He told the media that the Department of Finance has been “putting together a package that will provide for $120 million in [financial] resources.”
All departments, he said, have until Feb. 28 to submit their budget proposals. He asked the heads of each department to “accelerate” the submission.
If by Feb. 28 and a certain department still has no budget submission then that department will not be part of the executive branch’s budget submission which must be transmitted to the Legislature by April 1, Inos added.
Inos said either three or four departments have so far submitted their budget recommendations but the governor’s office is not one of them.
Inos said the administration will have to hold budget meetings with each department.
Noting that there has already been a $12 million shortfall in the FY 2011 budget, Inos said the administration has to anticipate reduced revenue projection for the next fiscal year.
More cuts
Everybody should have already learned a lesson from last year’s contentious budget deliberation that resulted in a partial government shutdown, Inos said.
This time, he added, everybody should realize that there will be more cuts.
He said the projected savings once the plan to reduce the size of government begins as a result of desk audits should be incorporated in the FY 2012 submission.
Late last year, Management Analysis Inc. released the desk audit results for the Department of Community and Cultural Affairs and the Department of Public Safety.
Inos said there will be more government agencies that will be trimmed down as the administration implements a reduction in force.
“There’s little room to cut from other activities other than in personnel,” he said.
But “is it going to be same hours and less people? Or same hours and same people but lower compensation package?” he asked.
Choosing which to implement is the challenge, he added.
Obviously, he said, there are services that still need to be provided.
Inos said the administration will prioritize critical services like public health, public safety and public education.
Not yet
The recently enacted “income generating” laws — the Japan air service incentive program and the measure allowing hotels to have more smoking areas — are not yet taken into account in the FY 2012 budget, Inos said.
If new revenue comes in later, then “we will make proper adjustment in the resources,” he added.
“But at this point we just have to be conservative. So those revenue generating schemes are not taken into account yet,” Inos said.
