Part of stimulus funds to go to personnel costs

The administration is planning to use $8 million in federal stimulus stabilization funds to stave off government layoffs for the remaining of the fiscal year.

The CNMI is poised to soon receive $43 million in funds as part of the American Recovery and Reinvestment Act. Majority of the stabilization money will go to the Public School System. But 18 percent, or $8 million—available at the governor’s discretion—will go toward personnel, Finance Secretary Eloy Inos said yesterday at a news briefing.

“The governor is mindful of the fact this furlough or this reduction in work hours will have on the families,” Inos said. “He’s given instructions for the stimulus team to look into stabilization funds to avert any layoff of employees in the government.”

The earmarked funds should be available in 30 to 45 days, Inos said. This will keep thousands of government employees from being laid off.

With the recent passage of the $156.76 million Fiscal Year 2009 budget, the administration said they would be forced to lay off employees in order to stay within the spending ceiling. The Legislature overrode the governor’s veto of the budget bill. The administration had called for cost-reduction measures, such as unpaid holidays, austerity Fridays and a lower Retirement contribution rate.

Despite the veto, the budget became law last month, and, immediately after, the administration said they would be forced to lay off employees or run out of money by the summer.

The goal is to keep everyone with a job, the Finance Secretary said.

“The governor is very adamant,” Inos added.

The administration will hold off letting people go until the money comes in. Five contract employees, however, have received non-renewal letters, and since some contracts expire April 11, there could be more non-renewals. But once the stimulus funds come in the employees can be re-hired, Gov. Benigno Fitial said.

Inos said allowing citizens to keep their jobs is a priority.

“We’re talking about the livelihood of these people. We don’t have the luxury with the kind of insurance the folks in the U.S. have,” he said, noting that without a job people do not have health insurance.

In the CNMI, unlike the U.S., the jobless are not able to receive unemployment checks, Inos added.

Fitial, for his part, said someone must like the administration, noting that in Fiscal Year 2008 a last minute payment of $17 million in cover over funds from the Internal Revenue Service gave the government a slight surplus. The $17 million was a part of a total of $50 million the CNMI received, he said.

“Again it’s a relationship. I went to the Treasury, and I spoke to the right people, and they came through,” the governor added.