State Budget Watch : Thirteen days before the end of the fiscal year, the constitutional deadline for enacting a new state budget, there were these key developments in Sacramento:

The Problem The state will end the year with a $2.9-billion deficit and faces a $9-billion gap between anticipated tax revenues and the amount needed to pay off the deficit and provide all state services at their current levels for another 12 months. The Legislature The Assembly-Senate conference committee on the budget continued to debate possible compromises that could win legislative support. Planned to meet again today. Gov. Pete Wilson Wilson met for several hours with Senate and Assembly leaders, and emerged saying that talks with Assembly Speaker Willie Brown and Assembly Minority Leader Jim Brulte were so encouraging that they hoped to have a plan to bring before both houses of the Legislature by Sunday night. They meet again today. Key Developments The Assembly and Senate scheduled floor sessions for Sunday night, raising the possibility that legislative action could be taken on key elements of the budget, including a possible extension of the temporary half-cent sales tax. The tax is scheduled to expire June 30, and Board of Equalization officials have said they need a decision by Sunday if they are to ensure that the tax remains in effect.