The Montgomery County Council decided not to approve expenditures of $400,000 for two commissions that would study the problems of youth and of handicapped persons.

"The price tag was too high," said council member William Colman, "and the proposal for the commissions was not too well spelled outt. We asked (the county executive's staff) to come back with a proposal that was about half the magnitude of this one."

Last week, the council set up two commissions, each composed of 21 members, to look into the problems of youth and the handicapped and to decide what kind of programs should be provided. The $400,000 would be used for the staff of both commissions.

The same number of commission members, who will be volunteers, will be appointed but the council would like the county executive's staff to cut back on the number of staff members proposed.

"I'm just not surprised," said council member Elizabeth Scull, who has been in the forefront of county effort to establish the commissions. "This is the Proposition 13 era and expenditures are going to be examined very thoroughly by everybody. I knew we were just not going to be able to get all the money that we wanted."

Scull said she had written up her own proposal for funding for the staff of the commissions and her price tag was only a little under $400,000.