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The FY 2001 Budget
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Posted on Oct 16 2000
The Issue: The Fiscal Year 2001 budget caught in protracted debate of dividing meager resources.
Our View: All must learn to live in “Bad Times” where revenue generation has declined substantially.
In observing the differing views on the disposition of the current fiscal year’s budget (2001), the House provided for compensation of salary increases from surplus funds.
The Senate wanted a definitive amount ($2-$3 million) earmarked for this purpose, a Santa Claus approach to scarce financial resources as a direct result of a deepening economic crisis.
Furthermore, there’s the usual feud between the three municipalities of who gets the most by way of funds for operational funds. This would have to be decided on the basis of critical needs and all must learn to sacrifice.
With respect to funds for salary increases that was approved at the onset of the CNMI’s economic down turn, this item could wait until such time that full economic recovery is realized. Public sector employees ought to be grateful that they have jobs upon which to continue bringing home the bacon, so to speak.
We need not remind government employees and liberal social lawmakers that employees in the private sector have had to endure several years of the same salary–zero increase. Bonus pay had to be denied by many employers given the drop in business activities. So if private sector employees can endure the hardship so imposed by the downturn in the local economy, then the rest must also share the sacrifice in these bad economic times.
If public sector employees wish to test this issue in court, there’s a fat chance that such a lawsuit would succeed. The court isn’t about to bankrupt the local government at the expense of the welfare of the greater majority. It understands too that we’re far from attaining real economic recovery.
Given the substantial drop in revenue generation, it is prudent for the Senate to compromise in funding basic needs of each municipality. With this in mind, the current fiscal year’s budget should pass both chambers in no time. Si Yuus Maase!
