VETOES

Chapter 655 provides a flexible and workable mechanism to
both the Governor and the General Assembly for appropriating
funds for essential needs, the precise scope and amount of which
may not have completely jelled by the time the budget is approved
by the General Assembly. In every appropriation made to the
Dedicated Purpose Account, the General Assembly has the
opportunity to specify the purpose for which the funds are to be
used, and may also, if it chooses, specify conditions which have
to be met before the Governor may transfer the funds by budget
amendment. Further, the General Assembly may also specify,
subject to certain constitutional limitations,. that any transfer
of funds by budget amendment with respect to any. particular
appropriation be reviewed and, where appropriate, receive the
prior approval of the Legislative Policy Committee.

This flexibility is foreclosed by House Bill 1516 which
requires prior approval by the Legislative Policy Committee for
every transfer of funds from the Dedicated Purpose Account by
budget amendment. My veto of House Bill 1516 does not prevent
the General Assembly from imposing this condition on specific
future appropriations to the Dedicated Purpose Account, subject
to constitutional limitations. My veto does allow, however, the
General Assembly to authorize the Governor to transfer funds from
the Dedicated Purpose Account when the circumstances justify this
procedure.

Therefore, for the above reasons, I have decided to veto
House Bill 1516.

Sincerely,

William Donald Schaefer

Governor

House Bill No. 1516

AN ACT concerning

State Reserve Fund - Dedicated Purpose Account

FOR the purpose of requiring approval by the General Assembly's
Legislative Policy Committee for the transfer of funds by
the Governor from the Dedicated Purpose Account of the State
Reserve Fund.

BY repealing and reenacting, with amendments,

Article - State Finance and Procurement

Section 7-310

Annotated Code of Maryland

(1985 Volume and 1986 Supplement)

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