 78 degrees. here's what's impacting tomorrow with a cold front and a cool pattern developing. tomorrow enough moisture out there developing. a drizzle and some wet roadways fist thing tomorrow morning into the afternoon hours, still some lingering clouds, and temperatures really in the 80s. warmest location 60s and 70s, a few spots topping out around 80 degrees. in the weekend the storm appropriates as a whole. . a slight chance of a storm on saturday. showers sunday morning. being pick up nicely with the forecast models. drizzle first thing tomorrow morning. saturday, not a lot to show you with the bulk of the action up north. a slight chance across the region.

saturday night things begin to change. you can see the rainfall coverage and the intensity sunday morning possibly into sunday and as well. as far as tomorrow as well, mostly cloudy and a drizzle, 67 at 62 degrees. hereto's our model at 7:00 in the morning. and then in the afternoon hours, partly to mostly cloudy. lingering clouds coastside, and temperatures cooling off today. a few low 80s out there, but most of the region in the 60s to low s. san jose 5, san francisco, 66 degrees. here's a look ahead. your five-day forecast, cooling off into the weekend. there's a slight chance of a shower into saturday. showers likely into sunday, clearing out by monday. >> mark, thank you. a special ride underway tonight to raise awareness about breast cancer. about two dozen cyclists left morgan hill this morning for a long ride to a bike show in las vegas. the 660-mile journey will be broken up into several legs. it will be a challenging course over mountains and through

death valley. the writers scheduled to arrive in las vegas next wednesday just ahead of the start of breast cancer awareness month. that is our report for tonight. thanks for joining us. our coverage continues online and with the 10:00 news on channel 2.