Header, the Administration of the Honorable Lincoln C. Almond
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  2002 Signature
2002 Veto
2002 No Action

2001 Veto
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2000 Signature
2000 Veto
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1999 Signature
1999 Veto

1998 Signature
1998 Veto
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1997 Signature
1997 Veto

1996 Signature
1996 Veto

1995 Signature
1995 Veto
1995 No Action

July 3, 1995


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.


Lincoln Almond