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MR. RENNIE: Based on existing law, what that

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agency should do or should not do.

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THE CHAIRMAN: Based on existing law. The

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Governor can then go along with your recommendations or

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he may reduce them or increase them, except in too instance

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and those too instances, as I understand it, are the State

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Judiciary and the State School System.

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MR. RENNIE: And the legislative budget.

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THE CHAIRMAN: And the legislative budget. Now,

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those he has to take.

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MR. RENNIE: He has to take the school budgets

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and certain sections in it that are mandatory under the law

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Not the entire school budget.

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THE CHAIRMAN: Well, then, would you tell us abou

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that?

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MR. RENNIE: These are mandatory items that

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provide for the public school support. I can go down here

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and show you. Let me say this, as to the mechanics of

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compiling the budget. The budget law says that the budget

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director shall prepare and present the budget to the

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Governor. Now, we don't do this specifically in this way.