April 9, 1999

The Honorable Raymond G. Sanchez and

Members of the House of Representatives

Executive-Legislative Building

Santa Fe, New Mexico 87503

Honorable Speaker and Members of the House:

I have this day VETOED and am returning HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR HOUSE BILL 881, enacted by the Forty-Fourth Legislature, First Session, 1999.

Completing the water and sewer systems necessary to serve Bernalillo County’s north and south valleys as a comprehensive package is certainly a worthwhile goal. This bill, however, would set an unfortunate precedent by earmarking state general revenues for local capital outlay.

The people of New Mexico would be better served if we created a rational method for determining capital outlay spending. The current "system" of entitlements satisfies only political needs and wastes the precious capital we have available. Undoubtedly important projects like the water and sewer systems in the north and south valleys would fare much better than under today’s capital outlay regimen. I invite the Legislature to work with me to develop a new approach to identify and prioritize the real capital deficiencies.

Sincerely,

Gary E. Johnson

Governor