The government’s net operating expenses for the incoming year is actually down to $135.5 million due to the economic downturn but Finance Secretary Eloy Inos said $15 million of stimulus money will be added to the budget leaving the CNMI with a total of $150.5 million.
With the proposed budget comes certain conditions like the imposition of austerity measures through reduced work hours/or workdays by 20 percent.
This will translate to about 26 unpaid days in a 52-week period throughout FY 2010, which starts on Oct. 1, 2009.
In his budget message to the Legislature, the governor said the government projects a revenue collection of $162.820 million.
Of the amount, $4.650 million is earmarked for transfer to other funds like tobacco control, solid waste, and the Commonwealth Utilities Corp. debt to Marianas Public Lands Trust and $7.670 million for debt service.
“This leaves $150.5 million in resources which is available for essential services and other general government operations. The FY 2010 revenue estimates represent a net increase of $2.416 million or 1.6 percent over the current mid-fiscal year estimate” the governor told the Legislature.
“It assumes a $15 million boost in resources associated with U.S. federal economic stimulus spending under the 2009 American Recovery and Reinvestment Act. It effectively offsets revenue loss of approximately $7.6 million in labor and immigration fees due to the extension of U.S. federal immigration law and $6.1 million in one-time transfers,” he added.
Under the proposed CNMI budget for FY 2010, which starts on Oct. 1, the Department of Public Health will get $34.9 million; Public Safety, $7.9 million; Corrections, $2.7 million; Division of Youth Services, $780,867; the Public School System, $38 million; Northern Marianas College, $4.3 million; and the Marianas Visitors Authority, $5.6 million.
Their combined budget represents about 60 percent of the total available resources for the government, leaving the legislative and judicial branches, independent programs, boards and commissions with 40 percent to divide among them.
The governor said his budget proposal is contingent upon certain conditions such as allocating only 11 percent for the Retirement Fund’s contributions, the imposition of austerity measures, reduction of “all other” funds by 20 percent and limiting personnel hiring for essential services only.
