House still optimistic of passing FY 2005 budget

After postponing its session twice this week, the House of Representatives will try a third time to hold a session, set at 10am tomorrow, in hopes to pass a new budget for the next fiscal year, albeit past the Sept. 30 deadline.

“We’ll pass the budget late. There’s nothing that prevents us legally from doing that. It’s unorthodox, unusual, but it’s really been unusual historically,” said House leadership spokesman Charles Reyes Jr. yesterday.

The House was originally set to act on the budget bill during its session at 10am Wednesday but it was postponed and rescheduled for yesterday at 1pm.

But shortly before 1pm yesterday, House Speaker Benigno R. Fitial called off the session for Friday at 10am.

“The Ways and Means Committee is still finalizing the budget for introduction and ratification. Please be advised that our 6th day, second regular session, originally set for today…has been rescheduled to Friday,” said Fitial.

Authorities said that the delay in the passage of the bill was caused mainly by lawmakers’ failure to reach a consensus regarding a planned imposition of an across-the-board budget cut of all agencies.

The extra money to be generated from this scheme would be used for the retroactive payment of Rota and Tinian government employees as well as for increased budget to address the longstanding deficit.

Ways and Means Committee chair Rep. Norman S. Palacios has confirmed that part of the money shaved from the agencies’ budgets would be used to pay off some of the retroactive payment obligation.

He said a $1 million retro pay budget would be divided between the two islands.

The possible “casualty” of such move, a lawmaker said, would be the administration’s education initiative program and the “All Others” budget of certain agencies.

Meantime, Reyes said another piece of legislation that aims to amend the Planning and Budgeting Act also caused the postponement of the session.

“They want to include that bill. The speaker is awaiting a response from the Office of the Public Auditor on that particular issue,” said Reyes.

Fitial, in a letter dated yesterday, asked Public Auditor Michael Sablan to review the bill, which he said essentially aims to comply with OPA’s previous recommendations.

Fitial said the bill aims “to provide for more internal controls with respect to the inappropriate use and reprogramming of government funds as outlined in OPA Report Nos. AR-00-02 and LT-01-02.”

The bill, authored by Rep. Jesus SN. Lizama, provides that “any government employee that illegally reprograms or knowingly receives illegally reprogrammed funds shall be held personally liable for their actions.”

Meanwhile, Senate President Joaquin Adriano said that effective on Oct. 1, the government would be on a continuing resolution in the absence of a new budget.

“But a new budget can still be passed,” he said.

When this is done, some budgetary adjustment would be made since the allocation for the first quarter of fiscal year 2005 is deemed approved by Oct. 1.

Public information officer Pete Callaghan said that the budget adjustment would be based on the new budget.

The House earlier adopted a concurrent resolution calling for the passage of a $212.65 million appropriation for next year, which is about $13 million lower than the administration’s proposed $226 million budget.

The administration had included in its spending plan several proposals to increase fees and taxes, and a cut in the rebates, among others. The Legislature, however, thumbed down this idea, saying now is not the time to add more burden to the taxpaying public.