BLAIR LEE III, Acting Governor                        3065

maximum amount which may be borrowed is increased by the
bill from $50,000 to $50,000,000; the method of borrowing
any of this amount is by selling short—term notes. The
preamble to Senate Bill 702 states that the General
Assembly's intention is to limit this power to cases of
temporary shortages of cash operating funds in State
accounts.

In 1977 the General Assembly passed, and Governor
Marvin Handel vetoed. House Bill 621- That bill likewise
attempted to increase the State's borrowing power in certain
cases. The veto message set forth the Governor's 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."

This year, in addition to Senate Bill 702, the General
Assembly passed House Bills 454 and 455. The latter is a
Constitutional Amendment which will appear on the ballot in
November of 1978. It proposes to amend Section 34 of
Article III of the Constitution to authorize the Treasurer,
at the direction of the Board of Public Works, to sell
short—term notes in anticipation of taxes, in order to meet
temporary deficiencies in the Treasury. House Bill 454, the
companion measure which is dependent upon the approval of
this Constitutional Amendment, amends Section 9 of Article
78A to increase the short—term borrowing power to
$50,000,000.

The language of House Bill 454 is quite similar to that
of Senate Bill 702. The major difference between the bills
is that the House Bill is dependent upon the approval of the
people for this expansion of the State's short—term
borrowing power in cases of temporary emergency shortages.

I have today signed into law House Bill 454; I have
also signed House Bill 455, the proposed Amendment to the
Constitution.

The State of Maryland has remained on a firm, stable,
and solvent basis in part because those who govern it have
acted responsibly to meet its fiscal needs. I do not fear
the abuse of power which may be considered to be inherent in
Senate Bill 702. And I believe that House Bills 454 and 455
can provide the flexibility which is their stated intention.
At the same time, I believe that the voters of Maryland
should decide, in November of this year, whether or not the
State's short—term borrowing power is to be expanded for
these purposes.

For these reasons, I have decided to veto Senate Bill
702 in favor of House Bills 4 54 and 455.

Sincerely,