Vol. 35 No.23
       ©2007 Marianas Variety
Tuesday, April 17, 2007 www.mvariety.com
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Deleon Guerrero: Budget cuts should also apply to autonomous agencies

By Gemma Q. Casas
Variety News Staff

REPRESENTATIVE Joseph P. Deleon Guerrero says the budgets of autonomous agencies should be reduced by at least 5 percent so that the Public School System and Northern Marianas College can have additional funding.
Deleon Guerrero, R-Saipan, said the governor does not have the authority to touch the budgets of autonomous agencies but the Legislature can do something about it.
“We need to start extending some cuts to the autonomous agencies as well. The governor cannot touch them but the Legislature can,” he said in a phone interview.
He is proposing to cut by 5 percent the budgets of the Commonwealth Development Authority, the Commonwealth Ports Authority, the Commonwealth Utilities Corp., the Office of the Public Auditor and the Department of Public Lands through House Bill 15-242.
Deleon Guerrero authored H.B. 15-242 which has five other co-sponsors.
The bill has been referred to the House Committee on Ways and Means.
Deleon Guerrero said PSS and NMC, which are also autonomous agencies, are already operating on “skeletal” budgets.
“A 15.6 percent budget reduction amounts to approximately $6 million for the Public School System and $1 million for Northern Marianas College. The Public School System has already stated that it would not be able to operate and keep the public schools open with a 15.6 percent budget reduction,” said Deleon Guerrero.
The government operates on a $193.5 million budget for fiscal year 2007. Autonomous agencies have separate budgets.
The administration is asking the Legislature to further reduce the FY 2007 budget to $163.285 million and “spread” the 15.6 percent cuts in the remaining three quarters of the year throughout the executive, legislative and judicial branches.
The Office of Management and Budget said further cuts are necessary to cushion the impact of more than $30 million in projected revenue shortfall this fiscal year.