THE bicameral conference committee meeting ended in deadlock on Friday evening as the House and the Senate conferees again failed to agree on the number of government work hours that should be cut to have a balance budget in fiscal year 2011, which starts on Oct. 1.
Vice Speaker Felicidad T. Ogumoro, Covenant-Saipan, and Rep. Eliceo D. Cabrera, R-Saipan, two of the three House conferees, told their Senate counterparts that 383 government employees will lose their jobs on Oct. 1 if the work hours are cut by eight hours only.
Cabrera said this was based on the information provided to them by Gov. Benigno R. Fitial, who met with some of the conferees on Friday morning.
The Senate conferees yesterday agreed to seven unpaid holidays, or half of the number proposed by the administration and the House, but insisted on an eight-hour cut.
Sen. Ralph DLG. Torres, R-Saipan, and Senate Vice President Jude U. Hofschneider, R-Tinian, urged the House conferees to give the eight-hour cut a chance at least for the first quarter of the fiscal year while implementing revenue-generating measures — fee and tax hikes.
The senators said at the end of the first quarter, they will go back to the table and determine whether to continue the eight-hour cut or endure the pain of a 16-hour cut.
But the House conferees stood firm on their position.
According to Ogumoro, “it was made clear that if we will take the eight-hour cut 383 people will lose their jobs. We don’t want that to happen.”
She then asked the senators to reconsider the Saipan casino measure the Senate had already rejected.
At this point, Senate President Paul A. Manglona, Ind.-Rota, Sens. Juan M. Ayuyu, Ind.-Rota, Francisco Q. Cruz, R-Tinian, Henry H. San Nicolas, Covenant-Tinian, stood up and left the House gallery.
Manglona earlier said that the House should stop pushing for the Saipan casino.
“It troubles me that we are now talking about revenue-generating bills, but we didn’t help each other with the casino bill,” Ogumoro said. “If you’re really serious about raising revenue then let’s pass the casino bill.”
Torres asked the House conferees if they believed that increasing business license fees could allow for an eight-hour cut.
The House conferees said “no.”
Increasing the excise taxes and imposing new taxes could “probably” do it, Cabrera said. But reducing the rebate rates alone would not be enough, the House conferees said.
Cabrera also admitted that it would take time before a Saipan casino could generate new revenue.
Ogumoro said the Senate could still “entertain” the Saipan casino bill.
The Senate conferees then moved to vote on the eight-hour cut proposal. The result was a tie: 3-3. All the senators voted “yes” while their House counterparts said “no.”
Sen. Jovita M. Taimanao, Ind.-Rota, said “long hours and sleepless night have been spent on this issue, but it is useless to continue if we cannot step forward.”
Torres said if they could not agree then they should end the meeting and perhaps convene again on Monday.
But Ogumoro said they should also discuss the other items on their agenda — the appropriation for the Public School System, Northern Marianas College, the judiciary, Tinian, Rota and the Legislature.
“It’s late. We’re all tired,” Taimanao replied. “I agree with Senator Torres. We should take a break and resume on Monday.”
House Ways and Means Committee Chairman Ramon S. Basa, Covenant-Saipan and head of the conference committee, noted that from 10 areas of disagreement, the panel successfully narrowed it down to only one: the number of work hours that must be cut.
The conference committee has been meeting since last week, but yesterday’s was the first that was opened to the public.
On Monday, both the House and the Senate have scheduled sessions.
They must pass a balanced budget bill before Oct. 1 to prevent a government shutdown.
