Teno, lawmakers decide to scrap FY 2000 budget

Unable to reach consensus as to which departments and agencies should suffer budget cuts, the Legislature and the administration decided yesterday not to pass the spending proposal for FY 2000, while granting Gov. Pedro P. Tenorio greater flexibility in managing government resources.

This means that the government will operate under the same spending limit approved last year, but with restrictions to ensure departments and agencies do not exceed their appropriations.

The House of Representatives, however, may have to pass a budget bill within the next two months with the cooperation of the Senate and the Tenorio administration, according to Speaker Diego T. Benavente.

“Because of all the questions involved in the time that we need to resolve some of the issues, we will have the continuing resolution budget at least for the next couple of months,” he told reporters.

The House Ways and Means Committee tasked to review the proposed spending package has failed to come up with recommendations on how to distribute the $206.7 million projected revenues among the various government offices.

That amount represents a two percent decline in FY 99 revised budget of $210 million, and several agencies, including public schools, police and hospital, have asked lawmakers for bigger share despite the shrinking local coffers.

According to Benavente, the House would have to reduce funding for other offices in order to address the needs of crucial services in light of the lower revenue projection.

“At this time the leadership and the committee are not ready to decide as to what agency can be cut and at the same time allow to provide those critical government services,” he said.

Deadline: Submitted last April, the budget must be approved by the Legislature before the end of the current fiscal year on Sept. 30 as required under the Constitution. Failure to do so would force the government to run under continuing resolution based on resources from the previous year.

While lawmakers had five months to review the submission, the deliberation had been bogged down by infighting among some members on how much each department or agency should get.

Likewise, other legislators had pressed for increase in the share of the government scholarship program whose budget for next year was slashed nearly 50 percent, eyeing several measures that would cut appropriation from other offices.

“In anticipation of looking at a better projection and not necessarily providing for additional deductions in government agencies and operations, we want to provide additional time for the first quarter of this year to look at the possibility of additional resources,” said Benavente.

But the Legislature will grant Tenorio reprogramming authority over the funds to ensure that each office will have sufficient operational budget to continue providing services.

“We hope by allowing the continuing resolution and allowing the governor, who most knows the needs of different agencies, can and will be able to make the adjustments,” the speaker said.

Tenorio, meanwhile, did not mention the decision to forego approval of the budget in an earlier interview with reporters, but he appeared resigned to the fact that the Legislature would not beat the deadline.

“The House is reviewing the budget very thoroughly,” he explained. “(Members) are a little bit concerned because of the fact that our resources were reduced again and they are taking into consideration some of the immediate needs (of the government).”

Tenorio has earlier assured that there would be no government shutdown, although he had expressed hope the budget would be approved.

This is the first time in his administration that its passage is delayed. In 1997, the Legislature also did not approve the budget proposed by the administration of former Gov. Froilan C. Tenorio.