Governor Threatens to Veto $150 Million More

SACRAMENTO —  Gov. George Deukmejian, trying to pressure the Legislature into using state pension funds to balance the budget, may scuttle another $150 million in proposed spending bills in addition to the $283 million in programs that he already has vetoed, Steven A. Merksamer, the governor’s chief of staff, said Friday.

The $150-million worth of spending bills was sent to the Republican governor’s desk by the Democratic-dominated Senate and Assembly late last month as they struggled to adjourn the session.

But a deadlock over proposals to build a new prison in Los Angeles and to restore the $283 million in vetoed programs by taking money from state pension funds have kept the lawmakers in the state Capitol past the adjournment date.

Among the newly threatened bills totaling $150 million are two that would provide $10 million for research and development of an AIDS vaccine.

The governor’s latest move seemed to be a prod at Senate Democrats, who have been his biggest obstacle on the two issues.

The governor also said Friday that he is “frustrated” with negotiating sessions that he has held with Senate President Pro Tem David A. Roberti (D-Los Angeles) and Assembly Speaker Willie Brown (D-San Francisco). And he indicated that he is likely to call a special session of the Legislature on Monday unless an agreement is reached.

Merksamer said the governor is not going to follow a Senate Democratic suggestion that he take the $150 million for the new spending bills from a $1-billion budget reserve.

“We need the reserve to ensure the fiscal stability and integrity of our state,” he said, adding that reducing the reserve “would put the state in fiscal jeopardy.”

Bond Credit Rating

He added: “It also would cause us to lose our Triple-A (bond) credit rating and send a message around the state and country that California was going back to its old ways of deficit spending and unbalanced budgets in the pre-Deukmejian days.”

As for possible political fallout from the bill vetoes, Merksamer said: “I think the public respects the fact that someone in the corner office is protecting the fiscal integrity of the state.”

Merksamer said he did not know where the money to pay for the $150 million worth of bills could be found. He added that he was not suggesting that more state pension funds be used.

The governor is scheduled to meet with Roberti and Brown again Monday.

Asked by reporters after a breakfast speech about the progress of the Los Angeles prison talks, Deukmejian said: “I’m not very encouraged at this point. In fact, I would have to say I’ve been rather frustrated with the discussions of the past few days.

“I have not in any way diminished my insistence that we locate a prison in Los Angeles and do it immediately because we cannot afford not to do so.”

Community Opposition

The Republican governor wants to buy land near downtown Los Angeles for the prison. The Senate twice rejected the authorization bill partly because of opposition of the mostly Latino community around the site.

New state prisons in San Diego and Stockton are almost completed, but state law bars them from opening until the Los Angeles site is selected. There is no state prison in Los Angeles County, although 38% of the state’s prisoners pouring into the overcrowded system come from Los Angeles County.

If nothing comes of Monday’s talks with the Democratic legislative leaders, Deukmejian said he is going to have to turn to other options. He said a special legislative session “definitely” is one of them.