State Budget Watch

On the state’s 30th 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. Claims are being paid with IOUs known as registered warrants.

IOUs

Issued Thursday: 101,122, with a value of $339.4 million.

Since July 1: 758,126 with a total value of $1.57 billion.

GOV. PETE WILSON

Met with the top four legislative leaders for the first time since June 26. The leadership group discussed local government finance, education funding, health and welfare programs and other issues but did not come to an agreement on any major issues. The next meeting is scheduled for Saturday.

THE LEGISLATURE

The Assembly and Senate met Thursday but did not address budget issues. Private negotiations are ongoing.

KEY DEVELOPMENTS

Controller Gray Davis paid more than 85,000 state workers with IOUs. Davis also issued IOUs to the counties for payments under the Aid to Families With Dependent Children program.