Legislature may push for $213M budget

A joint legislative committee reviewing the Babauta administration’s proposed $226-million appropriation for 2005 has so far reached a consensus to keep the annual budget at the current level of $213 million, according to Senate Vice President Diego M. Songao.

In an interview yesterday, Songao said that members of the joint panel “pretty much agree on that [$213 million].”

“We’re looking at $213 million. We’re quite comfortable with that figure,” he said.

He said, though, that the Senate may agree to a bigger budget, considering a projected collection of up to $6 million in anticipation of the passage of House Bill 14-180.

“On the Senate side, we’re looking at a bigger budget,” he said. The budget bill has passed the House and is now pending at the Senate.

“Looking at $213 [million], which does not include that [projected collection] yet, we can [even] bump up the budget to a little more than $213 million,” he said.

The House-approved H.B. 14-180, which seeks to repeal 4 CMC Division 1 Sections 1102 through 6 of Chapters 1, 8, and 9 of the Commonwealth Code, aims to provide a detailed administrative provision necessary for the application and enforcement of general revenue and taxation laws, including liens, levies, examinations, and summons.

Senate President Joaquin Adriano, for his part, said that a $213 million budget “is more than acceptable this time.”

“I think it’s the highest we can go for now,” he said.

The Senate leadership said that, should government collection exceed the budget, the Legislature could always provide a supplemental appropriation.

“Lawmakers say that we should stay with $213 million. If we generate more, then we’d make a supplemental budget,” Songao said.

Meantime, the Senate Vice President expressed opposition to the administration’s cost reduction plan, saying it would affect many people who have not gotten their lump sum bonus, annual increments, and other compensation from the government.

“Reduction of costs should not be done at this time. Suspending it for one year as proposed is not good. People have not been getting their money for a year now, so I totally disagree with that,” he said.

As to the administration’s proposed revenue enhancement plan, he said: “I agree with some and I don’t agree with some.”

He said he agrees with the occupancy tax increase, reduction of tax rebate by 10 percent, and vehicle related fee increase.

The administration’s integrated fiscal plan aims to generate over $21 million in revenues for next fiscal year.