Teno hikes FY 2001 budget

Gov. Pedro P. Tenorio yesterday hiked up spending level of the courts and the Legislature for the next fiscal year after chopping off initial appropriation for repayment of the anticipated $60 million bond by the government.

Because of the increase, total funding for government operations for FY 2001 is now pegged at $217.25 million which is up by one million dollars from the initial budget proposal submitted by the governor last April.

He indicated, however, that the estimated revenues available for legislative appropriation will remain at $226.24 million, including the $4.4 million in public land leases specifically set aside to the Division of Public Lands.

The additional funds given to the legislative and judicial branches came from the proposed budget of $5.6 million initially intended for the bond repayment, but was cut by Mr. Tenorio to $4.6 million due to delay in the process.

The Commonwealth Development Authority has been authorized to float the $60 million worth of bonds that will be used by the government to finance capital improvement projects in the CNMI.

While the agency has undertaken steps to proceed with the plan, the governor said the bond issue will occur later than originally anticipated — giving the CNMI grace period before it start repaying the loan.

Mr. Tenorio proposed reallocation of the $1 million to the Legislature and the judiciary as well as to Rota and Tinian municipalities and various government agencies.

Under the revised FY 2001 budget, lawmakers received additional half million dollars to boost its spending level to $7.95 million, while the courts got about $150,000 to swell its resources to $5.1 million.

No additional raise

Although some agencies were provided share of the funds taken from the bond repayment, Mr. Tenorio emphasized that funding levels for three priority programs — the Public School System, and the Departments of Public Health and Public Safety — will not be affected by the revised budget proposal.

The three, which had obtained the largest budget raise for the next fiscal year, eat up 42 percent of the total cash resources equivalent to $93 million.

“As I indicated in my message [during the budget submission] of April 1, 2000, continued investment in these public services is critical to ensure the growth and development of the Commonwealth,” Mr. Tenorio said in his letter addressed to the presiding officers of the Legislature.

The revised budget proposal is usually handed in by the local chief executive on or before July 1 to meet the constitutional requirement and the Planning and Budgeting Act, which comes exactly three months after the submission deadline on April 1.

In his letter, Mr. Tenorio offered his administration’s assistance to the Legislature in reviewing the spending package as he asked lawmakers to expedite its approval.

“I urge the Legislature to act on the governor’s revised budget proposal for FY 2001 in a timely manner,” he said. “With your responsible leadership, the FY 2001 budget will reflect a commitment to live within our means and uphold fiscal discipline.”

Last month, the governor vetoed the FY 2000 budget proposal passed by both houses, citing potential deficit spending by departments and agencies as well as layoffs of government employees to be hit by proposed cuts barely four months into the next fiscal year.

Although $207 million were appropriated by legislators to oil government operations under the current fiscal year, Mr. Tenorio said the continuing resolution based on the previous year’s spending limit would be better when it’s almost three-quarters into FY 2000.

The House Ways and Means Committee is expected to begin deliberation on the new budget this month with hopes to pass it by August. Under the Constitution, the Legislature has until September 30 to approve the governor’s submission.