or call during business hours. next at 5:00, the governor unveils new rules for stores and workplaces eligible to reopen. the bar is set pretty high, governor newsom also revealing exactly where the virus started. confusion tonight over who can open and when. shop owners in the east bay tell us the governor's words don't match up to what local health departments are saying. frustration in napa this evening, businesses there feel like they're left to fend for themselves. main street is bleeding red ink. and the local flower company nearly forced to close, how determination and even mother's day may save it from destruction. now your health, your safety, this is abc 7 news. we begin tonight with two big headlines that affect all of

us. first, the fiscal glory days for california are over because of covid-19. the state's budget is $54 billion in the hole and everyone will feel it. >> it's about our firefighters. it's about our nurses. it's about our teachers. it's about front line employees that we call heroes every single day for good reason. >> the governor tonight also revealing new coronavirus safeguards as more businesses prepare to start the next phase of reopening. the governor making those announcements as he said the state's first community spread was in a nail salon. good evening, thanks for joining us. i'm dan ashley. >> and i'm ama daetz. the state's phase two of restrictions include extending opportunities to three sectors in particular. abc7 news reporter melanie woodrow has the details. >> those sectors are retail, manufacturing and logistics. today we got a glimpse at what

could be opening later during this next phase. >> reporter: governor gavin newsom outlining phase two of modifying california's stay-at-home order today. >> we're moving forward, but we're doing it always with an eye being led by the data, by the science, by public health and these public health indices. >> extending opportunities in three sectors with retail expect to see increases in pickup and deliveries with contactless payment. manufacturing will see closed break rooms, outdoor break areas and physically distanced seating. and for logistics, warehouses will carry sanitation materials during deliveries and use personal protective equipment for each stop. a glimpse of what could be opening later in phase two includes shopping malls, offices, seating at restaurants and outdoor museums. when asked why salons are in phase three and not phase two, the governor said community spread of covid-19 in california began in a nail salon. we've previously reported the first community case was here in the bay area.

the governor said industry wide guidance will be provided. >> we'll get through this. >> reporter: as well as regional variance criteria for specific areas. that includes no more than one case per 10,000 people in the last 14 days. no covid-19 death in the past 14 days. a minimum testing of one and a half per 1,000 residents. protection of essential workers, at least 15 contact tracers per 100,000 residents and the ability to temporarily house at least 15% of the county's homeless t homeless. hospitals will need to be able to accommodate a minimum surge of 35% and skilled nursing facilities must have a 14-day supply of ppe. most bay area counties said they will enter phase two on may 18th. >> we'll come ban stronger. >> >> reporter: one of the biggest restrictions for businesses will be regaining their customers' confidence. the governor said the next specific set of guidelines for

counties to move into stage two will be released on tuesday, melanie woodrow abc7 news. thank you, melanie, abc7 reached out to all bay area counties, san francisco, san mat mateo, santa clara, alameda, kroe contra costa and sonoma say they do not expect to enter phase two tomorrow. san francisco and marin counties add that a limited amount of retail will allow curbside service to begin on may 18th. other retailers in the bay area are confused as to why they can't open for curbside pickup tomorrow like some other businesses in the state. abc7 news reporter leslie brinkley has that part of the story live in the east bay. >> reporter: it's going to be a long time until the nail salons, hair salons reopen, but it's small retailers who are very confused. the governor says he's allowing florist shops and bookstores to reopen, but the county says they

can't. to open or not open, is curbside okay? >> it's just a moving target. every single day almost. >> reporter: the owner of cheap pete's framing with six locations across the bay area says it's confusing with the governor saying one thing and county health departments saying another. >> sometimes it's contradictory, so we just kind of wait and frustrate ing. >> reporter: they decided to do limited pickup. >> we have met with a couple of customers here and there to help them get their stuff. they've paid for it already, and we just kind of put it outside the door and let the customer come and grab it from outside. >> reporter: contra costa county and others in the bay area say that's not technically allowed right now, but enforcement is up to local police departments. one florist shop in downtown walnut creek camera, but said they're appalled that they can't set out mother's day arrangements for curbside pickup when customers are allowed to breeze inside a grocery store down the street to pick up bouquets. what's the biggest fear of these

small business owners? >> i have a feeling that we're not going to do the sales that we ever did, and we're still going to be having to pay rents and wages and everything else. it's going to be very tough. >> reporter: contra costa county's health department is worried people will drive to rural places where some small businesses are opening. >> and that could be a means of spread, so we really do try to encourage people to not travel unless it's really necessary. >> reporter: so what happens if small businesses attempt to reopen and do curbside business? well, at least according to the walnut creek police department, they are sticking with education, not enforcement right now. they'll simply remind those businesses that county health orders supersede whatever the state says and technically curbside pickup would be a misdemeanor, but right now they're going to be warning businesses to start. reporting live in walnut creek, i'm leslie brinkley abc7 news.

thank you. napa county one of two bay area counties where some small businesses will be able to reopen under phasewo as veoroa map to reopening. business owners in napa county and the city proper, for that matter, tell us they are barely holding on. abc7 news reporter wayne freedman has that story. >> when it appears that mannequins outnumber the flesh and bloom humans, maybe it's a sign that something is wrong or maybe those people and small business owners all moved to a zoom room. >> we have masks. we have hand sanitizer. >> reporter: but on 1st street downtown we found mostly empty sidewalks and closed signs in a business district that remains shuttered and out of steam when it comes to flattening the curve. bottom lines no longer allow that. >> i don't blame the virus because that's a real thing. i blame how we have reacted and handled it. >> reporter: katherine becker owns calamity jane's boutique, which even has masks for sale,

assuming she could sell them if big box stores can open, she asks, why not her? >> i've worked my whole life to be able to do my own thing, and now somebody's taken that ability away from me. >> reporter: even as napa county prepares to at least partially reopen tomorrow, it is the tail end of yet another blow. in 2014, the earthquake here devastated this community. many small businesses never recovered, and yet, vice mayor doris gentry describes this pandemic as being worse. >> this one's far more devastating because with the earthquake we had an end to it. >> reporter: now for downtown napa, maybe another new beginni beginning. so while governor newsom did offer a ray of hope about reopening, there are still some frustrations for small business owners. they say all those conditions are beyond their control. >> i think there should have been more help from city, county, and definitely state. >> reporter: and move it forward before those solitary storefront mannequins get really lonely. in napa, wayne freedman abc7

news. the fallout from covid-19 isn't only hitting businesses and workers hard, city governments all the way up to the state capital are finding surpluses are turning into huge deficits and are also facing painful cuts. abc7 news anchor reports. >> reporter: these nearly empty walnut creek streets show their money is staying home too. no revenue for the city. >> we've seen an 80% drop in sales tax activity. >> reporter: the city manager says sales tax is the biggest single source of revenue. earlier this week the city announce announce ed it was running a $10 million deficit forcing officials to make $6.5 million in budget cuts and pull $3.6 million out of the rainy day fund to balance it. other cities will soon have to do the same as will the state of california. >> we're projecting tens of billions of dollars of

shortfalls, all specifically related to covid-19. >> reporter: specifically, the state is looking at more than $54 billion in red ink with some tough choices to make, especially when it comes to k through 12 education, which eats up 40% of the general fund budget. california lawmakers are already making plans. >> these financial holes are very big, and it's going to require a lot of creative thinking, a lot of partnerships with our employee groups to really get through this. >> reporter: that may mean cuts or tax hikes or both, and they hope for some help from the feds. >> so i think everything's on the table, frankly. with that big a number, we're not going to be able to just raise revenue. we'll have to do a public combination of that. >> reporter: senator glazer says if there's another federal stimulus package, he hopes it contains money for cities so they can keep police and fire staffing at adequate levels. don't expect things to get better for a while, he's

projects a year or two of continued budget woes. in walnut creek, eric thomas abc7 news. the city of pittsburgh is offering early retirement incentives to try to offset millions in lost revenue because of the virus. according to the east bay times pittsburgh is facing a $7.2 million revenue shortfall. the early retirement program will be offered to employees 55 years of age and older who have worked for the city for at least five years. officials say they'll save about $875,000 if 25% of its eligible employees take the package. this year's alameda county fair has been canceled. organizers are calling it off because of covid-19, obviously. it was scheduled to run from june 19th until july the 12th. it's the first time the fair has been canceled in 108 years. the department of motor vehicles will actually reopen select field offices across the state tomorrow. 25 offices will be reopened including five in the bay area.

concord, oakland, clermont, the san francisco fell street office, the senter road location and the office in santa rosa. today we spotted crews getting the concord office ready. the offices will assist customers with appointments and transactions requiring an in-person visit. customers are encouraged to use online and virtual services for things like driver's license and vehicle registration renewals. a lot more to come here, mark zuckerberg and priscilla chan pay it forward. coming up, the one on one interview to navigate the new normal of distance learning. a flower vendor tries to regrow her business during the pandemic, from warehouse to watsonville. this ceo is doing everything she can to ensure the sweet smell of success. and freezers become a new hot spot in this pandemic. the shortage from

facebook founder mark zuckerberg and his wife dr. priscilla chan are helping

teachers get acclimated to distance learning. they're a nonprofit, khan zuckerberg initiative announced today a $1.2 million grant to donors choose. on donors choose, teachers can request donations for resources to help students learn better from home. chan spoke one on one with abc7 today. >> it can be art supplies, notebooks, books, even groceries for kids who need it, and we're focusing on the low income schools in the bay area counties. and so we're just thrilled to be able to help our heroes in the classroom extend their reach at a time when it's so hard to stay connected. >> $750,000 of the grant funds are going to projects by bay area teachers who teach at schools where 50% or more of students qualify for free or reduced lunch. for projects elsewhere in the country, czi is providing $500,000 to match donations from members of the public. meanwhile, thousands of facebook employees won't be

returning to the office anytime soon. ceo mark zuckerberg announced today that employees able to work remotely can continue to do so through the end of the year if they choose. some will be required to return to the office, but who those workers are hasn't been decided yet. facebook is expected to begin opening most of its offices on july 6th. contra costa will soon become the first county in the bay area to offer testing to its residents even if they don't have symptoms. the testing will be offered to residents at eight locations by appointment only regardless of insurance, ability to pay or whether they have symptoms. officials say increased testing will allow the county to reach its goal for easing shelter in place orders which lasts through may. contra costa residents can call this number, make an appointment if you live in contra costa county. now, with concern about a beef and pork shortage, a lot of people are stockpiling, and they

may run into a problem when looking for a place to put that meat and other perishable foods. there's been a high demand for freezers over the last couple of months. ca ssfreezers are now back orde and many of their customers are from the bay area. >> they're driving here from merced, san jose, san francisco, sacramento, are driving here to buy freezers as everybody's calling around hunting for them. >> center appliance now has a waiting list and people could be on it for up to eight weeks before they can get a freezer. >> wow. well, the week leading up to mother's day is the busiest for floer florists, it's also the most profitable, but the pandemic has left florists scrambling. one distributor isn't just surviving but thriving after completely transforming its operations. >> 2020 was set to be a banner year for farm girl flowers. >> we were on track to do about

50 million in revenue. >> the san francisco company blossomed into one of the top florists in the country, and then march 16th hit. >> march 16th will always be imprinted in my brain as one of those days that you remember. like you remember the way that you feel. >> reporter: teaous oered all nonessential businesses to close because of covid-19. farm girl flowers christina stemble had just 12 hours to shut down the fulfillment center and furlough almost all of its 1897 employees. >> i made some tough decisions that day. i canceled all orders and threw out $157,000 of flowers. i cried a little. >> the next week was a scramble, sales dropped 60%. then came a call with its flower farms. >> most of our farms reported that 80 to 90% of all of their orders went away overnight, and so they were getting ready to lay off lots of their farm workers. >> reporter: that gave farm girl flowers an opportunity. it trained farm workers in

watsonville and three other farms to make its bouquets. >> normally we would open a distribution center in a few months and we had to do this in a few days. >> reporter: the pivot paid off. we have a lot of orders right now, especially because people can't be there with their loved ones. >> reporter: sales have now surpassed precovid-19 levels. mother's day has also given them a boost, but she's worried about a pending recession. >> i'm just doing everything in my power to have the strongest may possible in hopes that it still carries us through. >> okay and farm girl flowers has had a strong may so far. it sold out its mother's day bouquets a week in advance. >> that's amazing. sunny and warm, and maybe even warmer tomorrow. meteorologist s

now your accuweather forecast with sandhya patel. hi there, everyone. on a hot day like today, you just want to jump into the

ocean, take a look at this live picture from our santa cruz camera. doesn't that look attractive? yeah, it will cool you off. that's for sure. blue skies everywhere. we are looking across the bay, and you can see a little hazy right now, 90 degrees in santa rosa, 85 in petaluma. fairfield, 95 degrees. our hottest spots in the mid-90s today, some of the warmer areas in the 70s and 80s along the coast and bay. there were a few spots like pacifica only in the 60s. exploratory cameras showing you blue skies as we look across the bay. 69 in the city, 88 in redwood city, 75 in oakland. it is currently 85 degrees in san jose. live doppler 7 showing you clear conditions. this will be changing come early next week. i'll tell you all about it in just a moment. from our san jose camera, sunny skies right now, warm to hot for most of you again tomorrow. cooling trend for mother's day weekend, and spring showers will arrive early next week. so first thing in the morning, all of you starting out with

cloudy skies except near the coast, a few patches of fog not out of the question. it is going to be mild for most of you in the low to upper 50s, except for half moon bay down to 48 degrees. now, in the afternoon, cooking again in the south bay, look at these temperatures, 93 in gilroy, 90 in san jose, 91 las los gatos. 68 in pacifica, something you might notice is the fog returning by the afternoon hours. 74 downtown san francisco, 68 in daly city in the north bay, 75 in sausalito, 85 san rafarafa 90s calistoga, santa rosa in the east bay. many of these temperatures 10 to 15 degrees above seasonal averages. east bay 95 degrees in concord, 94 livermore, 93 in pleasanton. you need the r watwater and you definitely need the shade if you're going to be outside. 12:00 tomorrow afternoon, changes begin to surface. patches of fog appear, and then the fog expands as we head into

friday night and saturday, and that's why you're going to start to notice the cooling begins on saturday. fast forward to early next week. a system comes in, rain arrives monday afternoon, evening, and then really a rainy day for your tuesday. rain/snow mix in the sierra nevada. we'll take that rain because you know what it it does? it holds off our fire season. hot inland tomorrow, mid-90s inland, upper 60s coast side, cooler for the weekend, which includes mother's day, nice weather, and then a level one system for monday night into tuesday. so you'l

coming up on abc7 news at 6:00 tonight, bay area commutes were bad before the pandemic as you remember, and a new study says they could be even worse once it's over. at 6:00 we're going to examine why that might be the case and what, if anything, can be done to change it. also. >> i would rather look back and say that i did too much than look back and say i did too little. >> some flyers are taking extreme precautions these days, but what will air travel look like weeks or months from now? we'll take a look into the future. and a taste of generosity, the delicious treat given to employees at an east bay hospital all coming up tonight

at 6:00. well, finally tonight in the east bay, first responders and health care workers show their appreciation for each other. ♪ >> the oakland police and fire departments led a procession of first responders from throughout the east bay this afternoon. they rolled past highland hospital, kaiser oakland medical center, ucsf, benny hoff children's hospital, and summit medical centers in oakland and berkeley. >> thank you on behalf of all first responders throughout alameda county and all our friends behind us, about a mile of them, they're about to come through and appreciate each and every one of you. keep up the hard work. hang in there, we'll get through this. >> that is so awesome. this week is national nurses week, and of course we celebrate them as well. that's going to do it for now. "world news tonight" with david muir is next. >> for all of us here, we

appreciate your time. hope to see you here again in half an hour at 6:00.

let's read a book-don't come behind the teacher's desk this is going to be so hard. ♪ so what we're going to do is we're going to make our own hand sanitizer. i'm going to teach you how to give yourself a self-isolation haircut. (giggles) oh, no- i'm so sorry i'll be making my first birthday cake from scratch. happy birthday make two stitches all the way around. i'm going to show you how to properly soak your nails off. ew. ew. ew. today, were going to talk about how to groom your dogs. (laughing) he looks like a fried chicken leg. i have some key tips that will be helpful in working from home. dada! daddy's gotta work. today i'm going to show you how to plant some seeds grow things you're going to eat you guys, ok? ok! how to make a simple loaf of sourdough bread. i forgot to score the tops, ya'll.

♪ tonight, president trump's personal military valet testing positive for the coronavirus. the first known case in the west wing. president trump and vice president pence have now been tested again, both with negative results. was the valet wearing a mask while near the president? often serving him food and diet cokes. the president's valet reportedly showing signs of symptoms yesterday. and tonight, president trump now says testing at the white house will increase from once a week to once a day. the death toll in america is now more than 75,000. president trump pushing to get more states up and running. 44 states easing restrictions by tomorrow. nearly half of those states with covid-19 cases still on the rise. the growing concern about that dangerous condition being seen in children. doctors say likely linked to

covid-19. tonit,