Gov’t agencies to receive allotment advise

Gov. Pedro P. Tenorio is expected to issue today, the beginning of the new fiscal year, the allotment advise for the first quarter of FY 2000 that will guide departments and agencies on how much they can spend to meet personnel and operational costs for the next three months.

It is based on spending limit from FY 99 under the continuing resolution since the Legislature and the administration have failed to agree on the distribution of the $206.7 million proposed budget.

“We could issue the quarterly advise with additional funding, but that will of course cost them as subsequent advise will be deducted,” he told in an interview yesterday.

But Mike Sablan, special advisor for finance and budget, said the initial allocation is lower than last year’s first quarter allotment as current revenues estimates are way below compared with October-December projections in 1998.

Restrictions have also been put in place in the expenditure of the money as required under the law, such as capital improvement accounts, according to Tenorio’s chief financial consultant.

“It will be less than last year. It will be based on the reduced allotment (during the last three quarters of FY 99),” said Sablan, noting the previous budget passed by the Legislature was revised later to $210 million due to declining revenues.

He, however, assured there will be no confusion in issuing allotment advise as “our system is built to accommodate the continuing resolution.”

Lawmakers on Tuesday decided not to pass the spending package submitted by the administration in April following disagreement on which departments and agencies should suffer cuts in their appropriation.

This has forced the government to operate under the same level approved last year, but with restrictions to prevent shortfall. FY 2000 budget represents a two percent decline from the previous year due to continuous harsh economic conditions on the island.

Tenorio is still optimistic the budget would draw legislative approval as soon as possible, although the House may have a final package passed in the next two months. “The Legislature is anxious to see that the budget is passed,” he said.

If other departments or agencies, particularly those providing critical services, need additional funding above the allotment, the administration stands ready to assist them, according to the chief executive.

“They are aware how much their budget is,” he explained. “We will try to assist them if there is additional funding that we could reprogram.”

This is the first time in his administration that its passage has gone beyond the Sept. 30 deadline as required in the Constitution. In 1997, the Legislature also did not approve the budget proposed by the administration of former Gov. Froilan C. Tenorio.