GOVERNOR VETOES ARBITRATION BILL SOUGHT BY POLICE
Gov. George E. Pataki vetoed legislation today that would have helped New York City's powerful police and fire unions win larger pay increases, agreeing with Mayor Rudolph W. Giuliani that the bill would cause huge financial problems for New York City. Mr. Pataki said he thought that New York City police officers were underpaid. But in his veto message he said, "While there is a strong state interest in seeing that New York City's police are fairly and appropriately compensated, this bill fails to achieve the proper balance between this need and the public employer's ability to pay."