April 8, 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 VETOED, and am returning SENATE FINANCE COMMITTEE SUBSTITUTE FOR SENATE BILL 738, enacted by the Forty-Fourth Legislature, State of New Mexico, First Session, 1999.

The purpose of this legislation is to provide operating appropriations for the public schools, institutions of higher education and the various agencies of state government. This legislation incorporates funding for a number of other bills that will also not be approved. I am vetoing this legislation and will call a special session of the legislature to address a general appropriation bill for fiscal year 2000.

This version of the General Appropriation Act of 1999 is a marginally improved version of Senate Finance Committee Substitute for Senate Bills 2, 4 and 7 as amended, that I previously vetoed. In that veto message noted several serious flaws, most of which were related to public education. Please note that I did not veto either this bill or its predecessor simply because of school vouchers or other public school reform initiatives. In addition to public school reform, I am particularly concerned about approving a bill that contains unrealistic and unmanageable appropriations. None of the serious inadequacies mentioned in my earlier message were sufficiently addressed in this measure.

I have attempted to outline my requirements below as clearly and concisely as I can:

Any compensation appropriation that appears to be conditioned in any way on any collective bargaining agreement will not be approved.

Appropriations for critical agencies and programs must be minimally adequate.

State agencies must be provided with sufficient budget adjustment authority to be effectively managed.

Public schools must be given the opportunity for real reform.

My representatives are available to work with the legislature to assure that my requirements are addressed prior to the passage of the next general appropriation act. I

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would urge the legislature to avail itself of the opportunity to negotiate. Enough time and money has been wasted on futility.

Sincerely,

Gary E. Johnson

Governor

Chief Clerk of the Senate s54s738