State Budget Watch

On the state’s 48th day without a budget, these were the key developments in Sacramento:

THE PROBLEM

Legislators and Gov. Pete Wilson need to bridge a $10.7-billion gap between anticipated revenues and the amount it would take to continue all programs at their current levels, rebuild a reserve for emergencies and erase last year’s deficit. The state is short of cash and, without a budget for the fiscal year that began July 1, can not borrow money to pay its bills. Instead, claims are being paid with IOUs known as registered warrants.

IOUs

Issued Monday: 6,401 with a value of $34.8 million.

Since July 1: 1.18 million, with a total value of $2.72 billion.

Interest costs to date: $6.1 million.

GOV. PETE WILSON

Held news conference with police, prosecutors and victims rights groups to contend that a Democratic plan would jeopardize police and fire services because it cuts deeply into local government spending. Wilson’s plan would instead cut more from public education and health and welfare programs for the poor.

THE LEGISLATURE

The Assembly and Senate met but did not act on budget-related issues. The Assembly may vote on Wilson’s budget proposal today.

OTHER ACTIVITY

The full U.S. 9th Circuit Court of Appeals denied an emergency request for a stay of a decision removing the state’s authority to pay doctors and hospitals that care for the poor as well as minimum-wage workers who care for the homebound elderly. Controller Gray Davis said the ruling will block him from issuing about $160 million in IOUs on Thursday to reimburse Medi-Cal providers.