State Budget Watch

On the state’s 13th day without a budget, here were the key developments in Sacramento:

THE PROBLEM:

Legislators and Gov. Pete Wilson need to fill 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. Without a budget for the fiscal year that began July 1, the state is out of cash and cannot borrow money to pay its bills. Instead, claims are being paid with IOUs, known as registered warrants.

IOUs

Issued Monday: 15,297

Value: $16.1 million

Since July 1: 323,684

Total value: $507 million

GOV. PETE WILSON

Reviewed and signed legislation unrelated to budget matters. Met with Finance Director Thomas Hayes and Assembly Republican Leader Bill Jones.

THE LEGISLATURE

Assembly and Senate convened but did not address budget issues. Several legislative committees met to review Wilson’s proposals for health, welfare and local government.

Assembly Speaker Willie Brown met with representatives of county governments to negotiate agreement on reversal of the state’s post-Proposition 13 bailout of local government.

KEY DEVELOPMENTS

Department of Finance reported that the state collected $39.8 billion in the 12 months that ended June 30. That was $1.4 billion less than projected in January. But June’s receipts were on track with the latest projections, which are being used to draft a budget for the fiscal year that began July 1.

Senate committee examined proposal to allow Franchise Tax Board to settle disputed tax cases administratively before going to court. One estimate says the change would generate about $150 million for the state in the 1992-93 fiscal year.