it is a tough city. the city has been very generous to the court and to the needy. we will do the best we can to preserve services that provide the core services like food, housing and at risk the services. there will be reductions that will be painful. and the deputy director for finance and administration. >> good morning. and the deputy general manager for the public utilities commission. he by no less as the san francisco water department or the municipal power agency. for example, electricity comes from what the system. we are an enterprise department. he'd gather all of the revenues from the rate payers. most of the water users are outside of san francisco. we have customers that contractually a supply water to. the budget is quite large. it is a hundred and $60 million. i wanted to highlight the rebuild we are doing right now. the largest public works project in california today. as a stand here, we have $2 billion in completed construction. we will have $3 billion in construction. we just received bids on our signature project on friday. the engineer estimat

city of sans jose is trying? we'll have a look next. i >>> times are tough for cities across the country as they struggle with massive deficit, but it appears medical marijuana could be a source of revenue that is of cities and voters, so san jose's finance department release figures that show medical marijuana victims collecti collectioned several dollars in windfall revenue. the council decided to limit the pot clubs in san jose to ten. san jose, by the way, is facing a $115 million budget deficit. >> first tb and then whoofg cough and now measles. federal officials are reporting a nationwide increase in measles cases including here in california. the contagious disease seems to be spreading through travelers who are returning from europe or developing nations where some parents choose not to vaccinate. so, since april seven new cases of measles were reported in the state bringing the current total to 13. two of those were in santa clara county. last year a total of 27 were reported in california. the highly infectious disease typically causes a fever, run

the big picture for us -- it has been a tough couple of years for the city, as you all know. it has been a tough couple of years for all of us individually in the city, struggling with the economy. we are starting to see some signs of hope and good news out there in the economy, but we are in the very early stages. the city government is, of course, depended on tax revenues, which are driven by economic activity. when we look out into the economy, we are starting to see things stabilize. we are not seeing the big losses that we have over the past couple of years, but it is the beginning of a slow recovery, so there is some good news out there, but it looks like it is going to be a slow recovery that is going to happen over the next couple of years. also, while our local tax revenues are recovering and while our economy is recovering, we also are taking a loss from the state and federal governments, as the mayor said. they are cutting revenue to local governments as they try to balance their own budget and deal with their issues in washington and sacramento, so that is taking a

how the city's tough new rules played out. >>> 30 seconds to go.the 100th beta breakers in san francisco. despite some new rules, after complaints from neighbors from the 7 1/2 mile route, they say this year no alcohol is allowed. >> you think everyone is -- are you sober? that's unfortunate. >> the cops were ready to bust people being not so good. >> i've had my beer taken away a couple of times. >> have three been easy to get? >> very easy. >> this first aid tent is one of several for people who are too drunk. so far, they haven't had much business. other new rules this year, no floats, no unregistered participants along the way. 1200 portable toilets set up to prevent public your nation. >> we were hoping for some -- >> not that lame. >> neighbors say it seemed quieter. >> i'm enjoying the fact that there's no alcohol. >> but we have seen tons of alcohol. >> really? i thought that wasn't going to be prohibited. >> it did at least seem scaled back. >> i think it is a lot cleaner than it was before. >> over time, extra security workers will be pai

kiet do joins us now from city hall with the tough details. good morning. >>> reporter: the city manager released the budget and it is ugly. even in a best-case scenario where the city got all the paycuts they are asking for, we are looking at hundreds of lost positions which means we could city a repeat of this scene last year where firefighters were let go from the city's budget for the first time never san jose's history. they may do it again this year. the city in its tenth straight year of deficits and each year it gets worse. this time it's historic at $115 million. 588 positions could be cut. of those 588, 370 are actually aoffs. firefighters would lose 64 positions, five actual firefighters. and the police department would be hit especially hard, 195 positions would be cut and 122 officers could be taken off the streets. that would be a first time in the city's history, as well. the mayor released a statement saying we cannot continue to cut services and lay off employees year after year. we must attack the root causes of our structural

the city is faced with tough budget decisions. including where to make cuts and whether or not to increase taxes. how will he make these tough choices -- will you make these tough choices? supervisor campos: the budget is the most important policy document that the city can pass. it reflects the priorities of city government. i believe we have to be creative in how we look at the issue of the budget. it is important for me that certain things happen. i think that public safety has to be a priority in the budget, the public safety cannot be compromised to save a few dollars. but i think the public safety goes beyond funding the police department and the fire department, as important as that is. it includes funding violence prevention programs, after- school programs so someone has -- and people have something to do after school, funding our department for recreational opportunities for young people during the summer or after school. if you do not do that, that will have implications on public safety. the safety has to be protected,

a judge will decide if the city can impose tough restrictions on dozens of suspected gang members in the area. if approved this would be the third oakland neighborhood affected by city attorney john russo crack down. he assigned his resignation, he is becoming the new city manager for alameda next month. >>> diablo high school was closed today as part of a budget cutting move but students organized a teach in. the idea is to take back their education. >> it is friday so it is like confusing. i feel like i should be at school right now. we are because today is a school day for our teach-in. >> this whole idea we are supposed to take over when everybody retires, we are the future doctors and pharmacists but they are taking away our education. >> the students and several teachers are holding classes on writing to your legislator, budget policy, art and creative writing. >>> this morning memphis, tennessee is bracing for record floods and some neighborhoods are already under evacuation orders. the mississippi river is overflowing. they are going door to door warning people to get out. hea

a judge will decide whether the city can impose tough restrictions on dozens of suspected gang members in the area. if approved this would be the third oakland neighborhood effected on the crack down of violent street games. russo will become the new city of alameda next month. >>> state regulators approved the rate hike yesterday. the increase will make up for the profits pg&e lost when it replaced analog meters with smart meters. the company says it should be compensated because they made the change. critics say the rate hike isn't fair. >> approximately $110 million that customers will be charged, what this mean is consumers will be paying pg&e profits on meters that are destined for the trash heap. >>> sony's chairman is making a special offer to u.s. customers of its play station network. sony chair apologized for the security breach on the gaming network and the problems online with its online entertainment service. now he's offering a free id theft protection to everyone who's information may have been stolen. u.s. subscribers have until june 18th to sign up for that. >>> san fr

. >> once again, the city is faced with tough budget decisions, including whether to raise taxes and fees or whether to make cuts. how will your approach these choices? supervisor kim: the budget is tough this year. even though our deficit is not as large as it has been, it is tough because we have made these cuts already, and did this point, we are cutting things we really do not want to cut. and it is painful. we will lose more potential services. we will also not be able to support our residents. we are looking at weekend meals for seniors. it is painful. i think we have to look at it as a combined approach. it has to be cut within city government that we can bear -- services that are less essential. second, you have to look at raising revenue in the city. i think it needs to be a combination. and third, need to be much better informed, and we have to ask our public employees to look at the budget. and they already have, but also to look back. it is a threefold approach to me. >> what are the city's housing needs him much of the board of supervisors to to address them? supervisor

. >>> in sports, a tough night in kansas city.aro in the record books for pitching the worst game for pitching the worst game ever for the royals. 14 runs in two innings against the indians. cloefd -- cleveland lights up kansas city, 14-1. >>> chris tillman makes a great behind-the-bag grab in the fourth to make a force out in second. in the ninth, adrian gonzalez hits a game-winning two-run double off of the green monster giving the red sox an 8-7 come from behind victory over baltimore. >>> a crazy double play in a tenth against the mets. missing the bad hop but goes right to omar infante. in the 11th, burt badenhoff singles to center to drive in the winning run. florida wins the rain delay, 2-1. >>> in the nfl, a big win for the owners. an appeals court ruled the lockout can stay in place until june 3 when the court will hear another appeal. the owners and the players plan to resume their court mediation today. >>> when we return, a look at the top stories. and stewart versus o'reilly. the two tv heavyweights face off for a fai

. >> the city is faced with tough budget decisions, including where to make cuts and whether to raise taxes and fees. how will you approach the difficult choices? >> i think the biggest challenge in the budget is the cost associated a city employee pensions and benefits. those are the single biggest driver to our expenses, far exceeding our revenues. i have a single-minded focus dealing with that. for the last few months. we have been sitting down with our various public employee unions trying to come together on a way to balance the city's needs versus respecting the rights of the employees. if we are able to come to some sort of agreement and present the voters in november with a fair proposal, that will address a lot of the smaller budget issues. we are talking about hundreds of millions of dollars. on pension and benefits alone, we will be spending just shy of 1 million -- $1 billion. that was with a b. if we can get a handle on that, some of the other issues will stand down. >> do you feel like we're on the right track? >> we are on the right track. it is february. we're where we

wanted to rebuild, and those days were we going through voluntary desegregation, and that was tough, and the city was dead. you could take a bowling ball and throw it down westminster street, and you wouldn't hurt a soul. even the bible societies move out of town. that's tough. the first day i was in office, i will never forget, getting a call from the parks department saying the monkeys had escaped from the zoo. but they said, what do you do? i said, never taught me that in mayor school. i said, you do what you normally do. and then, of course, social workers and built a network of social service delivery systems will different community centers we built, whether it was the davinci center or federal hill house, and we also thought that we -- the next part of the mayoralty was being a rescue-taker, and we decided to put money in the infrastructure and tearing down the railroad tracks. they talk about that for a lot of years. but we had tried to have the fortitude and get the political will by everybody concerned to get it done, and we did. we were tearing the tracks down and realized there was ot

. >> a lot of cities having tough times. is dealing with a $306 million budget deficit. so tough times all around. kiet, thank you. kiet do at san jose city hall. >>> it is 5:40. charlie sheen's pledge for storm victims in the south. >>> bin laden on the big screen? the hollywood movie already in the works, plus what "time" magazine is doing for only the fourth time ever. ,,,,,,,,,,,,,,,,,, >>> we have a great day coming up weather-wise. fog at the coastline some slipping inside the bay. temperatures 40s and 50s. by the afternoon should be mostly sunny just about everywhere you go. temperatures up into the 70s, some low 80s inland. inside the bay very comfortable a lot of 60s and 70s and at the coast patchy fog but not much. you will see 60s out there. now, this is the beginning of what looks like some nice weather high pressure building in. low clouds and fog eroding along the coastline. a little patch remaining there now. now, most of that is going to dissipate overnight as those winds switch to a sea breeze to an offshore

. >> once again, the city is faced with tough budget decisions, including where to make cuts and where to increase taxes and fees. how will you approach these difficult choices? supervisor chu: we know that our budget deficit is a significant one. at the moment, blooms are around $380 million -- at the moment, it looms around $380 million. we could not meet that gap. i think the city needs to take a balanced approach, and if you take a look at previous years, we have taken a look at things like where are fee revenues, what do those look like? where are the changes in other revenue pictures, whether it is transfer tax or hotel tax or other things that help to improve the picture. in addition to that, how is it that we can really control some of our expenses? i think that in order to address the $380 million budget deficit, we really have to take a look at both sides, revenue side as well as the cost side of things, and i think there are certain things that the city can do right now thatht

. >> again, the city is faced with tough budget decisions, including word and make cuts and where to increase taxes and fees. how are you going to approach these different choices? >> those are really tough choices. i think often, the economy in san francisco is not in a vacuum, and we are impacted by the state and federal government, so we need be advocating with our legislative delegation to prioritize health and human services job development and work force development and important projects as much as we can. at the state level, as we face this huge budget deficit as well to make sure there is flexibility in spending at the local level. but i absolutely think that we need revenue measures that come on the ballot, and voters have to be thinking about ensuring that we have enough revenue so that we maintain infrastructure, the building and maintenance of the streets and buildings and even a kind of parts of the coat -- coast. the need to make sure infrastructure is there and also that we have money that -- to protect the critical safety net for seniors and young children and famili

a judge will decide whether the city can impose tough restrictions on dozens of suspected gang membersin the area. if approved, this would be the third oakland neighborhood affected by john russo's violent crackdown. russo announced his resignation earlier this week. >>> the injured giants fan brian stow fractured a -- suffered a fractured skull when he was beaten. doctors have been trying to remove him from coma-inducing medicines, but his family said he is not responding. >>> a san francisco music student may be reunited with her stolen vie open lynn as soon -- violin as soon as today. we have video of him carrying that instrument. this was a rare violin estimate $23,000. sylvester dropped it off at st. mary's cathedral sometime yesterday. >>> oakland mayor jean quan is flying to china to promote economic ties. quan will encourage the creation of more business connections with china. she said that will generate jobs and investments. she also wants to protect direct air service between oakland and china. she said the port is paying for the trip and not taxpayers. >>> san francisco shr

from the lgbt perspective, this is going to be tough, and i submit to the city that they consider the following list of ideas which i have cryptically penned for this testimony. i have noticed that time has gone over, and i know how that feels, so i would just read one or two of them and make my testimony available in writing. the one that i would like to read which may add to what the professor had to say is, i think the city and county needs to form an urgent advisory committee and instruct a point person to work with our congressional representatives and senators to include promotion. that's send citizens to washington d.c. -- washington, d.c. they really do want to hear from us. i have another list of ideas that i would like to present to you. i will not take your time now. so my respectful and more urgent request, if you could get to make and use them to get a phone call as soon as possible to rep gutierrez's office and senator schumer's office to tell them how important it is to have comprehensive reform here and that it must include our gay and bi-national couples. we need to e