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. Claims are being paid with IOUs known as registered warrants.

IOUs: Issued Tuesday: 7,334, valued at $10.8 million. Since July 1: 646,433, with a total value of $1.2 billion.

GOV. PETE WILSON: Met briefly with Assembly Speaker Willie Brown to discuss a plan to take property tax revenues from local governments to help bridge the state’s budget gap.

THE LEGISLATURE: The Assembly and the Senate did not meet. Private negotiations among members are continuing.

KEY DEVELOPMENTS: A statewide Field poll found that Gov. Wilson’s job approval rating had sunk to the lowest level of his 18-month tenure, but the Legislature was viewed even more unfavorably. The poll showed that 20% of those surveyed believed Wilson was doing an excellent or good job as governor, 28% rated his performance as fair, and 45% said he was doing a poor or very poor job. The Legislature’s rating: 9% excellent or good, 34% fair, 51% poor or very poor.