WILLIAM DONALD SCHAEFER, Governor

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 817.

This bill would allow Emergency Assistance to Families with Children (EAFC) and
Emergency Assistance (EA) grants to be used to help persons who have exhausted their
stay at an emergency shelter. An applicant would be required to submit a housing plan
for review and approval. Senate Bill 817 would also allow grants to be made upon
evidence that a summary ejection action has been filed in court.

I share the sponsor's concern for the problems of homelessness. Over the past three
years, the State has significantly increased new resources to lessen the plight of the
homeless. Funding for the Homeless Services Program has increased by 285% since
1987, from $910,000 to $3.2 million this year. In 1990, the Homeless Services Program
initiated a Housing Counselor Program that assists homeless families locate, secure,
and maintain permanent affordable housing. In less than a year, more than 500 adults
and children have been moved from shelters to permanent housing or have received
assistance to prevent an eviction. In addition, the Rental Allowance Program within the
Department of Housing and Community Development provides a time-limited subsidy
to persons experiencing a critical or emergency housing crisis and funding for the
program has increased by 50% since 1987.

Although amendments to Senate Bill 817 more clearly identify the population of eligible
clients, the Department of Human Resources is still concerned about the fiscal impact
of the legislation. The revised fiscal note to Senate Bill 817 estimates the cost at
$192,000. However, this figure is based upon an estimated 1,000 clients becoming
eligible for emergency assistance and the Department believes this seriously
underestimates the real impact of the bill. The Department argues that far more
individuals exit shelters each year and estimates that 6,000 grants would be utilized per
year, adding new costs of over $1 million.

While the Department is sympathetic to the needs of the homeless, it experienced a
serious deficit in FY 90 and is concerned about the possibility of a similar deficiency for
FY 91. In particular, the Department is facing the possibility of a deficiency for FY 91
in public assistance payments, which is the part of the budget from which the emergency
payments envisioned in Senate Bill 817 would be paid. During the past legislative
session, the General Assembly reduced nearly $6 million in total funds, including $3
million in General Funds, from the Department's budget based on the premise that the
caseload forecast was too high. The Department believes that its original caseload
estimates may prove to be accurate.

I am troubled, however, by the recent Washington Post - ABC News poll that showed
a declining sympathy for the plight of the homeless. The homeless represent the tragic
side of what we claim is a prosperous society. We cannot ignore their needs and must
look for solutions. Accordingly, I am directing Secretary Colvin to work with the
sponsor and advocates to develop proposals to address the continuing problem of
homelessness in this State.

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