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DEUKMEJIAN’S BUDGET PLAN

Here is a summary of how Gov. George Deukmejian proposes to bridge a $3.567-billion gap between the state’s proceeds from taxes and the cost of paying for existing services at their current or legally required levels: PROGRAM ELIMINATIONS AND MAJOR REDUCTIONS Save $1.06 billion by, among other things:

Eliminating a program that trains children to recognize and avoid sexual abuse.

Deleting funding for poor women’s abortions.

Eliminating six optional benefits for Medi-Cal patients, including psychological and chiropractic care.

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Cutting the “workfare” program, which requires able-bodied welfare recipients to work.

Trimming a program designed to keep elderly citizens independent and out of nursing homes.

Eliminating state funding for a Justice Department task force to crack down on cocaine trafficking.

Ending state funding for classes that train students to drive.

Ending renters tax credits for people who do not pay any income tax. COST-OF-LIVING ADJUSTMENTS Save $374 million by suspending legally required 4.6% cost-of-living increases for the Medi-Cal program, the aged, blind and disabled as well as welfare recipients--almost all of whom are single mothers and their children. LOCAL GOVERNMENT Save $669 million by cutting state aid to local governments, most of which goes for county-run health and welfare programs for the poor. Includes a 10% reduction in funding for county programs designed to keep the mentally ill off the streets. PUBLIC SCHOOLS Save $797 million by suspending the constitutionally protected minimum funding levels for kindergarten through community colleges. Cut to be distributed statewide and implemented by local school districts, probably resulting in larger classes and lower teacher salary increases. UNIVERSITIES Save $102 million by increasing student fees by about 5% and cutting the University of California and California State University budgets. Most of the reductions would be implemented by the universities’ governing boards. PROGRAM DELAYS Save $116 million by postponing payments to the University of California retirement system, delaying the year’s final payment to doctors and hospitals treating Medi-Cal patients, and delaying clinical trials for an AIDS vaccine. MISCELLANEOUS Save $449 million by re-estimating certain state revenues, increasing fees for state services and borrowing from a bond fund to pay prison start-up costs.


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