By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
THE creation of a separate Legislature Operations Fund by Public Law 24-20, or the Revised Appropriation and Budget Authority Act of 2026, comes with financial mandates that could cause suspension of payments, resulting in temporary disruptions to legislative expenditures, including payroll.
Finance Secretary Tracy B. Norita, in a memorandum on Dec. 29, 2025, asked Legislative Bureau Director Perry Tenorio to initiate a plan to transition into the new mandates, requiring the LB to establish necessary bank accounts and meet all its obligations, including expenses for Legislature members.
The revised fiscal year spending measure also requires LB to develop and implement its own financial systems, rules, regulations, policies, and procedures to ensure internal control over accounting, procurement, and cash management; compliance with standard government accounting practices; and accurate, timely reporting.
In his immediate response, Tenorio identified several constraints in complying with these mandates. He said that, at present, independent banking arrangements, internal controls, accounting systems, procurement processes, reporting capacity, staffing resources, and internal frameworks do not exist within LB at the scale required by law.
He stressed that immediate full operational separation “would therefore pose a substantial risk of interruption to payroll, member allowances, vendor payments, and other essential legislative functions.”
The revised budget measure passed by the Legislature included a provision requiring expenditures in accordance with Finance regulations, but it was line-item vetoed by Gov. David M. Apatang.
Tenorio told the Finance secretary that she correctly noted a transition would require 90 to 180 days for planning, training, and implementation. He requested that, for the 180-day transition period, the LB be allowed “to design and implement compliant systems, recruit and train qualified personnel, and establish durable internal controls that will withstand audit scrutiny and long-term operational demands.”
To address these constraints, the LB director said he will request that the House and Senate amend the revised budget law to provide an implementation period and “additional budgetary authority necessary to hire staff and procure systems required by law,” providing clarity and resources for sustainable compliance.
Pending these amendments, Tenorio respectfully requests that Finance exercise its administrative authority to enter into a memorandum of understanding that would give interim effect to the Legislature Operations Fund, without triggering full operational separation during the transition period. He said this approach would preserve continuity of operations while allowing the Legislature time to build its own internal capacity.
Tenorio vowed that throughout the transition period, LB will maintain close coordination with Finance, including transparency in planning, collaboration on system design and training, adherence to agreed-upon controls, and regular communication to ensure fiscal integrity and accountability at all times.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
