Rep. Ray N. Yumul, R-Saipan and chairman of the House Committee on Ways and Means, said the bicameral conference committee has yet to meet and discuss the $150.5 million budget proposal for FY 2010.
In the absence of a passed budget for FY 2010 which began on Oct. 1, the CNMI government automatically operates under the FY 2009 budget amounting to $148.5 million — this is known as a continuing resolution.
FY 2011 starts on Oct. 1, 2010.
Yumul heads the House conferees while Paul A. Manglona, Ind.-Rota, heads the Senate team.
Yumul said he already notified the Senate conferees to meet with their House counterparts but there was no response yet.
“We have to discuss some major points about the budget and do some of the leg work,” he told the Variety.
Manglona could not be immediately reached for comments.
On Nov. 16, the House of Representatives rejected the Senate’s FY 2010 budget substitute bill because it sought to mandate 52 austerity holidays by cutting the work hours of government employees.
“The House is not in favor of the austerity holidays. That is going to be an issue,” said Yumul.
But the 16th Legislature’s term expires next month and the new leadership who will be sworn in next month are allies of the Fitial administration.
Between now and then, Yumul said there’s a very slim chance that the conference committee will act on the FY 2010 budget.
The FY 2010 budget is likely to be reintroduced in the 17th Legislature with provisions mandating the austerity holidays.
Saipan Rep.-elect Ramon S. Basa of the ruling Covenant Party will be the new Ways and Means chairman.
Yumul said the incoming leadership should consider the impact of H.L.I. 16-11 on the budget process.
“The passage of a budget bill is going to be of paramount importance to us,” said Yumul.
“The government could shut down without a passed budget for FY 2011.”
A Senate committee report on H.L.I. 16-11 said it has a “government shutdown provision [that] will force the legislative and executive branches of government to seriously review and enact a balanced budget on time.”
The committee said the continuing budget resolution has proven problematic for the cash-strapped CNMI government because it contributes to its mounting deficit every year.
“In past fiscal years where continuing resolutions have taken effect, deficits are accumulated and continue to increase when the previous fiscal year’s revenue collection is higher than the projected revenue collection of the current fiscal year. At present, this has amounted to over $170 million in deficit spending,” it said.
