Assembly Passes School Cuts but Veto Is Expected

The Assembly on Wednesday passed and sent to Gov. Pete Wilson legislation to cut $600 million from what public schools otherwise would receive next year, but Wilson vowed to veto the measure because it falls far short of the $2 billion he wants to slice from education spending.

The standoff threatens to sink negotiations between Wilson and Democratic leaders over a budget for the fiscal year that begins July 1, forcing the state to issue IOUs to pay its bills.

If lawmakers and the governor cannot agree on the education reduction by June 30, they will be unable to cut school spending without suspending voter-approved Proposition 98, a step that requires a two-thirds vote of both houses of the Legislature.

Without the education reductions he wants, Wilson will have to cut far deeper than he has proposed into health, welfare and other programs or accept one of two options he has steadfastly opposed: raising taxes or postponing repayment of part of the state’s deficit.

Proposition 98 requires that about 40% of the state’s general fund go to kindergarten through community college programs. But because the state overestimated its revenues last year when the budget was passed, schools got $1.1 billion more than the minimum required by Proposition 98.

Wilson wants to take that money back by calling it a loan and deducting it from next year’s schools appropriation. Because each year’s schools budget is built on a base of what was spent the year before, Wilson’s plan would leave schools with $2 billion less to spend in 1992-93 than would otherwise be the case.

The Democrats oppose the full cut but have agreed to take back $300 million of the overpayment, effectively trimming $600 million from the Proposition 98 guarantee next year. The Assembly passed the legislation to make that cut on a partisan, 44-30 vote Wednesday, far short of the 54 votes needed to override a veto.

The school proposal is part of a two-year Democratic budget plan that also would cut health, welfare, prison and higher education programs 7% to 10%, raise taxes and university fees and take money from local government.

Wilson spokesman Franz Wisner said the governor intends to veto the bill.

“He is not interested in a piecemeal solution,” Wisner said. “Partial cuts (in schools) could only lead to higher taxes or deeper cuts in other areas. He is interested in a total comprehensive budget solution.”

Assembly Speaker Willie Brown (D-San Francisco) said Wilson may paint himself into a corner if he refuses to sign the measure.

“The governor ought to be smart enough to take what he can get and ask for more,” Brown said.

Assembly Republican Leader Bill Jones of Fresno opposed the bill but acknowledged that without a school funding cut it would be “almost impossible” for Wilson to erase the deficit in one year and balance the budget without raising taxes.

“It makes it much much more difficult,” Jones said. “You narrow your choices.”