Acting Finance Secretary Robert Schrack reported to Senate President Paul A. Manglona and Speaker Froilan C. Tenorio that the $17.6 million deficit includes the $5.8 million personnel expenditures of the executive, judicial and legislative branches of the government.
The Department of Public Health also contributed to the deficit because its “all others expenditures” exceeded its budget by $9.4 million.
The government’s utilities expenses likewise exceeded its budget by $2.4 million during the period.
“For the first six months of FY 2010, expenditures have exceeded allotments by $17.6 million,” Shrack said in his report to the Legislature. “The personnel expenditures are the result of payroll austerity measures not being implemented for FY 2010.”
“The Department of Public Health overexpenditures are the result of insufficient budgets for hemodialysis supplies and equipment, laboratory supplies and medical referral. Utility overexpenditures are the result of insufficient budgets for utilities,” he added.
The acting finance secretary noted the overexpenditures do not factor in the $3.154 million in expense transfers to non-general fund sources, the Compact-Impact grant and the American Recovery and Reinvestment Act, or ARRA, grant allocated to the CNMI during the six-month period.
“The unfunded and unremitted portion of the employer contribution to the [Retirement Fund] calculated at approximately $4.2 million has not been accrued and therefore, does not affect the expenditure amounts reported herein,” Schrack said.
The Department of Finance said the government spends $280,000 a day for its payroll but the government’s tax collections are steadily declining due to the weak economy.
