DRAFT OF A STATE BUDGET-BALANCING PLAN

Still subject to change, here is an overview of the budget-balancing plan that Gov. George Deukmejian and legislative leaders are considering: NEW TAXES

Tax conformity: $561 million. Conform the California Tax Code to changes in federal law from 1987 to 1989, mostly applying to business and investment income.

Extend the sales tax: $55 million. Apply the sales tax to newspapers and periodicals.

Capital gains on real estate purchases: $43 million. Require withholding of capital gains taxes on the purchase of California real estate bought from out-of-state owners. Would not apply to sale of a home used as a primary residence. FEES

University of California and Cal State University: $13 million. Increase tuition for non-resident undergraduate students and students of the medical and law graduate schools.

State parks: $16 million. Raise campground and day-use fees.

Fire protection: $4.4 million. Charge a fee on homes protected by the California Department of Forestry.

Vital records: $3.6 million. Increase fees for birth certificates, marriage licenses and other records.

Out-of-state vehicles: $50 million. Establish a fee on out-of-state vehicles registered for the first time in California.

Miscellaneous fee increases: $17.4 million. Increase pesticide fees, drinking water charges and the cost of apprenticeship programs. PROGRAM CUTS

Suspend cost-of-living increases: $269 million. Freeze welfare grants, Medi-Cal rates and grants to the aged, blind, and disabled at current levels.

Health programs: $72.1 million. Reduce some purchases of Medi-Cal drugs and long-term care supplies, and payments to labs. Cut long-term care funding.

Pension funds: $178.6 million. Temporarily, put less money into the state’s three large pension funds--Public Employees Retirement System, the State Teachers Retirement System and the UC Retirement System.

Local government: $226.9 million. Freeze at current levels payments to support trial courts and remove state requirements for counties and cities to perform certain functions. Reduce funding for local redevelopment agencies.

Higher education: $122 million. Reduce merit salary increases for UC and Cal State employees.

Prisons: $276 million. Cut funding to the Youth and Adult Correctional Agency.

Miscellaneous program eliminations: $59.1 million. Cut funding for child-abuse prevention training, Indian education centers and school-based drivers education.

Miscellaneous program reductions: $341.1 million. Reduce funding for tourism marketing, the Conservation Corps, the California Literacy Campaign, state police and other programs.

Program delays and funding shifts: $190.2 million. Delay final Medi-Cal payments of the current fiscal year until the following year. Also transfer money to the general fund from the unitary tax fund, revolving funds, tideland oil funds and employment training programs.