The House of Delegates during a special session Wednesday rejected the Senate version and both houses are gearing towards a conference committee to iron out the $4 million gap.
Under the law, President Johnson Toribiong has 15 days to review the proposed budget, the fiscal year ends on Oct. 1.
“We want to get it done by next week,” Del. Secilil Elbedechel, chair of the House Committee on Ways and Means said.
He said prior to a conference committee, he will meet with his Senate counterpart, Sen. Mark Rudimch and members of the Executive Branch to iron out the gap and expedite the budget process.
The delegate said if it is necessary, Palau can operate under a continuing resolution for at least a month while the budget is being ironed out.
Rudimch however is optimistic that the measure can be approved before the fiscal year lapses.
He said the Senate committee would like to avoid going into a continuing resolution.
“That would only delay the issues that need to be addressed regarding the differences and other budgetary requirements. A continuing resolution would only defer action to maintain the previous level going into the new fiscal year–we hope to work the differences out to avoid further delaying the issues that must be addressed.
He said there is enough time to solve the differences and agree to one set of “reasonable and sustainable numbers.”
“I hope that the conference committee can come to a unanimous agreement to fund the greater priorities of the Republic and start making corrective adjustments for a sustainable and more productive government,” he said.
The House version approved a $58.3 million budget while the Senate voted to a $51.7 financial package.
Elbedechel said the House version included Compact of Free Association funding giving Palau at least $18.2 million into their analysis.
The Senate meanwhile was anticipating that because the Compact was still under review at the time the budget was being drafted, it only projected a $15 million funding from the Compact which will be obtained from the trust fund.
The Senate also struck out the proposed taxes which the House projected to put in an additional $1 million into the government’s coffers.
To avoid a deficit, the Senate said it has to make drastic cuts in the budget.
Rudimch said the budget has been suffering from over-projections and assumptions.
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