April 12, 2000

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 SIGNED HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR HOUSE BILL 16, as amended, enacted by the Forty-Fourth Legislature, Second Special Session, 2000 but have vetoed the following item or items, part or parts:

1. On page 6, I have vetoed all of lines 6 through 13. This provision has been removed because it is impractical in that it places conditions on previous appropriations. The expenditure limitations set out in this passage may be desirable, however, they should not be applied after the fact.
2. On page 125, line 13, after "county", I have vetoed the semi-colon and I have vetoed all of lines 14 through 25. I have vetoed all of page 126 and on page 127, I have vetoed all of lines 1 through 6 and on line 7, I have vetoed through "county". These items have been vetoed because according to the State Engineer’s Office, they appear to be either inappropriate uses of the Irrigation Works Construction Fund, eligible for funding from other sources, or inconsistent with the Interstate Stream Commission’s priority funding requirements.
3. On page 130, I have vetoed all of lines 22 through 24.

The vetoes listed in item 3 above are General Fund capital outlay projects. They have been removed to assure that the projected General Fund Operating Reserve is maintained at a minimum level.

I believe there is consensus within the legislature and executive that the operating reserve be held to no less than five percent of general fund spending. When all appropriations approved by the legislature are taken into account, the operating reserve level is projected to be $157 million. This is $17 million less that the minimum requirement, necessitating the vetoes presented above.

Sincerely,

Gary E. Johnson

Governor