Vol. 35 No.38
       ©2007 Marianas Variety
Tuesday, May 8, 2007 www.mvariety.com
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Governor vetoes 1 of 2 PSS budget restoration bills

By Gemma Q. Casas
Variety News Staff

GOVERNOR Benigno R. Fitial yesterday vetoed a bill that would give him reprogramming powers to restore the Public School System’s budget cuts, saying the measure was no longer necessary.
“Since (House Bill 15-255) was passed by the Legislature late last month, I have taken two actions designed to deal more comprehensively with the budgetary challenge facing us,” the governor said in his veto message to the Legislature.
On May 2, the governor transmitted to the House and the Senate a proposed revised fiscal year 2007 budget reflecting a disproportionate distribution of the $30 million projected revenue shortfall to spare PSS and other “essential service” agencies from further budget cuts.
“An amended budget, once approved, will allow for the disproportionate distribution of the reduction in resources of about $30 million in order to restore cuts to essential service activities,” said the governor.
PSS’s original appropriations under the FY 2007 budget amounted to about $38 million.
If PSS is included in the proposed 15.6 percent additional budget cuts, it would lose $6 million.
Vice Speaker Justo S. Qutugua, D-Saipan, introduced H.B. 15-255, which allows the governor to reprogram up to $6 million for PSS.
The House of Representatives also passed House Bill 15-242 which seeks to reduce by 5 percent the budgets of at least four autonomous government agencies to come up with more funding for PSS and Northern Marianas College should the 15.6 percent FY 2007 budget cut be implemented.
The Senate has likewise passed the measure which now awaits the governor’s signature.
H.B. 15-242, however, would result in a lost of $5.88 million for the financially troubled Commonwealth Utilities Corp.
Based on the Legislature’s estimate, if H.B. 15-242 becomes law, the Commonwealth Development Authority’s budget would be reduced by $58,953.30.
That of the Commonwealth Ports Authority ($11 million) would be slashed by $554,515.55.
CUC, which operates on a $117.777 million budget, would lose $5.888 million.
And the Office of the Public Auditor’s $3.133 million budget would be cut by $156,643.70.