Scrutiny on proposed FY2002 budget begins

Legislators will ask department heads and agency officials to justify proposed appropriations for each government office submitted under Gov. Pedro P. Tenorio’s proposed budget for the financial year 2002.

The House of Representatives officially acknowledged the receipt of the governor’s FY2002 budget proposal amounting to $229 million, up from the previous year’s $221.66 million.

House Committee on Ways and Means Chair Antonio Camacho said all department heads will be asked to provide the Legislature reports on sources of funds to expedite budget discussion.

With the filing of the budget proposal, the lower chamber is now ready to review proposed appropriations for each department and agency. The House has also passed concurrent resolution of House Bill 12-3.

Mr. Camacho said the lower house is now ready to call in all department officials to justify their needs during the review of the budget package.

The increase in the proposed FY2002 budget mirrors the additional revenues expected to be generated by the CNMI government during the forthcoming financial year.

The lawmaker said the administration cited increased in licensing fees of potential manufacturers and investors ready to infuse fresh capital as the primary source for additional revenues to be generated.

Mr. Tenorio earlier expressed confidence the Legislature will approve the proposed budget. He said possibilities are high that the CNMI will meet its financial responsibilities, with legislative measures in place to bolster the Commonwealth’s economy and drum up its generating capacity.

Included in the proposed budget is the separate utility allocation to each government office, as well as for the Tinian and Rota local governments. This way, each office will be responsible for their utility needs and pay them on time.

Last year, the House of the Representatives failed to hammer out a budget deal which forced the government to operate on a continuing budget resolution.

The House was firm on its decision not to pass the FY 2001 budget due to questionable provisions and appropriation items such as the $700,000 allocation for lobbying campaign in Washington DC; the $16 million funding level for each of the Tinian and Rota municipalities, and the earmarking of $1 million from the Marianas Visitors Authority to create new offices on each island.

The budget problem and differences on how to distribute cash resources of the government have come to mark the budget process in the Legislature in the past few years, mainly due to the decline in revenues and jostling for bigger share. (EGA)