Vol. 35 No.6
       ©2007 Marianas Variety
Friday, March 23, 2007 www.mvariety.com
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New budget discussions delayed anew

By Gerardo R. Partido
Variety News Staff

DISCUSSIONS on a new fiscal year budget have been delayed anew as the administration yesterday failed to make good on its promise to deliver a revised fiscal year 2007 budget to the Legislature.
Senators were supposed to have met in session yesterday in anticipation of Gov. Felix P. Camacho’s submission of a new budget.
But according to Speaker Mark Forbes, R-Sinajana, the administration hadn’t submitted a new budget as of late yesterday afternoon nor had the administration communicated when the Legislature could expect to receive a new budget.
Forbes said the Legislature will hold a session today as soon as it receives the new budget proposal from the governor because time is of the essence.
Under the law, a session of the Legislature can be convened on two hours notice.
The governor is expected to be back on island today after attending the 7th Western Micronesian Chief Executive Summit in Saipan.
Last week, the governor’s office said that a revised FY 2007 budget would be submitted by the administration last Monday, March 19. The new budget was to have detailed the administration’s plan to cut costs and increase revenues.
But on Sunday, March 18, the administration informed the Legislature at the last minute that it needed more time and would only be able to submit its financial plan yesterday.
With no budget being submitted yesterday, senators, who were all ready to go over it, were disappointed.
Vice Speaker Eddie Calvo, R-Maite and head of the finance committee, was eager to learn details of the administration’s proposed revenue enhancing and cost-cutting measures.
An outline of the fiscal recovery plan submitted by the administration last week called for the raising of fees and an immediate cash infusion of $34 million to meet ongoing operations and payroll requirements.
However, the outline presented last week lacked details and did not specify on which fees were going to be raised and where the administration intends to get the $34 million cash infusion.
Calvo said the Legislature needs to have enough time to go over the governor’s proposal and the delay prevents GovGuam from moving any closer to solutions to its financial problems.