THERE is a possibility that the fiscal year 2025 budget proposal that Gov. Arnold I. Palacios submitted to the Legislature will be adjusted in July, Variety learned on Thursday.
The revenue projection and several spending items are likely to be revised, Variety was told.
In April, the governor submitted to the Legislature a $111.4 million budget proposal for FY 2025, saying that his administration “has had to make difficult decisions that preserve essential services while also recognizing the need for prudent financial management.”
In his submission, the governor identified $158.6 million in projected budgetary resources consisting of $62.3 million in business gross revenue tax collections, $33.6 million in income taxes, $50.2 million in other taxes, $9.5 million in fees, $1.5 million in charges for services, and $1.3 million in “other revenue.”
During a press conference on April 30 following Saipan Portopia Corp.’s announcement that it would shut down Hyatt Regency Saipan on July 1, 2024, the governor said he had asked the Department of Finance to look at the impact of the hotel’s closure on government revenue.
He said it would obviously affect government income in the short term.
For its part, the House Ways and Means Committee is now preparing for the budget review process, which will start next month.
In an interview on Thursday, the committee chairman, Rep. Ralph N. Yumul, said they will start holding budget hearings in the first week of June, and these will continue throughout the month.
He said his committee has already received budget requests from various government agencies.
“We will go through the process next week as soon as the agencies confirm their availability at the earliest time,” he added.
For the first and second quarters of the current fiscal year, the CNMI government had reported revenue shortfalls of $5.3 million and $4.1 million.
Based on the latest figures, the islands’ tourist arrivals and hotel occupancy rates are still significantly below their pre-pandemic levels.
