House identifies $156M resources for FY06

The House of Representatives has identified only $156.5 million in total revenue and resources available for fiscal year 2006, reflecting a 26-percent decline from the continuing resolution level of $213 million.

Lawmakers adopted yesterday on first reading House Concurrent Resolution 14-3, which endorses a $208.5 million funding for the next fiscal year; less $2.08 million for the 1 percent mandated deficit reduction and $50 million for the Public School System, the remaining resources total only $156,462,668.

The government currently operates on $213 million. This is based on the last budget that was passed, which was in 2002. Since then, there has been no new budget passed.

The House Ways and Means Committee earlier endorsed a $206 million appropriation for fiscal year 2006. It was amended yesterday to include some funds from the Tobacco Settlement Fund and Tobacco Control collection, totaling over $2 million.

In yesterday’s session, lawmakers agreed that except for PSS, which is likely to receive a new budget of $50 million in FY 2006, all other agencies would suffer severe cuts, whether under the new appropriation or the continuing resolution level.

“We’re shifting $13 million to PSS [from $37.2 million]. It will negatively affect the funding of other agencies,” said Rep. Clyde Norita.

House Speaker Benigno R. Fitial agreed, saying “Everybody else will be receiving less than what they have now.”

HCR 14-3 rejects the Babauta administration’s nearly $20 million proposed revenue enhancement measures that form part of its $225.8 million budget submission last April.

The administration identified $206 million in available resources for FY 2006 in view of the projected decline in revenues from the garment industry. The budget submission included proposals to raise the poker fee licensure fee by $6,000, suspend Tobacco Control and Tobacco Settlement Funds, and divert local poker funds to the General Fund.

The House Ways and Means panel said earlier that the poker fee increase has to be tackled separately.

Yesterday, the House passed a fuel surcharge subsidy bill that aims to increase the poker fee by $4,000—from the current $6,000 to $10,000.

The committee did not agree to taking the local poker funds and transferring it to the general fund. Likewise, the committee said it was reluctant in suspending the appropriation of Tobacco funds because they have been earmarked for certain programs.

Finance Secretary Fermin M. Atalig earlier said that any reduction in the FY 2006 budget would result in reduced services.

“Obviously some services will be cut,” he said.