House likely to compromise on FY 01 budget

The House of Representatives is willing to meet halfway with the Senate on the FY 2001 budget proposal if there will be major differences on the appropriation of the cash resources, according to House Floor Leader Oscar M. Babauta.

He also underscored the need to pass the spending measure this year, reminding that the government has been operating under the budget level approved more than two years ago.

Gov. Pedro P. Tenorio’s proposed $221.66 million budget for FY 01 has been pending with the Senate since the lower house passed it in late August. The new fiscal year began Oct. 1.

This is the second time in a row that the fiscal budget has been delayed in the Legislature. The FY 2000 budget was only approved last May, but the governor had to veto the measure due to potential deficit spending with barely four months into the new fiscal year.

Senate Fiscal Affairs Committee chair Sen. Edward U. Maratita has vowed to press changes to the House’s proposal, citing as a priority appropriation of at least $2 million for payment of much-awaited salary adjustments to nearly 2,000 government employees.

The lower house did not provide specific dollar amount, although a provision was inserted to ensure payment of those entitled to the pay hike as mandated under PL 7-31.

If the Senate pushes through with the planned changes, the House will be forced to accept or reject the amendment. In case there is objection, the two chambers will have to go into bicameral conference to iron out differences.

“There is nothing that would prohibit us from meeting with them,” Mr. Babauta told in an interview yesterday. “If there will be a rejection of the Senate amendment, definitely the Speaker will appoint [his representatives] to the bicameral conference.”

Once that is set, lawmakers will have a clear idea as to the direction and timeline of the budget’s passage, he said.

“I feel that it is very important, not only passing the budget this year, but at the earliest time possible so that the government will not operate under continuing resolution again,” added the Saipan representative.

He said he is still hopeful of getting the budget out of the Legislature before the end of the year, noting he can understand the delay in the upper house.

“I am pretty much content enacting the budget on the second week of October,” Mr. Babauta explained. “If a compromise on the budget is reached by both parties in the bicameral conference, [the House] will support the agreement.”

With the absence of the approved budget for the new fiscal year, the government is again running under FY 99 spending level of $216 million which was higher than previous year’s estimated revenues of $208 million.