March 11, 1999

The Honorable Manny M. Aragon and

Members of the Senate

Executive-Legislative Building

Santa Fe, New Mexico 87503

Honorable President and Members of the Senate:

I have this day VETOED and am returning SENATE FINANCE COMMITTEE SUBSTITUTE FOR SENATE BILL 3, as amended, enacted by the Forty-Fourth Legislature, First Session, 1999.

This legislation is the embodiment of an unfortunate recent trend in the state’s appropriation process. The general fund appropriations of over $1.5 billion, contained in this bill, should rightfully be included in a general appropriation act encompassing virtually all of the operational funds for the three branches of state government, higher education and public schools. Our state has a history and a tradition of prudent fiscal management. A key element of this tradition is the omnibus appropriation bill customarily known as House Bill 2. It is, in my opinion, a grievous mistake to discard this practice which has served us well for decades. Therefore, I will not approve significant general fund appropriations for the ongoing operation of government, which are not included in an omnibus appropriation bill.

In addition to its obvious structural deficiencies, the bill is further flawed in that it makes almost no progress toward reform of New Mexico’s public schools. The bill fails to include important initiatives related to vouchers, charter school stimulus funding, an accountability data structure, a capital outlay database system, and school-based budget reform. My 1999 plan to increase educational opportunity, improve academic performance, and promote greater accountability has been essentially ignored.

This bill increases compensation by more than $42 million over my recommendation and adds five new program modifications to the Public School Funding Formula. These new programs, at a projected cost of $11.6 million for FY 2000, include unfunded mandates requiring substantially more of our resources in the near future. Early childhood programs, local district planning, professional development, and the recognition of National Board Certified teachers are undoubtedly important initiatives. However, they should not be added to the funding formula base with unknown costs for years to come. It should be obvious by now that formula tinkering and increasing salaries do not improve education without accountability.

Sincerely,

Gary E. Johnson

Governor