SCHOOLS STUDY WILSON'S MATH : GOVERNOR'S BUDGET INCLUDES $1.8 BILLION FOR EDUCATION.

Byline: Mark Katches Daily News Sacramento Bureau

A $1.8 billion wave of new education spending aimed at slashing class sizes, improving reading instruction and providing every school in the state with a $50,000 grant will be presented today by Gov. Pete Wilson.

The governor's new school spending plan is expected to be the centerpiece of his revised $63.3 billion 1996-97 fiscal year budget to be submitted this morning to the Legislature.

The additional school spending was made possible by an estimated $2.6 billion in new revenue flowing into the state general fund since the governor's initial budget was introduced five months ago.

Wilson was in Southern California on Monday to announce one critical piece of his revised budget, saying he will give all 7,700 schools in the state $50,000 of one-time money - totaling $387 million.

The program mostly will benefit smaller, rural schools that get fewer dollars because of their lower number of students.

``They can use the money to buy a new roof, install computers on kids' desks or slap a new coat of paint on the walls,'' Wilson said at William E. Kettler Elementary School in Huntington Beach.

``Investing in our schools is the most important investment we can make as a society,'' he said. ``It's a down payment on both our children's future and the future of our state.''

The other major elements of the plan call for $460 million to reduce first- and second-grade class sizes, and $100 million to bolster basic reading instruction.

Although Wilson officials are posturing to take credit for the new school funds, state law mandates that roughly 60 percent of any additional revenue goes to education.

Wilson is sticking to the formula, but he has created his own blueprint on how those dollars should be spent.

Democrats praised Wilson's education agenda, but noted that they have touted many of the governor's plans - especially reductions in class size - for a long time.

``Imitation is the highest form of flattery,'' said Senate President Bill Lockyer, D-Hayward. ``Democrats have been urging this for years.''

Los Angeles Unified School District budget officials offered cautious response to the news that Wilson would be providing more funds to public education.

Budget director Marty Varon said he was neither ready to celebrate the $50,000 school grants, nor was he ready to embrace the funding for class size reduction.

``With the $50,000 grant you never know if there aren't strings attached,'' he said. ``They say that and then later you find out there are.''

Mark Shrager, director of the district's budget service branch, said the school block grant will benefit suburban school districts more than urban districts.

``Schools are generally smaller in suburban districts,'' he said. ``So for them it could mean $112 per student in extra funding. For a large school it could mean $12 per student.''

The presentation of the governor's revised spending plan traditionally marks the start of serious budget negotiations in the Capitol. Lawmakers have until June 15 to pass the budget that is supposed to take effect July 1.

But the Legislature rarely has met the constitutional deadline.

Key Wilson administration aides say they are hoping the education spending plan will force the Legislature to enact the budget on time this year. Any holdup could jeopardize the amount of money schools have to work with when students return in the fall.

The linchpin of Wilson's revised budget is his proposal to lower class size by one-third, from the average of 30 pupils per classroom to 20 students per class in the first and second grades.

Schools would receive a $500 bonus per student if they can meet the goals outlined in the governor's budget by building classrooms and hiring more teachers.

L.A. Unified has an average class size of 32 students per teachers in these grades.

But Varon said he's not sure whether the district has the building space for Wilson's plan. He also is concerned that by the time they hire the extra teachers, the plan won't cover the extra costs.

``We have to analyze this to see if it's a profit or a loss,'' Varon said.

The plan to reduce class size is a carbon copy of a bill, SB 1414, by Democratic Sen. Leroy Greene, one of the Legislature's top education experts.

``It's not nearly identical to my bill,'' Greene said. ``It is identical. These are all good proposals, and I applaud the governor's efforts.''

Other elements of Wilson's school spending plan include $200 million in new funds for deferred maintenance, school safety and technology improvements - doubling Wilson's initial $100 million proposal for those programs in January.

Local districts would have to hold hearings to solicit input from parents before deciding exactly how to spend their portion of the money, which will be distributed based on enrollment.

Wilson has earmarked $200 million for basic ``phonics'' reading instruction instead of ``whole language.'' He already had outlined $100 million in state spending, plus $21 million in matching local funds.

The new proposal removes the local matching requirement, adds $33 million in federal funds from the Goals 2000 program, and $67 million in general fund money.

There are also provisions for $83 million to buy new library books.

CAPTION(S):

Photo

PHOTO (color) Gov. Pete Wilson speaks Monday in Irvine.

Ass ociated Press