THE Commonwealth government’s budget for fiscal year 2022 will be at the same level as FY 2021 — $96,476,054, Special Assistant for Management and Budget Vicky Villagomez told heads of government departments, branches and other agencies.
The FY 2021 budget, or Public Law 21-35, which Gov. Ralph DLG Torres signed at the height of the economic crisis due to the Covid-19 pandemic last year identified $144.4 million in revenue resources.
Of this amount, only $96.4 million was available for appropriation. This did not include the $4.5 million in public lands revenue allotted to the Department of Public Lands.
The rest of the FY 2021 financial resources totaling $47 million were for debt services, and included the government’s obligation to the Settlement Fund amounting to $41 million.
In her budget call memorandum for FY 2022, Villagomez said, “Operating in a pandemic environment has marked the greatest period of uncertainty and economic volatility our Commonwealth has ever faced, prompting the governor, through the Covid-19 Task Force, to quickly adapt the shifting forces that have short-circuited our economy to aid businesses to continue to survive or even thrive during the crisis.”
The estimated revenue for the FY 2022 budget, Villagomez said, will remain at the same level set by P.L. 21-35 “while we continue to operate in this period of uncertainty.”
After deducting the payment to the Settlement Fund debt service, Villagomez said the net budgetary resources available for appropriation in FY 2022 is $96,476,054.
She said OMB has established a baseline allocation pursuant to P.L. 21-35 to guide each agency as they start their budget formulation.
“Changes to the baseline allocation will vary between departments and may occur before the submission should the Finance secretary identify an adjustment in the net resources,” she said.
To address any adjustments in allocation, Villagomez said agencies will be allowed to keep the established ceiling in the number of positions pursuant to the current budget law. However, “the baseline allocation will [continue] to support the continuity of government operations at 64 hours,” she added.
“We encourage you to take an innovative approach when formulating your budget by being transparent and accountable for all allocated resources,” Villagomez told the agency heads.
FY 2022 starts on Oct. 1, 2021.
In September 2018, a few weeks before Super Typhoon Yutu slammed into Saipan and Tinian, the governor identified over $258 million in total budgetary resources of which over $167 million was available for appropriation for government activities in FY 2019.
