By Gemma Q. Casas
Variety News Staff

THE House of Representatives, by a 10-5 vote, yesterday passed a measure that will reduce tax rebates by 20 percent and suspend leave with pay for seven legal holidays.
Those who voted in favor of H.B. 15-196 were House Minority Leader Arnold I. Palacios, R-Saipan; House Floor Leader Florencio T. Deleon Guerrero, D-Saipan; Reps. Joseph P. Deleon Guerrero, R-Saipan; Candido B. Taman, R-Saipan; Ramon A. Tebuteb, R-Saipan; Stanley T. Torres, Ind.-Saipan; Ray N. Yumul, Ind.-Saipan; Crispin M. Ogo, Covenant-Rota; Francisco Dela Cruz, Covenant-Saipan; and Manuel Tenorio, R-Saipan.
Those who voted no: Speaker Oscar M. Babauta, Covenant-Saipan; Vice Speaker Justo S. Qutugua, D-Saipan; Reps. Cinta M. Kaipat, Covenant-Saipan; Jesus SN. Lizama, Covenant-Saipan; and Martin Ada, R-Saipan.
H.B. 15-196 now goes to the Senate which is scheduled to hold a session today.
Introduced by Tenorio, the bill seeks to replace the austerity holidays law which he described as marred by “flaws” that have produced “an illogical work schedule and even a four-day weekend.”
“Now in its fifth month of implementation, P.L. 15-24 is not without flaws…. .In my numerous discussions with government employees, the number one complaint is the use and, in their view, abuse of the exemption authority — too many unnecessary exemptions,” Tenorio said in his statement.
“Also in the opinion of these workers, P.L. 15-24 has diminished effectiveness and efficiency in the delivery of government services. To be sure, the cutback in hours and salary has created low morale among the rank and file of the government workforce.” he added.
Under Tenorio’s proposal, government employees, including those hired on a contractual basis, won’t work on seven legal holidays but without pay to enable the government to save about $3.5 million in wages.
This provision will be in effect only until the end of fiscal year 2008, which is Sept. 30, 2008.
Reducing tax rebates by 20 percent will result in additional savings of $3.5 million, Tenorio said.
“The Legislature finds that suspending legal holidays with pay and reducing the tax rebate amount are more prudent fiscal austerity measures to save the government money. Such…are more conducive to the government’s fiscal austerity goals and less taxing on government employees,” the bill stated.
Palacios offered a floor amendment prohibiting the government from the further hiring of employees until FY 2008.
According to Kaipat, “We are handcuffing departments from hiring needed staff (like the Public School System). I think this is too restrictive and we have to be careful about this.”
But the amendment was adopted and included in the bill.