Senate panel: Where’s the FY05 projected revenues?

The Senate Fiscal Affairs Committee is asking for an accounting of all the government’s expenditures for fiscal years 2004 and 2005, while citing that the proposed fiscal year 2006 budget does not include “several revenue sources” identified by the Babauta administration in FY 2005.

Considering that the $217.7-million budget for FY 2005 was vetoed—forcing the government to operate on a continuing resolution of $213 million—some $5 million in available resources should have been included in the FY 2006 proposed budget, according to committee chair Sen. Joseph Mendiola.

The administration submitted to the Legislature last week a $225.8-million budget plan for FY 2006.

“After a review of the governor’s FY 2006 budget proposal, it appears that several revenue sources may have been omitted from the budget package,” said Mendiola.

He cited that the following projected revenues were not included: some $1.5 million from the labor fee increase; $2.1 million from the tax amnesty; over $3 million from the Revenue and Taxation Enhancement Act; and some $2 million as the government’s share in the sale of Lao Lao Bay Golf Resort.

“These revenues should all be reflected in the budget submission,” said Mendiola.

Further, the senator also inquired as to where the annual unspent auditing money of the Office of the Public Auditor ends up.

“It has come to my attention that OPA is often left with a remaining fund balance each year from the funds that are remitted by each government agency. If this is the case, please explain to me where this funding is reverted to…,” said Mendiola in an April 5 letter to Finance Secretary Fermin M. Atalig.

The senator asks the department to provide his committee with an accounting of all government expenditures for FY 2004 and FY 2005 and any other outstanding obligations incurred by the CNMI this fiscal year.

In its budget submission last week, the administration said that available resources only amount to $206 million in view of a 20-percent decline in revenues from the garment sector.

It said that additional funds would be realized by raising the poker license fee by $6,000 per machine, remitting all local poker fees to the General Fund, and suspending Tobacco Control and Settlement funds appropriation.

Mendiola said a legislative preliminary discussion on the proposed budget would take place on Tuesday.