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I am returning herewith, without my approval, the following bill:

Assembly Bill Number 587, entitled:

    "AN  ACT  to  create  the  Orangetown public library district and to
      repeal chapter 349 of the laws of 1973,  relating  to  creating  a
      library  district in the town of Orangetown in the county of Rock-


  Chapter 349 of the Laws of 1973, as amended by Chapter 372 of the Laws
of 1975, created one library district of four independent library  asso-
ciations  within  the  Town of South Orangetown (the "Town") in Rockland
County. Under current law, the  library  associations  are  required  to
submit  one  combined  budget  to  the  Town each year and provide for a
single tax rate across the  district  to  support  the  four  libraries.
Under this system, the libraries must develop and submit a single annual
budget,  which  by  law can increase by no more than 10 percent over the
prior year's total budget.

  This bill would repeal current law and authorize each of the independ-
ent libraries to set a separate tax rate and submit  a  separate  annual
budget  request to the Town, free of the annual 10 percent spending cap.
While the stated purpose of this legislation is laudable  -  to  provide
greater  flexibility  in the budgeting process - the bill raises several
issues that merit its disapproval.

  First, the bill, without explanation, eliminates the 10 percent annual
budget spending cap for the libraries. The elimination of an overall cap
on growth could result in a  deleterious  impact  on  taxpayers  in  the
district with the potential for substantial annual budgetary increases.

  Second,  this  legislation  would  have an uneven impact on the town's
taxpayers, because the tax rates  would  become  variable  by  district.
Third,  the issues that this legislation seeks to address are not struc-
tural, but rather managerial in nature. Under the current law, there  is
nothing  that  prohibits the Town from providing greater oversight under
the library district's existing budget  process.    Therefore,  existing
powers  could  be  exercised more vigorously to address problems without
the need for legislation.

  I have directed my staff to work with the bill's sponsors and the Town
to consider alternatives to this legislation that would protect  taxpay-
ers while accomplishing the stated goals of this bill.

  The bill is disapproved.                    (signed) Andrew M. Cuomo

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