Senate OKs revised $156.76M budget

The Senate unanimously passed a revised fiscal year 2009 budget of $156.76 million yesterday during a regular session.

Several senators said they had reservations in passing the budget bill but felt it was imperative to have controls in place.

“Despite some of the minor issues, I will forgo that because there is a need for accountability,” said Sen. Joseph Mendiola.

The House of Representatives passed the budget bill last week. It now heads to the governor, where he will have 20 days to sign the bill, line item veto it, or veto it altogether.

The spending plan includes $148.1 million of projected government revenue, augmented with $5.17 million in Compact Impact funds, and $3.5 million of “unencumbered” money taken from numerous accounts outside the general fund, for a total of $156.76 million.

A separate $3.1 million is proposed for the Department of Public Lands, whose revenue is constitutionally reserved for the agency’s administrative costs and for investment by the Marianas Public Land Trust, and cannot be used for central government operations.

Gov. Benigno R. Fitial vetoed the last Legislature-approved budget of $165.4 million, citing an $8 million drop in projected local revenue. He then slashed government budgets across the board by 5.5 percent for the rest of the fiscal year.

Sen. Paul Manglona asked if the House would be prepared to override if the governor vetoes the revised budget. The House failed at their attempt to override the governor’s veto of the original budget.

Charles Reyes, press secretary for the Governor’s Office, said the administration still has the same concerns they had after the House passed the budget. Critical cost-cutting measures must be imposed, he said, including austerity holidays and reprogramming authority.

“Mainly, we believe these critical cost-cutting components need to be incorporated in any major budget bill,” he said. The measures could possibly be added to another bill, he said.

“They are politically unpopular,” he added. “We know there is a lot of resistance in the Legislature. But given the financial situation, I think the governor’s main concern is to get those incorporated.”

The Legislature reduced the Retirement Fund contribution from 18 to 11 percent, which the administration appreciates, Reyes said.

The press secretary said the budget process is a political game.

“It’s unfortunate,” he said. “The budget process is inherently contentious. But we want to cooperate with them but I think there is just this lack of trust. We’re going to try to work it as best we can.”

Fitial worked very closely with the presiding officers on the monument proposal, Reyes noted.

“The budget is a little more difficult,” he added, “but we’re going to try to work it out by communicating our concerns, most prominent of which are austerity measures.”

But House Speaker Arnold Palacios said the Legislature has reduced spending levels under the revised budget levels and each government branch should decide how to go about working with those numbers, whether it is austerity holidays or renegotiating contracts.

“There are so many ways to do it,” Palacios said. “Every branch should do what it needs to do to reduce costs.”

Every department head should not be limited to what the Legislature says, he added.