The House is specifically opposed to provisions that will cut government workers’ salaries by 184 hours through the re-enactment of 10 austerity holidays and 13 unpaid holidays.
The Senate, however, believes cutting hours is better than laying off people.
Speaker Arnold I. Palacios, R-Saipan, appointed Rota Independent Rep. Victor B. Hocog, the current chairman of the House Committee on Ways and Means, to chair the conference committee.
Reps. Edwin Aldan, Covenant-Tinian, and Justo S. Quitugua, D-Saipan, are his members.
Sen. Maria Frica T. Pangelinan, D-Saipan and chairwoman of the Senate Fiscal Affairs Committee, heads the Senate’s representatives to the conference committee.
Sens. Paul A. Manglona, R-Rota, and Joseph M. Mendiola, Covenant-Tinian, are her team members.
Hire and fire
During their deliberation, House lawmakers expressed concern over how their counterparts at the Senate distributed the $156.7 million identified resources for FY 2009.
Rep. Ralph DLG Torres, R-Saipan, noted the Public School System’s meager budget of $38 million is further reduced by $2 million by the Senate bill.
Rep. Heinz S. Hofschneider, R-Saipan, said, “We can’t continue to hire people and then fire them.”
House Minority Leader Oscar M. Babauta, Covenant-Saipan, for his part, said perhaps the CNMI Supreme Court should reconsider its decision that created two additional House seats.
“[Increasing the number of House seats from 18 to 20] is creating financial constraints,” he said.
Each lawmaker is paid close to $40,000 annually. Each is entitled to receive annual miscellaneous funds of up to $155,000 to finance the operation of their offices, including travels.
The House FY 2009 budget bill version cuts the miscellaneous funds of each legislator to just $108,000 a year.
Rep. Edward T. Salas, R-Saipan, said he agrees with the Senate’s position that at some point the government workforce should be further reduced to keep it afloat.
“As painful as it is, there’s really a need for the government to downsize,” he said and added that those who may be displaced be given priority in the available job market in the private sector.
Locals prefer to work in the government because it pays more.
The minimum wage in the private sector is set at $4.05 an hour.
The islands’ minimum wage is mandated to be increased by 50 cents every year until it reaches the federal rate of $7.25 an hour.
Administration concerns
Gov. Benigno R. Fitial is not keen on supporting the budget versions offered by lawmakers.
He said both have questionable provisions that “tie the hands of the governor” in administrative matters.
He cited as example a provision that will require the adoption of a joint resolution whenever the administration will hire certain services.
“Don’t tie the hands of the governor. The Legislature should give more leeway to provide essential services to the people,” he said.
Both versions also do not contain appropriations to pay the Washington-based law firm of Jenner & Block, which the governor hired to question the legality of the labor provisions of the CNMI federalization law.
But Finance Secretary Eloy Inos said the Senate substitute bill is consistent with the administration’s call for the re-imposition of austerity and unpaid holidays.
