Governor Cuts $706 Million, Signs Budget

Rejecting higher legislative spending proposals for toxics cleanup, education and AIDS research, Gov. George Deukmejian vetoed $706 million Wednesday from a state budget of nearly $37 billion that will take effect July 1.

Deukmejian rejected most spending levels proposed by the Democratic-controlled Legislature and even cut into some programs he had supported in order to create a $1-billion reserve for “economic uncertainties.”

To Increase Spending

Overall, the fiscal 1986-87 budget of $36.95 billion signed by the Republican governor will increase spending by about $1 billion--or roughly 2.8%--over current funding.

Even though spending will not be as high, in many cases, as Democrats had proposed, total expenditures will be hiked for education, toxic waste cleanup, AIDS research and mental health programs.

Essentially, Deukmejian ended up with the same budget he proposed to the Legislature last January.

“It is a budget with a vision of the future,” Deukmejian said before signing the spending plan. “It is a budget of hope. A budget of opportunity. A budget of humanity. It is a common sense budget.”

Deukmejian’s vetoes drew immediate criticism from Los Angeles Mayor Tom Bradley, his Democratic campaign opponent, who charged that the governor was depriving children of an education and endangering those who live near toxic waste dumps.

“There’s nothing sacrosanct about a $1-billion surplus,” Bradley said. “I think it’s disappointing he robbed our children of their education by these kinds of cuts.”

And Assembly Speaker Willie Brown (D-San Francisco) said, “As we feared he would, the governor has again used his blue pencil in a manner which most hurts those who can least afford it.”

Deukmejian said he would be willing to restore $283 million of the $706 million he vetoed if the Legislature agrees to pay for state operations by taking money from a state retirees’ pension fund surplus. The Legislature initially agreed to the transfer, but balked after public employee union leaders protested.

Major Trims

To make up for that last-minute loss of revenue, Deukmejian vetoed $168.6 million in education programs, $79.5 million in health and welfare programs and $35 million in mass transit subsidies.

Included in those cuts were $75 million in aid to urban school districts, $34.2 million for community college districts with declining enrollment and $50 million for the medically indigent.

Senate President Pro Tem David A. Roberti (D-Los Angeles) accused the governor of “holding $283 million in essential human services and educational programs hostage” because lawmakers refused to approve the pension fund transfer.

“He should instead dip into his so-called $1-billion reserve and not assault the savings of millions of public employees,” Roberti said.

Deukmejian, who frequently takes credit for restoring solvency to the state three years ago, insists that a surplus of more than $1 billion is necessary to safeguard the state’s fiscal health.

Additional Vetoes

The governor vetoed an additional $423 million in spending programs that he has no intention of restoring.

Among those cuts were $20.3 million for AIDS research and for public education aimed at stemming the spread of the disease. Deukmejian’s budget calls for spending $28.7 million on AIDS research and education, an increase of $12 million over the current year.

But Roberti charged, “AIDS will continue to spread in California unless our governor is willing to join the Legislature in directing adequate resources to educating the public about the crisis.”

In another controversial veto, Deukmejian cut more than $11 million in funds for the cleanup of hazardous wastes.

Of that sum, $7.7 million would have gone to hire 158 state employees to tackle the problem of cleaning up an estimated 31,000 leaking underground tanks. Deukmejian rejected the expenditure, saying that underground tanks should be cleaned up by local governments.

Cuts Training Fund

Deukmejian vetoed $1.8 million that would have gone to train local prosecutors and police officers to go after toxic polluters. The program had been recommended by his own toxics task force and had the support of district attorneys and environmentalists.

And the governor cut $1.5 million that would have gone to hire 29 employees to review toxic pits.

Deukmejian, whose record on toxics has become a major issue in his campaign for reelection, approved spending a total of $144 million on hazardous waste cleanup, an increase of 13% over the current year, according to his office.

Deukmejian made several other substantial vetoes affecting health programs, including more than $116 million in increased Medi-Cal payments to doctors, hospitals and other providers of health care.

In the area of education, Deukmejian made total cuts of at least $297 million, including the $168.6 million he said he was willing to restore.

Among these vetoes were $112.4 million for a variety of programs for kindergarten through high school, $70 million for community colleges and $39.3 million for school desegregation.

The governor’s budget provides for total spending on education of $16.9 billion, an increase of 9.3% over the current year, according to his office. Education expenditures represent 46% of the total state budget.

Might Be Restored

In the area of mass transit, Deukmejian eliminated a total of $55 million earmarked for bus subsidies and the development of new transit lines. He said he would be willing to restore $35 million if the Legislature agrees to the pension fund transfer.

The budget includes nearly $3 billion to build and maintain highways and to upgrade mass transit systems.

The state’s homeless population did not fare so well. Deukmejian eliminated $22.5 million that would have gone to provide rental housing, emergency shelters and housing for seasonal farm workers who now have none.

Marc Brown, a lobbyist for the California Rural Legal Assistance Foundation, criticized the vetoes, pointing out that many migrant farm workers live in caves and cardboard shacks.

“It is unconscionable for the governor to maintain a $1-billion reserve in a period of such great human suffering,” Brown said. “If the reserve is being saved for an emergency, we have one now.”

Controversial Items

Deukmejian also vetoed two controversial items that did not involve spending money.

He eliminated one provision that would have required the California National Guard to notify the Legislature when it planned to send troops overseas to areas where combat might occur.

And he vetoed a proposal to establish a “human corps” that would have required University of California and California State University students to perform public service work as a condition of graduation.

The governor’s budget includes $45 million for workfare--the first money allocated for operation of the landmark program that will require welfare recipients to work, go to school or receive job training in exchange for their welfare checks.

DIFFERENCES OVER THE BUDGET

Gov. George Deukmejian on Wednesday signed a nearly $37-billion state budget--about $1 billion or 2.8% more than 1985-86--but only after vetoing $706 million from the proposal sent him by the Legislature. These were some of the major differences:

Education Deukmejian Proposal -- $16.9 Billion Legislative Proposal -- $17.2 Billion Approved Budget -- $16.9 Billion The governor vetoed $112.4 million from K-12 public school funds--much of it, $75.4 million, from special aid to urban schools. He dropped $70.7 million from community college budget. Deukmejian has promised to restore some of the money if the Legislature will agree to spend Public Employee Retirement System funds for the operation of state programs. The final budget boosts general fund aid to K-12 by 9.8% to $12.1 billion; University of California by 9.1 % to $1.8 billion; California State University by 7.7% to $1.6 billion, and community colleges by 7.1% to $1.3 billion.

Toxics

Deukmejian Proposal -- $165 Million Legislative Proposal -- $154 Million Approved Budget -- $144 Million The governor and Legislature are embroiled in a dispute over how to carry out cleanup operations. The lawmakers cut out a proposed bond issue that Deukmejian wanted, but added money to expand programs that the governor then rejected. Vetoed in the final budget: $7.7 million for supervision of cleaning up leaking underground tanks and $2.7 million for air pollution monitoring and training local prosecutors on toxics enforcement. Despite the sparring, toxics spending will rise 13%.

AIDS Research

Deukmejian Proposal -- $27 Million Legislative Proposal -- $49 Million Approved Budget -- $29 Million The final budget represents an increase of 74% over 1985-86. But the Legislature wanted even more for research, health care for victims and education programs. The governor vetoed $20 million.

Mass Transit

Deukmejian Proposal -- $0 Legislative Proposal -- $55 Million Approved Budget -- $0 Originally, Deukmejian called for $110 million for mass transit, but with the drop in gas sales tax revenues, he eliminated funding. The Legislature provided $55 million for local transit operations and construction; Deukmejian will consider restoring $35 million later.