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SACRAMENTO — Gov. Gray Davis has asked the committee scraping to fill a $23.6 billion budget hole to find $1 billion more — with cuts or tax increases — to boost emergency reserves and protect California’s credit. 

Now, after two full weeks of meetings, the Conference Committee on the Budget must decide how to come up with about $5.5 billion. That includes $1 billion reserve, about $1 billion in additions the panel has made to the budget and roughly $3.5 billion in car and cigarette tax increases proposed by Davis last month. 

“From this day forward, that’s what our conversations will be about,” said committee chairman Sen. Steve Peace, D-El Cajon. 

Davis asked for the additional rainy day funds to help the state persuade Wall Street investors and credit rating agencies that California can pay back its loans and sell bonds. 

Specifically, the state must prove it will be able to repay an $8 billion short-term loan — called a revenue anticipation note — that state Controller Kathleen Connell said is necessary to help the state pay its bills this summer. 

The Assembly-Senate budget committee did not meet over the weekend and planned to resume deliberations Monday afternoon. The panel is attempting to come up with a politically palatable plan to fill the $23.6 billion budget hole. 

Davis in May proposed a combination of cuts, borrowing and tax increases. However Republican lawmakers have said they will not support a budget with tax increases.