Governor Signs $36.7-Billion State Budget

Gov. George Deukmejian signed a $36.7-billion state budget today after vetoing $706 million, $200 million of that from public school programs.

The governor said he actually supported $283 million worth of the vetoed programs but could not approve the funding without the Legislature passing a separate bill that would use $300 million in surplus funds from state employees’ retirement funds.

Deukmejian had proposed using those retirement funds in his budget and lawmakers had agreed to do it. But, after protests this month by public employee groups, Senate Democrats said Monday that they would not back the separate bill necessary to use the funds.

Reserve Funds

The state budget for the 1986-87 fiscal year that begins July 1 has a reserve of $1.324 billion, which includes the $283 million Deukmejian says he has set aside awaiting a separate bill.

Deukmejian divided his vetoes into two groups: $423 million in programs he cut because he does not support them or feels that they get enough money already, and $283 million for 12 programs he said he supports but would not authorize unless the bill allowing the use of pension funds is enacted.

The vetoed funds Deukmejian says he has “set aside” awaiting a bill include $112.4 million for public school programs, including $75.4 million for urban impact aid for city schools; $56.2 for community colleges; $61.9 million from health programs for the poor; $17.6 million from child welfare programs, and $35 million for mass transit programs.

Health, Welfare

His regular vetoes included $87.5 million for public schools, $113.7 million for health programs, $33.4 million for welfare programs and $8.1 million for mental health.

Public schools in the new budget get 5.49% increases in general funding and 3% increases for various programs.

Deukmejian deleted a requirement that the National Guard notify the Legislature at least four weeks before sending troops to foreign countries that are or have been at war.