Congress Cuts Aid Proposed for Immigrant Care : Finances: House-Senate panel reduces funding for health and education programs. Wilson aide says federal government ‘has reneged on a promise.’

Delivering California another economic hit, a House-Senate conference committee has stripped $812 million in previously approved federal funding from health and education programs for newly legalized immigrants.

The decision to provide $325 million in immigrant funding--most of which will go to California--was a setback to Gov. Pete Wilson and members of the state’s congressional delegation, which had pressured legislators to provide the full $1.1 billion in funds that were set aside for the next year.

“Once again, the federal government has closed its eyes and turned its back on California residents,” said Kassy Perry, a Wilson spokeswoman. “Congress has reneged on a promise to fully fund the cost associated with newly legalized residents.”

The state is expected to feel the major impact of cuts in the $61.6-billion authorization bill hammered out by the conference committee on labor, health and human services. With more than 60% of the nation’s eligible immigrant population, California will receive a proportionate amount of the funding.

The decision is expected to give California at least $130 million less than the $351 million the state expected for the budget that began in July. That is more than enough to eliminate the state’s $28-million reserve for its $40.7-billion general fund.

The $325 million approved by the committee came close to the $300 million recommended by President Bush. The House had approved $561 million in funding for immigrant programs; the Senate bill included $150 million.

California Sens. Alan Cranston and John Seymour were unsuccessful in efforts to boost the amount recommended by the Senate. “One man can only do so much and he did all he could,” Cranston press secretary Murray Flander said of his boss.

“I am disappointed we didn’t get the full amount recommended by the House,” said Rep. Edward R. Roybal (D-Los Angeles), the only California member on the conference committee. “I blame it on the fact that California is really the only state suffering the consequences of this.”

California is among only three states that spent more on health, education and welfare programs for legalized immigrants than they received from the federal government. Last year, the state’s shortfall amounted to $175 million and next year it is projected to hit $171 million, according to Wilson’s office.

As a result, legislators from other states that have not spent their immigrant funds supported proposals to divert the money to other programs.

California legislators pointed to one source of relief: They inserted language in the authorization bill that would reallocate leftover immigrant funds beginning in 1995 from states that have surpluses to shortfall states such as California.

The funds initially were authorized as part of the landmark Immigration Reform and Control Act of 1986, when Congress approved $4 billion over a seven-year period to finance the state legalization impact assistance grant program. The money was to be used to provide medical, welfare and educational services for immigrants legalized under the amnesty law.

But when competition for federal spending grew intense, the White House and Congress began slashing immigrant funds to pay for other programs such as Head Start, AIDS funding and cancer research. Last year, Congress authorized no immigrant funds.

The cutback last year sparked the entire 45-member California House delegation to sign a letter--the first in recent memory--that threatened to withhold support of the authorization bill unless California received its full funding this year. The letter was sent to Rep. William Natcher (D-Ky.), chairman of the health appropriations subcommittee, who responded by promising full funding this year, Roybal said. Natcher could not be reached for comment.

Times staff writer Daniel Weintraub in Sacramento contributed to this report.