With Pomp, Davis Signs $99-Billion State Budget

After vetoing $1 billion in legislators’ requests, Gov. Gray Davis signed a spending plan of almost $100 billion Friday, with $1.4 billion in new tax cuts and almost $31 billion for public schools.

The $99.4-billion budget is an increase of almost 18% over the spending plan for the fiscal year that just ended. In a year with a record surplus estimated to be at least $12.8 billion, Davis and the Legislature also granted major increases to parks, health care and transportation.

“The job of governor,” Davis said in an event broadcast on his Web site, “is to balance the need for new spending with the need to be fiscally responsible and have a prudent reserve, and I’ve tried hard to do that.”

Davis signed the budget before the state’s constitutional deadline, marking the first time since 1986 that the document was in place two years in a row by the July 1 beginning of California’s fiscal year.

And once again, the Democratic governor marked the occasion with pageantry. His aides set up a large stage in the park outside the state Capitol. As he signed the document, he was flanked by Sacramento-area children to emphasize the increase in public school spending. Some of the children were private school students.

The audience included lobbyists for groups ranging from physicians, police, organized labor and state prison guards to environmentalists, all of whom won significant increases in state aid.

Although Davis called the budget a bipartisan product, only one Republican--Assemblyman Brett Granlund of Yucaipa--appeared with him Friday, and the legislator left before the ceremony ended.

“It’s a ton of new spending, but it’s lacking in real direction to accomplish anything significant,” said the leader of the Assembly’s Republicans, Scott Baugh of Huntington Beach. He voted against the spending plan and did not attend the signing.

California’s governor has the authority to veto individual items from the state budget, giving him significant power in budget negotiations. With that power, the governor wins most of the debates with legislators over state spending. So it went this year, as he rewarded his supporters and punished legislators who opposed his budget.

Davis’ blue pencil fell most heavily on health and social services programs, where legislators saw $246 million in spending initiatives disappear. He cut $166 million from various park and environmental projects and $350 million from legislators’ requests from public schools and state colleges and universities.

Still, there is $36 million to lower camping and day-use fees at state parks by half; night camping will cost $12, and day use will cost $3. There is $30 million for prostate and breast cancer treatment for low-income people. Davis also included $3 million for research into medical uses of marijuana, an item sought by Sen. John Vasconcellos (D-Santa Clara).

Among the major winners were physicians who care for poor people whose health care is covered by the Medi-Cal program. Such doctors received a 16% raise in rates, with emergency room physicians receiving a 40% increase.

Davis raised state spending on freeways and mass transit by $2 billion--and decided which overpasses, road widenings and mass transit projects to fund. The California Transportation Commission and local transportation planners generally make such decisions.

Overall, the state will spend $7.2 billion on freeway construction, maintenance and mass transit, with the bulk of that money coming from taxes at the gas pump.

The big-ticket item is schools. The state will spend $30.8 billion on public schools in the 2000-01 fiscal year, pushing spending per pupil to $6,801, a 7.5% increase from last year’s $6,321.

With California needing to hire more than 200,000 new teachers in the next decade, public school educators fared especially well. Almost $400 million is set aside for teacher bonuses, training and recruitment.

Teachers will receive a new income tax credit of up to $1,500 a year for 20-year veterans, with lesser amounts for teachers with less tenure, at an overall saving of $200 million. Starting teacher salaries will rise to a minimum of $34,000, up from the current $32,000. And school districts will receive an infusion of $1.8 billion, mostly for teachers’ raises.

At Davis’ request, the Legislature earmarked $118 million to provide scholarships to high-achieving high school students, and $260 million for intensive English language and literacy instruction for children who speak limited English.

The budget includes $43 million for a new University of California campus in Merced in the Central Valley, and $75 million to establish three institutes for science at separate UC campuses.

Senate Republicans lost in their effort to roll back UC and California State University tuition to 1991 levels, something that would have saved students and their parents $400 million. However, the budget includes almost $100 million to expand financial aid in the Cal Grant program, reaching 22,000 more college students.

This year’s package of new tax cuts will save individuals and businesses $1.4 billion, including breaks totaling almost $100 million aimed primarily at high-tech and start-up businesses.

Davis said Friday that he will sign tax legislation approved earlier this week. The bill sets aside $2 billion for car tax rebates, and grants tax refunds to low-income elderly and disabled people totaling $154 million.

Davis had urged legislators to approve rebates as a major element of this year’s tax cut legislation, contending that most people realize that government has lowered taxes only if they get a check in their hands.

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(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

A Booming Budget

Annual spending in billions of dollars

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2000-01: $99.4 billion

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* HIGH-STAKES TEST

Funding for schools depends on Stanford 9 test results. A20

* REWARDS AND PUNISHMENT

Gov. Davis’ veto pen falls heavily on Republicans. A20

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

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Times photographer Robert Durell contributed to this story.