THE PROPOSED STATE BUDGET

Governor Deukmejian proposed a $39 billion budget Thursday, about 1.8% more than the current $38 billion state budget. The spending plan now goes to the Legislature, which must act on it by July. The governor assigned top priority to public education, adding new prisons and rebuilding a $1 billion budget reserve. That will require deep cuts particularly for some Democratic-supported health programs.

Revenues In millions of dollars Total $40,147 Sales Tax $11,375 / 28.3%

Insurance Tax $1,106 / 2.8%

Highway Users Tax $2,302 / 5.7%

Cigarette Tax $257 / .6%

Motor Vehicle

License Fees $1,891 / 4.7%

Bank and

Corporations Taxes $4,685 / 11.7%

Liquor Tax $134 / .3%

Estate/Inheritance

and Gift Taxes $367 / .9%

Personal

Income Taxes $13,200 / 32.9%

Other *

$4,830 / 12.1%

* Including Lottery

Expenditures

Total $39,053 Education (K-12) $12,324 / 31.6%

Health and Welfare $9,473 / 24.3%

State and

Consumer Services $464 / 1.2%

Tax Relief $863 / 2.2%

Business,

Transportation

and Housing $2,465 / 6.3%

Other $1,456 / 3.7%

Local

Government $2,941 / 7.5%

Resources $1,070 / 2.7%

Youth and Adult

Correction Agency $1,900 / 4.9%

Higher Education $4,973 / 12.7%

Selected Bonds $1,124 / 2.9%, Los Angeles Times