Senate realigns $4 million for CUC to gov’t agencies

The Senate yesterday agreed to wipe off all the $4 million set aside by Gov. Pedro P. Tenorio for payment of government utilities in order to hike the budget of some agencies, including the island municipalities of Rota and Tinian, under the proposed FY 2000 spending package.

The budget bill finally cleared the upper house during a late afternoon session that was cut short from time to time as members went back to amend the measure passed by the House of Representatives last month.

It appropriates the $211.1 million projected revenues for the current fiscal year to all departments and agencies, including the $4.2 million income from land leases earmarked strictly for use by the Division of Public Lands.

The measure now heads back again to the lower chamber for action on the amendments which included reduction on the proposed appropriation for the Legislature as well as several departments and agencies of the executive branch.

While the House altered the proposal submitted by the governor in April 1999 in a move to augment funding for critical agencies such as schools, health and public safety, the Senate revised anew the budget to further increase their share.

In addition, appropriations for Rota and Tinian went up to maintain the level approved during FY 99 before the budget was cut by over 13 percent. Both island municipalities now have a budget of a little more than $15 million each, up by an average of $2 million from what the House approved.

Under the Senate version, the Department of Public Safety received additional half-a-million dollars to cover overtime and hazards pay for police and fire officers, as did the courts with about $200,000.

The scholarship program, which had been provided by the House with additional $1.5 million to bring up its share to $3.8 million, got another $400,000. The medical referral program’s budget was also hiked.

Others receiving increases included the Washington Representative’s office, Saipan Mayor’s office and the Public School System, while those with downward appropriation were the Legislature and Office of the Governor, among other departments and agencies.

The new proposal also reinstated payment for the 30 percent retirement bonus given to government workers amounting to $100,000 as well as annual leave lumpsum payment totaling $218,000.

Senate Floor Leader Pete P. Reyes, on the other hand, recommended closure of the Manila Liaison Office so that its $65,000 budget could be funneled into the scholarship. He likewise moved to eliminate two positions from the Attorney General’s Office in exchange for two more lawyers for the Public Defender’s Office.

Funds shifting

The Senate shifted some of the funds to meet these hikes, taking utilities payment completely out of the budget and chopping off funds from several independent programs, such as the Marianas Visitors Authority.

But an administrative provision inserted by senators will require the Tenorio administration to allot all extra revenues from the current fiscal year to pay for the utilities cost.

It is not known how the Senate move will impact the financial condition of the Commonwealth Utilities Corporation, especially in light of the government’s mounting debts. So far, over $10 million in overdue charges have not been paid by the administration to CUC.

Utility officials reportedly had supported the plan. CUC Executive Director Timothy P. Villagomez and Board Chair Jesus T. Guerrero were present briefly at yesterday’s session.

“We negotiated with them. That’s an understanding,” said Sen. Ramon S. Guerrero. “We are trying to help them and they are trying to help us.”

Senate President Paul A. Manglona stressed that “if there is extra money generated, then that will be appropriated in paying off the government’s debt to CUC.”

But senators expressed hope that the House accept their recommendations to move the budget whose approval has already been delayed since September last year due to differences among lawmakers on how to distribute the resources.

“Whether they act on it or not, we can start to sit down. If they know where the Senate is coming from, we know where the House is coming from,” added Mr. Manglona.

Sen. Edward U. Maratita, chair of the Fiscal Affairs Committee, said that if the amendments are not approved, they will have to hold meetings with their House counterpart.

“If we have to go into a conference meeting, we might as well entertain the FY 2001 budget, and forget about this budget,” he told reporters in an interview during one of the breaks at yesterday’s session.

As part of the constitutional requirement, the governor handed in early this week his spending proposal for the next fiscal year amounting to over $220 million, higher by six percent than the current budget.

Under the Constitution, the Legislature has until the end of fiscal year on September to approve the budget. A continuing resolution under previous year’s spending limit is adopted if it fails to pass the budget act.