House Bill 16-169, or the Appropriations and Budget Authority Act of 2009, was passed by the House last week.
But the Senate has already prepared a substitute bill even before the House passed its budget measure. Senators are scheduled to hold a session on Oct. 15.
Palacios, R-Saipan, said House members have yet to see the Senate budget version.
“We want to work with them,” he added.
Based on the 57-page House budget bill, the Department of Finance projects tax collections of more than $169 million over the next 12 months.
Of this figure, $156.7 million will be left for different government agencies under the executive, legislative and judicial branches after payments for prorated financial obligations like bonds are taken out.
Palacios said the Legislature expects Finance to advise lawmakers if the revenue projections change.
Some lawmakers are concerned tax collections would be below $150 million this year due to the islands’ worsening economic conditions.
“If the projections drop, the Department of Finance secretary, by law, is mandated to effectuate a proportionate reduction on the budget of all branches of the government,” said the speaker.
He said the House wants to ensure that the Public School System and the Department of Public Health are provided enough resources.
The House budget bill does not contain any appropriation for Gov. Benigno R. Fitial’s $400,000 request to pay the lawsuit he filed to prevent the implementation of the federalization law next year.
The speaker said the money to pay the law firm of Jenner & Block in Washington, D.C. for eight months should be used in the CNMI.
