AG says budget cuts legal

GOVERNOR Juan N. Babauta’s decision to reduce the quarterly allotments of the judicial and legislative branches of the government is allowed by the Constitution and existing statutes, according to the Attorney General’s Office.

Attorney General Robert T. Torres said that based on the findings of AGO’s Civil Division, there is “clear authority, both constitutionally and statutorily,” for the governor to reduce the budgetary allotments for all branches, agencies and instrumentalities of the government, including the judiciary and the Legislature.

Torres said based on their review, the Public School System should not be “spared” from the third and fourth quarter allotment reductions.

Torres said the rule of proportionate reduction mandates a “consistent application” to all agencies, including PSS.

He said the Planning and Budgeting Act confers the governor the authority to make proportionate reductions when there is a $200,000 decrease in the government’s revenue.

The administration has certified that revenue estimates for the current fiscal year will amount to $193.369 million, or $16.606 million less than the Oct. 2001 revenue projection of $206.975 million.

Supreme Court Chief Justice Miguel S. Demapan and the leadership of the House of Representatives criticized the budget cuts.

But Torres said the three branches should have an “open and frank dialogue to address the fiscal issues challenging the government.”

He added, “This legal opinion is only one of those areas that are part of the dialogue. But the fiscal policy choices will have to be made by all three branches in the areas of public safety, public health (while) at the same time not compromising the legislative and judicial branches.”

Willing to discuss

House Speaker Heinz S. Hofschneider, R-Saipan, says he agrees that the three branches of government should meet and address the fiscal issues.

“I think that is the most appropriate recommendation,” he told Variety yesterday.

Lecia Eason, the legal counsel of the House of Representatives, said she found the opinion “interesting.” She did not elaborate.

Board of Education Chairman Herman T. Guerrero said they will not oppose the inclusion of PSS in the budget cuts.

“However, we hope that when the governor cuts our budget, he can reprogram sources from somewhere and put it in our budget,” Guerrero said.

Reaffirmation

Pamela Brown, Babauta’s legal counsel, said AGO’s legal opinion reaffirmed the governor’s authority to prevent deficit spending.

She said the governor has the authority and duty to ensure that the government will not go into deficit spending.

According to Brown, the administration is now working on the budget cuts for PSS.

“We are trying to find ways to provide PSS the needed resources while complying with the statutes,” she said.

“As far as the administration is concerned the AG’s opinion will serve as a guiding document on ensuring that the Constitution and applicable laws are not violated,” Brown said.

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