State Budget Watch

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 Wednesday: 11,556 with a value of $20.5 million.

Since July 1: 1.3 million, with a total value of $2.89 billion.

Interest costs to date: $8.55 million.

GOV. PETE WILSON: Took no budget-related action.

THE LEGISLATURE: The Senate and Assembly met but took no action on major budget issues. Private negotiations are ongoing.

OTHER ACTIVITY: State Controller Gray Davis began mailing backlogged checks to in-home workers for the disabled, complying with a Superior Court judge’s order. About 68,000 checks were sent, and another 61,000 were to go out today, representing about $17 million that the state Department of Social Services had withheld from workers employed under the In-Home Supportive Services Program.