$102M budget calls for reorganization and cuts

Gov. Benigno R. Fitial submitted his fiscal year 2013 proposed budget of $102 million to the Legislature late yesterday afternoon, urging lawmakers to pass revenue-generating measures such as a $15 fee for transient hotel customers to help lift the 16-hour work cuts among most government employees.

Fitial said the government needs almost $7 million to lift the austerity measures in fiscal year 2013.

Fiscal year 2013 runs from Oct. 1, 2012 to Sept. 30, 2013.

Although not in his budget transmittal, the governor has been urging lawmakers to support an initiative to allow the establishment of a casino industry on Saipan and allow fee simple sale of public lands occupied by hotels and golf courses.

The gross budgetary resources for fiscal year 2013 total $120.671 million.

Of this amount, $102 million is the net available resources for government operations, which is the same as the fiscal year 2012 estimated net resources.

The rest is for debt service appropriations, earmarked funds and other legal set-asides.

Fitial, in his budget transmittal to House Speaker Eli Cabrera (R-Saipan) and Senate President Paul Manglona (Ind-Rota), said the administration’s ultimate goal is to maintain fiscal responsibility and sustainability.

“Our approach to this proposal is to minimize adverse impacts to service levels through greater efficiency, operational changes, and other badly needed systemic changes,” he told the Cabrera and Manglona.

Fitial said departments and activities submitted budget proposals that were $85 million more than the available resources.

“Mindful of the need to maintain a balanced budget that’s required under the Constitution, only highly critical activities were considered in this proposal,” he said.

Fitial’s budget submission includes the following considerations:

1. Austerity measures through reduced work hours equivalent to 16 hours per pay period or 20 percent of payroll;

2. Exemption of the Department of Public Safety’s and the Department of Corrections’ officers from austerity when scheduled and necessary;

3. Imposition of paid legal holidays with application of leave;

4. Removal of non-essential vacant positions;

5. Reorganization and elimination of two divisions within the Department of Public Works (the Operations and Maintenance Division, and the Transportation, Auto and Heavy Equipment Division, to be consolidated into the Roads and Grounds Division); and

6. Contribution of $2.25 million as subsidy to the Commonwealth Healthcare Corp.

The governor’s proposal gives $32.4 million to the Executive Branch, an increase of $4.1 million from the current year’s $28.3 million.

His budget proposal for the Judiciary remains the same at $4 million.

Fitial gave the Legislature $5.1 million, a decrease from the current year’s $5.4 million.

The governor’s proposed budget for Rota is over $4.3 million, which is lower by over $226,655 than the current fiscal year’s more than $4.5 million.

Rota Finance director Stacey Atalig earlier said the budget cut is only some $180,000. Rota Mayor Melchor Mendiola, according to Atalig, has been disappointed with the budget cut.

Senate President Paul Manglona (Ind-Rota) said the Legislature is expected to carefully review the governor’s budget proposal.

Fitial slightly cut Tinian’s budget by $31,959—from the current $4.54 million to $4.51 million.

Tinian Mayor Ramon Dela Cruz had said Tinian got almost the same amount, after a closed-door meeting between the governor and the mayors of the four islands.

The governor proposed $1.088 million for Saipan, a slight increase of some $9,000 from the current year’s $1,079,587.

Fitial also proposed $275,094 for the Northern Islands, a decrease of $24,304 from the current fiscal year.

“Although the net estimate remains at $102 million, we anticipate seeing a gradual growth in our tourism industry in the first quarter of fiscal year 2013 with the planned inauguration of the proposed ‘Saipan Air’ in late summer of this year,” Fitial said.