THE bicameral conference committee on Friday agreed to reduce to $163.4 million from $172.5 million the revenue projection for fiscal year 2024 until they receive additional information from the administration regarding “new revenue sources.”
Supported by the House of Representatives, House Concurrent Resolution 23-2 included the $9.1 million that would be generated by the business gross revenue tax increase proposed by Gov. Arnold I. Palacios.
The Senate, however, questioned the constitutionality of including revenue that had yet to be collected based on a tax-hike measure that had not been introduced.
On Thursday, during a conference committee meeting, one of the House conferees, Rep. Blas Jonathan Attao, said that the proposed tax hike for BGRT was “embedded” in the governor’s $172.5 million revenue projection, and the $115.4 million budget available for appropriation in fiscal year 2024.
He said without the $9.1 million the FY 2024 budget available for appropriation should go down to $106 million and not $124 million as proposed by the Senate in its version of H.C.R. 23-2.
After a lengthy argument that, according to Senate Vice President Donald M. Manglona, “went around in circles,” the committee went on recess.
On Friday morning, the meeting and the debate resumed. Later in the afternoon, the conferees agreed to get more information from the administration regarding an update on the revenue projection and other “outside source” of funds.
Manglona then offered a motion to approve $163.4 million as the total identified budgetary resources for FY2024.
He said without new information from the administration, “we have to proceed with what is in front of us.”
Senate Floor Leader Corina Magofna seconded the motion, saying, “I’m supporting this motion because I don’t have sufficient information in front of me such as the additional resources that could be used to cover the shortfall of $9.1 million.”
By acclamation, the Senate and House conferees voted to approve Manglona’s motion.
The other conferees were Rep. Ralph N. Yumul, Rep. John Paul Sablan, Rep. Angelo Camacho, Rep. Marissa Flores, Sen. Karl King-Nabors and Sen. Frank Q. Cruz.
Also attending the conference committee meeting were Senate fiscal analyst Dave Demapan, Senate legal counsel Jose Bermudes and House legal counsel Joe Taijeron.
The CNMI government has until Sept. 30, 2023 to enact a new budget and avoid a partial government shutdown.
