Palacios, R-Saipan, said they will appropriate the advance interest fee that the Marianas Public Land Trust will turn over to the general funds and earmark the amount for the Aggreko contract.
CUC’s $4.5 million loan from MPLT carries a 7 percent interest rate that will translate to $650,000 in 36 months.
MPLT remits interest fees raised from its various investments to the general funds every year.
Palacios said the budget for other government agencies, which will be affected by the earmarking, “has to be addressed at a later time,” adding that this option will “take away” about $1.7 million from the general funds which should allow CUC make an initial payment to Aggreko.
“The [2009] budget has to be adjusted,” he said. “It’s a matter of priority. What would we rather do? To me the power plant is the most important, the most important infrastructure that needs to be addressed. Every thing else comes secondary.”
The speaker said “revenue side of the budget has to be revisited.”
The fiscal year 2009 budget proposal is currently with the House Committee on Ways and Means.
The governor has requested a budget of $158.4 million for fiscal year 2009 which calls for certain cost-cutting measures.
