Sen. Maria T. Pangelinan, in an interview on Friday, said her proposal is an alternative to legislative initiatives that require the government to shut down if it fails to pass a new budget.
The CNMI Constitution allows for a concurrent resolution in the absence of a new budget. The government can continue operating under the spending ceilings set by the last budget enacted into law.
“We never anticipated four years of no budget — or that revenues would decrease,” the senator said. “We only have $148 million but the [administration] allocated $7 million over — so who’s responsible? No one because the continuing resolution allows it and that’s how deficit occurs. That’s why they don’t want a new budget — deficit spending can continue.”
Under her proposal, which is still being drafted, if the projected revenue for the new fiscal year is less than the current level, the government’s spending level for the new fiscal year must reflect this decrease.
“Each person authorized to spend public funds should be responsible for operating within the new level and will be held personally liable for overspending,” said Pangelinan, D-Saipan.
“Right now, no one’s liable for a deficit. The Constitution basically allows deficit spending and we need to change that.”
She said her proposal will modify the continuing resolution process.
“This was one of the proposed amendments offered by the 1995 Constitutional Convention, which did a very good job in explaining why these proposals were needed. Unfortunately, none of them secured the required number of votes in the [special election],” said Pangelinan who served in the 1985 convention.
If her legislative initiative is ratified, the Legislature still has to pass a law to implement it and specify the penalties to be imposed on violators.
“It’s a really good proposal — better than shutting down the government in case there is no new budget. Under this proposal, you don’t disrupt public services while forcing the government to spend within its means.”
A legislative initiative is a proposal to amend the Constitution. It must be passed by three-fourths of the members of each house and does not require the governor’s approval. However, it needs to be ratified by voters.
