Finance: $1.06M budget surplus in three months

Finance Secretary Larrisa Larson reported yesterday a government budget surplus of $1.06 million in the first quarter of 2012—an improvement from the quarterly average deficit of $6.45 million in fiscal year 2011.

In a report to the Legislature, Larson said government expenditures and obligations reached $25,607,741 in October to December 2011.

The fiscal year 2012 budget is $102 million. The Fitial administration expects fiscal year 2013 to have the same amount, back to the level of some 22 years ago.

The surplus was mostly because the government’s actual “all others” or operational expenses were much lesser than what it allotted for by over $2.7 million. This cushioned the impact of a $1.66 million overspending in “personnel.”

Of the over $25.6 million spending and obligations from October to December, $18,381,930 million was for personnel, while $7,225,811 was for “all others” or operational spending.

“The CNMI government was well within the limits for expenditure placed on it by Public Law 17-55 by $1,064,761,” Larson told Senate President Paul Manglona (Ind-Rota) and House Speaker Eli Cabrera (R-Saipan).

Larson, however, pointed out that “areas of concern” that will need to be addressed before the end of the fiscal year include government utilities and medical referral.

Actual utilities expense reached over $2.34 million when allotment was only $1.25 million, resulting in an overspending of more than $1.09 million.

Medical referral spending exceeded allotment by $499,894.

Manglona, when asked yesterday, said he has yet to fully review the first quarter 2012 report but at first glance he questioned the government’s non-payment of scholarship money to students at a time when the administration is reporting improvements in collection and spending.

House Ways and Means Committee chair Rep. Ray Basa (Cov-Saipan), for his part, lauded the Fitial administration for living within its means.

“Good to hear about that [surplus]. And I hope it gets a lot better as the year progresses,” Basa told Saipan Tribune in a phone interview.

The budget deficit in fiscal year 2011 reached $25.8 million—an average of $6.45 million every quarter. That was when the Department of Public Health budget was still part of the total government budget, and DPH overspending was a main reason for that deficit.

Basa, who said he has yet to see a copy of the financial report, said he will push for the passage of his bill providing a $10 million line of credit to the Commonwealth Healthcare Corp., formerly DPH, to help its finances.

The fiscal year 2012 budget law requires a report detailing allotments, expenditures and obligations funded by general fund appropriations for a three-month period ending Dec. 31, 2011.

Larson said any changes in the report will be reflected in subsequent quarterly reports, which will be provided to the Legislature as soon as completed.

Based on Finance’s report, the departments/activities other than utilities and medical referral that exceeded allotments include the Office of the Attorney General by $120,416; Department of Community and Cultural Affairs, $25,997; Department of Public Safety, $422,816; DPS-Rota, $54,315; DPS-Tinian, $28,194; and the Law Revision Commission, $131.

Lt. Gov. Eloy S. Inos earlier said over-expenditures in some areas were cushioned or offset by actual revenues that exceeded estimates.

Inos, who oversees government finances, will be one of two guest speakers at the Saipan Chamber of Commerce’s general membership meeting tomorrow wherein he is expected to discuss the government budget, plans to generate additional revenues, federal grants, and issues related to the Federal Insurance Contribution Act taxes, among other things.