Gov. Benigno R. Fitial, in his State of the Commonwealth Address which he submitted to the Legislature on Friday, indicated that the government spent $16.2 million more than what the budget appropriated in FY 2010.
Due to the $2.3 million shortfall in revenue collections, the deficit for FY 2010 totaled $18.5 million, the governor said.
Fitial said the $6.6 million in excess personnel cost was for the Commonwealth Health Center and the Department of Public Safety, while $9.7 million went to the hospital’s operation cost, including $4 million in medical referrals and $3.1 million in local share for Medicaid.
Fitial said there is also an unfunded and unremitted portion of $7.8 million in government employer contribution to the Retirement Funds.
The governor’s report indicated that most government agencies including those on Rota and Tinian spent more than the amount allotted to them.
The governor’s office overspent by $425,712; CHC, $10.4 million; medical referrals, $4 million; Medicaid $3.1 million; DPS, $3.1 million; Finance, $1.1 million; Department of Community and Cultural Affairs, $509,990; Department of Labor, $151,905; Department of Commerce, $133,340; Department of Corrections, $371,000; Department of Lands and Natural Resources, $218,000; Department of Public Works, $146,000; and the CNMI Scholarship Office, $192,447.
On Rota, the government overspent by $927,985. On Tinian, the government overspent by $488,000.
The only government entities that spent less than their allotments were the Saipan mayor’s office which spent $9.7 million of the allotted $17.3 million; the Attorney General’s Office, which saved $17,373; and the
Department of Public Health’s non-hospital division, which saved $1.7 million.
Fitial said if the 16-hour cut per pay period had been implemented in FY 2010, the government would have saved $15.8 million and would have balanced the budget despite the overspending at the hospital and medical referrals.
Rep. Fredrick P. Deleon Guerrero, Ind.-Saipan, said the report was “very disappointing.” He said overspending must stop “because we no longer have the money to overspend.”
He added, “We all have to tighten our belts. We cannot go on like this.”
Rep. Sylvestre I. Iguel, Covenant-Saipan. said the government now has no other choice but to reduce its size.
