Gov’t projects $226-M revenue for FY2001

In apparent sign of growing confidence on the island’s economy, the Tenorio administration has projected revenues to reach about $226 million for FY 2001 — up by over six percent from the current fiscal year’s estimated collections of $211 million.

Gov. Pedro P. Tenorio is expected to submit by April 1 to the Legislature for approval of the new budget proposal as provided under the Constitution.

He told reporters yesterday that his administration is finalizing the spending package for next year to meet the deadline.

The Office of Management and Budget has set preliminary estimate of the revenues for 2001 at $226.26 million that include tax collections, public land leases and other sources of income.

But Ed Tenorio, special assistant for Management and Budget under the governor’s office, said about $220.6 million will be made available for distribution among government agencies and departments.

Some $2 million from the anticipated revenues will be set aside for repayment of the Public School System bond, and another $3.6 million will be earmarked to pay back the $60 million bond that the CNMI hopes to float for its capital improvement projects.

With the $15 million additional funds to be generated next year, the OMB chief said most of the money will go to “essential” agencies, such as police, public health and PSS.

The scholarship program is also expected to receive $1 million more on top of the $2.5 million allotted by the administration for FY 2000 for a total of $3.5 million, according to Ed Tenorio.

There are no other details on the proposed budget, which will be handed over to the House of Representatives by today or Monday.

Lawmakers have until September 30 before FY 2001 begins to pass the proposal, but the government can run under continuing resolution based on previous year’s spending level in the absence of an approved budget.

Budget issue

At present, government expenditures reflect FY 99 budget of $216 million, although Gov. Tenorio had submitted a spending limit of $211 million, including $4.2 million for the Division of Public Lands.

The lower house passed the 2000 budget last week, halfway through the fiscal year, but the Senate is likely not going to act on the measure due to differences on how the revenues were appropriated.

Under the House proposal, education, health, and public safety will eat up nearly half of the budget, while other government agencies, including independent programs, will suffer drastic cuts.

According to senators, both the Rota and Tinian delegation were not too happy with the share they got from the House-approved budget bill, as their appropriation would be much lower than what they had requested.

Gov. Tenorio met the other day with mayors and members of the municipal councils of the three islands of Saipan, Rota and Tinian to discuss their request for additional funding for the next fiscal year.

Although he did not make any commitment for higher budget, the local chief executive said the mayors had approved the proposal he would be submitting to the Legislature.

“If there are some changes [in the amount] between now and July, perhaps [we] could put additional funding for other senatorial districts,” he told reporters in an interview.

The fiscal budget has become a thorny issue in the past three years, often leading to differences between the executive branch and the Legislature.

Annual spending level of the government has declined sharply since 1997 largely due to the economic crisis confronting the CNMI, which chopped off revenue collections by as much as 20 percent.