VETOES

I share the General Assembly's view as to the desirability of
establishing better review, reporting, and coordination of State
agency debt, without, at the same time, hindering the flexibility
and creativity in the present system. As Governor, however, I
currently possess the authority to institute suitable procedures
to achieve these objectives with the active participation of the
Comptroller, the Treasurer, and the affected State agencies. At
my direction, the Department of Budget and Fiscal Planning has
prepared an Executive Order to establish a comprehensive planning
and review system for State agency debt. It provides for greater
disclosure of planned borrowing activity, a centralized review of
all State agency debt issues, and centralized procurement of
certain bond-related services. It provides that the Governor
will establish an annual debt level ceiling for each State
agency.

The Executive Order is similar to Senate Bill 337, except that
the bill provides that the Board of Public Works would set the
annual debt level ceilings for the State agencies. I believe,
however, that resource allocation decisions concerning State
agencies are and need to remain the responsibility of the
Governor. While the Executive Order provides for input from the
members of the Board of Public Works, the ultimate decisions will
remain with the Governor.

For these reasons, I am vetoing Senate Bill 337. I plan to issue
the Executive Order on State agency debt in the very near future.

Sincerely,

William Donald Schaefer

Governor

Senate Bill No. 337

AN ACT concerning

Board of Public Works - Bond Issuing Authorities
State Unit Debt

FOR the purpose of requiring State units which issue governmental
use bonds to submit certain information to the Board of
Public Works; defining certain terms; authorizing the Board
of Public Works to set limits on certain bonds; authorizing
the Governor to allocate certain bond limits among certain
agencies; and generally relating to the setting of a limit
and allocation of the limit on governmental use bonds.

FOR the purpose of requiring State units which issue State unit
debt to submit certain information to the Board of Public
Works, the Department of Budget and Fiscal Planning, and the
Department of Fiscal Services; authorizing the Board of

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