The senators are hoping that a shortfall will be prevented by the anticipated cover-over tax reimbursements from the U.S. within the next 90 days.
“We are faced with four options in presenting a balanced budget, raise fees or taxes, cut employment, or cut non-personnel costs,” the report stated. “This is only a budget for one year and it is certainly not a budget that resolves the problems. All we’ve done is put everything off for one year. We are still faced with an immense deficit.”
The House of Representatives, which also held a session on Friday, will continue its deliberation on the new budget bill this week, said Speaker Arnold I. Palacios, R-Saipan.
Seven senators voted in favor of Joint Conference Committee Report 16-01 regarding House Bill 16-169, or the Appropriations and Budget Authority Act of 2009.
Senate Vice President Felix T. Mendiola, Covenant-Rota, and Sen. Paterno S. Hocog, R-Rota, were absent.
The Senate earlier passed a budget with provisions for austerity and unpaid holidays totaling 184 hours which would equate to a savings of over $4 million in one year.
But the House rejected the Senate version.
A joint House-Senate conference committee was then convened to draft a new budget bill.
The committee said the Department of Finance identified available resources of $172.6 million this FY 2009. The government, however, will be left with $156.7 million after bond payments and other obligations are taken out.
However, the committee said the CNMI is expected to receive cover-over tax reimbursements from the U.S. Treasury.
Finance Secretary Eloy Inos is on official leave.
Press Secretary Charles Reyes Jr. cannot confirm if Inos was working on the cover-over tax issue saying any information about his trip will be released when he returns.
Budget cuts
All government agencies will see leaner budgets this current fiscal year, including lawmakers.
According to the committee, the government’s available budgetary resources each month is at the minimum $2.2 million per quarter in excess of appropriations set in the proposed budget.
With fewer tax collections a deficit is inevitable.
“By Dec. 1, 2008, the net FY 2009 budgetary resources available will be at a minimum $2.2 million less than identified in House Concurrent Resolution 16-2 or approximately $154.5 million,” the report said.
To stop the budget bleeding, the committee inserted a provision that will allow the government limited liability to contractual personnel.
“[The] continuation of the contract provision which limits government liability due to work reductions, shutdown, furlough or other fiscal austerity measures is an integral part of enforcing austerity measures,” the report stated.
“The budget is not about getting as much money as possible for personnel to garner political support. The most fundamental job of the government of the commonwealth is to provide the basic services of health, safety and education to its people in the most cost effective manner,” it added.
The judicial branch’s proposed budget totaled $4.221 million.
The Legislature will get over $7 million. Each of the 29 lawmakers in the House of Representatives and the Senate will get only $117,199 for their annual miscellaneous funds —way below their previous appropriations of up to $155,000 each.
The Office of the Governor will get $10.9 million; the Office of the Attorney General, $3.99 million; the Department of Commerce, $1 million; the Department of Community & Cultural Affairs, $2.7 million; the Department of Corrections, $3.7 million; the Department of Finance, $5.7 million; the Department of Labor, $1.9 million; the Department of Lands and Natural Resources, $3.1 million; the Department of Public Health, $39.5 million; the Department of Public Safety, $7.5 million; the Department of Public Works, $4.6 million; the Public School System, $36.3 million; Rota and Tinian, $9.6 million each; the Saipan and Northern Islands mayoral offices and municipal council, $2.15 million
Independent programs will get $2.8 million and the Department of Public Lands, which gets its income from leasing public lands, will receive $3.09 million.
