By Moneth G. Deposa
Variety News Staff

THE good news is that the government’s budget cut will no longer amount to $30 million, thanks to the “savings” that will be generated by the austerity measures.
The bad news is that the government will still face a $14.6 million revenue shortfall.
According to the Office of Management and Budget, the government generated $2.9 million in savings from the austerity holidays, which translates to a 10 percent cut in government wages.
Documents from OMB showed that austerity savings up to Sept. 30, 2007 will reach $17.9 million, which translates to $599,433 in projected average biweekly savings.
But because the government has to reimburse the $2 million it cut from the FY 2006 budget of the Public School System, and provide $95,000 to the Office of Vocational Rehabilitation, the total surplus projection will reach $15.3 million.
“From the original projection of a $30 million revenue shortfall in FY 2007, OMB will offset the $15.5 million savings from the austerity holidays…lowering the overall anticipated revenue shortfall to only $14.6 million,” according to Vice Speaker Justo S. Quitugua, D-Saipan.
He earlier inquired about the austerity savings of the government in his effort to provide Northern Marianas College the needed funding so it can hire essential personnel.
He said the austerity savings projection will be more effective if the administration reduces the exemptions.
“There were too many exemptions. If these will be reduced, it will help increase the projected savings which can offset our overall revenue shortfall,” he said.
In light of the new revenue projection, Quitugua said quarterly allotments to government agencies will be reduced except those for Public Safety, Corrections, Public Health and PSS.
The Legislature, which has $7.4 million budget for FY 2007, will also face cuts, according to the lawmaker.