THE GOVERNOR’S BUDGET PROPOSAL : Cuts May Bring Major Changes to State Campuses : Education: University officials assail funding, foresee tightened enrollment. Los Angeles public schools may lose $100 million.

Gov. Pete Wilson’s proposed budget hits education hard, reducing per-pupil spending in public schools to 1985 levels and forcing the University of California to consider not admitting all eligible freshmen from the state in the fall of 1992.

But Wilson would spend about $200 million in new state money to improve education and health services for preschool children, as part of his belief that preventing problems before they occur is wiser and cheaper than dealing with them later in prisons or drug addiction programs.

Public education officials were expecting austere funding levels from the new governor in his 1991-92 proposal, but some said Thursday the reductions were worse than expected.

The nine-campus University of California will effectively lose $176 million in its base budget from the current year, when inflation and enrollment growth are included, UC Budget Director Larry Hershman said.

UC President David P. Gardner said the budget “falls so far short in funding our essential needs that the university’s array of programs, accessibility to eligible students and the historic policy of low fees for California residents cannot be sustained.”

UC will be forced “to take dramatic steps in order to maintain the university’s capability and reputation as one of the world’s great centers of learning,” Gardner said.

Asked what “dramatic steps” might be taken, top UC officials said it is probable that in the fall of 1992 the university would not be able to guarantee the top 12 1/2% of the state’s high school graduates a place at one of the system’s campuses.

They said it might also be necessary to limit the number of students who want to transfer to UC from community colleges or other higher educational institutions.

“We did commit ourselves to take all eligible students next fall because we’re so far into the process that we can’t stop now,” Hershman said, “but it’s fair to say that 1992 will be another story.”

The UC Board of Regents will discuss the possibility of limiting enrollment and other options at its February meeting.

Chancellor Ellis E. McCune of the 20-campus California State University system called the proposal a “disastrous budget” that will “make it very difficult for us to carry out our mission.”

To make up for declining state support, Wilson has proposed that both UC and CSU increase student fees by 20%. Annual tuition and fees at UC would climb by $325, to $1,949; tuition and fees at CSU would increase by $156, to $936.

Part of the money raised would be used to provide financial aid to students who otherwise could not attend the schools because of the fee increases. Part of it would also be used to make up for the drop in state General Fund support--$50 million for UC and $46.8 million for CSU.

Tuition and fees for community college students would rise $10, to $60 per semester under the proposed budget.

The budget calls for public schools to lose about $2 billion in state funding in the next 18 months. About $500 million would be lost in the current budget year because state revenues have dropped so precipitously that the lowest level of funding allowed by Proposition 98 is now in effect. Another $1.4 billion would be lost in 1991-92 if, as Wilson requests, funding levels required under Proposition 98 are suspended for that year.

Proposition 98, approved by voters in 1988, calls for public schools and community colleges to receive at least 40% of state General Fund revenues. Suspension of Proposition 98 would require a two-thirds vote by both houses in the Legislature.

Budget officials in the already financially pinched Los Angeles Unified School District found ominous signs in the preliminary information they were getting from Sacramento.

The governor’s proposal to give no cost-of-living increase to school districts in the coming fiscal year would cost the Los Angeles district well over $100 million, district budget director Henry Jones said.

Wilson’s decision to allot school districts a 3% cost-of-living increase for this budget year instead of the 4.76% they had expected will represent a $40-million loss, Jones said. Coupled with a decline in lottery ticket sales, the district faces a $60-million shortfall in revenues for this year.

Last summer, the board cut $220 million to balance its $3.9-billion budget for 1990-91 and it will likely have to cut more before June 30.

What little good news the governor’s proposals hold for the district--the restoration of $3 million in lost driver education funds, a commitment to cover enrollment increases and a big increase in the amount of money available for schools that operate year-round ($87 million statewide)--is far outweighed by the cuts in other areas, Jones said.

DEUKMEJIAN AND WILSON: COMPARING BUDGETS

This chart compares former Gov. George Deukmejian’s proposed budget for the 1990-91 fiscal year with the 1991-92 fiscal plan forwarded by Gov. Pete Wilson. Listed below are the dollar amounts allocated to each program along with the percentages of the total budget that each program represents. These figures represent totals from the state general fund only, which excludes funds from such areas as vehicle license fees and bond sales.

Deukmejian Wilson 1990-91 1991-92 K-12 $16.14 billion 37.86% $16.26 billion 37.57% Higher Education $6.27 billion 14.71% $5.89 billion 13.61% Health and Welfare $13.06 billion 30.65% $13.96 billion 32.26% Business, Transportation and Housing Agency $118 million 0.28% $192 million 0.44% Tax Relief $924 million 2.17% $716 million 1.65% Youth and Adult Correctional Agency $2.85 billion 6.69% $3.23 billion 7.46% Resources $746 million 1.75% $799 million 1.85% State and Consumer Services Agency $274 million 0.64% $289 million 0.67% Other $2.23 billion 5.25% $1.94 billion 4.49% Total $42.61 billion 100% $43.28 billion 100%

Source: California Dept. of Finance