DAVIS: NO MONEY FOR BIG PROGRAMS.

Byline: Bill Hillburg Washington Bureau

WASHINGTON - Gov. Gray Davis warned Monday that cash-strapped California could soon be unable to pay its share of Medicaid, special education and other federally mandated programs without more assistance from the White House and Congress.

``We can't print money,'' Davis said after he and other members of the National Governors Association met at the White House with President George W. Bush. ``You can pass a law saying, 'You must spend so much money.' But if you don't have it, you don't have it.''

The state's shortfall between now and June 30, 2004, has been estimated at $26 billion to nearly $35 billion.

Davis thanked Bush for having a ``candid and honest discussion with us,'' while noting that the president made no promise to increases federal support. ``We're trying to work collaboratively with the president and Congress,'' he said.

``I understand we've got an issue with our own budget,'' Bush told the governors. ``And you've got issues with your budgets. We can talk about that.''

While stressing that his administration had no intention of defying or obstructing federal mandates, Davis specifically cited the growing burdens of Medicaid, the health program for the poor; and special education, approved by Congress in the 1970s with the promise that the federal government would finance 40 percent of the costs.

Today, federal support for growing numbers of special-education students amounts to only 17 percent.

The governor also expressed frustration with the lack of federal payback for California's investment in homeland security, which he said is costing state and local governments $500 million per year.

``We don't have anything in hand yet,'' said Davis, who will meet today with Homeland Security Secretary Tom Ridge.

Davis dismissed his own problems on the home front, including record-low poll numbers in a statewide survey being released today by the Public Policy Institute of California, a San Francisco-based think tank. The poll indicates 60 percent of Californians - and 72 percent of likely voters - disapprove of the way Davis is handling his job.

A similar PPIC survey conducted last October found 43 percent of Californians disapproved of Davis' job performance.

``In good times, governors get little credit for what's going well,'' Davis said. ``In bad times, they get blamed for everything under the sun.''

As for the effort to recall the governor, which was endorsed last week by state Republican leaders, Davis said: ``People can do anything they want. But we just did have an election last year.''