Teno optimistic on new spending plan

Gov. Pedro P. Tenorio yesterday expressed hope that lawmakers would pass the proposed FY 2001 budget before the end of this month in time for the new fiscal year.

But he said he is uncertain for its timely approval as the Senate has yet to complete its review. The lower house passed the measure late last month, giving its counterpart at least a month to act on it.

“We always want to see our budget passed before the beginning of the fiscal year. [But] I understand the concerns raised by members of the Legislature,” the governor told reporters in an interview.

It is not known when the Senate will pass the budget, although it is scheduled a session tomorrow on Tinian. Members apparently are still reviewing each of the items in the House proposal.

The new budget package amounting to $221.66 million proposed by the lower house included funding increases for key departments and agencies, such as Public School System and the Department of Public Health, as well as legislative and judicial branches.

For the first time, House members agreed to transfer responsibility of paying government utilities to each department or agency in an effort to encourage power and water conservation in public offices.

Mr. Tenorio had asked a change in the current payment system when he handed the budget proposal to the Legislature in April on the heels of the government’s mounting obligations to the Commonwealth Utilities Corporation.

In response to appeals by government employees who have been demanding the retroactive salary increase mandated in 1991 under PL 7-31, the House also proposed transfer of lapsed funds from personnel expenditures in FY 2001 into an account to pay these people.

But there is no assurance for any payment to eligible current and former government employees as the proposal did not earmark specific amount for compensation.

Senate Fiscal Affairs Committee chair Sen. Edward U. Maratita has said he would press allocation of at least $2 million to $3 million for this purpose by cutting the funding from other agencies.

The budget is also expected to be overhauled by the upper house after Tinian and Rota representatives raised objections on the proposal drawn up by the lower house, particularly on the funding level given to their island municipalities.

Each will receive $14.3 million which is slightly higher that previous year’s budget, but local officials maintained the hike covers only utilities payment which is handed to them as part of the amendment.

The estimated revenues for FY 2001 are above the $207 million projected for the current fiscal year — a sign of growing confidence by the government on the islands’ economic recovery.

If Mr. Tenorio signs the budget, it will be the first budget package since FY 1999. He vetoed the FY 2000 proposal last June, citing potential deficit spending by departments and agencies as well as layoffs of government employees to be hit by proposed cuts barely four months into the next fiscal year.