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$2.5M in electronic gaming fee now part of budget
House speaker wants budget bill ready by early July
Gov. Eloy S. Inos’ proposed $134 million budget includes $2.5 million in projected revenue from electronic gaming fees, but both the electronic gaming law and the recently signed Saipan casino law seek to restore the 25 percent cut in retirees’ pension. The administration expects to collect a total of $170 million in fiscal year 2015 but only $134 million of which is available for government appropriation.
Finance Secretary Larrisa Larson, in her 2015 general revenue estimates report dated March 31, said the 2015 estimates also account for the electronic gaming revenue and the transfers out to the purposes specified by law.
The electronic gaming law sets a $2,500 fee per machine.
With a projected $2.5 million in revenues from electronic gaming, the administration expects at least 1,000 machines.
License fee, application fee, and other fees associated with the exclusive Saipan casino license are already specifically set aside for a host of services and programs, including the restoration of the 25 percent pension cut and payment of land claims. The government also expects to generate revenue related to the legalization of video lottery.
Of the $170 million projected budgetary resources for 2015, $65 million or 38 percent is from business gross revenue tax, while $37.55 million or 22 percent is from income taxes.
Some $28 million or 16 percent is from excise taxes, and $22.05 million or 13 percent is projected to come from other taxes. The government expects to get $11.335 million from licenses and fees, $2.1 million from charges for services, and $4.02 million from other revenue.
After adjusting for debt service appropriations, earmarked funds and other local obligations, the net resources available for general appropriation in fiscal year 2015 is $134 million, the highest in five years. Yet that is still far below the levels when the CNMI still had a garment industry and tourism to fuel the economy.
From a $120 million budget in 1990, the CNMI government’s budget peaked at $247 million in 1997. After that, the annual budget started to decline not only because of the Asian economic crisis but later on the pullout of garment factories and Japan Airlines from the CNMI.
Starting in 2006, the CNMI government budget was already falling below the $200-million mark. By 2010, the government budget was $137 million, which is closer to the governor’s 2015 proposed budget of $134 million.
Between 2011 and 2014, the government’s budget was from $102 million to $122 million.
House Speaker Joseph Deleon Guerrero (Ind-Saipan), meanwhile, said yesterday that he expects the Ways and Means Committee to have a 2015 budget bill ready for full House action by early July.
“The Planning and Budgeting Act sets timelines and I hope we can follow that this time. The early July target is optimistic but we must be able to meet that,” he said.
Ways and Means Committee chair Tony Sablan (Ind-Saipan) said committee members will be given ample time to review the governor’s proposed budget before meeting and scheduling meetings with certain agencies and departments about their proposed spending plan.
