State Budget Watch

On the state’s 45th 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, cannot borrow money to pay its bills. Instead, claims are being paid with IOUs known as registered warrants.

IOUs

Issued Friday: 11,218, with a value of $34.2 million.

Since July 1: 1.18 million, with a total value of $2.69 billion.

Interest costs to date: $5.4 million.

GOV. PETE WILSON

Legislature to act on it. The proposal forces Democratic lawmakers to choose between cutting welfare or slicing more deeply into public school and local government funds.

THE LEGISLATURE

The Assembly and Senate met but took no substantive action on budget matters. Sessions are scheduled Monday in both houses, at which members are expected to respond to the latest budget plan from the governor.