By Mar-Vic Cagurangan
Variety News Staff

THE fee increases proposed by the administration are supposed to go into effect today, but with dozens of new amendments that continue to come up amid the rising tension between Republicans and Democrats, discussion of the revised 2007 budget bill seems far from being concluded anytime soon.
Amid heated exchanges between acting Minority Leader Rory Respicio, D-Agana Heights, Speaker Mark Forbes, R-Sinajana, and Vice Speaker Eddie Calvo, R-Maite, the Republican-led Legislature yesterday pegged the revised revenue projection for fiscal year 2007 at $468.8 million and raised the spending level to $489.7 million.
The new revenue projection was the culmination of amendments to Bill 74, including tax break reductions, tax amnesty and fee increases.
The Department of Revenue and Taxation expects to raise $2.33 million in additional revenue as a result of the amendment to the Dave Santos Act, which lowered the income threshold for gross receipt tax exemption from $50,000 to $40,000.
The tax amnesty program is expected to collect $12 million, while the fee increases are to bring in $4.5 million. Besides the revenue enhancement measures, the Legislature also considered a total of $3.1 million balances that remain in dormant funds and the GTA Cushion Account.
Calvo said senators were still trying to evaluate the impact of the 5 percent deappropriations from agencies that were sanctioned for failure to comply with the financial reporting requirements.
As of press time, senators were still debating the new amendments introduced yesterday morning.
Respicio, meanwhile, was not convinced that the Legislature was actually working toward balancing the budget.
“We continue to have a shortfall of $20 million. This is absurd,” Respicio said. “If you believe that this is a balanced budget, then you will believe anything.”
Respicio said instead of reducing the spending level, the Republicans bank on the result of the 5 percent deapproriations to meet the targeted balance.
During the morning session, Respicio continued to grill the Republicans about the figures that the Legislature has adopted based on the administration’s proposals.
He asked Calvo if his committee on budget and finance had conducted its own independent revenue analysis to determine if the revenue targets were indeed achievable.
To which Calvo, obviously miffed, replied: “I’m not the governor. I’m not the finance director. I have taken the revenue projection based on what the administration has presented to us.”
Calvo said he could not tell whether the administration’s revenue projection was realistic or not.
“I wish I could answer your questions,” Calvo told Respicio. “We cannot predict the future. I’m not Art Ilagan and I cannot say how the tax amnesty program will turn out.”
Infuriated by Respicio’s cross-examinations, Forbes raised his voice and advised the Democratic senator to stop giving “generalized speeches” and introduce a specific motion instead.
At the request of the governor, Calvo introduced a number of amendments revising the funding cuts for departments and agencies.
Again, Respicio questioned Calvo’s move.
“I know that the governor can introduce a bill but I didn’t know that he can also introduce amendments,” Respicio said.
Forbes hushed him up, saying, “the amendment sheets have the senator’s name. Sen. Calvo is introducing these amendments,” the speaker said.
In an interview with Variety during a recess, Respicio said the Republicans’ refusal to further discuss numbers indicate that “a decision has already been reached.”
“I’ve never seen anything like this before at the Legislature, where rules are being made as we go along,” he said.
“Sen. Calvo, who is the chairman of the finance committee, is not acting like a chairman. He’s acting like a clerk; like a typist. His office receives more than $1 million a year but he has nothing to show for it. No wonder this government will never recover from its financial meltdown,” Respicio said.