until the day i die, i will never give up. >> that's all for now. i'm lester holt. for all of us at nbc news, thanks for joining us. -- captions by vitac -- www.vitac.com

the military police company are back on american soil and in the arms of loved ones. >> it was overwhelming. i can't believe everybody was here. >> oh, the perfect christmas gift. we couldn't have asked for anything else. >> at san jose international airport, the patriot guard paved the way for the 22 soldiers returning to the south bay. the group is made up of volunteers who make sure every soldier gets a hero's welcome. >> it's important to me personally because this didn't happen a few generations ago, and it's important that soldiers know that a country cares for them. >> this is very, very emotional and meaningful. >> the company of 160 deployed to afghanistan last december and were responsible for conducting security forces operations in three provinces.

>> we did an excellent job. we had a lot of people. it was a great mission. >> but it was also one that did not come to an end without a major loss. 21-year-old specialist shawn walsh was killed last month by enemy fire. >> shawn walsh was part of our team. he was a good person. he made me a good person. >> that was my brother. he brought it to you right here because of him. >> tonight walsh's mother was here to greet her late son's fellow soldiers and celebrate their safe return home. >> the soldiers say they'll be spending this week with family ask friends, really just getting used to being back home. this company will likely not be deployed for another two years. live in san jose, kimberly terry, nbc, bay area news. six people are under arrest tonight after a shootout with menlo park police. the shootout happened early this morning after police received a call about a man way gun outside a house. when police arrived, they found a group of armed men who then

reportedly opened fire on the officers and took off running. one of the officers fired back. no one was hurt. it took swat officers then ten hours of searching to find all the suspects. police say they also found handguns and rifles and are looking into whether or not the suspects have anything to do with two shootings in east palo alto last week. coming up, how california's deficit could soon shrink to nothing. the numbers may surprise you. some california college students get smart when it comes to living quarters. how they ditched the dorm for praccatiy a mansion and saved rent at the same time. temperatures still not quite as cold. 40s in napa but 30s elsewhere. patchy fog for the morning 3 commute, but will any rain show up in your holiday plan plans? a look at that when we come back. [ woman ] my boyfriend and i were going on vacation,

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just last week, when jerry brown announced a spending cut to state programs, but california's spending cuts may be nearing an end. the ongoing deficit is shrinking. at its worst, the deficit was $42 billion two years ago. now the chronicle is reporting california's projected deficit will be $13 billion through the next fiscal year. lawmakers and budget analysts say a combination of more cuts in coming months, along with brown's proposal to raise tax revenue next november, could lift the state out of the red in the next 12 months. as of late tonight, facebook has a new home in the bay area. the last boxes came off the moving trucks at the social network's sprawling new headquarters in menlo park. tomorrow the company opens for business for the first time in its new facility just off the

bay front expressway. monty francis is live in menlo park. >> facebook hopes to have 2900 employees by the end of 2013. they simply ran out of space in palo alto. the truck is here unloading at the company's new address, one hacker way. after the last boxes came off the truck, some facebook employees couldn't wait to check out their massive new digs. the old sun microsystems building in menlo park and large enough to accommodate about 9,000 employees. >> in palo alto, we were separated by about a mile, it was about a 15-minute walk. now we're kind of all under one roof. >> it connects to one hacker way by a tunnel, and the company hopes to expand the campus there. there have been concerns from neighbors about traffic

congestion and an environmental impact report is still being worked on. at least one report suggests that nearby businesses stand to gain $29 million in annual revenue as a result of facebook's move to menlo park. a mexican restaurant across the street hopes they're high. >> we're so glad about that. >> but stanford business professor steve blank has its doubts. he's nicknamed one hacker way the facebook for tres. >> if you've seen the facebook campus, it's physically isolated from anything downtown or silicon valley. it's literally teetering on the edge of the bay. >> reporter: blank says businesses in downtown menlo park should not expect to benefit from facebook's presence because of amenities offered to them on-site, including two

cafes and bus service to and from work. >> when you're inside, there's no reason to ever leave. it's like the hotel california. once you check in, you can never check out. >> as to what happened to the old headquarters in palo alto, the lease was up in one of the buildings, but the company hopes to hold on to the other building. we hope to get a look at menlo park sometime tomorrow morning. as the housing market in california continues to struggle, there are many vacant homes available to rent at bargain basement prices. now, some surprising new tenants are moving in. nbc's george lewis reports from merced. >> reporter: university of california merced political science major gerald brandon concedes he and his roommates are living the good life. >> it probably would be a pretty good party house. >> probably? >> it probably would be. >> reporter: merced, california is in the milgd ddle of a depre

market, where home prices have collapsed and rents are low, even for well-appointed houses. >> this home shared by brandon and his roommates boasts six bedrooms. each of the roommates pays about $600 a month for rent. compare that to cramped campus dorm housing that costs $13,000 a year with space for only about 35% of the students here. university officials encourage them to look for off-campus rentals. >> i think it's nice that they can have large homes and take advantage of jetted tubs and cathedral ceilings if they can. >> reporter: so the empty mansions of merced have begun to house a growing student population. >> it would only make sense with these big homes for students that don't want to live in the dorms. >> reporter: it certainly makes sense for jared and his roommates who saw a bargain and went for it. >> we've had a great situation

here. we have a very nice house. it's not the tidiest at times, but we try to live nicely like everyone else. >> reporter: you don't need a degree in economics to see how that old law of supply and demand has worked out for students like jared. nbc news, merced, california. a new grocery store opened its doors in san jose today. the fresco market has opened in san jose. the opening created 200 jobs. fresco opened just as two other stores recently closed in san jose. santa claus came in richmond a little early this year to help out those in need. the charles r. reed foundation held its 64th annual toy party for children today. they've donated toys, bicycles, clothing to thousands of kids with the help of donors. the goal is to carry on the charles reed legacy. reed was known for his

dedication in fighting juvenile delinquency and fighting for harmony in richmond. i saw your tweet about a half hour ago that said dry, dry, dry. >> and add four more. we are stuck in this pattern now where we've got the spare the air nights, not enough wind or rain to kind of mix up the atmosphere. we've got that tonight and some cool temperatures. but if you look closely here, not quite as cold as even at this hour or the last few nights. you've got clouds spilling in across the bay, you've got 37 at napa. mostly upper 40s. we had that offshore breeze pumping in the central valley fog. now we've got the ocean air-conditioning, so to speak, pumping in. southwest winds into fairfield. it is offering more moisture to the air outside, which is resulting in some higher dew points and that extra cloud cover acting a little like a thin blanket around the bay area. it's still going to be chilly but not as cold as the last few

nights and mornings we've seen. we do have a spare air tonight and day tomorrow. when we get this pattern of high pressure that sets up over the bay area, and what we call a temperature inversion. coldest temperature is down at sea level, warmer air higher up. it acts like a lid over the bay area. right now it looks like the north bay counties will be the worst of the air quality tomorrow. another dry start to the work week. a little breezy, though. santa rosa into sonoma, also out towards fairfield. you'll see the winds pick up a little bit, yet staying very dry, unfortunately dry for this time of year. the radar right now is quite dry, obviously, even southern arizona drying out and the rain is in the desert southwest. you can see this rain trying to reach us, but it kind of split apart in two directions. tropical jet stream well to the south, and the storm track for us still aiming into canada. wednesday, thursday, friday, all the way through christmas day.

good news for santa, it's going to be clear skies heading to the bay area, but very dry. the pattern may begin to shift, though. beyond sunday, you could see this ridge flatten out which may allow a little bit of rain to come in, maybe close to new year's eve at this point, but a very dry overhead. probably not the thick fog weave se -- we've seen in the east bay area. as we head toward lunchtime, you'll see those temperatures starting to reach the 50s and 60s out towards the north bay. it's going to be places like santa rosa getting up into the mid-60s tomorrow as those north winds pick up. it should help clear out our skies a little bit, and as we go through the week, a little breezy at times, foggy at times, and cooler as we get into thursday as that system may bring us some showers from mendocino north but not so much in the bay area. christmas weekend ahead, travel shb okay. a little patchy fog but no rain

or snow around bait area. >> rob, thank you very much. coming up, parents investigate safety concerns about toys on their kids' holiday wish lists. plus -- >> good evening, i'm lauren scott. the warriors are getting ready to tip off their season on christmas day, and they're rebuilding bonds in the community. see how they're connecting. plus the niners tomorrow night at candlestick with a big clash against the steelers. we'll see you in just a bit.

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products sold in the u.s. have to go through testing for toxic and choking hazards. now consumers can report problems with products, get company responses and see what oyhers have to say about a t through a new through a new web site called saferproducts.gov. we'll be right back. [ female announcer ] holiday plus cookies plus memories pillsbury holiday star cookies start with pillsbury cookie dough easy. then add my own favorite frosting and sprinkles. just three ingredients to sweet memories. holiday ideas made easy.

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let's take a quick look at today's nfl action. it was a heartbreaker in oakland. the raiders were in control for most of the game, but the detroit lions rallied late to beat the silver and black 28-27. the raiders are now 7-7 on the year and trail the denver broncos by one game in their division. the 49ers take on the steelers tomorrow night in a much anticipated monday night matchup. don't forget to tune in to rock center tomorrow night to hear brian st bryan stow for the first time. he was beaten outside dodger stadium, but now he's moving and talking. he continues on his long road to recovery in san jose. you can see the full interview

with brian williams tomorrow night at 10:00. sports sunday is next. the warriors tip off their season a week from tonight. laurence scott has their return to the court and their community. that and much, much more, coming up. sports sunday is next.

i'm suzanne shaw. it's no surprise that california's chronically mismanaged budget has triggered a new round of cuts and new calls to tax the rich. caught up in this frenzy to find more money, governor brown's proposal has been mislabeled a millionaire's tax. let's be accurate. the governor's initiative would hike taxes on income starting at 250,000, and it would raise

sales taxes for everyone. between now and november, a variety of revenue-raising plans will compete for your vote, including new oil and tobacco taxes. nbc bay area will help you cut dlu t through the rhetoric. but if we decide to give more money to sacramento, we must demand that reforms are built in, that budgets are truly balanced and transparent so we stop this relentless charade of overspending. what's your opinion? write to nbcbayarea.com. plus the team's vice chairman, whose "new york times"

best seller draws upon the greatness of the great one as the sharks, looking for greatness, are looking forward hoping to turn the page while the book shelf gets stacked with the ultimate gift idea for the ultimate fight fan in your life. the guys at oka are featured. they put the light on a south bay kid who will be playing right here in an all-star game in the coming week. this guy in our national contest representing the 49ers wants your vote. he's 49ers mark, and he approves this message. good evening. i'm laurence scott. we've been talking about the new style of our show, the