By Gemma Q. Casas
Variety News Staff

GOVERNOR Benigno R. Fitial vetoed the second of the two bills that would have exempted the Public School System from the budget cuts, saying that while he is fully aware of the importance of education, the measure “is unreasonable and unsound.”
Authored by Rep. Joseph Deleon Guerrero, R-Saipan, H.B. 15-242, seeks to reduce by 5 percent the budgets of the Commonwealth Development Authority, the Commonwealth Ports Authority, the Office of the Public Auditor and the Commonwealth Utilities Corp.
CUC would bear the largest cut estimated at $5.88 million.
Fitial said CUC and CPA’s earnings are pre-allocated to cover their projected expenses for the year.
“CUC and CPA are rate-financed such that revenues earned are based on rates that are expected to recover ordinary and necessary operational costs, furniture, fixtures and equipment replacement, major repairs, necessary operational cash reserves and debt service,” said Fitial.
“If I approved this measure, CUC and CPA must raise rates and fees to accumulate the necessary cash to meet their financial obligations and to transfer funds to PSS and (Northern Marianas College),” he added.
The governor said CUC projects its rates would increase by 25 percent “to accommodate PSS by Sept. 30, 2007.”
“A CUC rate increase of 25 percent will further burden all customers, including PSS and other government agencies as they will be required to pay more for utilities. This bill fails to account for such calculations,” he said.
“If CUC were in a position to give cash surpluses, then all customers deserve relief through a rate rollback,” the governor added.