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Budget requests for 2010 already $28M over
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Posted on Mar 25 2009
Initial budget submissions for Fiscal Year 2010 show government departments and agencies are already $28 million over the projected funds to be collected.
As the Fitial administration prepares to submit its initial proposal to the Legislature, Esther Fleming, the governor’s special assistant for administration, said the departments and agencies are currently seeking a total of $176 million—$28 million more than the $148 million projected revenue.
“It’s too high and we can not use that,” she said.
The administration is expected to present its budget plan to the Legislature by April 1. By July 1, the Legislature sets limits on expenditures by passing a House concurrent resolution. By Sept. 1, the Legislature completes action by introducing and passing a budget bill, setting the spending ceiling.
The 2010 fiscal year begins Oct. 1, 2009.
Fleming said the administration would most likely ask for the same cost-reduction measures for 2010 it is currently seeking for this fiscal year.
“Ten percent austerity measure, and we can work out whether that will be holidays or a combination of austerity Fridays,” she said. Also, she added, they would seek to reduce the Retirement Fund contribution from 18 percent to 11 percent.
In February, the Fitial administration authored a bill introduced in the House of Representatives enacting unpaid holidays and austerity Fridays. It has yet to be voted on.
Operation expenses will be 20 percent across the board in the FY 2010 budget, Fleming said. Appropriations for the Northern Marianas College will remain the same, she noted.
Fleming said the administration is looking at suspending NMC’s apprenticeship program created under Public Law 15-5. At least $1.5 million each year for five years go toward the program, which was created to attract local residents into technical or trade professions. The Northern Marianas Trades Institute is similar, she noted.
