The senators tried to convince their House counterparts that this legislation should allow for an eight-hour cut and not the 16 hours recommended by the administration which is also pushing for 13 payless holidays.
Senate Vice President Jude U. Hofschneider, R-Tinian, said the fee hike should address half of the projected shortfall in the next fiscal year’s budget.
The administration has proposed a $132 million spending level, but admits that this could still go down due to declining business activities.
The administration also estimated that 383 government employees will be laid off if the working hours are cut by eight instead of 16.
But Hofschneider said since the Senate is now agreeing to seven unpaid holidays, an eight-hour reduction should be possible if business fees are also increased.
H.B. 17-40 calculates that the business license fee increase will bring an additional revenue of $1.1 million in FY 2011.
Some members of the private sector have said that this is not the time to further increase the cost of doing business in the CNMI.
Gov. Benigno R. Fitial yesterday said he wanted to see the revenue-generating measure before making any comment.
In an interview after Friday’s conference committee meeting, House Ways and Means Chairman Ramon S. Basa, Covenant-Saipan, said the governor told them not to include measures that will hurt businesses.
“The governor told us we can pass any kind of revenue measures except those that will harm businesses. So, in essence, we are looking for fresh ideas to generate funds,” Basa said.
He said the measures proposed by the Senate will not immediately produce new revenue.
“But right now, we have to be very concerned about the cash flow. That is why we support the 16-hour cut,” he added.
Rep. Eliceo D. Cabrera, R-Saipan, asked: “How can we count the chicks if the hen has not laid eggs yet?”
Senate President Paul A. Manglona, Ind.-Rota, said the House and the Senate should focus on revenue generating bills.
But the House conferees, he added, seemed to be “diverting” the talks from the work-hour cut issue.
“They kept going around in circles talking about cash flow,” he said.
The conference committee will resume its meeting on Monday morning.
The Legislature has three days to pass a new budget — otherwise, the government will shut down and only the essential offices will remain open.
