By Gemma Q. Casas
Variety News Staff

THE Fitial administration’s proposed revised fiscal year 2007 budget reflects a $20 million cut in personnel costs.
Under Public Law 15-28, or the fiscal year 2007 budget of $193.5 million, the salaries of 4,927 full-time-employees, or FTEs, were budgeted at $135 million.
The amount has already been adjusted to reflect the 10 percent payroll cut as a result of the austerity holiday law which requires the shutdown of government offices every other Friday.
Today is the 18th austerity holiday. Ten more holidays will be observed or until Sept. 21, 2007 as mandated by Public Law 15-24.
The new proposed revised budget brings the government payroll costs to $114.435 million or down $20.46 million (15.16 percent) compared to the original appropriations.
The eight-page budget analysis table, however, did not indicate in detail how many of the 4,927 FTEs in the original budget will be affected in the 15.16 percent personnel cost reduction.
Spending for the “all others” item, which is used by government agencies for operations, is to be slashed by 15.54 percent or by nearly $8 million.
The utilities budget for various agencies will be reduced by 24 percent or from $7.312 million to $5.542 million.
Gov. Benigno R. Fitial announced that his administration may resort to a reduction in force, or RIF, due to the government’s steadily declining revenues.
The governor has instructed the Office of Personnel Management to prepare a RIF plan as early as April 24.
The RIF will not only affect contractual employees but civil service ones as well.
“You are directed to prepare an implementation plan for the reduction in force, including the establishment of retention standing and bumping rights for each employee, a timetable for implementation, form letters and requisite notices,” wrote the governor to OPM Director Mathilda Rosario.
Rosario has since communicated with the various department heads within the executive branch to prepare their staff members for the possible reduction in force.