State Budget Watch

On the state’s 20th 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. 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 Monday: 14,202, valued at $54 million.

Since July 1: 478,930, with a total value of $859 million.

GOV. PETE WILSON

Met with Senate Republican leader Ken Maddy of Fresno and Assembly Republican leader Bill Jones of Fresno to plot strategy for budget negotiations.

THE LEGISLATURE

The Assembly and Senate met, but took no budget-related actions. Democratic Assembly Speaker Willie Brown of San Francisco met with Republican state Sen. Frank Hill of Whittier seeking to work out a budget compromise.

KEY DEVELOPMENTS

A Senate-Assembly conference committee continued to screen a compromise budget plan offered by Democratic Assemblyman Phillip Isenberg of Sacramento and Sen. Hill. Speaker Brown addressed the committee and expressed the hope that it could approve a plan for Assembly and Senate floor votes by Thursday.