THE STATE BUDGET

Gov. George Deukmejian proposed Wednesday spending $53.7 billion in state funds for the 12 months ending June 30, 1991. The spending plan now goes to the Legislature, which has until June 15 to enact a budget. The governor’s proposal would increase state spending by more than 7% and leave the state with a $1.2 billion reserve.

Deukmejian has called for big increases in spending on prisons, while cutting back health and welfare services for the poor. The plan would mean more money for schools, but not enough to keep up with inflation and increases in enrollment.

1. Education (K-12 and community colleges): $19,699 2. Health and Welfare: $13,839 3. Higher Education: $4,842 4. Youth and Adult Corrections: $3,312 5. Local Government: $2,905 6. Business, Transportation and Housing: $2,836 7. Other: $2,735 8. Resources: $2054 9. Tax Relief (homeowners, renters, senior citizens): $925 10. State and Consumer Services: $590 PROPOSED SPENDING Figures in millions of dollars 1. 36.7% 2. 25.7% 3. 9% 4. 6.2% 5. 5.4% 6. 5.3% 7. 5.1% 8. 3.8% 9. 1.7% 10. 1.1% EXPECTED SOURCES OF REVENUE Insurance, Bank and Corporation Taxes: 13.2% Other: 6.2% Bond Sales: 5.9% Highway Users Taxes: 4.8% Motor Vehicle License Fees: 4.3% Tobacco and Liquor Taxes, Horseracing fees: 2% Estate Taxes: .7% Personal Income Tax: 35.2% Sales Tax: 27.7%