Gov’t anticipates more cuts in spending

The CNMI government is anticipating its total expenditures to be lower in 1999 compared to previous years, as finance managers finalize reports on reduction in the Commonwealth’s bureaucracy which had grown so big during the previous administration.

The Department of Finance earlier disclosed that the government slashed expenses on leased vehicle by $600,000, from $2 million in FY 1998 to $1.4 million in FY 1999, representing a 28 percent reduction in government spending on leased vehicles.

Finance officials said it will monitor strict compliance on the governor’s call to further trim government expenses in light of declining revenues.

The CNMI also realized major reduction in overseas trips by the executive and the judicial branches of the government despite the 56.44 percent increase in travel expenses by the 11th Legislature.

The government’s finance managers are already finalizing report on increased efficiency and elimination of unnecessary expenses which will cover special contracts, consultants and the reduced government work force.

The Tenorio Administration did not renew the contract of Preston Gates, its lobbying arm in Washington D.C. despite strong criticisms against the Commonwealth’s labor and immigration policies, due to budgetary constraints.

Gov. Pedro P. Tenorio said Northern Marianas is facing the worst ever economic condition that has been aggravated by the bloated bureaucracy which doubled since his previous term in office.

When Mr. Tenorio stepped out of his office during his second term, the government employed only a little over 2,000 employees. The figure has ballooned to more than 4,000 since then.

This is the reason why more than half of the government’s annual appropriation goes to personnel wages and other benefits. But Mr. Tenorio assured that his Administration would continue to provide the most essential services despite the dramatic decline in government earnings.

He noted that there are several factors why the government faces the most difficult financial conditions such as the ongoing region-wide economic upheavals and the current size of the local government which, the governor admitted, had grown tremendously big.

The government has been exploring more ways that would help cut down expenditures in light of the continued decline in revenue collections due to dipping visitor arrivals to the CNMI.