Senate Journal: Page 1311: Tuesday, April 27, 1999

  APPENDIX

  GOVERNOR'S VETO MESSAGES

  April 26, 1999

  The Honorable Chester Culver
  Secretary of State
  State Capitol Building
  L O C A L

  Dear Mr. Secretary:

  Senate File 176, an act relating to the elimination of investment counseling
  as a
  taxable service under the state sales and use taxes, is hereby disapproved
  and
  transmitted to you in accordance with Article III, Section 16, of the
  Constitution of the
  State of Iowa.

  While this particular measure has merit and could be approved under other
  circumstances, I must examine all budget decisions as part of the whole of
  the state's
  fiscal picture.  It would be irresponsible to focus only on the singular
  aspects of this bill
  and not consider it as a part of the aggregate decisions that will determine
  our state's
  fiscal health.

  I have shared my concerns with the budget framework that has been developed
  to
  date by the Legislature.  Projecting the Legislature's targets for taxes and
  spending
  levels into the future, their budget could require as much as a $110 million
  reduction
  in services or tax increase to meet our legal budget requirements in the
  fiscal year
  starting July 1, 2000.  Using similar assumptions, the non-partisan
  Legislative Fiscal
  Bureau has reached similar conclusions.  I will not gamble with our state's
  fiscal future
  by adhering to this risky and irresponsible budget scheme.

  I believe that the Governor and the Legislature are elected to make hard
  choices.
  This budget must reflect our priorities as a state.  While reducing taxes is
  a priority, it
  must not come at the expense of our local schools, health care for children,
  nursing
  home care for senior citizens, or public safety.

  Nearly sixty percent of our state budget is dedicated to education, which is
  and will
  continue to be my highest priority as Governor.  Given the prospect of
  future budget
  deficits - and then having to choose between cutting $66 million from the
  budgets for
  education in FY 2000 or vetoing this and other tax cut bills - I must choose
  the
  responsible course.

  Until the Legislature can demonstrate a sound approach to fiscal policy, I
  cannot in
  good conscience approve this bill.  I am hopeful that the Legislature will
  reverse this
  dangerous tax and spending course.  If they do not, I will continue to act
  to ensure that
  the state budget is balanced without gimmicks, tricks, or risky assumptions.

  For the above reasons, I hereby respectfully disapprove Senate File 176.

  Sincerely,
  THOMAS J. VILSACK
  Governor

© 1999 Cornell College and League of Women Voters of Iowa

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