Gov’t, House meet to discuss change in CUC billing system

Responding to the governor’s clamor, the House Ways and Means Committee is looking into his proposal to change the current government utilities payment system in an effort to encourage departments and agencies to cut energy costs.

Committee chair Rep. Antonio M. Camacho has asked the Department of Finance for a breakdown of utilities expenses for the executive branch, Legislature and the judiciary, to begin mapping out the much-needed revamp.

This will be the major change to the FY 2001 budget proposal handed in by Gov. Pedro P. Tenorio last April to the lawmakers for their approval, which is now the subject of a series of committee hearings in the lower house.

The meetings began yesterday with the Governor’s Office and its proposed spending level for the next fiscal year, including utilities payment that is currently being shouldered by Capitol Hill for the entire government system. The appropriation will be $4 million — the same level as FY 2000.

In submitting the budget package, Mr. Tenorio urged the Legislature to transfer the burden to respective departments and agencies in light of increasing utilities costs of the government.

While the executive branch corners huge chunk of the fiscal budget, the governor said it is unfair for his office to pay for power, water and sewer needs of all departments and agencies, including the Legislature and the courts.

Mr. Camacho acknowledged the need to stop this practice which has discouraged government offices to conserve energy because of lack of accountability on their part.

“We have to do that to make each office more responsible for their own utilities, including the Legislature,” he told in an interview after the whole-day meeting.

Together

Office of Management and Budget Director Edward S. Tenorio said they will be working closely with the House in drawing up the new scheme in which the $4 million proposed budget for utilities will be divided among all departments and agencies.

“It’s just fair that each department should pay for their utilities,” he said in a separate interview, citing the need to implement energy-saving measures in the government amid mounting obligations to the Commonwealth Utilities Corporation.

The government-owned corporation has been trying to collect over $12 million incurred by the Tenorio administration for overdue billings that date as far back as late 1997.

Although it has managed to make payments to CUC, the small amount is not enough to significantly cut the debt as the government continues to run bills amounting to nearly a million dollar each month.

The governor has already ordered energy conservation in public offices in response to CUC’s call for drastic reduction in utilities costs of the government.

Since 1997, the government’s utility charges have steadily risen from $7 million four years ago to $10 million last year. Despite this trend, the government only allots a small fraction of the budget to pay its bills due in large part to other priorities as well as to the continuous financial difficulties confronting the CNMI.

Next month

Meanwhile, Mr. Camacho disclosed that his committee expects to complete the budget review by the end of this month in hopes to pass the package by August.

“If other departments need more funding as determined by the committee, we have to accommodate those needs with the resources we have,” he said.

Under the FY 2001 budget proposal, $217.25 million will be set aside for government operations, while about $9 million will be appropriated for public lands and repayment of the anticipated $60 million bond float.

According to the OMB chief, his staff will be working with the House to come up with understanding and commitment on the budget.

“The Ways and Means chairman is very understanding on the needs of all the agencies within the Governor’s office. There are some agencies that need additional funding and they will look into that,” he said.