“Reducing the number of austerity holidays increases the budget. It’s just bad because the private sector is not vibrant enough to cushion the impact of the transfer of public sector workers,” he told the Variety.
Saipan Republican Rep. Ray N. Yumul, the chairman of the House Committee on Ways & Means, prefiled on Friday House Bill 16-275 or the Appropriations and Budget Authority Act of 2010.
It sets the government’s budget for the incoming fiscal year at $150.5 million.
The semi-autonomous Department of Public Lands is separately budgeted for over $3 million.
FY 2010 starts on Oct. 1, 2009 and ends on Sept. 30, 2010.
Inos, a former finance secretary, said there should not be any adjustment in the projected revenues even if the appropriation to pay the Retirement Fund should go up from 11 to 16 percent.
“No, I don’t think there needs to be adjustments on the resources’ side. I don’t think so. The 16 percent payment to the Retirement Fund is on the expenditure side. They [lawmakers] have to find ways to offset that to make-up the 5 percent increase,” Inos told the Variety.
Included in the 31-page budget bill is a call for government offices to impose at least 52 austerity holidays or a day less per work week throughout FY 2010.
Inos said the administration’s budget proposal is contingent on the austerity holidays.
Of the $150.5 million proposed budget, $109.658 million is allocated for personnel expenses.
H.B. 16-275 allows department heads to adjust their work time and to make sure that their personnel budget does not exceed what was appropriated.
“In the absence of legislatively imposed austerity Fridays and unpaid holidays, all expenditure authorities are hereby authorized to make adjustments or changes to their personnel expenses within the limits of the personnel appropriation of each respective business unit,” part of H.B. 16-275 reads.
Using taxpayer money for litigation is also restricted under the proposed budget measure, but subject to exemptions.
“Except for the governor, the attorney general, the chief justice of the commonwealth Supreme Court, presiding officers of the Legislature, mayors, municipal councils, and notwithstanding any law to the contrary, no agency expenditure authority may use any part of their appropriations in connection with prosecuting a legal matter against another agency, unless authorized,” the bill stated.
Under the proposed budget, each lawmaker’s annual miscellaneous fund allowance for FY 2010 is further reduced to $89,335 from previous allocations of up to $155,000.
This appropriation goes to pay lawmakers’ staff, travel expenses, among other activities related to the functions of their offices.
The House of Representatives is expected to schedule a session this week to further discuss the budget bill.
