Tinian plans to pass a new budget for FY 2011 in the next two weeks.
Tinian had a $4.9 million budget in FY 2006.
To achieve a balanced budget, Dela Cruz said his proposed FY 2011 budget reflects the anticipated revenue as certified by the municipal treasurer and concurred by the Tinian Casino Gaming Control Commission whose revenue projection, according to its chairman Ignacio K. Quichocho, is unofficial due to lack of quorum on the board.
“With such a drastic reduction in the projected revenue, significant cuts have to be made in all areas including personnel,” Dela Cruz told the legislative delegation and some of his constituents who attended the public hearing in the Tinian Elementary School cafeteria.
The municipality has 26 full-time employees paid $1.8 million a year, but this will go down to $1.4 million, he mayor said.
His office recommended a cut in the salaries of all “ungraded” positions receiving over $50,000 to $50,000, and those receiving below $50,000 will get 15 percent less.
The gaming commission will be given a lump sum amount approximately 12.5 percent less than its current funding level and will be required to adjust its personnel to operate within its means.
The commission’s funding level was not disclosed but each commissioner gets $100,000 in annual salary and benefits. The commission has five seats, but three are vacant.
Public programs, Dela Cruz added, will account for approximately 12.5 percent of the budget and about 15.5 percent will go to debt service.
From $1.1 million in the previous fiscal years, the mayor’s office will get $426,000 in FY 2011. Its budget for personnel went down from $858,000 to $143,841.
The mayor’s office will no longer have a budget for machinery, tools and equipment, communications, freight and handling, printing and photo copying.
From $7,380 last year, the mayor’s office will pay only $1,000 for personnel insurance.
The money allotted for health insurance also went down from $29,529 to $4,000; the retirement contribution from $73,238 to $37,390; and Medicare contribution from $10,701 to $1,450.
The budget for the municipal treasurer went down from $320,373 to $220,761.
The mayor’s office also cut the contingency and discretionary funds from $130,000 to $60,000.
However, there are some allotments that went up for this year.
From $32,000 last fiscal year, money set aside for professional services is now $72,000; the repairs and maintenance budget went up from $5,000 to $48,200; fuel and lubrication from $10,000 to $30,000; supplies and operation from $10,000 to $24,000.
In an interview after the public hearing, Dela Cruz said his budget submission is a “reflection” of the significant decrease in projected collections.
He said he has to cut personnel cost and remains reluctant to name a new gaming commissioner.
Quichocho agreed that there should be cuts but said they have to maintain at least a minimal number of positions in order to function.
The commission, he added, lacks a licensing officer, inspectors and one board member necessary to have a quorum.
Quichocho refused to release the copy of the commission’s budget projection saying it was “unofficial.”
“Because we do not have the quorum, we cannot conduct official business so our budget submission is unofficial,” he said.
Balbina Perez, a high school teacher, asked: “What part of ‘no money’ don’t we understand? Where are we going to get the money?” referring to the commission’s request to hire more employees.
Municipal Council Chairman Patrick Manglona said he is confident that “we can move on.” The U.S. economy, he added, is already bouncing back.
