3878

VETOES

be counted and contains apparently inadvertent language that
would result in double-counting and therefore potentially
absurd results."

He states, nevertheless, that the legislative intent underpinning
the formula is clear, and that with adequate insight into this
intent, the formula can be made to work.

A review of the legislative history of this legislation,
however, calls into question the certainty of the operation of
this formula. After receiving an advice of counsel letter on
March 13, 1986, that the original bill was unconstitutional, the
bill was completely rewritten in the Senate Budget and Taxation
Committee. In reporting the bill to the Senate, the Committee
floor report on March 24, 1986, estimated that the bill would
"increase State expenditures for community placements by $3 to $5
million per year".

Following Senate passage, a revised fiscal note by the
Department of Fiscal Services dated March 26, 1986, estimated the
increased expenditures resulting from the bill at $4,526,000.
The House Ways and Means Committee passed the bill and in its
floor report to the House on April 2, 1986, again estimated the
impact of the bill at "$3 to $5 million per year". After the
close of the legislative session, the Department of Fiscal
Services issued a re-revised fiscal note on May 15, 1986,
estimating that the bill would require expenditures of
$4,271,000. Finally, I was advised by the Secretary of Budget
and Fiscal Planning, in a veto request, that a literal reading of
the formula in the bill would obligate me to budget $1.3 billion
in Fiscal Year 1988 for community services for the adolescent
mentally ill. A copy of Secretary Stettler's letter to me, dated
May 6, 1986, is attached to this veto message.

I fully support the bill's underlying policy goal of
increased State funding for community services for the adolescent
mentally ill. However, I cannot sign legislation that will
expose the State to potential litigation risks regarding the
proper methodology of implementing an unclear formula.
Throughout my tenure as Governor, I have opposed the enactment of
mandatory appropriations bills which have the effect of
subverting the normal deliberative budgetary process. Senate
Bill 1061 demonstrates the dangers inherent in that approach.

Since Senate Bill 1061 would have been effective only for
one year, the same result can be achieved by administrative
action. Although I cannot sign this legislation, I will honor
the intent of its sponsors by directing the Secretary of Budget
and Fiscal Planning to administratively implement this formula in
preparing the State budget for Fiscal Year 1988. $3.2 million in
funds which this legislation would have directed to be placed in
the budget will be allowed in setting the Maximum Agency Request
Ceiling (MARC) next month for community services for the
adolescent mentally ill. These funds will be in addition to the
non-Medicaid monies provided for these services in Fiscal Year
1987. Upward adjustments to the MARC will be made this fall if