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Tinian projects to incur $200K deficit in 2011
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Posted on Jul 04 2011
Tinian Mayor Ramon Dela Cruz disclosed yesterday that the municipality projects to incur an operational deficit of over $200,000 by the end of this fiscal year in September as a result of budget cuts being enforced by the Fitial administration.
The Tinian municipality was allocated just $4.2 million for fiscal year 2011, covering personnel costs and all other expenses. This is a steep drop when compared to fiscal year 2006 when revenue from casino operation stood at $4.9 million.
Dela Cruz disclosed that since last year, about a hundred employees have been removed from its payroll. From about 200 employees since he assumed office, the Tinian municipality now employs less than a hundred people.
Besides the workforce reduction, hiring and travel freezes were also implemented, and that includes the mayor’s trips outside the island. Dela Cruz said his office takes advantage of video-teleconferencing for meetings with Saipan officials.
“We’re struggling but we’re making good with whatever we have. We also appeal to the central government for assistance, if not for cash flow, then at least to allow us to overrun our operation a little bit,” said Dela Cruz during yesterday’s celebration of Liberation Day.
This drastic reduction in the his workforce has affected the operation and programs of his office, Dela Cruz said, but he is thankful for the cooperation and understanding of residents who continue to volunteer in community programs such as environmental cleanups.
“There’s not enough money and I cannot continue to hire. Our people have to put in extra hours and double service without pay [just to help the operation]. We’re very fortunate that we do have a lot of retirees and youth volunteers,” he added.
Dela Cruz admitted that operating in deficit is not permissible, but because of the current situation of the government this may be allowed.
To address the operational deficit, Tinian has to deduct it from the municipality’s future budget allocation or find the money to pay back the $200,000 shortfall.
