$134.33M budget bounces back to House

Senators passed yesterday a $134.33-million budget bill with $1.61 million more for the Public School System and a cut in lawmakers’ allocations and leadership funds in order to restore $400,000 for Tinian, among a few amendments that they hope the House would approve, with only six weeks before fiscal year 2015 begins on Oct. 1.

Sen. Pete Reyes (Ind-Saipan), left, confers with Senate clerk Doris Bermudes, while Senate Fiscal Affairs Committee chair Sen. Jovita Taimanao (Ind-Rota), second from right, confers with Senate counsel Antonette Villagomez during a short session recess yesterday afternoon. The Senate passed the CNMI’s fiscal year 2015 budget bill and approved a special election-related bill, among other things. (Haidee V. Eugenio)

“We are counting on a smooth budget process. If the House passes this and the governor signs it into law, it could be the first time that a budget is in place during the month of August, which is the earliest that I can recall,” Senate Fiscal Affairs Committee chair Jovita Taimanao (Ind-Rota) told Saipan Tribune yesterday.’’

The budget bill passed the Senate by a vote of 7-0 at 4:39pm.

House Bill 18-201, House Draft 3, Senate Substitute 2 is now headed back to the House for approval or rejection.

If the House rejects the Senate version, a conference committee will be formed to hash out the differences and come up with a “compromise” bill. In 2010, the CNMI government had to partially shut down because the House and Senate at the time could not agree on a budget in time for the beginning of a new fiscal year.

More for PSS, NMTI

The Senate gave PSS, as promised, an additional $1.61 million, bringing its budget to over $33.441 million for 2015. This will enable PSS to, among other things, meet the federal maintenance-of-efforts requirements.

The $1.61 million given to PSS came from funds earlier set aside for the Marianas Visitors Authority.

Senators, however, wanted PSS to spend over $1.161 million of the additional $1.61 million to hire 35 new teachers.

“The Senate wanted to make sure that PSS’ student-teacher ratio will be reduced that’s why we gave additional funds for hiring teachers. It would be up to them where to spend the rest of the additional money given to them,” Taimanao added.

Sen. Pete Reyes (Ind-Saipan) thanked his colleagues for supporting a higher budget for PSS and NMTI. He also gave credit to Taimanao for ensuring that the budget bill passes the Senate as fast as it can.

“There’s more funding for our children, for PSS and NMTI. Allotment made to our children, you’ll never regret,” he added.

Education Commissioner Dr. Rita Sablan and other education officials lobbied the Senate for more PSS funding after the House passed their version of the budget with only a slight change from the governor’s proposal.

The Senate also gave $200,000 more to the Northern Marianas Technical Institute, for a total of $400,000 from the CW worker funds. The additional funds came from $100,000 taken each from CW funds originally allotted for PSS and Northern Marianas College. As a result, PSS and NMC each get $500,000 in CW funds, from the original $600,000.

Senators, however, retained the NMC funding that the House gave.

The Senate also gave one additional full-time employee for the Department of Public Safety, Taimanao said.

Tinian

Senators slashed the House and Senate members’ allocation so they can restore much of the $400,000 for Tinian or the Second Senatorial District’s budget to its 2014 level of over $5.916 million. The other funds for Tinian came from a reduction in the Senate and House leadership’s funds.

Now, the House members’ total allocation is $1,396,440 or $69,822 each representative, Taimanao said.

Senate members’ total allocation is reduced to $628,405 or $69,822 each senator, Taimanao added.

“We also gave the Legislative Bureau $31,000 in additional operations funds so they can prepare for the January 2015 inauguration,” Taimanao added.

La Fiesta leases, CEC

Taimanao offered an amendment that will allow a $60,000 advance allotment for the Commonwealth Election Commission’s operations funds in time for the November elections. Thereafter, the rest of the commission’s operations funds will be released equally every month.

Senate Vice President Victor Hocog (R-Rota) offered a floor amendment that members later adopted, adding a subsection under “Independent Programs” pertaining to the government’s now $400,000 unpaid lease for the La Fiesta property. Bridge Capital owns the property, which the government leases for $200,000 a year without getting any investment return year after year from the former mall.

Under Hocog’s amendment, “any electronic gaming licensing fees, machine fees and CNMI taxes up to $400,000 assessed against Bridge Capital LLC or its assigns for [fiscal year] 2015 shall be waived and offset with the total amount of $400,000 owed by the Commonwealth government to Bridge Capital for the La Fiesta lease payment for [fiscal year] 2014 in the amount of $200,000 and [fiscal year] 2015 in the amount of $200,000. Provided that Bridge Capital LLC can sell or transfer these credit amounts to any entity that possesses electronic gaming licenses in the Third Senatorial District.”

Senators took turns commending Taimanao and the rest of the Senate Fiscal Affairs Committee, counsels and legislative assistants for working diligently on the budget bill. Taimanao also thanked her colleagues at the Senate and staff, along with departments and agencies that cooperated during the budget hearings.

Sen. Frank Borja (Ind-Tinian) thanked his colleagues for restoring Tinian’s budget back to its 2014 level.