Tenorio, Covenant-Saipan, told reporters he does not believe the CNMI government will generate $102 million in FY 2012, which starts on Oct. 1.
After making a “minor correction” to one of the budget figures, the House adopted House Concurrent Resolution 17-3.
But according to Tenorio, the proposed budget has “obsolete figures.”
The administration, he said, came up with these projections six to seven months ago and right now, “we are off the mark.”
“Maybe the appropriation should only be $95 million or even lower than that,” he said, adding that the government cannot be too optimistic about its projection when people are experiencing the economic crisis.
He also noted that this year, there will be no more American Recovery and Reinvestment Act money so the people who worked on projects funded by ARRA will be out of jobs, which will reduce tax collections.
But Speaker Eli D. Cabrera, R-Saipan, said he and the rest of the House members just don’t want to be “pessimistic.”
Rep. Ray N. Yumul, R-Saipan, said the administration’s submission appeared to be based on a sound estimate as there seems to be no other way to increase government revenue.
He believes the governor did not pull his numbers “out of thin air.”
Rep. Ramon S. Basa, chairman of House Committee on Ways and Means, and the author of the concurrent resolution said he understands that the governor’s figure is “pretty much conservative but we don’t know if this won’t drop further in the next few months.”
Basa, Covenant-Saipan, said the CNMI needs an “infusion” of fresh revenue instead of relying on existing businesses.
House Minority Leader Diego T. Benavente, R-Saipan; Reps. Francisco S. Dela Cruz, R-Saipan; and Joseph P. Deleon Guerrero, R-Saipan, voted “yes with reservation.”
Benavente said instead of adhering to the governor’s proposal right away, the House should first look into the huge reductions in appropriations especially if these cuts will impact critical services.
He suggested that a hearing be held first so the Legislature can have the chance to scrutinize every detail of the budget submission and perhaps work together to find ways to improve the revenue.
Benavente noted that the figure in the governor’s submission is so “rounded up.” He doubts that this is the exact amount.
“What if it is a few hundred more or a few hundred less? Those hundreds of thousands of dollars will matter a lot if taken into account,” he said.
Deleon Guerrero said the House should deal with budget bill with due diligence. The House Ways and Means Committee, he added, should hold hearings to make sure the figures are accurate.
