U.S. federal agents say the cross border tunnel they unearthed earlier this week was on its way to being a sophisticated passageway. Though, they say it would have been a tight squeeze.

The city of San Diego doesn’t have to worry about IOU’s. But Mayor Jerry Sanders says the state’s budget mess threatens to undo a lot of the financial improvements San Diego’s made. He says the situation in Sacramento is especially frustrating because San Diego has spent the past three years working hard to fix its financial problems.

Law enforcement agencies will be doing a full-court press in San Diego County this weekend to arrest drunk drivers. The Fourth of July typically has more drunk driving crashes than any other holiday.

"Easy Rider" (opening July 3 at Landmark's Ken Cinema) is a time capsule -- it brilliantly captures a very specific moment in time and yet it still resonates powerfully today. Released in 1969 amidst headlines about war protests, love-ins, communes, drug use, hippies, the silent majority, and Nixon. It arrived just before the Kent State shootings and just after the Manson murders. It was a film that changed the landscape of American film, both in terms of the story it told and the way it was made. So I just want to highlight the fact that Landmark will be presenting a newly restored 35mm print this week at the Ken. So make an effort to see it on the big screen.

Residents in eastern Escondido are urged to boil all tap water before drinking or cooking with it until further notice. The city of Escondido Municipal Water Department issued a boil tap water advisory on Wednesday, stating that several recent test samples have revealed the presence of coliform bacteria.

The San Diego Symphony Summer Pops starts a new season of concerts. We speak with Pops conductor Matt Garbutt about the upcoming shows and this weekend's Star Spangled opener.

Governor Schwarzenegger declared a state of emergency Wednesday because of California's massive budget mess. He's also adding a third furlough day for state workers. Meantime, the State Controller is expected to start issuing IOUs today.

San Diego County's chief financial officer says IOUs from the state of California won't hurt immediately. CFO Don Steuer says health and human service programs are facing immediate cuts, but he says the county was ready. He says local officials set aside extra money as they realized the state's money problems were getting worse.

How have San Diegans reacted to the political unrest in Iran, which has led to public killings and violence? We speak to Iranian-Americans living in San Diego to get their perspective on the situation.

Employers cut a larger-than-expected 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent, suggesting that the economy's road to recovery will be bumpy. A separate report showed that new jobless claims dropped to 614,000 last week, while continuing claims fell unexpectedly.

Common Ground Theatre is staging a world premiere musical about the lives of jazz vocalists Billie Holiday and Dinah Washington. The oldest African American theater company in San Diego is also under new leadership. Arts producer Angela Carone has this story.

More than a million people are expected to converge on San Diego’s beaches and bays this holiday weekend. It’s the most popular beach weekend for the city and both the police department and environmental groups are getting ready.

Grilling meat can give you cancer. But if the July 4th ritual is something you can't resist, a San Diego researcher says there are ways to make it safer.