$3-M eyed for retro pay hike

The Senate will push for guaranteed funding of between $2 million to $3 million for payment of the long-overdue salary increase for government employees under the FY 2001 budget proposal, according to a key member.

Sen. Edward U. Maratita, chair of the Fiscal Affairs Committee, expressed dismay that the House of Representatives failed to appropriate money to meet this obligation to about 2,000 former and current employees.

The lower house last week approved the proposed spending package amounting to $221.66 million which will oil operations of departments and agencies beginning this October 1 until September 30, 2001.

While the House’s proposal changed little from what Gov. Pedro P. Tenorio has proposed, it included provisions to ensure payment of mounting financial obligations, such as government utilities and the retroactive pay as mandated under PL 7-31.

To respond to appeals by government employees who have been demanding pay hikes since 1991, the lower house has recommended transfer of lapsed funds from personnel expenditures in FY 2001 into an account to specifically pay these people.

But the provision is not enough to assure eligible current and former government employees as the proposal did not earmark specific amount for compensation, according to Mr. Maratita.

“I disagree with the House that only lapsed salaries should be reserved for retroactive pay. There is no guarantee,” he told in an interview yesterday.

“I want a figure put in there, either two or three million dollars to make sure that there are money for the employees,” added the senator.

Possible deadlock

Noting that six other senators are supporting him to seek funding for PL 7-31, Mr. Maratita disclosed they will insist on putting a dollar figure even if the House stood its ground.
“If we don’t agree on that, then I guess there’s not going to be any budget,” he said.

The government needs to raise over $9 million to pay the salary increase of about 1,915 employees on the three islands, who have been seeking compensation for the last several years.

Under the law, all employees who had reached the maximum salary level would have received a 14 percent across-the-board hike — benefits that were granted due to budget surplus experienced by the government in early 90’s.

While the Legislature had inserted provisions in the fiscal budget each year to ensure payment, the administration failed to implement such increase.

Some select employees managed to collect the money due them during former Gov. Froilan C. Tenorio, but many have yet to receive the payment until now due to the financial difficulties confronting the CNMI.

Among departments and agencies with payment oversight, the largest is from the Department of Public Safety with $1.4 million in unpaid wages to 217, of whom 183 are still active.

The Commonwealth Health Center also has pending settlement of $1.2 million for 283 employees, including 189 who are still in its payroll.

Rota has 228 employees who have not received their pay raise, amounting to a little over $1 million, while Tinian has 181 employees with $907,000 in back wages.

Budget review

Meanwhile, the Fiscal Affairs Committee is expected to begin next week its review of the FY 2001 budget by outlining concerns raised by the members.

Mr. Maratita said there will be major changes to appropriation level set aside for some departments and agencies, particularly for Rota and Tinian municipalities which each received $14.3 million budget.

There is no actual hike in the spending limit of the two islands since additional funds came only as the House agreed to distribute payment of utilities among departments and agencies, instead of placing the burden to the Governor’s Office, he said.

Although uncertain of how the House will react to their amendments, the Senate will likely sit with its counterparts to hammer out a compromise budget bill in a bicameral conference.

“We can’t reject the House’s version but there will be some major changes,” explained the Rota senator.

He also said that they need to approve the new budget as the FY 2000 package was disapproved by the governor which left the governing running under previous spending level.

“We will try our best to pass the budget as soon as possible. The House saw the budget for almost three months. Don’t expect the Senate to do it in two or three weeks,” added Mr. Maratita.