Shutdown will impact over 1,400 employees

The government has some 4,000 employees.

In a statement, Gov. Benigno R. Fitial said pursuant to Article III Section 9(a) as amended by House Legislative Initiative 16-11, “only government positions delivering essential services related to the ‘health, safety, and welfare of the people of the CNMI’ shall remain functioning.”

The administration said based on the figures of the most recent delayed payroll, checks were paid out to 710 essential employees and 426 federally funded employees.

But some 1,464 non-essential employees did not receive their paychecks last Friday, the administration added.

In preparation for the possible shutdown, the list of government employees that will not be reporting to work is expected to be greater as most of the services rendered by the government will be drastically reduced and the manpower will be significantly limited, the administration said.

Fitial, in his statement, expressed disappointment over the lack of legislative action on the budget “despite having submitted the administration’s proposal since April 1, 2010 or 181 days ago.”

“The Constitution mandates my office to submit a proposed balanced budget to the Legislature. I have fulfilled my obligation to the people. The Constitution further mandates that the Legislature should pass a budget for enactment by October 1. Disappointingly, the Legislature has failed to meet its obligation to the people,” Fitial said.

According to the governor, while the administration recognizes that thousands of lives stand to be affected by the lack of legislative action, it is also hopeful that both houses of the Legislature will come to terms and work together to pass a sound and balanced budget ahead of a historic shutdown of government services.

“I am appalled to see that the past 181 days have come and gone but there still remains a deadlock at the Legislature. My administration, through our budget submission in April, clearly spells out the projected government resources of $132 million and a spending plan that will reflect a 64-hour work week and unpaid holidays in order for the government to operate within its means.”

He said the administration has been preparing for the worst case scenario since the early part of this month.

He noted that the attorney general issued an opinion on Sept. 7, 2010 concerning the requirements necessary to prevent a government shutdown, and if a shutdown occurs, what constitutes essential services.

The administration, the governor said, has also been holding a series of meetings with department and activity heads to begin notifying their staff to make all necessary arrangements in preparation for a government shutdown.

Last-ditch

The Senate wants a joint “conference” today with the House of Representatives as a last-ditch effort to end the deadlock on the work-hour cut issue.

The Senate is insisting on an eight-hour cut and fee and tax increases.

The administration and the House said projected government revenue requires a 16-hour cut and 13 payless holidays.

Although the bicameral conference committee was set to meet yesterday at 4:30 p.m., the Senate wanted it dissolved so that all members of both chambers could meet and decide whether to allow a government shutdown or pass a balanced budget.

At 1 p.m. yesterday, Senate President Paul A. Manglona, Ind.-Rota, joined the committee meeting and told the House conferees that the Senate wanted a compromise.

He noted that there was a flexibility clause in the administration’s budget proposal, saying there was still a room for negotiation.

But Vice Speaker Felicidad T. Ogumoro, Covenant-Saipan, said a 16-hour cut was the only way to come up with a balanced budget.

If they agree on the Senate’s eight-hour cut proposal, she added, 383 employees will lose their jobs.

The House will decide today whether to agree with Manglona’s proposal for a joint conference.

During their session yesterday, the senators adopted a resolution calling for a joint conference between the House and the Senate to vote on the budget.

Introduced by Manglona, Senate Resolution 17-26 said voting on the differing budget versions of the House and Senate “may be the best option to overcome the deadlock.”

The joint conference meeting will give every member the opportunity to air their concerns and vote on which option to accept, the resolution stated.

It added, “This joint conference will take the decision-making power over the lives of our citizens out of the hands of six individually appointed representatives, and places this power in the hands of all elected members of the Legislature — 20 members of the House and nine members of the Senate.”

The resolution said “the people of CNMI can witness who among their elected officials will compromise for the best of all citizens.”

In a separate interview, Rep. Ramon S. Basa, Covenant-Saipan and  chairman of  the bicameral conference committee, said he is still confident that the Senate and House conferees can come to an agreement when they meet at 9:30 this morning.

Yesterday, after Manglona joined the Senate conferees, the bicameral conference committee went into an executive session — or closed door meeting — at 5 p.m.

An hour later, Basa called for a recess.

He said if today’s meeting still fails to resolve the dispute, then they may agree to a joint conference as suggested by the Senate.

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