WILLIAM DONALD SCHAEFER, Governor

At the same time, I know that local governments throughout the State are facing a crisis
situation as they attempt to deal with waste disposal. In increasing numbers, landfills
are reaching capacity, and in many cases have closed. Incineration is an expensive and
difficult alternative in many communities, and like landfills, raises many environmental
concerns.

I am also not unmindful of the difficulties faced by some jurisdictions in securing
sufficient revenues to meet the many fiscal demands of their citizens.

House Bill 731 in its original form would have prohibited the imposition of a beverage
container tax in all 24 jurisdictions of the state. However, only Montgomery County,
Baltimore City, and Baltimore County presently have omnibus taxing authority. The
other 21 counties, including all commission counties, all code home rule counties, and
the remaining charter home rule counties, are not now authorized to impose a container
tax. Because the bill was amended to in practical terms specifically exempt Montgomery
County's and Baltimore City's container taxes, and limit only Baltimore County from
imposing a tax that its local elected officials feel is appropriate for that jurisdiction, the
bill strikes me as a particularly offensive interference by the State with the affairs of a
single county.

Baltimore County, along with Baltimore City and other jurisdictions, faces difficult
budget decisions in the months ahead. While House Bill 731 does not affect the fiscal
year 1991 budget for Baltimore County, I feel it would be wrong to deprive the County
of the ability to raise these revenues in future years. It is also clear that the end of
container tax in Baltimore County would make it virtually impossible for Baltimore City
to collect its container tax. _f

Those who advocate a veto of House Bill 731 argue that it is a violation of the spirit of
home rule, and that it is an invasion and intrusion on local government operations.
While the bill may pass constitutional standards, I cannot help but agree with the
legislator who described the bill as "a totally undue interference with local government
..."". House Bill 731 does interfere greatly with a single local government's ability to
manage its own affairs and to determine its own solutions to difficult problems. As a
former local government official, I believe very strongly that state government should
not intrude on the ability of a jurisdiction to govern itself. Signing this legislation would
violate that belief.

Given that House Bill 731 does not invalidate any tax until July 1, 1991, this entire
debate may well provide to be unnecessary. I understand that the Baltimore County
Council has, on its own initiative, decided to continue the container tax for only the first
six months of the new fiscal year. If that is the case, the County would have terminated
the container tax a full six months before the prohibition in House Bill 731 would take
effect. Nevertheless, this is a decision that the County must be allowed to make on its
own authority.

Notwithstanding the concerns I may have about the fairness and equity of container
taxes, because I believe that the bill represents a clear intrusion into the affairs of a
local government, I am today vetoing House Bill 731.

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