House to allocate retro pay for Rota, Tinian

The House leadership aims to make an across-the-board cut of agencies’ budget to address the budget deficit and to ensure that it appropriates $1 million to $1.5 million for the retroactive pay of Rota and Tinian government employees.

The cut, according to sources, would amount to 4 percent “which could pose an adverse impact on agencies’ operations.”

“It would mean shutdown of some operations and possible layoff. What can you do if your budget is reduced?” said a lawmaker.

But House leadership spokesman Charles Reyes Jr., said there is no set figure yet as the budget bill remains under revision in time for tomorrow’s House session.

“The latest version has to be revised because they [lawmakers] saw some deficiencies,” said Reyes.

A government official said the House leadership wants to increase its yearly allocation to retire the budget deficit. Under the continuing resolution, the government allocates 2 percent of the annual appropriation for the deficit.

Reyes said House Speaker Benigno R. Fitial “wants to simplify” the language on the across-the-board reduction provision.

House Ways and Means committee chair Rep. Norman S. Palacios said that, based on discussions, the budget cut affects all agencies except the three essential departments: Public Safety, Public Health, and Public School System.

Another lawmaker, however, said the cut may cover all agencies and that the administration’s education initiative would lose its budget in favor of the retroactive pay for Rota and Tinian.

“During their meeting, the governor told them that they could cut all other agencies but not PSS. But it seems that they’re going back to $213 million instead of $215 million level,” said the lawmaker who wanted anonymity.

As of yesterday, Palacios said the budget level was set at $213 million, not $215 million—said to be acceptable to the Executive Branch.

Following a meeting with Gov. Juan N. Babauta, the House had considered raising the budget level to $215 million in anticipation of the administration’s projected collection of $2.1 million from the tax amnesty law.

Palacios affirmed that the reduction would be used to pay “some” of the retroactive pay of Tinian and Rota employees.

He said that the two islands would get $500,000 each for that purpose.

“They deserve to get paid. Saipan has the appropriation already but not Tinian and Rota,” he said.

The government is currently operating under continuing resolution at $213 million based on the spending ceiling set by the last budget law.

The administration submitted a $226 million budget for 2005 but the Legislature said that it could only approve for a $213-million figure based on projected revenues to be collected by the end of this fiscal year.