Deukmejian Rules Out Budget Compromise

Gov. George Deukmejian on Saturday left little hope of a compromise in the budget deadlock, vowing not to be pressured into spending a $700-million state surplus on education even if that means the state will begin its fiscal year without a budget.

After rejecting repeated attempts by Democrats in the Legislature to spend a portion of the surplus on schools rather than returning it to taxpayers, the governor charged in his weekly radio address that Democrats are “trying to create loopholes that will allow more government spending.”

“But whether the budget passes before July 1 or after,” Deukmejian said, “I can assure you of this: We will continue to protect your rebate from those who want to spend it. We will achieve a prudent reserve for emergencies and a balanced budget. And education will continue to be our highest spending priority.”

The Senate has passed a $41.1-billion budget, but Republicans in the Assembly have repeatedly blocked a vote on the spending plan until the Legislature approves a full $700-million rebate. Democrats have been attempting to come up with a compromise in recent days that could include a rebate of less than $700 million and more spending for schools.

But Senate President Pro Tem David A. Roberti (D-Los Angeles) said Deukmejian’s remarks seem to dash any hope of resolving the deadlock. “Obviously you’re not going to compromise when there is no one to compromise with,” Roberti said.

“Beyond not believing in compromise, he is probably the first governor in the history of the state to actually campaign against passing the budget. What that has to say about the abdication of responsibility is awesome.”

The dispute stems from the state’s constitutional spending limit, approved by voters in 1979, which requires that surplus revenues be returned to taxpayers or transferred to schools or local governments.

Deukmejian maintains that schools would be over their spending limits if given an additional $700 million. Many top Democrats believe the law is more flexible and are supporting proposals to loosen the restrictions.

In his radio address, Deukmejian warned that Democrats “have nothing to gain by delaying” implemention of the spending limit. And he said he is “proud of the sturdy band” of Assembly Republicans who have stood firm against voting for the budget.

State Schools Supt. Bill Honig, who has been the most vocal advocate of increased educational spending, said the governor’s comments were “disconcerting.” Honig said Deukmejian’s message was that “people want this (rebate) and that doesn’t square with every poll I’ve seen.”

Polls Favor Schools

Regional surveys conducted in Northern and Southern California have shown a majority of those polled favor spending the surplus on education rather than returning it to taxpayers. In a statewide poll conducted last week for the Senate Rules Committee by pollsters Fairbank, Bregman & Maullin, 62% of those surveyed said they want the money spent on eduction while 34% favored a rebate.

Republicans, however, seem to be in the driver’s seat. If a resolution is not reached before Wednesday, the start of the new fiscal year, another $400 million that the governor proposes to spend on schools and other programs also would become eligible for a rebate.

And state Controller Gray Davis has warned that unless a budget is approved by Wednesday, he would begin withholding payment on state expenses incurred after that date.