HIGHLIGHTS OF BUDGET DEAL

Here are the highlights of the budget deal struck by the Legislature and Gov. George Deukmejian. Key elements of the agreement are subject to voter approval.

CONSTITUTIONAL SPENDING LIMIT

Places a constitutional amendment on June, 1990, ballot that would modify the “Gann Limit,” which was approved by voters in 1979. Current limit is adjusted each year based on changes in population or the U.S. consumer price index or California per capita income, which ever is lower. New limit would be based on changes in population and per capita income. Would allow Legislature to allocate $5.3 billion in anticipated revenues between 1991 and 1997. Under current law, that money could only be allocated for education and tax rebates.

EDUCATION

Changes Proposition 98, the education spending initiative approved by voters in 1988. Current law would allow education spending to climb to 48% of the general budget by 1999. Change would keep education spending at about 40.2% of the budget. It also distributes more than $1 billion in additional money to schools over two years, including $323 million to equalize spending among districts on “categorical” aid for gifted, retarded and bilingual children programs. Includes $70 million to implement community college reforms adopted by the Legislature in 1988.

TRANSPORTATION

Revenue:

Current 9-cents-a-gallon state gasoline tax would be increased five cents Aug. 1, 1990, and one additional cent in 1991, 1992, 1993 and 1994. The increases would raise $13 billion over 10 years.

Commercial truck weight fees would be increased 40% in 1990 and an additional 10% to 15% in 1994. The increases would raise $2 billion over 10 years.

Three $1-billion bond measures for rail transit would be placed on the ballot in 1990, 1992, and 1994.

Mass Transportation projects would receive an extra $500 million over 10 years in increased sales tax revenue generated by the higher gasoline tax.

Spending:

$3.5 billion to complete state’s current five-year plan for transportation.

$3 billion for rail transit projects, with 15% of the money reserved for intercity routes such as Los Angeles-San Diego. Commuter and urban rail projects to be funded on matching basis with 50% state funds and 50% local.

$3 billion for local streets, highways, freeways and rail transit.

$3 billion for any local transportation purpose.

$2 billion matching funds for local streets, highways and rail transit for counties that have a local sales tax for transportation.

$1.25 billion to improve rural highways.

$1 billion for additional rehabilitation and maintenance of state highways.

$1 billion for “transportation system management.” Includes signal synchronization, traffic operations centers and coordination of surface street traffic.

$500 million for transit operations, to be awarded to districts that demonstrate improvements in operating efficiency.

$150 million for construction of soundwalls along urban freeways where houses existed before the freeway was built.

$100 million for grants to local government and nonprofit agencies for planting trees and preserving open land alongside road and rail projects.

Other:

County transportation commissions to be required to develop a congestion-management program, establish acceptable levels of service on local streets and adopt policies to ensure those levels are maintained even as new development occurs.

Caltrans must limit project administration and right-of-way acquisition costs to 20% of total project costs.

Four private toll roads authorized. Two in Northern California and two in Southern California. Projects to be designed and built by private companies, turned over to the state and then leased back to private firms to be operated for 35 years.

Source: Senate Rules Committee, Assembly Transportation Committee.