WILLIAM DONALD SCHAEFER, Governor                        S.B. 543

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 543.

Senate Bill 543 would require the Governor to include in the State budget funds for local
health services at certain specified levels. As enacted, this bill would increase general
fund expenditures by $1.1 million in fiscal year 1996; $8 million in fiscal year 1997; $15.4
million in fiscal year 1998; and $24 million in fiscal year 1999.

I certainly cannot argue with the benefits of increasing State funding for local health
services. However, the proliferation of statutory mandates on State spending erodes the
ability of the Executive to establish spending priorities and develop a budget that reflects
those priorities. Such mandates also limit the ability of the Governor to respond to fiscal
crises in times of economic distress.

Senate Bill 543 is a continuation of Chapter 593 of 1993 which required the Governor to
include $34 million in the fiscal year 1995 budget and requires $39 million in fiscal year
1996 to fund local health services. While I signed this legislation to demonstrate my
commitment to restore local health services funding, I cannot support additional
mandates in this area. Funding for local health services in fiscal year 1996 is already
mandated at $39 million and there is no reason to enact further mandates this year. The
next Governor should decide whether to accept additional spending mandates or preserve
the flexibility to increase funding as an executive priority.

The Department of Budget and Fiscal Planning has predicted that in the near future, the
growth in spending as a result of existing statutory requirements will far outweigh
projected revenue growth. Therefore, I believe it is unwise to tie the hands of the future
executive with additional spending mandates.

For these reasons, I have vetoed Senate Bill 543.

Sincerely,

William Donald Schaefer

Governor

Senate Bill No. 543

AN ACT concerning

Local Health Services Funding

FOR the purpose of establishing a formula for the financing of local health services in the
counties; specifying the purpose of the formula; defining certain terms; specifying
certain services to be provided in a county by a local health department using
certain funds; specifying the method of calculating the estimated minimum budget
for local health services for a county; requiring the Department of Health and
Mental Hygiene to calculate the estimated minimum budget for each county each
year; providing that the estimated minimum budget for local health services shall be
based on certain staffing ratios; specifying methods for determining the components
of the estimated minimum budget for a county; specifying the method of
determining the local share of the estimated minimum budget under certain

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