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Gov’t scrambles for cash •$18 million needed for a month’s payroll, says governor
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Posted on Dec 10 1998
The amount covers three pay periods for the month of December, and the governor expressed optimism that funds would be available to avert a payless payday during the holiday season.
“We’re looking into other sources to raise revenues,” Tenorio said, without giving details how his administration plans to raise funds, as he admitted that the commonwealth is in a tight situation in coming up with the money to pay government workers.
“It’s is difficult for us because we have to spend $18 million in one month and I hope it (payless pay day) would never happen,” he added.
Around 75 percent of the annual appropriation package of the commonwealth is set aside to pay the salaries and benefits of government employees. Under the Fiscal 1999 spending limit of $216 million, $189 million have been earmarked for payroll alone.
The continuous decline in cash collections since late last year is also making it difficult for the financially-troubled government to meet its obligations to vendors, according to Tenorio. “Sometimes we missed the payment to the vendors but we let them know that it will take a little time to pay them.”
The present administration is still paying some of the unsettled bills of former governor Froilan C. Tenorio. Estimates showed that the ex-leader of the commonwealth left some $27 million in unpaid accounts covering professional services, purchase of various office equipment, plane tickets, among others.
Because of the financial uncertainty confronting his administration, the incumbent governor plans to widen the existing austerity policy he has put in place to further cut down government spending.
A four-point proposal to deal with the anticipated 13.4 percent decline in revenue collections for the current fiscal year has been presented to members of the Legislature for consideration.
The cash-strapped government is hoping to save some $15 million in expenditures from the recommendations that include pay cuts and reduced working hours.
