Deukmejian to Seek Help for Home Buyers

Outlining the top priorities for his final year in office, Gov. George Deukmejian announced Saturday that he will propose major legislation to make housing more affordable for first-time home buyers and to prepare California for the next big earthquake.

The fiscally conservative governor also said he will attempt to roll back certain state programs--mostly involving health and welfare--that are growing faster than the tax revenues to pay for them.

Helping people buy homes and beefing up earthquake preparedness are likely to be popular with the Democratic-controlled Legislature. But cutting back on health and welfare programs is certain to be politically controversial, if not downright impossible, given the present ideological complexion of the Legislature.

Deukmejian touched briefly on these and other priorities--transportation, health care, drug abuse and the environment--in his weekly radio address. He said he will fill in the details during his annual State of the State Address to a joint session of the Legislature on Tuesday, and in a new state budget proposal for the next fiscal year that he will unveil on Wednesday.

This stands to be the biggest, most ballyhooed week of the year for the lame-duck governor, who still is an enigma to much of the public despite having served as California’s chief executive for seven years and having been state attorney general and a legislator for 20 years before that.

A recent Times Poll showed that only 45% of the voters approve of “the way George Deukmejian is handling his job” and that half of the rest feel they do not know enough about him to form an opinion.

Neither Deukmejian nor his advisers are particularly concerned about this, aides insist. They attribute any public mystery about the governor to his low-key style and believe that little can be done about it at this fading stage of the 61-year-old politician’s career.

Kenneth L. Khachigian, a San Clemente attorney and longtime adviser to not only Deukmejian but former Presidents Ronald Reagan and Richard M. Nixon, noted that “he’s one of those governors who’s hands-on. He reads every bill; spends a lot of time with budget people. That prevents him from traveling around and raising his public profile.

“He’s also always been reluctant to grandstand--to do things that, to him, appear to be too showy. He does not engage in the kind of razzmatazz you saw with (former Gov.) Jerry Brown or the glitz and glitter you had in the Reagan years.”

But Deukmejian wants to leave office with some flourish, tying up a few conspicuous, dangling loose ends before retiring. And this is a week in the spotlight for the governor that likely will inscribe the agenda and set the tone for his remaining tenure.

In his radio speech, which he called a “preview” of the State of the State Address, Deukmejian lamented that the average price of a California house in the last decade “has nearly doubled to almost $200,000.” He pledged to “propose a major new initiative to help put the dream of homeownership back within the reach of many Californians.”

An adviser, speaking on condition that he not be identified, said the governor’s proposal will be targeted at first-time buyers who now cannot afford a home. The state already has such a program, but Deukmejian will propose a major expansion, the aide said. Bond financing would be used to reduce interest rates--and thus mortgage payments--and also help with down payments.

Deukmejian has become acutely aware of the dilemma of high-cost housing from listening to the frequent complaints of corporate executives around the country, said James W. Robinson, his communications director. “They ask, ‘How can we send employees out to California when they can’t afford to buy a house there?’ ” Robinson related.

The governor also said he will propose “a comprehensive earthquake preparedness program that builds on the lessons we learned” from the devastating Northern California temblor last Oct. 17.

The proposal is expected to include additional relief for quake victims, especially those still without housing. It also will contain incentives to encourage retrofitting of buildings to make them earthquake-proof. And it will include new earthquake emergency facilities in Southern California.

The red flag for Democrats in the Republican governor’s budget proposal undoubtedly will be his effort to scale back health and welfare “entitlement” programs that automatically receive cost-of-living adjustments.

“Many existing state programs are structured to grow even faster than the revenues we have to pay for them,” Deukmejian told his radio audience. “As you know from preparing your family budget, the only responsible thing to do is to make sure that any spending increase is in line with your increase in income.”

State revenues are expected to grow by nearly 8% in the next fiscal year--”revenue growth that most other states would die for,” Robinson said. But some health and welfare programs are growing at a 15% to 20% clip. “It doesn’t take a rocket scientist to tell that this obviously doesn’t work,” said Michael R. Frost, the governor’s chief of staff. “We’re saying here’s a problem you can’t ignore. It’s not going to go away.”

Deukmejian also said he will propose legislation “to step up our efforts in the deadly war against illegal drug use.” This is expected to include more education programs to steer young people away from drug abuse.

“There was a lot of talk about a war on drugs last year and a sense that nothing was happening,” Robinson said. “The governor is saying, ‘Here’s one public official who hasn’t forgotten that war was declared.’ ”

The adviser emphasized that the lame-duck executive--who over the years has acquired a reputation for stubbornness--intends to be flexible in dealing with Democratic leaders. “He’s not going there with stone tablets. He’s saying, ‘We can work together constructively on some of these issues. And you don’t have to worry about me benefitting in an election year, because I’m not running.’ ”

That pitch seemed to work last year when the governor and the Legislature negotiated several major agreements. And Deukmejian’s most urgent priority during the first half of this year will be trying to win voter approval in June of one of those agreements: A controversial $18.5-billion transportation plan that requires a gasoline tax increase, starting at 5 cents per gallon and increasing to 9 cents after five years.

“If you think the roads are jammed today during peak hours,” Deukmejian warned radio listeners Saturday, “consider that the number of vehicles will jump from 23 million to more than 30 million over the next 20 years.”