Budget Blog

Part 2 - Governors’ Line-Item Vetoes: More About What They Are and 2016 Themes

By NASBO Staff posted 06-10-2016 02:57 PM

  

So far in 2016, line-item vetoes issued by 19 governors’ range from major public policy questions embedded in appropriation bills to large fiscal impacts to vetoes that touch on a state’s budget process. One example of a public policy related veto was Arkansas Governor Hutchinson’s line-item veto of the sunset clause for the Arkansas Works program (that state’s version of Medicaid expansion). In Alaska, Governor Bill Walker used his line-item veto power to reduce $1.3 billion in appropriations, including capping state residents' dividend from the Permanent Fund at $1,000 per person. In Florida, Governor Rick Scott issued $256 million worth of line-item vetoes to address large fiscal impacts. A veto related to the state’s budget process was issued by Wyoming Governor Matthew Mead who struck language provisions directing that state agencies should not make budget requests for certain items in the next budget cycle.

These examples illustrate some of the many purposes and impacts of a governor’s line-item veto power. Governors use line-item vetoes for fiscal restraint, promotion of a governor’s policy goals, to avoid excessive legislative supervision, greater gubernatorial influence in the budget process, reducing logrolling (the practice of exchanging favors for reciprocal voting for each other’s and advancing partisan goals.

Line-item veto power differs across states. The various forms of the line-item veto can be categorized as an ordinary line-item veto (striking dollar amounts), line-item veto with power to delete narrative, line-item veto with power to reduce items, and some combination of these. The “reduction” veto involves the replacement of an appropriation amount with a lesser amount. Twelve states have line-item reduction veto power. Some of the differing of line-item vetoes among the states is the result of state court interpretation of “appropriation” and “item”.

Because appropriation amounts are often for whole programs or even for whole agencies and institutions, a line-item veto of those items is infrequent. It is not surprising that the line-item veto seldom reduces state government spending in large amounts. Most line-item vetoes eliminate funding earmarks, capital projects, or language provisions that may or may not include specific dollar amounts. Many of the language provisions vetoed would direct or limit the actions of the executive branch.

Of the 19 states where the governor used the line-item veto, eight were in states where the governor and the majority of both legislative chambers were of the same party.

To date, the number of line-item vetoes during 2016 range from a single line-item veto to 345.

In a review of the 2016 line-item vetoes, the most common themes were:

  • Items that limit the actions of the executive branch
  • Eliminating spending for earmarks or projects
  • Other vetoes of spending
  • Unfunded mandates
  • Language that imposed specifics on routine operations of executive branch processes or programs

This blog on line-item vetoes will be updated as other state budgets are completed and additional line-item vetoes are issued.

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