‘Wage cut bills not dead’

The leadership of both chambers of the Legislature said yesterday that the proposed 10-percent wage reduction bills will be fully debated and tackled on the floor, and possibly passed as requested by the Fitial administration.

House Speaker Oscar M. Babauta said yesterday that he has instructed the House Ways and Committee to hold a meeting on the bill and make a report for the entire body.

“The bill is not dead. It’s not necessarily shelved. I have requested the committee chair to conduct a meeting, to weigh the pros and cons, and come up with a conclusive report. It’s standard procedure,” said Babauta.

He said he is aware that some members are opposed to the measure, House Bill 15-115, but it “has to be vigorously debated within the committee and be reported to the whole House for floor deliberation.”

“That’s the process that should be taken,” Babauta said.

For his part, Senate President Joseph Mendiola said he is awaiting a committee report on the counterpart bill in the upper chamber, Senate Bill 15-40.

“It’s not shelved. It’s still in the committee. The committee has to make a report. Hopefully, we’ll have it this week or next week,” said Mendiola.

The bill has been referred to the Senate Committee on Fiscal Affairs, which is chaired by Sen. Felix Mendiola, who earlier told the media that the House Ways and Means Committee and his panel had agreed to shelve the wage cut bills due to widespread opposition.

In a recent interview, House Ways and Means Committee chair Crispin Ogo said he personally wants the House version of the proposed 10-percent salary cut shelved.

He said that, between the two bills, he favors S.B. 15-40 since “it embraces the whole idea.”

Both committees recently held joint public hearings on the bills.

H.B. 15-115, authored by Rep. Waki Absalom, seeks to reduce by 10 percent the uniform salary schedules for civil service personnel, as set forth in Title 1 Section 8213 of the Commonwealth Code.

It says that the salary reduction “is necessary to prevent further deterioration in the Commonwealth’s financial situation, and hopefully prevent a reduction in the government workforce.”

Senate Bill 15-40, authored by Sen. Felix Mendiola, cites the same purpose but, unlike the House version, the Senate bill covers the civil service and all other government employees, including the constitutionally protected salaries of the governor, lieutenant governor, Washington Representative, judges and justices.

The Senate bill exempts only those employees whose services are deemed absolutely critical to the health, safety and welfare of the people of the Commonwealth.

These include “medical doctors, nurses, lab technicians, x-ray technicians and all other medical professional; classroom teachers, school principals, vice principals and all other employees of the Public School System; police officers, firefighters, emergency medical technicians and Correction officers.”

The Fitial administration expressed confidence Friday that the Legislature would act on the wage reduction bill.

The administration cited that it was the Legislature that favored a legislated wage reduction program over an hourly reduction scheme that the former had initially pushed.

Finance Secretary Eloy Inos said he hopes that allies in the Legislature would support the reduction program.

The administration said that the government has to cut personnel costs either through wage reduction or work-hour reduction before first week of June in order to prevent a huge deficit by the end of the current fiscal year.

The government currently spends 75 percent of its annual budget on personnel.

The administration has reduced the annual budget level from $213 million to $198.5 million for fiscal year 2006.