Another partial payless payday; admin warns of even more challenges in July

Non-critical government employees did not get paid on time again yesterday, as cash shortage continues. Even critical government employees such as doctors, nurses, police officers, and firefighters almost did not get paid, but eventually got their paychecks on time.

The Fitial administration said yesterday that July will bring more financial challenges because there will be three payrolls in a month.

Press secretary Angel Demapan, when asked for comment, said critical government employees almost didn’t get paid on time “due mostly to the continued struggles in cash availability and cash collections that are coming in.”

“Despite the government’s funding woes and low collections from hospital charges, the government has had to prioritize payments for critical bills such as CUC [Commonwealth Utilities Corp.], CHC’s [Commonwealth Health Center] lab expenses, pharmaceutical supplies and the supply of blood for the blood bank,” he said.

The government also has processed scholarship payments for recipients of the CNMI Scholarship and the Saipan Higher Education Financial Assistance, Demapan added.

The Department of Finance is looking at Wednesday for the payroll of non-critical employees but that, again is dependent on cash availability, the press secretary said.

Financial challenges could worsen in July.

“There are three government payrolls slated for the month of July, so it will definitely be a major challenge to meet obligations for three payrolls versus one month of cash collections. We encourage government employees to continue spending wisely and put aside emergency funds in the event that any further delays should occur,” Demapan said.

A Capital Hill employee said despite the delay in payrolls, she said she’s still thankful that she has a job. But she said she hopes to see an end soon to delayed payrolls.

Since June 2010, the government has been delayed at least 16 times in issuing paychecks to “non-critical” employees.

Most of those with delayed wages are also subject to a 16-hour cut biweekly and unpaid holidays as part of the administration’s cost cutting measures.

Demapan said only so-called critical government employees, federally funded employees, and those at the Public School System will get paid on time.

Government employees in critical positions include doctors, nurses, police officers, firefighters, and corrections officers.