|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARVIN MANDEL, Governor 3869
|
|
|
|
|
|
|
|
|
times in order to meet temporary cash deficits in
State funds or may borrow in anticipation of taxes
levied for any year, or in anticipation of
settlement of a bond issue; changing the conditions
for these loans, correcting certain language, and
stating the intention of this Act.
May 26, 1977
Honorable John Hanson Briscoe
Speaker of the House of Delegates
State House
Annapolis, Maryland 21404
Dear Mr. Speaker:
In accordance with Article II, Section 17 of the
Maryland Constitution, I have today vetoed House Bill
621.
This bill increases the amounts of money which the
Board of Public Works may borrow in order to meet
temporary treasury deficits or in anticipation of taxes
levied or bonds sold in any year.
The current law authorizes the Board to borrow up to
$50,000 to meet temporary deficits and up to $1,000,000
in anticipation of taxes. House Bill 621 increases these
authorized maximum figures, respectively, to $2,500,000
and $50,000,000. The current law was enacted in 1939,
and, fortunately, has never been used.
The theory underlying this bill's introduction is
that the current authorized dollar amounts are simply not
realistic, and that, despite the fact that the Board has
never felt the need to use this borrowing power, the time
to increase its reserve power is when the power is not
needed. I do not necessarily object to some increase in
the specific dollar amounts involved, but I believe that
the proposed increase to $50,000,000 is potentially too
dangerous.
The type of power given to the Board by House Bill
621 may be used in many types of situations, ranging from
a major catastrophe which requires a huge amount of
immediate cash, to a temporary payroll shortfall
necessitating a small emergency loan. In fact, the
possible examples are numerous, in both a sound and a
weak economy.
The Board of Public Works is and, fortunately, has
been a responsible body. But I fear that the power to
borrow on a short-term basis may in the future be
considered as an expedient alternative to facing hard
fiscal problems realistically. I am haunted by the ease
by which short-term borrowing can replace sound financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
