” Part 1\/Friday;January 9, )987 \u00b7* . lloaAngeles Sime, $39-Billion State Budget Proposed Deuklilejian’s Virtually No-Gr owth\u00ad Plan Calls for, Health, Educati on Cuts By DOUGLAS SHUIT. Times Staff Writer SACRAMENTO-In his most ideological budget yet, Republican Gov. George. Deukmejian embraced the state’s constitutionally re\u00ad quired spending limit Thursday by proposing a virtually no-growth $39-billion fiscal plan that calls for slashing or eliminating Democrat\u00ad ic-supported health and education : programs. The governor. saying. that he was keeping faith with voters who placed a spending ceiling in the state Constitution in 1979, called \u00b7 for cuts in the $5-billion Medi-Cal program, in special school pro\u00ad grams for minority, handicapped and, gifted children, and in state\u00ad mandated county health programs. 1 _ _ The_new budget plan presented to the Democrat-led Legislature also would impose a six-month delay on scheduled increases in financial aid to public schools, in state employee pay raises and in \u00b7 income supplements for welfare recipients and those receiving sup\u00ad port under a special program for the aged, blind and disabled. . Shift In Obli1ation1 As part of the effort to \u00b7further streamline \u00b7 spending. Deukmejian will ask the Legislature to shift the responsibility for $477 million in state-required programs from Sac\u00ad ramento to cities and .counties throughout the state. The governor also would end state support for the California OccuR_ational Safety and Health Adn jnistration, an indus- \u00b7 trial safety pl_\”ogram. The governor\”s budget proposal is sure to ignite several fights in the Legislature, where Democrats feel that the political pendulum may start to swing back their way. nationally and in California. Sever\u00ad al Democratic leaders were outspo\u00ad kenly critical of Deukmejian’s spending plan. Overali, the fifth budget of Deukmejian\”s tenure as governor wouid boost state spending by only 1.8%, the lowest year-to-year in\u00ad crease since he took office in 1983. In dollar terms, it means that all state departments would have to divide $682 million in new money, an amount less than what educa\u00ad tors have been saying public schools alone will need to keep pace with rising costs and pupil enrollments. At the same time that Deukmeji\u00ad an is proposing cuts in many of the Legislature’s most politically sen\u00ad sitive programs, he wants to com\u00ad pletely rebuild the state’s $I-bil\u00ad lion budget reserve, a trade-off certain to encounter stiff legisla\u00ad tive opposition. \”We are going to have to Jook at all sacred cows and the most sacred cow is the surplus,\” asserted As- Related stories. Page 18 _ sembly Speaker Willie Brown ( 0- San Francisco). Re described the \u00b7 plan to shift state programs back to the local level as \”ludicrous\” and \”awful. \ufffd Senate PresidenrPro Tern David A. Roberti ( D-Los\”\”\”‘\”Angeles) said lratly: I don’t agree . with this bu\ufffdget: The governor is trying to mamtam a $1\ufffdbillion reserve. but at the same time cut back basic programs such as worker safety, Medi-Cal and education.\” \u00b7, Roberti. referring to Deukmeji-. an’s proposal to begin reducing sc_ho?l c!ass sizes and pay for it by el\ufffdmmatmg what he considers \”less . essential\” education programs. charged that \”under the governor’s budget there wouid be smaller classes. but kids would be learning less.\” . This is the first budget strongly mfl\ufffdenced by the spending ceiling put mto the California Constitution by voters in 1979. The lf11it is Please see BUDGET, fa1e 22 Coatfaue4 from P\ufffdre 1 . \ufffdeter\ufffdined by a formula based on inflation and population growth Deukmejian’s budget would bring s_tate expenditures within $80 mil\u00ad hon . of the limit, but only if the LegisJ\ufffdture agrees to Deukmejian’s bu\ufffdget-cutting package.\” If the Legislature balks, the state could\u00b7 go-over the limit. L\ufffdnother check on spending is lower-than-expected tax revenues. -\ufffd_ut, \ufffdven t\ufffdough_ th\ufffd spending celling and a levelmg off of tax re’Ven\ufffdes helped shape the budget, theaf1scal. plan clearly reflects Oeukmejian’s conservative politi– cal:philosophy. \u00b7 \”It is. a balanced budget. It is a responsible budget \u00b7 Jt includes a substantial. measure of reforms. And it’s fOi_ng to result i\ufffd helping to sav.e, taxpayers many millions of dollars.\” Deukmejian said, reading a piepared statement into televi\u00ad sion -cameras. :[_he \ufffdov\ufffdrnor, in.listing hi\ufffd pri\u00ad orities, said education programs would atiU get 55 % of the overall budget Along with the proposed cuts, Df:ukmejian noted that he put money m the budget for increased spending on highways, foreign tr\ufffdde development. toxic cleanup, prisons and a new \”children’s initi\u00ad ati.\ufffde.\” Deukmejian, who began his sec\u00ad ond four-year term Monday as the result of a landslide reelection victory last November over Los Angeles Mayor Tom Bradley. said th_e new fiscal plan \”keeps faith with the people when they voted in 1979 to limit the growth of govern- ment.\” jl’he Republican chief executive said he has been \”insisting\” on a $1-billion reserve so the state could pay for unforeseen emergencies such \ufffd fires or floods. or to provide a cushion for. the kind of problems that developed last month\u00b7\u00b7 when unexpected expenditures and . a \u00b7 drop-off in tax re\ufffd:enues created a $900-million budget shortage. -, \u00b7 \”If this recent [budget) shortfall . – that \ufffde h\ufffdve experienced proves \u00b7 anything, it. proves that this re-\u00b7 serve is a\ufffdsolute-ly essential,’.’ .\u00b7 Deukmejian said. \u00b7. . \u00b7 .- . Deukme)ian . even managed a Joke. playing off his nickname D\ufffd\ufffde: Noting that Democrats had cnt1c1zed sqme of\u00b7 his budget pro\u00ad pos?ls, peukmejian said, \”They don \ufffd t\ufffdmk \u00b7\u00b7that this is a budget that s fit for a king. Well. this budget satisfies\u00b7 a Duke and \u00b7 I’m \ufffdery. pleased with it And, more uriportant. it satisfies the taxpayers of California. because they wiJl nqt have to p_ay a king’s ransom in order to pay for this budget.\” \u00b7. \”This is the worst budget for schools since Jerry;Brpwn,\” assert- . Flaeal Auumptlon ed state Supt. of Public Instruction \u00b7 Newly \u00b7revised budget docu-. Bill Honig, referring to former Gov. ments released by Qie Department Edmund G. Brown, J\ufffd. . . of Finance show that spending Deukniejian recommended tui- during the current . year \u00b7\u00b7will be tion increases at both the l]niversi- $38.4 billion, \u00b7 up\u00b7 from previous tx. of C\ufffdlifomia \ufffdnd the California estimates of $37 billion. \u00b7 Finance St..a\ufffde Fciiei:sity!aud Colleges sys- officials said the big jump was due tern. Yearly fees or UC undergrad- to cost overruns in prison and uates would go p 9.1 %, or $130 a Medi-Cal programs and substantial year, to $1,37 for the. 1987-88 increases in spending on bonds academic ye . Fees. for under- during recent months. \u00b7 \u00b7 graduates at te colleges \u00b7would The new budget is built on an go up 10%, $630 a year for assumption that midyear spending full-time stud nt.s. , \u00b7 , cuts and budget readjustments will The budg adds an additional leave the state with a $553-million $250 milJion from the slate high- budget reserve\u00b7 when the current way fund fa additional construe- fiscal year ends June 30. \u00b7 tion. Includ d in the budget pro- The budget proposes staying un-:- posal was increase of 400 jobs in der the spending lid, in part,\u00b7 by the ent of Transportation -delaying increases in aid to public most of thef m to spee ay , schools, state employee pay raises, constructi\ufffdn and reoairs. ‘ .and inflation adjustments for wel- \”We need more\u00b7 projects mov- fare recipients for six months. ing,\” Finance Director Jesse R Under \u00b7current law, increases tied Huff said} acknowledging criticism \u00b7 to the rate of inflation are sched- about Ui\ufffd. slowness of highway ‘ -uled to go into effect at the start of. construcJion and repairs. the new fiscal year July I. Deuk- . Deukipejian added relatively lit- mejian’s proposal would delay the tie_ new;-\ufffd spending for\ufffdIDS_Jac- increases until ,Jan. 1, 1988, or quired immune deficiency syn- 4alfway through the fiscal year. drome), the epidemic disease that \u00b7 Postponing increases in school attacks the body’s ability to ward aid would save the state $185 off fa.tal diseases. Huff said current million, the Department of Finance \ufffdtate financing of $31.5 mil!ion for .estimated. Delaying welfare bene- AIDS programs is the highest in fit increases by six months would the nation. save $120 million, and another sso\u00b7 The state prison system and its million in savings would be gener- swelling inmate population contin- .ated by putting off state employee ues to require big infusions of pay raises. \u00b7 \ufffd . \u00b7\u00b7 money. Deukmejian asked for a . -The Coalition of California Wei\ufffd 10% budget increase-or $132 mil- fare Rights Organizations criticized lion-for the Department of Cor- Deukmejian for delaying the 3.6% \ufffd re\ufffdtions next year, which would increase for welfare recipients just bnng total spending up to $1.4 weeks after his own salary jumped . billion. . \u00b7 sharply. Deukmejian’s annual sala- The spending plan anticipates ry went.Jrom $49,100 to $85,000 this .\u2713- 8,000 new prisoners by the end of week wh\ufffdn \ufffde was sworn in for his the next fiscal year, bringing the \u00b7 second term.’-Other constitutional total in\ufffdate population.to 72,010 by . officers received comparable rais- June, 1988, just about double what es. ,. \u00b7 it was when Deukmejian first took Deukmejian said he was setting office four years ago.’ \u00b7 . aside enough money to pay for pay The budget proposal now goes to raises of up to 3% for state govern- the Legislature for five months of ment workers. hearings and revisions before it is State support for public schools, returned to Deukmejian by the grades kindergarten through 12, Assembly and Senate, meaning would increase by 2.4%, the small- that the toughest political decisions est hike ever proposed by Deukme- lie ahead. \u00b7 jian. But . Administration officials ,.said school f inancing actually \u00b7. woqld go up 4 % when lottery funds .: and other revenue sources are .. included. \u00b7 Jhree Measures Huff said the Administration .. most immediately wiH ask the Legislature io p\ufffdss three bills de\u00ad signed to save the state $190 mil\u00ad lion during the current fiscal year. One of the bills would save $90 million by using bond \u00b7 money to finance school maintenance proj\u00ad ects. Another is a proposal to save $70 million in unemployment insurance costs for public workers by financ\u00ad ing their contributions from the unemployment insurance fund, in effect. passing the costs on to private employers who contribute to the fund. \u00b7 : The third would cut $20 million in rev\ufffdnues lo special districts by changmg revenue-sharing formu-\u00b7\u00b7\u00b7 !as \ufffdnacted previously. by the Leg\ufffd ISlature. ,\u00b7 \u00b7 Lat\ufffdr. the Administration .Will ask for $150 million in cuts in1 the Medi-Cal program. Huff said’. the governor has a task force studying Medi-Cal reform and a formal proposal ultimately will be sent tc the Legislature. . \u00b7 \ufffde proposed cuts .in special re:1di\ufffdg a\ufffdd _education programs {or rrunonty, ! gifted and handicapped children would be spread over two years. They are part of a Deukmeji\u00ad an plan . to cut some programs in order to add $60 million this year to the public schools budget to relieve overcrpwded classrooms. Among the programs that would be cutJs one that provides special\u00b7 financial aid to urban school dis\u00ad tricts. :’Also hit would be the Mil\u00ad ler-qpruh Reading, the Gifted and Talented Education (GATE) \u00b7 and the Native American Indian Edu\u00ad cation programs . . Honig said, \”What goqd is reduc\u00ading \u00b7\ufffdlass size\u00b7 when you are ripping \ufffdh\ufffd money for it out \u00b7of reading improvement and programs for disadvantaged and gifted\u00b7 stu;. dents?\” T\ufffde gover!lor’s budget proposes ending state involvement in dozens of costly programs\u00b7 and turning authority for them over to cities and counties. Un\ufffder the so-called \”disengage\u00ad ment. plan; the state would give counties $477 million during the \ufffdpcoming budget\u00b7year. Then, dur\u00ad mg the following year, counties \u00b7 would be guaranteed a one-quarter share of the state sales tax to cover future costs ,of running the pro\u00ad grams. ; Another proposal calls for the \ufffdutright eliminat\ufffdon .of $86.5 mil\u00ad hon in spertfing on 29 programs mandated ori local governments by the state. Among the programs is a state \ufffdeq\ufffdrement that county c\ufffderks mform \u00b7each voter whether hlB or her polling plac\ufffd is equipped for the ha\ufffdcapped. ”
