June 29, 1982

With Democrats providing the votes needed for passage, the New Jersey Legislature tonight passed a scaled-down $6.2 billion state budget that forecasts increased transportation costs for commuters, a reduction in school aid, a cut in funds to relieve prison overcrowding and a loss of money needed to repair bridges and local roads. The Democratic majority had trimmed $136 million from the budget and had increased some tax revenue estimates last week in order to present Governor Kean with a balanced budget. The moves came after attempts to pass a 5 percent surtax on gasoline designed to raise $186 million were defeated in the State Senate. In a separate action, the Senate concurred with technical Assembly amendments to a bill restoring the death penalty for first-degree murder and sent the measure to Mr. Kean, who has promised to sign it.

Palestinian, Lebanese and American officials tried to reach agreement today on a Palestine Liberation Organization proposal that would neutralize the group's military presence in Lebanon and allow for the eventual departure of the P.L.O. leadership from Beirut, Government sources said. Senior Government officials said the talks had made ''progress on several important points'' but a great many questions on both the style and substance of the future P.L.O. presence in Lebanon remained to be resolved. It was not clear, they said, when or if an agreement would be reached. While the political negotiations may have made headway, there was some question of whether it was enough to forestall an assault by Israeli troops ringing west Beirut against the 6,000 to 7,000 guerrillas trapped inside. (Israeli officials in Jerusalem said the P.L.O. would be given only a few days to accept Israel's offer of safe passage out of Beirut. Page A8.)

The Assembly tonight overrode Governor Carey's vetoes of $320 million in new spending on school aid, aid to local governments and other programs. As what legislators hoped would be the last week of the session began, the Assembly majority leader, Daniel B. Walsh, repeated ritual phrases over and over again as 28 separate vetoes were overridden. Only one veto was sustained. ''I move that the bill become a law notwithstanding the Governor's objections thereto,'' the Franklinville Democrat said before each vote.

Aided by an increase in travel for pleasure, the nation's major airlines have been experiencing increased traffic this year and are expected to show further gains this month. With the exception of a slight decline in May, revenue passenger miles have been up every month this year, and a 7 percent or 8 percent rise is expected to be reported for June. For an industry that has undergone two consecutive years of declining traffic and some steep losses, the recent upturn is welcome indeed. But many believe it is too early to call it a lasting recovery and are afraid that any benefits could evaporate in another outbreak of fare wars this fall.

The San Francisco Board of Supervisors passed a law today banning most residents from owning pistols. The vote was 6 to 4. The ordinance, which was proposed by Mayor Dianne Feinstein, who said she would sign it immediately, makes ownership of a pistol a misdemeanor punishable by up to 30 days in jail and a $500 fine. It will take effect 30 days after it is signed, and pistol owners will have 90 days to dispose of their weapons.