By this time Cain was becoming frustrated at the reluctance of his government's caucus members to approve his plans for tax rises and spending cuts to reduce the growing budget deficit. He issued an ultimatum at the Labor Party Conference – "back me or sack me." When the undermining of his position continued, he resigned on 7 August 1990. During an interview after his resignation, he remarked, "We appointed a few dills but we weren't crook." Kirner was elected Labor leader in Cain's place and became the first female Premier of Victoria. By this time, Labor had bottomed out at 22 percent in opinion polling. Kirner was unable to make up the lost ground, and Labor was heavily defeated at the 1992 Victorian state election. Cain did not run in this election.