STATE : $53.7-Billion State Budget Proposal Cuts Social Services

Gov. George Deukmejian today proposed a $53.7-billion state spending blueprint for 1990-91 that provides modest increases for schools and other programs, but less than the law requires for health and welfare.

In a breakfast speech previewing his budget for the Comstock Club, a group of Sacramento civic leaders, Deukmejian repeated his pledge of no general tax increases.

“I am asking the Legislature to suspend for the coming year all automatic cost-of-living adjustments in health and welfare programs and a reduction of some optional benefits in Medi-Cal,” he said.

His spending plan provides almost 41% of general fund tax revenues for California’s schools, compared to 40% required by the Proposition 98 initiative approved by voters in November, 1988. That includes a 3% cost-of-living adjustment for kindergarten through community college, Deukmejian said.

The new blueprint projects revenue increases of 8.4%, compared to mandated spending increases of 11% in such programs as health and welfare. The result is a shortfall of about $1.2 billion that Deukmejian indicated must be made up through cuts in social programs.