Rep. Heinz S. Hofschneider, R-Saipan, said the governor should stop “political gamesmanship.”
“Where is the $17 million in cover over funds obtained in November?” he asked.
Hofschneider said it’s important to have a new budget to control government spending.
Senate Fiscal Affairs Committee Chairwoman Maria T. Pangelinan, D-Saipan, said lawmakers should not allow the government to operate in yet another fiscal year without a new budget.
Rep. Joseph C. Reyes, R-Saipan, said he does not buy the governor’s excuses for again vetoing the budget bill.
“Why did he overspend in the first quarter of FY 2009? And how much more will he continue to overspend?” he said.
Rep. Stanley T. Torres, R-Saipan, said: “I hope the override vote will work this time.”
Torres was among the Republican House members who joined the minority in voting against an override.
The vote last Jan. 12 was 10 to 8 in favor of an override, which needed 14 votes.
Hofschneider reiterated his opposition to the governor’s austerity measures imposed on lowly paid workers while the administration continues to hire new employees.
He said he is confident his colleagues in the House will override the governor’s veto.
“There are no more excuses not to,” he added.
Declining revenues
In his three-page veto message to the Legislature, the governor said House Bill 16-21, or the Appropriations and Budget Authority Act of 2009, does not contain austerity measures that will cushion the anticipated further decline on tax collections.
Further, the governor said the budget bill is unconstitutional because it will usurp the executive and judicial branches’ rights on personnel matters.
A provision was inserted in the budget bill requiring the approval of the House and the Senate presiding officers for any replacement hires.
“Sections 1 of Articles II, III and IV of the CNMI Constitution clearly separate the powers between each of the three branches of the government. It is unconstitutional, therefore, to subject the judicial and executive branches to the legislative branch’s authority where hiring practices are concerned,” Fitial said.
The governor also noted that a section requiring the secretary of labor to prepare and present a report to the Legislature by May 1 is irrelevant to the budgetary process or allocation.
“Matters relating to the effects of U.S. Public Law 110-229, effects of Public Law 15-108, job placements of residents, number of foreign national workers legally present or overstaying, or trends in caseloads, hearings and claims have no bearing in the appropriations for the Department of Labor,” he said.
He said the Compact-Impact reimbursements were improperly distributed to seven grantees.
“Reprogramming of the said funds requires resubmission of figures to the grantor and approval thereby. The Legislature acted in contravention to the grant conditions by redistributing the amounts…in the measure,” he said.
Bleak economy
In the proposed FY 2009 budget, the Department of Finance identified more than $160 million available funds for the period.
However, Fitial said the estimates have to be re-adjusted because local tourism activities are expected to further fall this year with Northwest Airlines’ decision to suspend its direct flights between Saipan and key locations in Japan.
Northwest is the only international airline flying direct between the CNMI and Japan, the main market of the local tourism industry.
Fitial said studies show that the move will reduce economic activities in the CNMI by close to $90 million and an undetermined amount of potential taxes for the government.
“Such significant impact cannot be ignored in addressing the available resources and the ability of the government to continue serving the commonwealth,” he added. “I urge the Legislature to pass legislation to implement necessary austerity measures to continue delivering essential services to the residents of the commonwealth.”


