THE GOVERNOR’S BUDGET PROPOSAL : The State Budget

Gov. Pete Wilson proposed spending $60.2 billion in state funds for the 12 months ending June 30, 1993. That’s an increase of more than 4% over the current year’s budget, much of it from increased bond spending.

The governor’s budget includes sharp cuts in welfare grants, elimination of some medical services for the poor, and increased fees for both the University of California and California State University systems. However, the spending plan provides substantial increases for the public schools to cover enrollment growth and for state prisons. In addition, Wilson is proposing initiatives to increase access to medical and mental health care for the young.

The spending plan now goes to the Legislature, which ahs until June 15 to enact a budget. 1. Education (K-12 and community colleges): $21.6 billion 2. Health and Welfare: $15.9 billion 3. Business, Transportation and Housing: $5.3 billion 4. Higher Education: $4.8 billion 5. Prisons, Youth Authority: $3.8 billion 6. Aid to Local Government: $3.1 billion 7. Natural Resources: $1.7 billion 8. State and Consumer Services: $655 million 9. Environmental Protection Agency: $594 million 10. Tax Relief (Homeowners and Seniors): $432 million

Where the Money Comes From: Bank and Corporation Taxes: 8.8% Vehicle Licenses, Registration: 7.5% Bond Funds: 6.3% Gas and Diesel Taxes: 4.0% Insurance Tax: 2.0% Tobacco Taxes: 1.1% Inheritance Tax: 0.9% Alcohol Beverage Taxes: 0.5% Horse Racing Fees: 0.2% Other Fees, Minor Taxes: 7.2% Personal Income Tax: 31.5% Sales Tax: 30.0%

Proposed Spending: 1. Education: 36% 2. Health and Welfare: 26.4% 3. Business, Transportation and Housing: 8.9% 4. Higher Education: 8.0% 5. Prisons, Youth Authority: 6.2% 6. Aid to Local Government: 5.2% 7. Natural Resources: 2.9% 8. State and Consumer Services: 1.1% 9. Environmental Protection Agency: 1.0% 10. Tax Relief: 0.7% 11. Other: 2.2%