Legislature passes $165.4M budget

The Legislature yesterday passed a $165.4-million budget for fiscal year 2009, including provisions for 10.7-percent cuts against agencies funded by the central government.

The proposed spending limit, now headed to the governor for his signature, excludes the self-funding Department of Public Lands, which will get $3.1 million, and autonomous agencies.

The latest version of the budget is the product of numerous compromises between both houses, and includes many of the concerns raised by the Department of Finance about earlier drafts. During debate on the floor, lawmakers raised several concerns about the specific provisions. But they agreed that the budget, as currently proposed, was better than nothing at all.

As Rep. Victor Hocog noted, it is “not a perfect budget,” but it is balanced and it sets spending guidelines for the government. Rep. Tina Sablan echoed his statement, underscoring provisions that offer proportionate budget cuts, priority for the essential services, controls against unnecessary hiring, and reporting requirements for the Department of Finance.

The House of Representatives passed the legislation by voice vote, and the Senate approved by a unanimous vote.

Under the Legislature’s proposal, personnel costs will account for $112.2 million, or about two-thirds, of the budget. The remainder will go to operations, $43.7 million, and utilities, $9.5 million.

The size of government is capped at 4,019 employees.

Taxes, fees, and other government charges are expected to fund $156.7 million of the total expenditures. To augment the general fund are $5.2 million federal reimbursements for the costs linked to Micronesian immigration—or Compact Impact funds—and $3.5 million of reprogrammable funds from delayed infrastructure projects.

The key provisions of the budget include:

10.7-percent cut against general fund agencies, except for essential services such as the Public School System, Northern Marianas College, Department of Public Health, Department of Public Safety, and Department of Corrections;

11-percent employer contribution rate to the NMI Retirement Fund;

Prohibition against reprogramming of appropriations for utility expenses;

Ban against the use of appropriated funds for lawsuits between CNMI government agencies;

Lateral transfer of immigration employees, who cannot get jobs with the U.S. government under the federalized immigration system, to other CNMI government offices;

A salary and hiring freeze. Exemptions provided for most medical professionals, policemen, firefighters, and teachers.