The administration drafted a stand-alone austerity holiday bill that will be transmitted to the House — which opposes the proposal — when it convenes today.
Fitial said the measure was drafted after the Senate overrode his veto of House Bill 16-213, the $148 million budget bill.
The House majority is likely to get the required 14 votes needed to override the veto.
In a press conference yesterday, the governor said the Department of Finance’s projected tax collections of over $160 million will further go down to $148 million this fiscal year.
He said it’s still uncertain how much will be left for local appropriations following Northwest Airlines’ decision to downsize its aircraft and suspend some of its Saipan-Japan routes.
Finance Secretary Eloy Inos said the administration’s proposal is to cut the government work-hours to 72 from 80 every pay period.
He said this will be accomplished by re-imposing austerity holidays wherein government offices are shut down every other Friday.
“It’s essentially a bill that will address the cost-cutting measure. The first part is a recommendation to re-enact the austerity holidays on a 72 hour [basis] every two weeks,” said Inos.
“It will comprise of unpaid holidays and unpaid austerity Fridays every two weeks. It will be one or the other but not both,” he added.
Only federally funded positions will be spared from the proposal.
Inos said austerity holidays will not be applied retroactively but only from the date that the legislation is approved and it will end on Sept. 30, the last day of FY 2009.
The government has 26 pay periods.
“It’s truly about cost-cutting,” said Inos.
The government has approximately 4,000 employees.
Of this figure, about 1,900 are under the executive branch.
Just like in 2006, Inos said the administration will allow the Public School System and Northern Marianas College to implement the austerity holidays based on their school calendars to avoid disruption of classes.
