4 agencies exceed Q1 budget

For the first quarter of fiscal year 2022, four law enforcement agencies exceeded their total combined budget of $3.35 million by incurring total of actual expenditures of $4.98 million, with most of the excess amount going to the CNMI’s COVID-19 response.

In his financial report for the first quarter of fiscal year 2022, Finance Secretary David DLG Atalig said their expenditures in excess of budgetary allotments are attributed to the CNMI’s law enforcement efforts in responding to the COVID-19 pandemic.

Four law enforcement agencies show this trend: the Department of Public Safety, Department of Fire and Emergency Services, Department of Corrections, and the Division of Customs and Biosecurity.

Atalig also disclosed that overall, revenue collection in the amount of $35,343,868 is 4.5% greater than the forecasted amount of $33,835,531 for that period.

Atalig

With respect to the CNMI’s economic outlook, he said while federal assistance in the form of the American Rescue Plan Act has supported expenditures despite the widespread impact of COVID-19 on the CNMI labor market, data from the first quarter showcases continual impacts on the wider economy outside of domestic consumption.

Atalig provided House of Representatives Speaker Edmund S. Villagomez (Ind-Saipan) with the financial information for the first quarter of fiscal year 2022 with an ending report date of Dec. 31, 2021, as required by law.

Atalig said that DPS was appropriated $1,234,719 for the first quarter of fiscal year 2022 but its actual expenditure amount exceeded that, at $2,045,625.

For the Department of Corrections, actual appropriation of $698,362 was insufficient to cover the actual expenditure amount of $1,134,275.

For the Department of Fire and Emergency Services, the actual appropriation of $944,065 was surpassed by its actual expenditure amount of $1,099,250.

Atalig said the Division of Customs and Biosecurity, which is under the Finance Department, was appropriated $482,436, but the actual expenditures amounted to $700,858.

Atalig said first quarter appropriation is about 11.8% less than actual expenditures.

In sum, he said, unanticipated expenses and under-budgeted accounts resulted in a significant deficiency, when comparing expenditures and appropriations for the first quarter.

On the revenues side, Atalig said Wage and Salary Tax collections in the first quarter stood at $6,190,451 or approximately 2.7% greater than the forecasted budget collection.

He said the first quarter Northern Marianas Territorial Income Tax collections of personal income amounted to $2,108,175.

He said corporate income tax collection was valued at $1,384,072, or approximately 163% greater than the forecasted amount of $526,192.

Atalig said Business Gross Revenue Tax collection for the period is $15,452,207, which is approximately 16.8% more than the forecasted amount.

Meanwhile, he said, Excise Tax collections yielded $6,873,026 or 19.9% less than the forecasted budget.

With respect to economic outlook, Atalig said the tourism industry under normal circumstances usually increases overall demand for goods and services in the CNMI by greatly expanding the consumer’s presence on the island at any given time.

“This increase in population caused by transient visitors provides for additional consumption, increased business revenue and a demand to necessitate further imports to serve as the basis for excise taxation,” he said.

This could mean a rosier picture of the CNMI economy in the months ahead. With both Korea and the proposed Japan Travel Bubble programs, the CNMI can anticipate an increase in tourism arrivals, Atalig said, which means an increased demand for goods and services, and an increase in revenues being generated to help the CNMI meet the fiscal year 2022 projections.

He added that with the CNMI’s economic recovery and inclusion of federal assistance through the American Rescue Plan Act funds and expected federal infrastructure projects, they anticipate the infusion of funds would benefit small businesses and non-profits to support local economic activity, through the demand for goods and services could help support those fiscal year 2022 projections.