The legislation called for a blue-ribbon commission to examine whether state-owned golfing, skiing and camping facilities, among others, had the upper hand over the private counterparts.

The bill, favored by the Greene County Legislature, was approved unanimously by the state Senate and 134-2 by the Assembly.

Greene County lawmakers supported the commission because they believe the state-owned Belleayre Mountain Ski Center in the Ulster County town of Shandaken provides unfair competition to the privately owned Hunter and Windham ski centers in Greene.

Operations such as Belleayre have the edge, Greene County leaders said, because they can charge less than their private counterparts without worrying about losing money, Any shortfall will be made up by the state.

State Sen. James Seward, the bill's sponsor, said in a prepared statement on Friday that he was "disappointed by the governor's veto."

"Public facilities like state ski areas or golf courses are under no obligation to make a profit, pay workers' compensation or unemployment insurance, and the bill called for a study - a study - to look at whether public facilities have an unfair edge," said Seward, R-Milford.

Greene Legislature Chairman Wayne Speenburgh could not be reached for comment on Friday.

Seward said public facilities, because they are funded by taxpayers, can buy equipment using state contracts, pay no sales taxes and be exempt from state health and environmental regulations that raise costs for private entities.

"In essence, taxpayers subsidize lower costs for public facilities, which then compete with private operations paying taxes, workers' comp and trying to at least break even," the senator said.

Seward also said the state must look at the effect of government competition on businesses paying property taxes, creating jobs and supporting schools.

In a resolution supporting the Senate bill, Greene County lawmakers said Belleayre, which is run by the state Department of Environmental Conservation, "continues to operate by giving away thousands of complimentary lift tickets and specially priced ski days, all of which factor into Belleayre continually operating at a deficit and are uncommon practices that are not conducive to running a profitable ski resort."

The giveaways and discounts have led to increased skier visits at Belleayre at the expense of Hunter and Windham, the county resolution stated.

Besides backing the Senate bill, Greene County lawmakers earlier this year asked the state to audit Belleayre's finances. The state refused.