Exempted are “certain government services and employees [who] deliver services essential to the health, safety, and welfare of the people.”
The new constitutional amendment also states that if the Legislature “does not pass a balanced budget by Oct. 1, the legislators’ salaries shall be suspended until such time that a balanced budget is passed by the Legislature.”
Demapan said the government can no longer operate on a continuing resolution, which is the last budget enacted into law.
He noted that the governor submitted a proposed $132 million budget for FY 2011 more than three months ago.
A lawmaker, who declined to be identified, said not all legislators show up for meetings on the budget.
He also disclosed that the $132 million proposed by the administration already included the austerity measures.
Without these measures, he added, the budget based on anticipated revenues would be less than $100 million.
Austerity Fridays
The administration’s proposed shutdown of public offices every other Friday may begin as early as this month.
Some employees of the cash-strapped CNMI government told the Variety they anticipate the first austerity Friday to take effect on July 23 assuming that the House of Representatives and the Senate, which are scheduled to hold sessions this week, will pass House Bill 17-45 or the Pay Period Reduction Act of 2010 offered by Rep. Ramon S. Basa, Covenant-Saipan and chairman of the House Ways and Means Committee.
In an interview on Saturday, Senate President Paul A. Manglona, Ind.-Rota, said the Senate will heed the recommendation of the House-Senate conference committee.
“If this is their recommendation, we have to do it. We have no choice because the employees said in previous public hearings that they would rather see austerity Fridays than payless paydays,” Manglona told the Variety.
The Senate conducted a series of public hearings on Saipan, Rota and Tinian regarding H.B. 17-45.
Manglona said many of the employees who attended the hearings expressed concern over the government’s over expenditures and would want to see more fiscal responsibility if their salaries are cut.
“Many expressed concern that if the government employees have to sacrifice one day every two weeks of their salaries, they expect the government, by that I mean all three branches, to make sacrifices as well and reduce their expenditures,” he said.
Rep. Ray N. Yumul, R-Saipan, said the conference committee has yet to officially turn in the latest version of H.B. 17-45 but he heard that the austerity Friday will not be limited to FY 2010 and FY 2011, which starts on Oct. 1, 2010.
“It will be perpetual or until a legislative action repeals it,” he added.
During the June 18 pay period, only critically needed personnel — firefighters, teachers, medical personnel, police and corrections officers as well as federally funded employees — got paid on time.
The rest received their pay checks three days later.
