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Senate OKs $20M salary hike, retro pay
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Posted on Apr 06 2005
Senate members unanimously approved yesterday a bill authorizing the Commonwealth Development Authority to borrow $20 million to provide within-grade increases and pay off the retroactive salaries of government employees.
The Senate amended and passed House Bill 14-304, which originally aimed to allocate $10.9 million for fiscal year 2005 to raise government employees’ salaries, pay off retroactive compensation, as well as retirement and health insurance contribution.
The bill, authored by Rep. Jesus Attao, wanted to settle “unpaid frozen steps, within-grade increases and retroactive adjustments” for the last five years and 14 years, respectively.
Under Attao’s bill, Rota employees would get a total of $1.9 million: $224,163 for frozen steps, $1.04 million for retro pay, and $702,933 for within-grade increases.
Tinian personnel would receive $1.5 million: $316,990 for frozen steps, $904,157 for retro pay, and $344,971 for within-grade increases.
Saipan employees would have $5.03 million: $1.6 million for frozen steps and $3.5 million for within-grade increases.
The bill also wants to give $2.4 million for government employees’ retirement, Medicare, and health insurance contribution.
Attao said these funds would be sourced from the additional revenues identified by the Babauta administration for FY 2005.
The Senate, however, amended the measure to, instead, authorize CDA to find the needed money.
The amended version contained a provision of $4 million for “2004 tax rebates payment” but during the session yesterday, this was changed to “reimbursement to Saipan and Northern Island Legislative Delegation account.”
The local account, which has been used to pay off the retroactive pay of Saipan government employees, would get $9 million from the $20 million amount.
“This is a good bill. We favor this because it acknowledges the unpaid within-grade increases and retroactive pays of all CNMI government employees,” said Tinian senator Henry San Nicolas.
The amended bill will go back to the House for similar passage. If the House votes to pass it without further changes, it will then be transmitted to Gov. Juan N. Babauta for his signature.
