Pangelinan, D-Saipan, said the Legislature must adjust the fiscal year 2009 budget proposal in view of the earmarking of the $3.4 million in MPLT revenues “borrowed” by CUC as provided by Public Law 16-2.
The governor has submitted a budget proposal of $158.4 million for fiscal year 2009 which included certain cost-cutting measures.
“We are already on a $2 million deficit,” the senator said.
P.L. 16-2 includes provisions to increase by 100 percent firearms registration, vehicle registration, renewal of vehicle operator license, marriage license and other government fees.
But the law, Pangelinan said, is not generating the projected revenue.
“We’re going to be down to $150 million,” she said.
Press Secretary Charles P. Reyes Jr. has a different opinion.
He said the earmarked MPLT fund is not going to affect the budget because the amount earmarked for CUC “is only a small amount.”
“The larger thrust is with the $150 million that we need to deal with,” Reyes stated in a previous interview.
Pangelinan said the government will have difficulty identifying a funding source to meet the projected $8 million shortfall.
“We have to cut our expenditures,” because there is no funding source — “we’re [already] borrowing [money],” she added.
The lawmaker offered to prepare “a sliding scale comparison” for the salary reduction and the austerity Friday measures proposed by the governor to determine which will be more feasible.
Since 1998, the CNMI government has enacted only three budget laws.
The government continues to operate under the spending ceilings set by the FY 2007 budget, which was passed two years ago.
CNMI government revenues have continued to decline since then.
