In Executive Order 2010-11, Fitial noted the constitutionally mandated shutdown of non-essential government services beginning today, the first day of fiscal year 2011.
“With deep regrets, I have acted upon the constitutional mandate of Article III, Section 9(a) of the Northern Mariana Islands Constitution. Pursuant to this mandate, it is my duty to order a shutdown of non-essential government services as the government is duly prohibited from drawing any funds from the general fund for services outside of those that I have identified to be essential,” Fitial said.
He said he and Lt. Gov. Eloy S. Inos acted in good faith to ensure that the administration meet the constitutional obligation to submit a proposed balanced budget on April 1.
“By way of my submission, I fulfilled my obligation to all government employees and more importantly, to the people of the commonwealth,” he said.
Unfortunately, he added, “six months had passed and the Legislature still failed to pass and transmit a sound and balanced budget.”
The House session yesterday was originally scheduled for 10 a.m.. It was then moved to 3 p.m.
A few minutes after 3 p.m., Vice Speaker Felicidad T. Ogumoro, Covenant-Saipan, informed the people gathered in the lobby that the session was canceled until 5 p.m. today.
House Minority Leader Diego T. Benavente, R-Saipan, said the cancellation “was outrageous and irresponsible.”
He said going through the 30-page Senate version of the budget would only take a couple of hours.
“So how could the House leadership cancel an important session?” he asked.
Rep. Antonio P. Sablan, R-Saipan, said “the way these things have transpired is completely frustrating.”
“I don’t think the House leadership believes in the importance of compromise,” he added.
The Senate held its own session, but all the senators could do was to express their disappointment.
Some expressed optimism that the House leadership would “somehow think it over and come back.”
“We still have six hours to pass a budget,” said Sen. Henry H. San Nicolas, Covenant-Tinian, as he urged the House leadership not to give up.
Senate President Paul A. Manglona, Ind.-Rota, said “today is sad day for the people of the commonwealth because we all just witnessed how the House leadership just turned their back on the people.”
He said the House leadership was putting the CNMI people at risk.
Sen. Jovita M. Taimanao, Ind.-Rota, said when people wake up today, “the first thing they will see in the news is the word ‘shutdown.’ ”
She said the members of the conference committee worked hard to draft a budget acceptable to both houses.
She said she never stopped urging her House counterparts to come to an agreement with the senators, but to no avail.
‘All others’
According to House Ways and Means Committee Chairman Ramon S. Basa, Covenant-Saipan, they cancelled the session because the Senate’s version of the new budget bill did not meet their expectations.
“It’s not the same bill anymore. The eight-hour is back,” he said.
An eight-hour cut will result in an $11 million shortfall, he added.
The House and the governor recommended a 16-hour cut and 13 payless holidays.
If the allocation “all others” is touched to cover the $11 million shortfall, the operation of the affected agencies or departments will be crippled.
Basa said $32 million of the entire budget is for “all others” and “if we take $11 million from that, there’s going to be $22 million left. I don’t think the government can function with that ‘all others’ allocation.”
Basa said they were hoping the Senate would consider a 16-hour cut because the Constitution requires a balanced budget.
He said only a balanced budget can get the governor’s approval.
“If we submit an unbalanced budget the governor will just throw it back to us and bring us back to square one, resulting in a shutdown,” he said.
“I’m praying, and we will offer again another appropriation bill similar to what we offered yesterday and transmit it to the Senate. We hope this time that they work with our version,” Basa said.
The House leadership was willing to compromise but the Senate refused to back down, he added.
Fitial said the members of the House majority “have grasped the bleak reality of the government’s financial resources and have attempted to pass a budget bill reflecting the administration’s proposal to operate within the resources of $132 million by implementing 16-hour reduction per pay period and unpaid holidays.”
However, he added, the senators “have consistently refused to accept a proposal that would, at the end of the day, save the jobs of government employees.”
Fitial said the Senate offered substitute legislation that would result in the immediate layoff of 383 government employees, “simply because of a political maneuver to increase appropriations for the municipalities of Tinian and Rota.”
“I had hoped that the members would have taken into consideration the financial constraints that will span across the commonwealth. However, it became increasingly clear that special interests and the desire to protect their political ambitions were placed above their duty to serve the people effectively and efficiently,” he added.
“As we move ahead with this unprecedented shutdown, it is my fervent hope that the legislators will soon set aside their political differences in an effort to act in good faith to pass a balanced budget. Thousands of innocent people are now at the receiving end of personal and financial hardships unnecessarily brought about by the Legislature’s inability to fulfill their constitutional obligation.” Fitial said.
