Vol. 35 No.23
       ©2007 Marianas Variety
Tuesday, April 17, 2007 www.mvariety.com
Serving the CNMI for 35 years
 

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Senator says 40% budget cut ‘too much’

By Gemma Q. Casas
Variety News Staff

A SENATOR says the administration’s proposed 40 percent budget cut on Tinian’s $11.2 million budget is “too much” considering that the municipal government had already implemented cost-cutting measures.
Sen. Henry H. San Nicolas, Covenant-Tinian, said their island contributes to the general fund a certain percentage of proceeds from its small gambling industry, and is not totally dependent on the CNMI government.
“I personally feel that before any additional cuts are imposed (on Tinian), we must be mindful of what the municipality has accomplished in reducing its costs — shutting down streetlights, one-hour work reduction for six months, etc.,” San Nicolas told Antonio Muna, the governor’s special assistant for management and budget, in a letter dated April 13.
“Further, we must consider the revenue generated by the municipality (taxes and fees collected by Department of Finance Tinian, including the 5 percent coming from the Tinian gaming industry) that go towards the general fund,” he added.
The projected 40 percent budget slash in Tinian is projected to result in the furlough of its municipal employees.
San Nicolas told Muna not to subject Tinian to supplementary budget cuts.
“I am again officially asking for your consideration of any additional budget cuts to the second senatorial district,” the senator said.
He made a separate request to Finance Secretary Eloy Inos to furnish his office a copy of the actual revenues generated on Tinian, home to the only casino in the Western Pacific region.
“With the anticipated additional cut, many government employees may face being released from their jobs resulting in financial hardship, for they entirely rely on their earnings to make utility payments, raising kids, loan payment, etc.,” he told Inos in a letter.
The Tinian Mayor’s Office has 263 employees who are paid through the general fund.
It has 70 other personnel, including consultants, who are paid through the island’s local funds.