Inos was asked by lawmakers to shed light on the “disparities” and “confusion” regarding the revised budget.
Lawmakers have noted that the administration continues to hire new personnel despite the government’s worsening financial conditions.
But Inos said the majority of new personnel contracts were for replacements and not additional hires.
The Retirement Fund earlier disclosed that the size of the cash-strapped government keeps on increasing.
Rep. Tina Sablan, Ind.-Saipan, noted that nearly 200 positions were certified by the administration since Jan. 2008.
These posts, she added, were for non-essential services.
The governor earlier vetoed the $156 million budget for fiscal year 2009, saying that the revenue projection was down to $148 million.
“We’re looking at about $22 million shortfall…if we do not do anything to reduce costs,” Inos said, adding that the administration cannot enforce more cuts without legislative action.
Yesterday, lawmakers also asked Inos about the cover-over funds received by the CNMI from the federal government on Nov. 26, 2008.
He said these funds were not included in the available resources for CNMI operation because the money was intended for a specific purpose — the people’s tax refunds and rebates.
The cover-over funds were excluded from the government’s estimated resources and revenues because the amount was not part of the general fund.
In the summer of 2008, Inos said CNMI received $26 million in cover-over funds that directly went to the rebate trust fund.
He said up to 70 percent of the $26 million went to taxpayer refunds.
The cover-over funds are taxes collected by the federal government from CNMI residents. Under the Covenant, these funds are supposed to be remitted to the CNMI government.
