Stories you shouldn’t miss:
1. Police have arrested two suspects in the fatal shooting of a 3-year-old innocent bystander in Oakland, the Trib reports. The suspects were apprehended in the East Bay city of Pittsburg following an intense manhunt in the wake of the brazen shooting on Monday afternoon, although details of the arrests remained sketchy this morning. The 3-year-old was gunned down on busy International Boulevard in broad daylight when shooters sprayed the area with bullets in an attempt to kill two men who were nearby. Those men escaped with minor injuries.
2. The bipolar stock market plunged dramatically again this morning, nearly erasing the gains from yesterday afternoon’s major rally, The New York Times reports. Stocks shot up yesterday after the Federal Reserve announced that it plans to keep interest rates low for the next two years, but then this morning jittery investors began dumping stocks, as they had done throughout July. As of 10 a.m. Pacific, the Dow Jones was down 344 points.
3. California’s tax revenues nosedived in July — as expected because of the faltering economy — and it now seems certain that Governor Jerry Brown and legislative Democrats will have to enact devastating budget cuts to K-12 education and social services in January, the Chron reports. Brown and the Dems had agreed to a budget deal in June that depended heavily on increased tax revenues, because they predicted that the economy would turn around. But state officials announced yesterday that revenues were $539 million lower in July than they had hoped.
4. Costs have skyrocketed for the state’s controversial high-speed rail project and could approach $100 billion — up from the $33 billion that state officials had estimated in 2008, the Mercury News reports. The soaring costs also could permanently derail the proposal as the state looks for ways to save money.