By Gemma Q. Casas
Variety News Staff

THE administration has prepared two budget scenarios that will require a further reduction in the government workforce due to the continued decline in revenue, according to Press Secretary Charles P. Reyes Jr.
“(We have) made contingency plans to reduce government spending even further,” he said in an e-mail.
He said the scenarios, details of which have yet to be released to the public, “may entail a reduction in force or layoffs.”
“We hope it will not actually come to this but if the economy deteriorates even further beyond our control, we will have to face financial reality,” said Reyes.
The government’s current spending level is set at $193.5 million but this will be reduced in light of a projected $14.6 million revenue shortfall.
In related news, the House of Representatives held a session yesterday afternoon but passed no bills.
The session will be continued this morning to discuss House Bill 15-196, or the Alternative Fiscal Austerity Measures offered by Rep. Manuel A. Tenorio, R-Saipan, and other minority lawmakers.
H.B. 15-196 seeks to amend the austerity holiday law or Public Law 15-24.
According to the bill, instead of continuing the austerity holidays, the government should just suspend leave with pay for seven legal holidays and reduce the tax rebate amount.
The seven holidays are Martin Luther King Jr. Day, Presidents Day, Covenant Day, Good Friday, Memorial Day, Independence Day and Labor Day.
The bill said the austerity holidays’ original intent was “thwarted” and caused “significant undue hardship on some government employees.”
“Government employees are struggling to deal with the salary reduction in the midst of the commonwealth’s ever-declining economy, increased cost of goods, services and fuel, and especially the over 150 percent increase in the power rate,” the bill added.
“The commonwealth has 14 legal holidays, which are observed by government employees who receive holiday pay on such days. If the government suspends leave with pay for the seven legal holidays and applies the suspension to all government employees without exemption, the government would save approximately $3.5 million in personnel costs,” the bill stated.
They added that an additional $3.5 million will be realized in savings if the tax rebate is reduced by 20 percent.