By Gemma Q. Casas
Variety News Staff

THE chairman of the House Committee on Ways and Means says Gov. Benigno R. Fitial’s reprogramming authority has been suspended for his failure to submit the administration’s proposed fiscal year 2008 budget before the April 1 deadline.
Rep. Crispin M. Ogo, Covenant-Rota, said there are consequences for failing to submit the budget on time under the CNMI Planning and Budgeting Act.
“As a result of your failure to submit a proposal to the Legislature this year, your reprogramming authority has automatically been suspended under 1 CMC 7205(b). This unfortunate result will only serve to complicate the delicate process of restoring fiscal stability to our government,” Ogo told the governor in a letter dated May 1.
Ogo explained that there is no provision in the CNMI’s Planning and Budgeting Act for an extension to submit a proposed fiscal year budget.
“It is now one month after the statutory deadline for submission and my committee has not received any communication from your office in the matter. This is a very troubling development, particularly in these uncertain economic times,” the lawmaker said.
He added that such inaction on the budget issue further creates a bad impression about the islands’ economic situation.
“Late submission adversely affects legislative deliberations on the fiscal year budget, threatens to create financial chaos in the executive branch due to the 7205 suspensions and discourages potential investors because of perceived uncertainty in the administration,” he said.
“It is in the best interests of fiscal stability and our commonwealth’s long term economic recovery that your office submit a proposed budget for fiscal year 2008 without further delay. Our government and our people cannot afford the disruption to our services, jobs and our economy that this omission could generate,” Ogo added.
The governor’s special assistant for budget and management, Tony Muna, told Variety that the administration’s base figure for the FY 2008 budget would likely be around $163.5 million unless collections further decrease in the months ahead.