By Moneth G. Deposa
Variety News Staff

THE plan to temporarily lay off government personnel was confirmed by Gov. Benigno R. Fitial in his State of the Commonwealth Address last week, according to the Tinian mayor’s financial consultant Rex I. Palacios.
Palacios, who earlier revealed that a furlough was among the alternatives being considered by the Tinian municipal government, was earlier criticized by members of the island’s legislative delegation for disclosing the plan, saying it created “panic” among residents.
“What the governor announced is a confirmation of the expanded furlough plan that the Tinian mayor’s office is considering as an option to reduce costs,” Palacios said. “The plan is not only being considered for Tinian office but for every agency and department of the government,” he told Variety in an interview.
Palacios said with the implementation of austerity holidays, a furlough is already in place.
“This is the first time in the government that he’s talking about reduction in the workforce. So I was just expressing my thoughts and now that the governor has confirmed this may happen, this only proof that we’re not the only ones thinking about it,” he said, adding that the plan “is the type of solution that governments implement in times of economic distress.”
Palacios was asked by Tinian Mayor Jose P. San Nicolas to identify where expenditures can be reduced in anticipation of the 39 percent budget cut.
The municipality used to receive an $11.2 million annual budget.
“What other solutions do we have?” Palacios said. “We cannot generate more revenue and we have to cut cost and because personnel is the highest cost in the government…we must look into that area,” he said, adding that the government has no choice and needs the political will to get it done.
Palacios described the governor’s report as “realistic” because it discussed the commonwealth’s “real situation.”