2002 No Action
2001 No Action
2000 No Action
1998 No Action
1995 No Action
July 3, 1995
TO THE HONORABLE, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES:
In accordance with the provisions of R.I. Gen. Laws § 43-1-4, I am transmitting herewith, with my disapproval, 95-H-6191, "An Act Relating to Public Finance - State Funds."
This act, and its identical companion, 95-S-779, "An Act Relating to Public Finance -Indirect Cost Recoveries," would exempt from indirect cost recovery cash restricted receipts received from the Rhode Island Housing and Mortgage Finance Corporation. In 1993, the General Assembly enacted Section 35-4-27 of the General Laws, which requires that all cash receipts for restricted receipt accounts, except those accounts specifically exempted, would be subject to a surcharge of seven percent (7%) to be transferred to the general fund. The purpose of this surcharge is to ensure that all costs are recovered from these user-cost accounts, including indirect costs relating to accounting, payroll, and purchasing. Indirect cost recoveries result in substantial general revenues.
There is no compelling reason for exempting cash receipts of the Rhode Island Housing and Mortgage Finance Corporation from indirect COST recovery requirements while leaving dozens of other accounts subject to the requirement. The indirect costs connected with all restricted accounts should be recovered. Each additional restricted account exempted from indirect cost recovery will likely lead to requests for further exemptions, thereby contravening the intent of the statute and depleting general revenues.
For the foregoing reasons, I disapprove of this legislation and respectfully urge your support of this veto.