Bill will allow scholarship offices to receive education tax credit donations

By a vote of 11 to 8, Senate Bill 17-24 introduced by Sen. Juan M. Ayuyu, Ind.-Rota, was passed by the House with an amendment offered by Rep. Stanley T. Torres.

Torres, Ind-Saipan, wants the recipients of ETC contributions to “report to the presiding officers of the House and Senate, the amount of funds received and how such funds are expended.”

S.B 17-24, which now returns to the Senate, will add the CNMI Scholarship Office, the Saipan Higher Education Financial Assistance program, the Rota Municipal Scholarship and the Tinian Municipal Scholarship to  the list of institutions qualified for ETC donations.

Current law allows the Public School System, Northern Marianas College, other educational institutions, the CNMI Museum, the Council for the Humanities and the Northern Marianas Trades Institute to accept such donations, which entitle the donor to deduct the amount from his taxable income.

Rep. Frank S. Dela Cruz, R-Saipan, opposed the bill. Although the proposal is a “noble effort” in serving the best interest of education, it will further hurt the already dwindling financial resources of the government, he said.

Government revenue, he added, is declining and the Legislature must fill government coffers.

By passing S.B. 17-24, Dela Cruz said, “we will not be able to achieve that.”

Rep. Raymond D. Palacios, Covenant-Saipan, also does not support the bill, saying it is basically taking away some revenue that is supposed to  go to the general fund.

But House Minority Leader Diego T. Benavente, R-Saipan, said the bill intends to support the CNMI’s education system and will have a “minimal” impact on government coffers.

Those who voted yes to S.B. 17-24 were Benavente, Speaker Eli D. Cabrera, R-Saipan; Vice Speaker Felicidad T. Ogumoro, Covenant-Saipan; House Floor Leader George N. Camacho, Ind.-Saipan; Reps. Ramon S. Basa, Covenant-Saipan; Fredrick P. Deleon Guerrero, Ind.-Saipan; Sylvestre I. Iguel, Covenant-Saipan; Stanley T. Torres, Ind.-Saipan; Ray N. Yumul, R-Saipan; Trenton B. Conner, R-Tinian; and Teresita A. Santos, Ind.-Rota.

Those who voted no were Dela Cruz, Palacios, Reps. Joseph P. Deleon Guerrero, R-Saipan; Tony P. Sablan, R-Saipan; Ray A. Tebuteb, R-Saipan; Froilan C. Tenorio, Covenant-Saipan; Ralph S. Demapan, Covenant-Saipan; and Edmund Villagomez, Covenant-Saipan. Rep. Joseph M. Palacios, R-Saipan, was absent.

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