Senate approves $20.88M supplemental budget

The Senate unanimously passed Wednesday last week an over $20.88-million supplemental budget derived from the special casino gross revenue tax, including the payment for a balance of the government to the Settlement Fund from fiscal year 2016.

After just two days since receiving the transmittal letter from the House endorsing Rep. Angel A. Demapan’s (R-Saipan) House Bill 20-187, HD2, the Senate passed without question the bill, which appropriates a total of over $20.88 million from the special casino gross revenue tax account.

Sens. Paul Manglona (R-Rota) and Steve Mesngong (R-Rota) were both absent at the session.

H.B. 20-187 also included provisions that addressed balances owed the CNMI Settlement Fund from fiscal year 2016. Over $11.53 million is appropriated to the CNMI Settlement Fund for the fiscal year 2016 Alternative Payment of a Greater Amount, or APGA.

Sen. President Arnold I. Palacios (R-Saipan) told Saipan Tribune that Settlement Fund trustee Joyce Tang reportedly wrote Gov. Ralph DLG Torres, reminding him of the annual obligation the CNMI government agreed to when the NMI Retirement Fund collapsed a few years back.

“…Every year in the inclusion of the financial audit report gives final figures on the resources of the Commonwealth. If it reaches a certain threshold…17 percent of that [revenue] has to be remitted and covered over the Settlement Fund,” Palacios told Saipan Tribune. “The $11.5 million we appropriated under this legislation is to pay for the fiscal year 2016 balances.”

Palacios noted that the previous combined balances owed the Settlement Fund for fiscal years 2014 and 2015 totaled $7.1 million. He added that there was an upward trend for fiscal year 2016 since the economy during that period was improving while the balance owed the fund in fiscal year 2017 was significantly larger than fiscal year 2016’s.

Palacios did not readily have Tang’s letter and did not have the exact figure for fiscal year 2017.

Besides the obligation to the Settlement Fund, the Public School System was appropriated $3.7 million for utilities, capital improvement projects, the Special Education Program, and the purchase of air conditioning units for the Dr. Rita Hocog Inos Jr./Sr. High School.

Sen. Teresita Santos (R-Rota) reiterated a recent statement of PSS interim commissioner Glenn Muña that committed to providing new air conditioning units to the Sinapalo Elementary School as well.

“…[The school] will also benefit with new air-conditioners from what has been allotted to PSS,” she told Saipan Tribune.

The Finance secretary has the expenditure authority of $1 million for Typhoon Mangkhut recovery efforts and costs. The bill as passed by the Senate did not specify which agency it was being appropriated to.

Some $3.5 million was further appropriated “for the CNMI retiree bonuses to be distributed equally to all Settlement class members and NMI Retirement Fund members receiving annuity.”

The Northern Marianas College was appropriated $1 million, while the Marianas Political Status Commission, the group tasked with reviewing the political relationship between the CNMI and the U.S., was appropriated $150,000.

The bill now heads to Gov. Ralph DLG Torres’ desk.