Sen. Maria T. Pangelinan, D-Saipan, said the 392 is based on a fiscal year 2010 budget shortfall of $8 million and on the assumption that the governor’s austerity measures, which include work-hour reductions and paycuts, will be implemented.
“If austerity is not implemented, the number [392] would be three times as much [or 1,176],” she added.
The government, which is the main employer of local residents, has over 4,000 workers.
“The FY 2010 budget definitely has to be revised,” the senator said. “The executive branch has to start thinking of prioritizing public health, public education and public safety. Non-essential programs have to be either reduced or eliminated.”
In her analysis of the court ruling’s impact on the government’s financial condition, Pangelinan noted that the CNMI’s Compact-Impact aid for FY 2010 will be reduced from $5.1 million to $1.9 million.
The court ruling, moreover, reduced the government’s outside general fund resources by some $1.6 million, she said.
The Fitial administration on Thursday said it was reviewing the impact of the court ruling, which stated that the cash-strapped government owed the Retirement Fund $231 million and should pay an employer contribution rate of 16 percent.
The government said it could only pay 11 percent.
For FY 2010, the governor earlier identified $162.82 million in projected revenues.
Of this amount, $4.65 million was earmarked for transfer to other funds — tobacco control, solid waste and the Commonwealth Utilities Corp.’s debt to the Marianas Public Land Trust. An additional $7.67 million was for debt service.
This should leave $150.5 million for general government operations, but Pangelinan said the actual figure would be $147.3 million.
To comply with the court ruling, however, this amount must be reduced by at least $8 million — if austerity measures, which most lawmakers oppose, are implemented.
The governor is expected to submit a revised FY 2010 budget proposal.
