At the same time, he appointed Larrisa C. Larson as the new secretary of the Department of Finance.
Larson has been serving as the acting secretary since Robert Shrack retired in October last year.
Her appointment requires the advice and consent of the Senate.
The governor said he and Lt. Gov. Eloy S. Inos are confident that Larson is “qualified and will be an asset” to the CNMI.
Before she became acting Finance secretary, Larson was Inos’ financial analyst.
In his letter to Senate President Paul A. Manglona, Ind.-Rota, and Speaker Eli D. Cabrera, R-Saipan, Fitial said financial adjustments are required.
The FY 2011 budget, which amounts to $132 million, should now be $122 million.
The $10 million cut, Fitial said, represents a 9.76 percent reduction which must be absorbed in remaining months of the current fiscal year which ends on Sept. 30.
Fitial is proposing an immediate “proportional reduction of 9.76 percent in the continuing budget authority of all branches, offices, departments, agencies, and instrumentalities of the commonwealth…subject to appropriations.”
Fitial said in accordance with Section 402 of P.L. 17-21, or the FY 2011 budget law, “I hereby seek legislative concurrence so that the effect of this reduction will be reflected in the budget authority remaining for the fiscal year.”
The governor said he realizes that this reduced budget allocation will have a significant impact on government operations and services.
“However, the current financial condition of the CNMI requires that we quickly realign government spending with available resources,” he added.
Agencies must examine their operations and activities and identify areas to cut or eliminate, he said.
“We must continue to provide essential services related to public health and public safety, but there are many areas of operations where costs can be curtailed. [T]he people of the commonwealth are relying on us to make the proper decisions necessary to reduce the overall cost of government operations,” Fitial said.
“I ask for your continued assistance and cooperation in our efforts to deal with these financial challenges,” he added.
Sen. Juan M. Ayuyu, Ind.-Rota, yesterday said the CNMI’s shrinking revenue base should guide the Legislature as it deliberates on a new budget.
Ayuyu said he and the other legislators must now accept the reality of things.
“It’s going to be harder. The revenue is going down and (government) operation that provides services is becoming less and less,” he told reporters.
Ayuyu believes that the House of Representatives will no longer have contentious deliberations on the budget that resulted in a partial government shutdown last October.
“We don’t want to stay late up to 2 a.m., again and we don’t want another government shutdown,” he added.
