There's no need for the stupid comment. I have looked it up and there are a few different stories surrounding this.
There is what you stated which is that Sheedy wanted too much money and Guttenberg turned it down because there was no script to show him.
Then at another time, Guttenberg himself stated that they didn't have the money he wanted to do the sequel. See this interview: http://www.avclub.com/article/steve-guttenberg-police-academy-party-down-and-tur-222690
"AVC: Had you ever been in talks to do Short Circuit 2?
SG: Yeah. I was, absolutely. But, uh, no money. They didn’t pay the money.
AVC: Fair enough.
SG: Yeah. They’ve got to pay the money! [Laughs.]"
Then, the director of the sequel, Kenneth Johnson, had mentioned when I attended his directing class that the studio didn't want them back. So clearly there isn't a clear understanding as to why the two of them weren't in the movie.
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