Previous Story
Senate to restore agencies’ budget
|
Posted on Oct 20 2004
The Senate intends to restore the budget cuts made on key agencies, including the Marianas Visitors Authority, Senate President Joaquin G. Adriano said.
“The Fiscal Committee has been working to restore the cuts that the House did on Education, Public Safety…and MVA. We’ll restore that [MVA budget],” said Adriano yesterday.
The House-approved budget level of $213 million for fiscal year 2005 only sets the MVA budget at $4.1 million—$2 million less than the Babauta administration’s proposal.
At the same time, the House only allocated $38.4 million for the Department of Public Health rather than $41.2 million as proposed, $14.6 million for Public Safety instead of $16.1 million, $38.5 million for the Public School System rather than $41.9 million, and $4 million for utilities payment instead of $8.5 million.
Gov. Juan N. Babauta, in a letter to the Legislature appealing the cuts, said that MVA’s operations would be severely affected with the reduced funding.
He said it would mean not having offices in China, which recently granted the CNMI an Approved Destination Status, ending community programs on Saipan, Tinian, and Rota, and slashing advertising in “our core” Japan market.
Babauta also said that to underfund the government utility budget would result in increased rates for all utility consumers since the government is the biggest costumer of the cash-strapped Commonwealth Utilities Corp.
The government currently owes CUC over $18 million in unpaid utility bills.
Babauta has warned that he would veto any budget bill unless the funding for PSS is restored.
The House made an across-the-board budget cut when it adopted a $212.651 million budget about two weeks ago. This level, however, was amended and raised by the Senate to $217.751 million in consideration of an additional $5.1 million in projected revenues. The administration said it would get these funds from the newly enacted tax amnesty and tax enhancement laws.
Meantime, Adriano said that the Senate would hold a session tomorrow if the weather permits. The Senate canceled its meeting last Friday pending the Fiscal Committee’s review of the budget bill.
“We hope to act on the budget in our next session,” he said.
