THE GOVERNOR’S BUDGET PROPOSAL : Budget Highlights

Gov. Pete Wilson on Thursday proposed a $60.2-billion state budget for 1992-93. Some details:

BOTTOM LINE

Wilson’s budget is 4.3% greater than this year’s but it includes sharp cuts in a number of programs in order to offset costs that continue to go up as the state grows, particularly the school, welfare and prison populations. The budget includes no general tax increases, but students attending University of California and California State University campuses would see sharp increases in fees, renters would no longer be able to collect tax credits, and welfare households would face sharp cuts. Wilson continues to try to cut state employee salaries by 5% and shrink the size of the government work force. On the other hand,the Republican governor is advocating increased spending on schools and on health care for the very young, describing these as investments in the future.

WELFARE

The Administration continues to talk about the numbers of “tax receivers” rising faster than revenues. To offset the demands on taxpayers, the governor has proposed cutting welfare grants by 10%. That would mean that a mother and two children, now receiving $663 a month, would receive $597. Wilson also wants to cut grants an additional 15% after a family with an able-bodied adult has been receiving aid for six months. The proposed reductions follow a 4.4% cut in welfare grants implemented this year.

PUBLIC SCHOOLS

The governor’s plan would fully fund the schools as required under Proposition 98, the initiative approved by voters in 1988. Under the proposal, schools would receive 7.9% more than this year--more than enough to cover an expected 3.5% increase in the kindergarten through high school student population and a small cost-of-living increase of 1.5%. Wilson wants to target some of the added money to specific programs, including $50 million to expand preschool programs and $20 million for school health services. These are part of the early intervention approach that Wilson has been advocating for the youngest part of the school-age population in hopes of heading off problems.

HIGHER EDUCATION

Students at the state-funded universities, already reeling from this year’s budget woes, will face steep fee increases this year, under Wilson’s proposal. Fees at the University of California campuses would rise by 24% this year, or $550 per student, to $3,036 a year. Students attending schools in the California State University system would face a 40% increase to $1,451 a year. Wilson argues that the state universities remain a bargain even after the steep fee hikes, though he is proposing increased financial aid for needy students.

HEALTH

Troubled by the rising cost of Medi-Cal, the state and federal medical care program for the poor, Wilson has proposed eliminating a variety of services including dental care for adults, acupuncture, blood banks, occupational therapy, chiropractic treatment and podiatry for a savings of $7.6 million this year and more than $100 million next year. He also proposes limiting hospital stays under Medi-Cal to a maximum of 60 days a year for a savings of $61 million. But the governor’s budget actually increases health payments in some other areas, particularly those affecting young children. He is promoting a program he is calling CheckUp, a state-subsidized health insurance program for youngsters 5 and younger. And Wilson proposes doubling the $10-million initial budget for his program to provide mental health services to children while at school. He also wants to increase the state family planning budget by 20% to $36 million, focusing on programs directed at teen-agers and women drug addicts.