House Speaker Heinz S. Hofschneider yesterday advised House members and their staff to implement cost-cutting measures following the administration’s decision to reduce the budget allocation for each legislator by 16.3 percent.
To avoid deficit spending, the speaker said lawmakers must reduce the working hours of their staff to six hours a day. He also told them to make necessary adjustments to save money by cutting costs on other office expenses.
Based on the third and fourth quarter allotments issued by the Office of Management and Budget, each lawmaker will receive $32,537 per quarter or 16.3 percent lower than the previous quarterly allotment of $38,750.
The CNMI Constitution mandates an annual budget allocation for each lawmaker not exceeding $155,000. The Constitution also mandates that starting in 1998, this budget should increase based on the 1996 composite price index.
Since 1998, however, the government’s revenue collection has continued to decline.
Hofscheneider, R-Saipan, said he had to be “frank” with the House staff.
“Austerity measures mean salary reduction. There is not a penny left for us to reprogram, and we cannot operate on a deficit. So I have no choice but to reduce the salary of my people,” Hofschneider said.
The speaker said the House “should stop being a cry baby” as what some people have claimed and “just follow the governor’s (directive).”
However, House Floor Leader Jesus T. Attao, R-Saipan, questioned why the cut was 16.3 percent when the directive that came from Lt. Gov. Diego T. Benavente stated that it would only be 8.02 percent.
“The letter that the administration sent to the presiding officers of the Legislature only talked about the 8 percent cut. We were not advised that the reduction will be amended,” he said.
Attao also urged Hofschneider to clear the matter with the executive branch. “What we are trying to do here is to be fair. Why do we have to ‘kill’ our own people when the administration is hiring people who receive salaries above the cap? The governor has to be consistent in implementing austerity measures,” Attao said.
Rep. Arnold I. Palacios, R-Saipan, shared Attao’s position. “I, for one, will look into my personal account and see what I can do to save. But I’ll be damned if I will certify huge salaries and sanction salary increases. The cut should be proportionate and equitable,” he said.
Rep. Herman T. Palacios, R-Saipan, flared up during the briefing with the House staff, claiming that the executive branch could not usurp the authority of the Legislature on budget cuts. “I want to take this matter to the court. This has to be settled once and for all,” he said.
