Strengthen fiscal discipline – Teno

Gov. Pedro P. Tenorio issued fresh instructions to Cabinet officials to tighten public spending during a meeting he convened yesterday to assess the financial condition of the government amid the absence of a fiscal budget for year 2000.

The Cabinet meeting — the first in more than two months — also discussed a plan by the administration to mark the millennium year on Dec. 31 with a grand celebration, although there is no guarantee of funding, according to officials.

In an interview after emerging from the two-hour discussion, the governor said the cost-cutting measures will remain due to the continuous economic difficulties confronting the island.

“The budget has not been approved by the Legislature and we have to continue our austerity measures. There are so many other issues affecting us now. We want to try our best to continue providing essential services as what the public expects us to do,” said Tenorio.

The local chief executive expressed satisfaction that departments and agencies did not overshoot their appropriation during the last fiscal year, as he noted the government was able to meet the budget level with the revenues it collected in 1999.

Since lawmakers are still reviewing the budget proposal submitted by the administration last April, Tenorio issued the instructions to his Cabinet officials to avoid disruption in government operations and delivery of public services.

“They are very mindful on the austerity measures and I asked for their continued support because our resources almost remain the same,” he said.

The island has been reeling from the two-year economic recession in Asia, its main source of tourists and investors, that sharply pulled down revenues since late 1997.

While the belt-tightening program that took effect immediately after Tenorio assumed office in January 1998 has helped him deal with the serious cash-flow problems, the governor said these measures must still be followed as economic prospects remain bleak.

Lower budget

The administration has lowered its budget level from $210 million in FY 1999 to about $206 million this year due to declining revenues, and this has prompted lawmakers to try to juggle funds to accommodate the needs of critical agencies.

The spending package is expected to be passed by yearend, according to the House Ways and Means Committee, in time for the second quarter of FY 2000.

Officials at yesterday’s meeting attempted to identify possible sources of funding to finance a millennium project aimed to drawing tourists into the CNMI to celebrate the milestone. There was no consensus, however, on how to finance such an undertaking.

Under continuing resolution adopted after the Legislature failed to approve the budget on time, the governor has flexibility to reprogram money, but because several departments have demanded larger share, it is unlikely to find surplus money.

Public schools, the scholarship program, police and the hospital, among several others, have asked the Legislature to increase their allotment to be able to operate effectively.

Several programs have been suspended by the governor to meet the dwindling revenues as harsh economic conditions continue to strike the CNMI, but hopes are high that two new programs aimed at improving financial management in the public sector will cushion its impact.