BUDGET HIGHLIGHTS

Gov. Pete Wilson on Thursday proposed a $55.7-billion state budget for the fiscal year 1991-1992. Some details: BOTTOM LINE

The proposed budget is 1.4% larger than the current year’s spending plan and will fall well short of financing all state services at their present levels. Wilson proposes suspending Proposition 98, the constitutional guarantee for school funding, shifting public health and mental health programs to local government and reducing welfare payments to poor women with children. He proposes several new health and welfare programs that combined will cost about $200 million. No general tax increases are proposed, but the budget would increase fees and alcohol taxes and repeal some sales tax exemptions. The plan also would make it easier for local governments to raise taxes. RESERVES

The current year’s budget reserve will be wiped out by June 30. In fact, the state is expected to finish the fiscal year $730 million in the red. The deficit will be covered by borrowing from special state funds and repaying them in next year’s budget. Wilson proposes rebuilding the reserve to $1.4 billion. TAXES

Wilson proposes a combination of tax and fee increases to raise about $1.8 billion. He would increase annual motor vehicle license fees by up to 20%, raise beer taxes to 20 cents a gallon from 4 cents, increase wine taxes to 20 cents a gallon from 2 cents, and hike liquor taxes to $3.30 a gallon from $2. The budget also would impose the 6% state sales tax on candy, snacks, newspapers and magazines, which are now exempt. Wilson also proposes to reduce the renter tax credit to $70 for couples and $35 for single people from the current levels of $120 and $60. PUBLIC SCHOOLS

The budget proposes paying for most enrollment increases in kindergarten through community college, but not funding cost-of-living increases for schools. Funding for elementary and high schools from the state’s general fund would climb 5% to $16.3 billion. But the per-student support for schools would drop to $4,076 from $4,168, returning schools to their 1985 funding level. Support for community colleges from the general fund would remain about the same at $1.8 billion while student fees would climb 20% to $60 per semester. Wilson also proposes restoring a $21-million behind-the-wheel driver training program eliminated by former Gov. George Deukmejian. HIGHER EDUCATION

State spending, including higher student fees, will increase the budget of the University of California by 2.9% to $2.7 billion. Funding for the California State University system would remain almost the same as the current year’s $2.1 billion. Wilson proposes increasing student fees in both systems by 20%. Annual fees at UC campuses would climb to $1,949 from $1,624. At CSU, the charges would increase to $936 from $780. Part of the fee increase would be used to expand financial aid programs at both university systems. HEALTH

Overall, state spending for health and welfare programs would grow 4.2% to $13.9 billion. Wilson proposes increasing spending by $88 million for prenatal and well-baby care, birth control, and drug and alcohol treatment for pregnant women. He wants to spend another $30 million for new health programs in the public schools. Mental health and public health programs totaling $900 million would be shifted to county governments, along with the money to pay for them. The budget proposes raising $37 million by establishing user fees and co-payments for Medi-Cal, genetic testing and services to the developmentally disabled. WELFARE

Wilson’s plan would reduce grant payments by about 9% in the state’s biggest welfare program, Aid to Families with Dependent Children. The payment to a parent with two children would drop to $633 from $694. A parent with five children would get $965, compared to $1,057 now. At the same time, Wilson would boost food stamp payments by $20 a month and allow AFDC recipients to earn more money without immediately losing their eligibility for grants or health care. Wilson also proposes to reduce by 4% the state program that educates and trains welfare recipients. He also proposes freezing at current levels aid to the aged poor, the blind and disabled. PUBLIC SAFETY

With the prison population growing by 1,000 inmates a month, the governor proposes to boost the Corrections Department operating budget by 14.4% to $2.65 billion. The Youth Authority budget would remain almost unchanged at $406 million. The California Highway Patrol would add 30 officers to the present 5,485-member force and increase its budget 8.9% to $624 million. ENVIRONMENT

As he promised during the campaign, Wilson proposes increasing the Coastal Commission budget by 12% as an “initial step” in restoring cuts made by Deukmejian. The new money is to allow the commission to open a North Coast office and reduce backlogs in enforcement and permit processing. The budget also provides for the implementation of a new oil spill prevention and clean-up program enacted last year. The plan proposes a 16% increase for the new Integrated Waste Management Board, which was created to reduce the amount of trash Californians send to landfills.