Pass the budget bill on time
THERE are 14 days left in the current fiscal year. The budget bill passed by the House remains pending in the Senate. Without a new balanced budget enacted into law on Oct. 1st, there will be a partial government shutdown. The first — and so far last — time that happened was in 2010. Amid a shrinking economy and a corresponding steep decline in government revenue, the House and Senate couldn’t agree on a compromise version of the budget bill. They, of course, blamed each other for the deadlock.
The partial government shutdown in October 2010 lasted 10 days, affecting about 1,400 “nonessential” government employees. When they returned to work, they learned that the new budget included a16-hour work cut per pay period and 13 unpaid holidays.
What was their reaction? “I will not vote for them again,” one of them told Variety, referring to the lawmakers. Said another government employee: “This is their last term.”
2022 is a gubernatorial election year, and the long-standing disagreement between the House majority and the governor seems to be no longer political, but personal as well.
As for the Senate, it is expected to amend the House version of the budget bill which the House is likely to reject. Can they agree on a compromise version on or before Oct. 1st? Or are they willing to inflict financial losses, among other unpleasant things, on government employees who will not be paid during the shutdown?
And for what? So that politicians running for office can call themselves “principled leaders” who are “for the people”?
You’re “for the people”? Then don’t take away their paychecks. Compromise. Pass the budget bill on time. Then bring your political or personal complaints about your opponents to voters.
Projected revenue is not actual revenue
FINALLY, one lawmaker has admitted that they cannot “legislate” a healthy lifestyle, and that the reason they want to raise taxes on tobacco and sweetened beverages is because they want to collect more revenue for CHCC. Anyway, the lawmaker said, tobacco and sweetened beverages are “not essential.” But alcohol is? What about processed meat products? Junk food?
We hope lawmakers and other politicians will, one day, realize that higher tax rates do not guarantee higher revenues. As economist Thomas Sowell has pointed out, tax revenue is dependent on how people react to tax rates. How can you possibly expect to collect more taxes — at least $3 million! — from the sales of tobacco and sweetened beverages if you raise their prices in this economy?
And speaking of “nonessentials,” who among the “principled, pro-people” lawmakers will introduce the cost-cutting measures mentioned in the 2020 CNMI Fiscal Summit: reduction in government work hours; reduction in personnel; reduction of jobs; reduction in overtime; reduction in travel; reduction in professional services; reduction in “all others”; the cancelation or postponement of the additional 25% pension payments; reduction in medical referral costs.
Show of hands please.
