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Legislature expected to adopt budget resolution
The Legislature is expected to pass this week a concurring resolution on the proposed $145.8 million government budget for fiscal year 2016.
After passing the budget resolution, the lawmakers are expected to conduct budget hearings for the different departments.
According to Rep. Antonio Sablan (R-Saipan), chairman of the House Committee on Ways and Means, after the concurring resolution is passed, legislators will then schedule a session to adopt the budget.
“After we adopt it [budget], we convene the department budget hearings,” Sablan said.
The lawmaker said bigger departments will probably be prioritized, including the Department of Public Safety, the Department of Fire and Emergency Medical Services, the Commonwealth Healthcare Corp., particularly Medical Referral, and the Department of Finance.
Declining income tax collection
Sablan said lawmakers want to find out what has been done to encourage tax compliance, as well as the proper recording of tax obligations, particularly income tax.
The collection of taxes falls under the Revenue and Tax Division of the Department of Finance.
Sablan said one of these concerns is the declining income tax collections. The lawmaker said there are a lot businesses coming up and the tourism industry is apparently booming.
However, income tax collection continues to decline, he said. He added that tax collections in other areas have been increasing and that the decline in income tax collection has been happening in 2014 and 2013.
“Due to the improvement in the economy, we should have seen an increase in the numbers [for income tax], but the numbers are on the decline, not just for the projection but from the prior year,” he said.
Budget for the MVA
In a separate interview, Rep. Joseph Lee Pan Guerreo (R-Saipan) said he will ask his colleagues in the House to make the budget hearing for the Marianas Visitors Authority one of its priorities.
Guerrero said he will take the opportunity to clarify a few questions with the MVA during the hearings, particularly funding.
