<p>Gov. Gray Davis may be a lame duck, serving the final weeks before Gov.- elect Arnold Schwarzenegger takes over, but he is still signing laws that will challenge the state's economy for years to come.</p>
<p>In a last-minute payback to the public-safety unions that have pumped his campaigns full of cash, Gov. Davis signed two "bust the bank" laws that will lavish pay increases on police and firefighters, and could even threaten the solvency of California cities.</p>