What legal action can I take against a neighbor whose dogs repeatedly escape their yard to attack dogs on our street?

I would suggest calling animal control and see if they would issue a warning.  At a minimum, you will have created a record of this behavior, so that, Heaven forbid, one of these dogs escapes again and hurts someone there will be legal notice.  However, to answer your question directly at this point in time, I would not suggest legal action based upon the limited information available.  

The very best thing you can do is look up who the owner of the property is. That may not be the dog owner. In either case, the owner of the property needs to be notified by certified mail that there is a problem with the dogs. 

If the owner of the property is "unaware" of the dogs, there is almost no right to recover. But, if it can be shown that the dog owners have been made aware (i.e., proof of receipt of a certified letter), and then the dog were to attack a person, their insurance company could be made to pay a large settlement. 

You can also call animal control and report it to them, and let them issue citaitons. Once cited, the courts have different options to deal with the dogs.