State Budget Watch

On the state’s 18th day without a budget, here 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. Without a budget for the fiscal year that began July 1, the state is out of cash and cannot borrow money to pay its bills. Instead, claims are being paid with IOUs, known as registered warrants.

IOUs

Issued Saturday: None.

Since July 1: 464,728 with a total value of $804,515,026.

GOV. PETE WILSON

Took no budget-related actions. In a radio speech, he blamed the state’s issuance of IOUs on the schools--for failing to accept his proposal to cut $2 billion from the $25 billion public education was expecting to receive this year. Wilson also defended as “good for kids” his proposal to save $335 million by requiring kindergartners to be 5 by Sept 1. His proposal would block 110,000 4-year-olds from entering school in the fall.

THE LEGISLATURE

The Assembly and Senate recessed for the weekend. In a radio speech, Assembly Speaker Willie Brown (D-San Francisco) said Wilson’s refusal to negotiate with legislators was a deliberate attempt by the governor to create a crisis that might help him pass an initiative he has placed on the November ballot. The ballot measure, among other things, would give the governor unilateral power to cut the budget when he reaches an impasse with the Legislature.

KEY DEVELOPMENTS

None. A two-house conference committee is awaiting information from Wilson and will resume deliberations at 2 p.m. Monday.