HIGHLIGHTS

In his fourth speech to a joint session of the Legislature, the governor sketched a positive picture of California’s economy, taking credit for resolving a fiscal crisis that faced him when he took office in 1983 and for rearranging the state’s spending priorities:

BUDGET--The Administration’s 1987-88 spending plan, to be unveiled today, contains no tax increases. Its top priority is rebuilding a $1-billion reserve.

SCHOOLS--Spending on K-12 school programs would account for 55% of all state general fund spending, up from 44% this year. Top spending priorities are drop-out programs, special education, new facilities and school bus safety.

COLLEGES--UC, CSU and community colleges would receive increases ranging from 7.3% to 7.6% with no increases in mandatory student fees.

TRADE--California trade offices would be established in Tokyo and London to help compete overseas with 29 states that already have foreign trade offices.

BENEFITS--Full cost-of-living benefit increases would be provided to recipients of Aid to Families With Dependent Children and to the elderly, blind and disabled receiving state assistance.

TRANSPORTATION--An estimated $2.8 billion would be spent this year for state highway projects and $1 billion for local roads. That is part of a five-year plan to spend $12.7 billion on 1,500 transportation projects statewide.

INSURANCE--Deukmejian said he would support unspecified major reforms in liability laws to curb a crisis in insurance availability that has forced many cities to go without coverage.

AIDS--The governor pledged to “fully fund our fight” against acquired immune deficiency syndrome, but did not indicate how much money he is preparing to spend.

CRIME--Money for programs to fight youth gang violence would be doubled and $17 million would be set aside to purchase computer systems of the type that helped identify the Night Stalker suspect.

RURAL--A $30-million fund would be established to help finance public projects in rural areas under a “rural renaissance” that the governor proposed last year.

TOXICS--Deukmejian called on the Assembly to approve his plan for reorganizing the state agencies that oversee disposal of toxic wastes. The Assembly has twice rejected his plan.

DEATH PENALTY--As he has many times in the past, the governor called on the Supreme Court to “heed the dictates of justice and implement the death penalty in our state.”