House committee wraps up budget hearing

Now that it has heard requests for higher spending level from several departments and agencies, the powerful House Ways and Means Committee is expected to draw up a final budget proposal which will oil government operations for FY 2000.

While committee chair Rep. Karl T. Reyes does not rule out the possibility that some government offices would get a bigger slice of the estimated $206 million revenues of the Commonwealth, that still hinges whether the local coffers improve within the next months.

He said the appeals for more funding by critical agencies are “legitimate,” but it still rests with the Legislature whether it would decrease allotment to other offices to address their immediate needs.

The eight-member Ways and Means Committee, which deals with financial affairs of the government, will soon sit down and come up with final appropriation for each department or agency.

“We will see whether majority of the committee are supporting a budget increase. If they are convinced that they should get additional money, which do we reduce to give the money to them?” asked Reyes.

Several offices, including the Public School System, have asked the committee for higher funding level during the two-month budget deliberation conducted by the panel.

Lawmakers had admitted that review of the proposed budget package would be difficult this time in light of the continuous financial woes confronting the CNMI.

According to Reyes, not all those who had requested for additional budget would get their wish. “It’s very hard to say which one will, because we have to find the resources first. If we don’t find it, we can’t give them,” he said.

So far, the only measure that the committee has broached is to provide greater flexibility to department heads to manage their respective funds so that they could have easy access to the money when the needs arise.

“That will be a better solution because they can withdraw more this first quarter to meet whatever is needed and utilize it in the hope that there might be… an increase in their funding later on and replenish what they have taken out,” Reyes explained.

In a few weeks, both the House and the Senate will begin voting on the budget which they must approve before the end of the current fiscal year on September 30.

“I wouldn’t be surprised if somebody again on the floor makes amendment with the budget,” added the Ways and Means chairman, referring to potential delays in getting the budget passed.

Observers point to “political grandstanding” by legislators as probable reason for the deadlock this time as midterm elections is but less than three months away.

Failure to pass the budget, however, could throw the Commonwealth into deeper financial woes as it has been saddled with debts and huge budget deficit even before Gov. Pedro P. Tenorio assumed office in January 1998.