Budget deliberation begins

With 15 members present yesterday, the House of Representatives began floor deliberation on the budget bill with minority members questioning several provisions, including allocating lapse funds from personnel for payment of 5 percent across-the-board salary hike for government workers.

Discussion is expected to resume today, but it is not certain whether the proposed FY 2000 budget will be approved in time for the Senate to act on it, according to lawmakers.

Senators postponed their scheduled session today for January 4, their last before adjourning sine die for the inaugural of the 12th Legislature.

Senate Floor Leader Pete P. Reyes, however, said he does not see immediate passage of the spending package in the upper house as concerns on scholarship and medical programs were not included in the House version.

House Bill 11-508 will appropriate the projected $207 million revenues in this fiscal year for operations, wages and benefits of the government as well as the more than $4 million income from public lands leases.

But the measure has reportedly drawn opposition by the Tenorio administration due to the provision seeking to specifically set aside at least $3 million in surplus funds from personnel expenditures to meet a seven-year law mandating salary increase for public sector employees.

Rep. Rosiky F. Camacho said such provision would only allow departments heads and directors to dip into the personnel funds for payment of the salary adjustments when it is not clear that there will be lapse funds.

“Where are you going to get that money?,” he asked when sought for comment after the session.

Minority Floor Leader Dino Jones also raised the same question, noting that this may not be the right time to pursue the requirement of the law when the economy is not doing well.

But Vice Speaker Jesus T. Attao pointed out the government has been neglecting this commitment for a long time now and that it will be appropriate to reserve at least $3 million each year to begin paying off its obligations to nearly 5,000 employees.

He said that in the past, lapse funds from personnel were reprogrammed for use in other expenditures by the government. In FY 99 alone, over $7 million were saved from leaving vacant positions unfilled.

“It is incumbent upon us to reserve at least $3 million to begin paying off these people,” Mr. Attao told the House, adding that some $12 million will be needed by the government to grant the much-delayed pay hike.

House Ways and Means Committee Chairman Karl T. Reyes the other day said he would favor abandoning passage of the budget bill this fiscal year if this provision will only lead to a host of problems.

Last September, lawmakers and Gov. Pedro P. Tenorio agreed to defer approval of the budget in the face of growing differences on how to distribute the $207 million cash resources — down by two percent from FY 99’s spending level.

The government is now running under continuing resolution based from the $210 million appropriation limit approved last year by the Legislature.