State Rural Aid Program Outlined by Deukmejian

Gov. George Deukmejian outlined a “Rural Renaissance” program Friday that would help depressed farm areas by building roads, promoting agriculture products overseas, increasing tax breaks for farmers and subsidizing hard-pressed local governments.

“California agriculture is the backbone of our great economy,” Deukmejian told 1,000 business leaders in a breakfast speech. “Yet today, many farmers are in serious trouble. Battered by years of high interest rates and the high value of the dollar, our farmers are experiencing their greatest distress in 50 years.”

One part of Deukmejian’s 12-point program calls on the Reagan Administration to help the timber industry by not including forests that could be logged in future federally protected wilderness areas.

And on an issue affecting all areas of the state, the governor called for legislation to abolish the “deep pocket” rule in which a local government or business can be required to pay an entire court judgment even when it is only partly at fault.

The governor’s wide-ranging package draws from half a dozen proposals pending in the Legislature, including five bills sponsored by Democrats. The governor said his plan was inspired by trips he took this summer to 15 rural counties.

His proposal contains something for farmers, cattle-ranchers, rural businessmen, the timber industry and local elected officials. As the Republican governor prepares for his reelection bid in 1986, it could help solidify his support among what he calls the “good, decent citizens” of rural California--voters who supported him strongly in his 1982 race.

“Unfortunately, many of these areas still suffer from deep economic distress and double-digit unemployment,” he said at the 59th annual Sacramento Host Breakfast. “What I propose is a Rural Renaissance program designed to assist basic industries, develop new business and job opportunities and improve the quality of life for the two million residents of these 33 counties.”

Street, Highway Work

The plan calls for improvement of rural streets and highways as part of a $375-million statewide effort that would benefit both urban and rural areas. Negotiations are under way to determine what portion of that $375 million would be spent in rural areas.

Deukmejian is proposing to get $125 million of that money from offshore oil revenues that the state hopes to receive when it resolves a dispute with the federal government over California’s share of the money.

The remaining $250 million would come from money saved by reducing tax credits for solar installations. The tax credit reduction was authorized by legislation approved earlier this year.

In an attempt to lure new businesses to small communities, Deukmejian proposed setting aside $30 million for capital projects, such as roads and sewers.

Looks to Washington

In outlining his plan, Deukmejian also challenged the federal government on several fronts.

The governor said his Administration will oppose attempts by Congress to raise grazing fees on federal land.

Once again, Deukmejian took exception with an element of President Reagan’s tax reform plan, which would eliminate a special tax break for timber growers.

And on the question of federal wilderness areas, Deukmejian said, “I am committed to the conservation of these resources, but the timber industry reserves reasonable and consistent harvesting rights.”

Later, a spokesman for the governor explained that Deukmejian was talking about the designation of future wilderness areas and that he was not proposing to remove timber land from existing federal wilderness preserves.

Other Proposals

As part of the program, Deukmejian also said he would support:

- Providing $17 million to aid the most strapped rural counties.

- Spending $2.1 million to promote the sale of California farm products abroad.

- Reimbursing small local governments for certain costs of trying extraordinary murder cases.

- Increasing funds for the state’s campaign to attract more tourists from other states.