Gov. Benigno R. Fitial proposed a $158.4 million budget for the incoming year about 3 percent lower than the current spending level of $163.5 million under the continuing resolution.
The House Committee on Ways and Means held series of meetings with different agencies to determine their budget needs.
Press Secretary Charles P. Reyes Jr. said the Fitial administration continues to solicit the Legislature’s support to limit the cash-strapped government’s spending level within its means.
“We cannot control the Legislature’s willingness to pass a balanced budget, but we can control the expenditures of the executive branch and we are doing everything we can to control costs. However, we continue to seek legislative support for sound spending plans,” he told Variety.
Rep. Diego T. Benavente, R-Saipan and a member of Ways and Means, said both houses of the Legislature agreed to work on the FY 2009 budget for practical reasons.
“I think there has been an agreement on both houses of the Legislature that we will continue to work on the FY 2009 budget. Hearings have been going on and it will continue on Rota,” Benavente told this reporter.
The governor’s budget proposal is subject to certain austerity measures which include reduced payment to the Retirement Fund, reimplementation of at least 12 biweekly austerity holidays and 14 unpaid holidays.
The government estimates to collect over $169 million this coming FY 2009.
But more than $11 million of this is already earmarked for bond payments, leaving the central government with just $158.4 million to spend.
Benavente said the administration’s proposed budget would leave some critical public services unfunded and it does not contain measures on how to increase the government’s revenues.
“Why has the administration not offered any revenue generating ideas to go along with its budget proposal? You don’t just submit a budget,” he said.
A new law was enacted recently increasing by more than 100 percent certain license fees, including that of driver’s license.
But this measure will generate more than $2 million only in a given year.
Benavente said the government should come up with ideas on how to revive the islands’ tourism-based economy to sufficiently fund critical public services.
He said the House Republican leadership is studying some revenue-enhancing bills but he is not prepared to make a statement about them.
