CALIFORNIA ELECTIONS / GOVERNOR : Feinstein Backs Tax Hike; Wilson Won’t Rule It Out

The candidates for governor were drawn just a little deeper into the California budget morass Monday, with Democrat Dianne Feinstein taking the biggest plunge by declaring that a combination of new tax revenue and program cuts would be needed to solve the $3.6-billion impasse in Sacramento.

Republican Sen. Pete Wilson declined, as he has in the past, to make any specific budget proposals for fear of undercutting the negotiating position of his fellow Republican, incumbent Gov. George Deukmejian. But Wilson again refused to promise never to raise taxes, saying that would be irresponsible. Democrats in Sacramento have blamed the budget deadlock on Deukmejian’s refusal to consider any new taxes.

Both Feinstein and Wilson have studiously avoided injecting themselves into the budget debate, and neither entered the battle voluntarily Monday. Feinstein made one of her first public appearances since the June primary by calling a press conference in Los Angeles on the issue of pesticide control.

While her press secretary tried to end the session, insisting that “we have a plane to catch,” Feinstein lingered to respond to budget questions. Asked how she would solve the problem, she said, “Come to a conclusion. . . . Let’s sit down and negotiate and develop a solution which can reach some accommodation with both sides. That has to be done.”

“It’s clear to me you solve the problem with revenues on one side and cuts on the other,” she added.

Feinstein endorsed no specific taxes, but said, “I think the Senate has put forward a proposal which is a step in the right direction.” She said the state Assembly, led by her political ally Willie Brown, should “come forward” with counterproposals. The Senate plan--killed in the Assembly--contained $1.3 billion in tax increases and $1.7 billion in spending cuts.

Wilson was in Washington but spoke to California broadcasters in Santa Barbara via television. He did not talk about the budget in his prepared remarks, but it came up during a question-and-answer session. Wilson said Deukmejian is concerned that if he gives in on tax increases, Democrats might renege on the spending cuts.

Wilson earlier declined to endorse the Senate program as it was being molded with the help of Senate Minority Leader Ken Maddy (R-Fresno), a longtime friend and supporter, saying he wanted to see the spending cuts first. He declined to say if the entire $3.6-billion deficit could be erased through spending cuts, which has been Deukmejian’s position.

Feinstein, also addressing the broadcasters via satellite, was again asked about the budget. She expanded on her Los Angeles comments only to suggest that two potential sources of revenue might be making state tax regulations conform more closely to federal tax law and unspecified loophole-closing.

In Los Angeles, Feinstein appeared with House Majority Leader Richard A. Gephardt (D-Mo.) to accuse the Bush Administration of a sneak attack on tough pesticide control measures in Proposition 128, the “Big Green” initiative sponsored by major California environmental organizations. She claimed that a Bush Administration proposal in negotiations for the General Agreement on Tariffs and Trade would preempt tough California pesticide regulations.

The result would be that foreign farmers could use a far broader range of pesticides, even DDT, on products that are then shipped to California and sold more cheaply than state products, which still would be subject to the stronger regulations.

The U.S. International Trade Commission is studying the Administration plan and other proposals before making a recommendation to trade representative Carla Hills.

Feinstein called on Wilson to sign a letter being distributed by Sen. Timothy E. Wirth (D-Colo.) that asks Hills to reject the GATT proposal.

Bill Livingstone, Wilson’s campaign press secretary, said that while Wilson opposes Big Green, he has always fought for California’s right to adopt pesticide controls that were stronger than federal regulations. Wilson signed the Wirth letter, Livingstone said.

Also contributing to this story was Times political writer Cathleen Decker in Santa Barbara.