A similar proposal, H.L.I. 16-6, which would have also required a government shutdown if there is no new budget, was “filed” — that is, shelved — by the House. This initiative, which was introduced by Rep. Heinz S. Hofschneider, R-Saipan, exempts public health, public safety, public schools and the judiciary from the government shutdown.
Introduced by Rep. Diego T. Benavente, R-Saipan, H.L.I. 16-11 also exempts public services “essential to the health, safety and welfare of the people of the CNMI….”
The CNMI Constitution allows the government to continue operating under the spending ceilings set by the last budget enacted into law.
Since 1998, only three budget measures became law. The government is still operating under the budget passed in 2006.
According to H.L.I. 16-11, “The failure to enact a budget has contributed to the…government’s cumulative deficit of…$170 million, which is in violation of…the Constitution…which requires that if an operating deficit is incurred…the government shall retire the deficit during the second consecutive fiscal year….”
Twenty-three U.S. states require a government shutdown until a new budget is enacted, H.L.I. 16-11 stated.
It added that 37 other states “have provisions against carrying deficits into the next fiscal year, which further enforces the principle of a balanced budget.”
H.L.I. 16-11 stated that “[t]here are many costs associated with the failure to enact a budget including increased operation costs, the inability to deal with contractual obligations and increased deficit spending resulting from working at the previous year’s spending levels. Other incalculable costs include the decline in public confidence in elected officials, damage to the image of the…government, and a poor credit rating.”
The House Judiciary and Governmental Operations Committee, in its report endorsing the passage of the legislative initiative, noted that the proposal “will remove the provision for a continuing resolution and…prohibit the withdrawal of any funds from the general fund except by appropriations made by law. Essentially, this will shut down the…government with the exception of critical services for which a plan for continued operation must be provided by law. This government shutdown provision will force the legislative and executive branches of government to seriously review and enact a balanced budget on time.”
The CNMI Constitution currently states that “If a balanced budget is not approved before the first day of the fiscal year, appropriations for government operations and obligations shall be at the level for the previous fiscal year.”
H.L.I. 16-11, which is now with the Senate, will amend this section to read: “If a balanced budget is not approved before the first day of the fiscal year no money shall be drawn from the general fund, provided that certain government services and employees must remain available in order to deliver services essential to the health, safety and welfare of the people of the commonwealth and to protect against damage to and destruction of property.”
A legislative initiative, which is a proposal to amend the CNMI Constitution, must be passed by 3/4 of the members of each house of the Legislature. It does not require the governor’s signature, but once passed by the Legislature, the legislative initiative is placed on the general election ballot to allow voters to either reject or ratify it.
The CNMI will hold its general elections in November.
