Finally, I am concerned that the proposed tax credit will provide little incentive for
the people who need the most help with critical skills training. In particular,
lower-income citizens, with smaller tax liabilities, will not be greatly assisted under
this approach, unlike that granted through the HOPE Scholarship Programs.

It is also worth noting that House Bill 1176 is one of many new spending programs
created by the General Assembly. During the 1999 Session, legislative initiatives
totaling over $100 million were enacted. This includes worthy programs such as
after-school programs and child care tax credits ($14 million), incentives of qualified
teachers (approximately $25 million), additional money for State Resource Centers
($6 million), reductions in the inheritance tax ($8 million), expanding Medicaid to
cover assisted living placements (up to $14 million), tuition assistance for direct
service workers for community providers ($14 million) and incentives for lottery
agents ($9 million). I do not believe it is prudent to authorize this well-intentioned,
but potentially costly, tax credit program at this time.

While the above concerns prevent me from signing House Bill 1176 into law, I agree
with the sponsors that we should do more to train students and employees in the
skills that are critical to Maryland's economic development future. I will be happy to
work with the General Assembly to develop a narrowly focused approach that is less
expensive and consistent with the Science and Technology, Teacher and HOPE
Scholarship programs enacted over the past two years.

For the above reasons, I have vetoed House Bill 1176.

Sincerely,
Parris N. Glendening
Governor

House Bill 1176

AN ACT concerning

Critical Skills Training - Income Tax Credit for Individuals and Employers

FOR the purpose of allowing an individual a credit against the State income tax for
certain amounts paid by the individual during the taxable year for certain
tuition and fees for certain approved educational programs for the individual or
the individual's spouse or dependents, subject to certain limitations and
conditions; allowing an employer a credit against the State income-tax for
certain amounts paid by the employer during the taxable year for certain tuition
and fees for certain approved educational programs for the employer's
employees in the State, subject to certain limitations; requiring the Secretary of
the Maryland Higher Education Commission after consultation with certain
persons to approve certain educational programs as qualifying for the tax credits
and to designate work-related skills and occupations that are in short supply
and are critical to Maryland's economic development strategy; defining certain
terms; providing for the application of this Act; and generally relating to certain
income tax credits for individuals and employers for certain amounts paid for
certain approved educational programs.