State Budget Watch

On the state’s 51st 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. Instead, claims are being paid with IOUs known as registered warrants.

IOUs

Issued Thursday: 45,018 with a value of $17.2 million.

Since July 1: 1.25 million, with a value of $2.8 billion.

Interest costs to date: $6.9 million.

GOV. PETE WILSON

Said through a spokesman he will sign legislation granting local governments new authority to cut health and welfare benefits. In an effort to bring pressure on lawmakers to accept his budget proposal, Wilson also announced that his Administration will begin issuing daily reports listing the effects of the budget impasse in every corner of the state.

THE LEGISLATURE

Taking its first major step toward agreeing on a budget, the Assembly passed and sent to the governor legislation to give counties more authority to cut health and welfare services to the poor.

With a Senate compromise crafted on funding for local government, Senate leaders were at work on a bipartisan package that they hoped would amount to significant progress.