THE Senate Fiscal Affairs Committee on Wednesday met to review the fiscal year 2024 (not 2025 as earlier reported) budget bill or House Bill 23-66 and the amendments proposed by the House of Representatives.
Present in the meeting were the committee chairman, Senate Vice President Donald Manglona, the vice chair, Senate Floor Leader Corina Magofna, and members Sen. Celina Babauta, Sen. Karl King-Nabors and Sen. Paul A. Manglona.
Last week, a bicameral conference committee approved a new version of House Concurrent Resolution 23-2, reducing the projected total budgetary resources to $164.4 million from $172.5 million.
The conferees also agreed to suspend all earmarks except the following:
1) $4.5 million hotel occupancy tax for the Marianas Visitors Authority.
2) $3.6 million debt service or bond payment.
3) $34 million for Settlement Fund.
4) $2.8 million for pension obligation bond.
5) $822,000 payment for Marianas Public Land Trust loan.
Senate Vice President Manglona said the net available resources for government activities will amount to $114.2 million.
The Senate Fiscal Affairs Committee discussed, among other things, the budget for the Tinian Mayor’s Office.
Based on their financial analysis, Senate Vice President Manglona said there will be a $2.3 million shortfall for the Tinian Mayor’s Office personnel budget, which will result in the termination of 124 employees, according to Tinian Mayor Edwin Palacios.
The Senate vice president said they are looking into the possibility of tapping American Rescue Plan Act funds to address some of the Tinian Mayor’s Office personnel costs.
He said the Tinian mayor has identified $531,244 in Tinian’s ARPA funds that can be used to address the shortfall in his office’s personnel budget, leaving a balance of $1,789,455, “that we [lawmakers] would have to address.”
The Senate committee also discussed giving the governor an additional 50% reprogramming authority on top of the 25% provided by current statute for a total of 75% reprogramming authority.
But 25% “shall not be used to address personnel matter,” the committee said.
The Legislature has until Sept. 30, 2023, to pass a new balanced budget. Otherwise, there will be a partial government shutdown.
