Governor Says He May ‘Be Forced’ to Cut Health Funds

Gov. George Deukmejian, saying he is frustrated by the lack of progress in his talks with Democratic leaders on budget problems, made it clearer than ever Thursday that he plans to slash health and welfare programs unless Democrats give some ground.

The Republican governor warned that he may “be forced” to reduce staffing in state mental hospitals, cut local mental health services by $200 million, curtail funds for alcohol and drug treatment programs and trim state expenditures on Alzheimer’s disease research and senior citizens’ nutrition services.

Deukmejian’s comments to a Capitol news conference, as well as those made later by Democrats, indicate that the discussions between the governor and legislative leaders have gotten hung up on two key issues--taxes and spending on health and welfare programs.

The governor complained to reporters that Senate President Pro Tem David A. Roberti (D-Los Angeles) and Assembly Speaker Willie Brown (D-San Francisco) so far have been unwilling to discuss suspending automatic cost-of-living increases for health and welfare programs, which he considers key to any budget agreement.

Democrats, on the other hand, criticized Deukmejian for refusing to consider ways to bring new revenue into the state treasury by raising income or other taxes, something Deukmejian so far has refused to do.

Roberti, who has been participating in the private talks with Deukmejian since January, said: “Our frustration is that the governor doesn’t have revenue enhancements on the table. At some point we are going to recognize that this has to be negotiated.”

The governor, during the news conference, said that voter-approved initiatives and legislative enactments have put so many automatic budget increase requirements into law that roughly 90% of the budget is now “basically off limits.”

Deukmejian said he singled out mental health and other programs for cuts because they are among the relatively few expenditure items in his proposed $47.8-billion budget that are not protected by law.

“I don’t want to make those kinds of cuts,” Deukmejian said, but added that he had “no other choice” if the Democrat-controlled Legislature refuses to budge on lifting various legal mandates.

“To date, I have seen no indication that the Legislature is considering any significant changes in these budget restrictions,” the governor said.

The Legislature is in its preliminary stages of reviewing and amending Deukmejian’s spending plan. Lawmakers have until June 15 to complete their work on the budget.

After the governor’s remarks Thursday, Assemblyman John Vasconcellos (D-San Jose), chairman of the Assembly Ways and Means Committee, called Deukmejian’s insistence on suspending automatic increases in health and welfare programs “cruel and immoral.”

“I didn’t run for office to starve poor people and I will never do it,” Vasconcellos vowed. Later, Vasconcellos issued a statement saying: “I find it terribly sad to pit seniors against kids, mentally ill persons against poor mothers and drug babies against cost-of-living adjustments. What a shame.”

A spokeswoman for Assembly Speaker Brown said Democrats are disappointed that Deukmejian so far has not compromised. “The governor’s idea of compromise is to stand there like a tree and never bend, even a little,” said Susan Jetton, Brown’s spokeswoman.

Roberti said he has not given up hope that an agreement can be reached. “We aren’t fixed. We hope the governor isn’t fixed on the need somehow to raise revenue,” he said.

On another issue, Deukmejian stepped to the defense of Republican Assemblywoman Cathy Wright of Simi Valley, saying “there is nothing inappropriate” in a legislator contacting the Department of Motor Vehicles to clear up traffic ticket problems for constituents as long as the lawmakers do not use “undue influence.”

Wright has admitted contacting the state Department of Motor Vehicles as well as Ventura County and Simi Valley officials about traffic ticket problems involving her daughter, Victoria Catherine Wright. Wright’s daughter has received citations for 16 moving violations since December, 1986.

Deukmejian also said he is “getting very close” to making an appointment to the California Supreme Court to fill the vacancy created by the retirement of Justice John A. Arguelles. The justice retired March 1 but is continuing to sit in on cases that had already come before the court.

On still another issue, Deukmejian defended the U.S. government’s right to build a ditch near San Diego along the border with Mexico. Many Mexican officials have likened the ditch, meant largely to block vehicles carrying drug smugglers and other contraband into California, to the Berlin Wall.

Deukmejian said the United States has a “legitimate” right to control its borders. But he did not take a position on the specific plan for the ditch. The issue has “nothing do with the state,” he said, adding that California has “not been involved in any of the decision-making.”