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State Budget Watch

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On the state’s 52nd 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: 15,718 with a value of $16.5 million.

Since July 1: 1.26 million, with a value of $2.85 billion.

Interest costs to date: $7.2 million.

GOV. PETE WILSON

Was kept informed of apparent budget progress being made by Senate leaders but was not participating directly in discussions.

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THE LEGISLATURE

Senate leaders said they were headed toward agreement on a compromise budget package that might not meet the requirements of Wilson but goes further in cutting health and welfare programs than Democrats have accepted.

The Assembly was shaping its version of a budget, but with more partisan division than in the Senate.

OTHER ACTIVITY

The Wilson Administration issued what it promises will be a daily list of hardships because of the lack of a state budget. For example, without a budget, the state has cut off payments to 21 regional centers that serve 22,500 people with developmental disabilities. One of those, the South Central Los Angeles Regional Center, has had to borrow $4.5 million on behalf of its clients. Now out of cash, the center has issued layoff notices to most of its employees.

Other items on the governor’s list include:

Immunizations. The state no longer has the money to ship vaccines to clinics and doctors.

Sudden Infant Death. The state-funded program, run by the California Assn. of Public Health Nurses, has issued layoff notices, effective Sept. 14, to employees who help families cope with the sudden death of their babies.

Birth defects screening. The state Department of Health Services lacks the money to replenish supplies needed to test up to 1,000 women per day. Existing supplies should last until Sept. 30.

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