The State Budget

With the state economy slow to recover from recession and tax revenues down, Gov. Pete Wilson has proposed spending $51.2 billion in state funds for the 12 months ending June 30, 1994. That is a sharp reduction from the $57.5 billion in spending estimated for the current fiscal year.

To balance his budget, the governor is urging the Legislature to cut welfare grants 19% and will call on the federal government to provide $1.45 billion in assistance to defray the cost of providing services for immigrants.

The public schools fare relatively well under the governor’s plan--at the expense of city and county governments. The plan includes no increases in state taxes--but students at state universities can expect another round of fee hikes.

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1) Health and Welfare

$15.4 billion

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2) Education (K-12 and community colleges)

$14.9 billion

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3) Business, Transportation and Housing

$4.5 billion

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4) Higher Education

$4.3 billion

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5) Prisons, Youth Authority

$3.3 billion

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6) Aid to Local Government

$3.1 billion

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7) Natural Resources

$1.6 billion

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8) Environmental Protection Agency

$661 million

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9) State and Consumer Services

$624 million

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10) Tax Relief

$432 million

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Proposed Spending 1. 30% 2. 29.1% 3. 8.8% 4. 8.4% 5. 6.4% 6. 6.0% 7. 3.1% 8. 1.3% 9. 1.2% 10. 0.8% 11. 4.9% Other: $2.5 billion *

Where the Money Comes From Personal Income Tax: 42.4% Sales Taxes: 35.9% Bank and Corporation Taxes: 12.3% Insurance Tax: 3% Estate Taxes: 1.5% Alcoholic Beverage Taxes: 0.7% Tobacco Tax: 0.5% Horse Racing: 0.2% Other: 3.5% NOTE: Does not include revenue from bonds and special fees such as motor vehicle licenses and registration.

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Budget Totals (Figures in billions of dollars) 1993-94: $51.2 billion (proposed)