Four agencies again exceed Q3 budgets, says Atalig

For the third quarter of fiscal year 2022, four law enforcement agencies again exceeded their total combined budget of $10 million by incurring combined actual expenditures of $13.3 million, with the excess of budgetary allotments attributed to their efforts in responding to the COVID-19 pandemic.

In his financial report for the third quarter of fiscal year 2022 submitted to the Legislature last Aug. 2, Finance Secretary David DLG Atalig said a review of the expenditures finds that the agencies that exceeded their appropriated expenditures are the Department of Public Safety, Department of Corrections, Department of Fire and Emergency Medical Services, and the Department of Finance-Division of Customs and Biosecurity.

Atalig also disclosed that revenue collection for the third quarter, amounting to $43,873,419, is 22.1% higher than the forecasted amount of $37,380,691.
With respect to the CNMI’s economic outlook, he reiterated his statement in his financial reports for the first and second quarters of fiscal year 2022 that, while federal assistance in the American Rescue Plan Act has supported expenditures despite the widespread impact of the pandemic on the CNMI labor market, data from the third quarter showcases continual implications on the broader economy outside of domestic consumption.

Atalig said that, as a result of both the Korea and the proposed Japan travel bubble programs, they can anticipate an increase in tourism arrivals, demand for goods and services, and an increase in revenue being generated to help the CNMI meet its fiscal year 2022 projections.

Regarding the law enforcement agencies’ expenditures, Atalig said that DPS was appropriated $3,704,157 for the third quarter of fiscal year 2022, but its actual expenditures reached $4,958,725.

For DOC, the actual appropriation of $2,095,085 was insufficient to cover actual expenditures of $2,735,593.

For DFEMS, the actual appropriation of $2,832,194 was surpassed by its actual expenditure amount of $3,609,799.

For the Division of Customs and Biosecurity, $1,447,308 was appropriated, but the actual expenditure reached $2,017,173.

Year-to-date fiscal year 2022 appropriation is 15.8% less than actual expenditures, Atalig said.

In summary, he said, unanticipated expenses and under-budgeted accounts have left a significant deficiency regarding year-to-date expenditures vs. year-to-date appropriations.

Atalig said the most prominent deficiency was disaster expenditures that were not appropriated funding despite accumulating an expense of $20,798,894.

On revenues, Atalig said that third quarter Wage and Salary Tax collections stood at $6,876,696 or approximately 8.17% higher than the forecasted budget collection.
He said the third quarter Northern Marianas Territorial Income Tax collections for personal income amounted to $7,691,300.

Atalig said corporate income tax collection was valued at $974,454, or approximately 96.5% more than the forecasted amount of $495,970.
He said Business Gross Revenue Tax collections for the third quarter was $17,782,862, which grew to approximately 22.1% more than the forecasted amount.
Atalig said total Excise Tax collections yielded $7,527,311, or 18.1 less than the forecasted budget.

Last February, Atalig disclosed in his financial report for the first quarter of fiscal year 2022 that the same four law enforcement agencies exceeded their total combined budget of $3.3 million by incurring actual expenditures of $4.9 million, with most of the excess going to the pandemic’s response.

He said that in the first quarter, the revenue collection in the amount of $35.3 million was 4.5% greater than the forecasted amount of $33.8 million for that period.

Last May, Atalig disclosed in his financial report for second quarter of fiscal year 2022 that the same four law enforcement agencies exceeded their total combined budget of $6.7 million by incurring actual expenditures of $8.4 million, with the excess attributed to the government’s efforts in responding to the COVID-19.

Revenue collection for the second quarter, amounting to $38.5 million, was 5.9% greater than the forecasted amount of $36.4 million.