Legislature OK’s FY2000 budget

Gov. Pedro P. Tenorio is now faced with a tough decision whether to sign the FY 2000 budget which unanimously passed both houses of the Legislature yesterday in a back-to-back session, more than eight months into the current fiscal year.

By this time, all departments and agencies have already spent almost two-thirds of the $211 million proposed spending level, but lawmakers made comprehensive changes to the package in approving the measure.

The Commonwealth Utilities Corporation will have to dim hopes of getting payment from the government for its utilities as this budget has cut the entire $4 million earmarked by the Tenorio administration this year.

These funds will remain with the Rota and Tinian municipal governments for their respective budget requirement following an agreement hammered out by joint House-Senate committee late Wednesday to bridge differences on the respective proposal between the two chambers.

In addition, the deal also calls for allocation of $700,000 to finance lobbying campaign in Washington D.C. , although Senate Floor Leader Pete P. Reyes raised a howl over the decision to make the procurement on a sole-source basis (See related story).

Other major alterations included restrictions against use of public funds for renovation of government offices located in private buildings; granting authority to Representative to Washington to reprogram its own budget for the transfer of its Saipan’s office; and removing expenditure authority of the finance secretary over allocation made to her subordinate.

The bill also contained provisions recommending closure of the Manila Liaison Office in order to save its funds for the scholarship program as well as allowing the municipal councils on the three islands and the Board of Public Lands to sole-source legal services and other professional services contracts.

Difficult task

Mr. Reyes acknowledged the budget review had been a “one difficult task,” but said they have to make “hard decisions” to come up with a package addressing the needs of the Commonwealth.

Submitted by Mr. Tenorio in April last year to the Legislature, the FY 2000 budget approval suffered delays since September amid differences among its members on how to distribute the cash resources of the government.

The $211 million projected revenues represent a two percent decline from the previous year’s income of $216 million, which itself was 13.4 percent lower than the $240 million initially estimated by finance officials as collections for FY 1999.

Under the new budget bill, the Public School System receives the largest share at $41.4 million, followed by the Department of Public Health, at $34.4 million, and the Department of Public Safety at $13.1 million.

Both Rota and Tinian gets identical $15.4 million which is nearly at par with appropriation approved by the Legislature in 1999, which later dropped to $13 million following the Commonwealth-wide cut imposed by Mr. Tenorio due to the 13.4 percent reduction in government cash resources.

Sen. Edward U. Maratita said both Rota and Tinian delegations agreed to shave $100,000 each from their budget to provide funds for the Washington lobbyists pushed by the House.

Most of the agencies and departments, except the three critical agencies, suffered cuts to give way to the desire by lawmakers to increase funding for scholarship and medical referral programs, which has $4.2 million and $3 million, respectively, in the new budget.

Harsh signal

Because of the potential impact on the move to zero out utilities payment, the budget has a provision that allows the governor to set aside any surplus funds for such purpose. The government has owed CUC over $11 million in unpaid billings, which the government-owned corporation has been trying to collect since last year.

Pamela Mathis, chief CUC information officer, said the move does not paint a good financial picture for the government as she noted that lawmakers even forced them to build an expensive 80-megawatt plant on Saipan.

“It sends a very harsh signal to us when the board does decide to disconnect electricity from government offices,” she said.

The government has been running under continuing resolution reflecting the $216 million spending limit of FY 99 since October 1 in the absence of the approved budget. The Legislature, meanwhile, is expected to deliberate on the new budget submission by governor in the next few months before the current fiscal year ends on Sept. 30.