Senate Journal: Page 1569: Tuesday, May 2, 1995

         Senate File 69, is therefore, approved on this date with the
    following exceptions which I hereby disapprove.

         I am unable to approve the designated portion of Section 15,
    identified as the third sentence of Section 331.439, subsection 3a, and
    Section 331.439, subsections 3b and 3c, in their entirety. These items
    require counties to receive an inflation factor for mental health
    beginning in fiscal year 1997, and spell out specific factors and
    procedures relating to its determination. These items fail to allow for
    savings from managed care, and could significantly dilute the property
    tax relief. Moreover, the portion of Section 15, identified as Section
    331.439, subsection 3b, contains a provision that intrudes upon my
    executive budgeting responsibilities. The concept of an inflation factor
    may be appropriate to reconsider at a later date, after adequate cost
    containment has been achieved through the rule-making process.

         I am unable to approve the designated portion of Section 15,
    identified as Section 331.439, subsection 5, in its entirety. This item
    limits counties obligations for payment of mental health, mental
    retardation and developmental disabilities services. I support the
    concept of limiting counties obligations, except in those instances
    where a county elects to become its own managed care provider. The
    assumption of financial risk is one of the defining characteristics of
    managed care. If a county chooses to become its own managed care
    provider, it should also assume the financial risk. I will approved
    language that is subsequently enacted as long as it contains this
    exclusion.

         I am unable to approve the designated portion of Section 18,
    identified as Section 426B.2, second unnumbered and unlettered
    paragraph, in its entirety. This item will hinder future efforts to
    change the allocation formula.

         For the above reasons, I hereby respectfully disapprove these items
    in accordance with Amendment IV of the Amendments of 1968 to the
    Constitution of the State of Iowa. All other items in Senate File 69 are
    hereby approved as of this date.

    Sincerely, TERRY E. BRANSTAD Governor

                                AMENDMENTS FILED


         S-3666        H.F.          577           Ways and Means
         S-3667        H.F.          565           House amendment

Iowa General Assembly

Index: Senate Journal (76th General Assembly: Session 1)

© 1995 Cornell College and League of Women Voters of Iowa

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