VETO MESSAGE ON HB 1240-S

                   May 17, 1999

To the Honorable Speaker and Members,

  The House of Representatives of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval, Substitute House Bill No. 1240 entitled:

"AN ACT Relating to medicaid reimbursements to school districts;"

     Substitute House Bill No. 1240 contained a new Medicaid reimbursement formula for school districts.  However, the bill would have amended the same statutes that were amended in Substitute Senate Bill No. 5626, which I signed on May 14, 1999.  SSB 5626 has the additional feature of immediately enhancing incentive payments for second class school districts prior to its July 1, 1999 effective date.  Accordingly, I chose to sign SSB 5626 and veto SHB 1240.

     For these reasons I have vetoed Substitute House Bill No. 1240 in its entirety.

                   Respectfully submitted,

                   Gary Locke

                   Governor