The delegates passed on third and final reading a proposed budget of $58,369,000.
President Johnson Toribion g called for a spending ceiling of $54.2 million, of which $36 million is derived from locally generated funds with the remaining $18.25 to come from Compact assistance, including the Compact Trust Fund.
The House Committee on Ways and Means in its committee report stated considering all financial information the local revenues can be projected at $37 million and is convinced that FY2011 is a lot better than 2010.
“The committee is optimistic that local revenues in FY2011 will at least be equal or slightly higher than was what originally projected for FY2010.
The panel said that the amount will also do away with a supplemental budget later on.
“Putting too much emphasis on supplemental budgets will only entail poor budget management and encourages more spontaneous spending practice. Supplemental budgets should only be entertained when an emergency arises to require additional funding. With that, your committee recommends removing any language or sections in this bill that relies upon the possibility of supplementing this budget later in the year,” the committee report said.
The House version also included the amount that can be generated from the proposed new form of taxes.
The president version also wants the salaries cut by 10 percent which will only be implemented for a year to save $195,000 in revenues.
This proposal has been rejected by the HOD saying it is a short-sighted policy.
The HOD also restored the proposed 25 percent slash on the state block grants budget.
State governors have earlier opposed the cuts. The delegates justified the reinstatement of the cuts by saying that most of the states still rely on the grants.
The delegates also increased the budget of the judiciary to cover the new jury system.
The House also recommended the inclusion of a Protected Areas Network Grant section in the budget to allow the disbursement of the environmental protection fees.
The HOD also recommended holding off on the president’s proposed $200,000 increase to allow for a complete free lunch to public school students until such time that the government is assured of its ability to sustain such program.
The measure has been transmitted to the Senate for action.
