Budget woes disrupt operations

Failure by the House of Representatives and the Senate to hammer out a budget deal is already taking its toll on government operations, resulting in disruptions on the delivery of basic public services like education, health and public safety.

Budget problems faced by the administration of Gov. Pedro P. Tenorio pose serious concerns the government’s prompt and effective delivery of services since major projects and programs remain unfunded, according to Senate Floor Leader Pete P. Reyes.

The NMI Retirement Fund’s financial problems , especially on the Government Health and Life Insurance Program, may be aggravated by the effects of the two houses of Legislature’s failed talks on Mr. Tenorio’s budget proposal.

Mr. Reyes also mentioned that major construction activities, like that of the erection of two new public schools, remain unfunded primarily because the Legislature is not able to promptly act on the governor’s budget request for Fiscal Year 2001.

He also noted possible disruptions in the delivery of public safety and health services, noting cases when hospitals in Honolulu refused medical referral patients from the CNMI because of the government’s failure to settle its outstanding obligation.

Because of this, Mr. Reyes is raising hopes that the Senate can still encourage the House of Representatives to reconsider its position on the budget proposal, and that leaders of both chambers re-convene under the bicameral conference.

“I may be what you would call an eternal optimist but I am really hoping that we will be able to revive the bicameral conference and reach a concensus with the House on the Fiscal Year 2001 budget,” he told reporters in an interview yesterday.

The House Ways and Means Committee in late December informed the Senate that they were ending the bicameral conference after three previous meetings produced no pact. This, even as the Senate Fiscal Affairs Committee continued to press for a compromise with the House.

The bicameral conference convened on Dec. 15 in an effort to reach a concensus on the FY2001 budget following differences on how to divide the cash resources of the government.

The administration submitted a $221.66 million funding level which would oil operations of all departments and agencies from Oct. 1, 2000 to Sept. 30, 2001.

The House has remained firm on its decision not to pass the FY2001 budget anymore since the leadership of the lower chamber can’t see eye-to-eye with their counterparts in the Senate on several provisions and appropriation items of the measure.

Among those in question were the $700,000 allocation for lobbying campaign in Washington DC, the $16 million funding level for each of the Rota and Tinian municipalities , and the earmarking of $1 million from the MVA budget to create new offices on each of the island.

The House and Senate also differed on how to address the long-delayed retroactive salary of close to $2,000 employees of the government who have been awaiting the 14-percent increase under PL 7-31 since 1991.

While the bicameral conference tinkered with the idea of having piecemeal budget for the Public School System, the Departments of Public Health and of Public Safety, and the Judicial Branch, the proposal fell apart due to serious constitutional questions.

The lower house also felt that the government should have instead a unified budget acceptable to both the Legislature and the administration as has been recommended by the governor.