Legislature may adopt $215M budget for 2005

Although the House of Representatives aims to stick to a $212-million budget when it acts on the spending plan today, the figure can still be changed and raised to $215 million in the Senate.

According to House leadership member Rep. Justo Quitugua, the House could not amend its adopted concurrent resolution, which provides for $212.65 million budget.

“However, when it reaches the Senate, they can raise it to $215 million,” he said. “Then it would be referred back to the House, which would then approve the Senate version.”

He said the increase would be made in consideration of the governor’s approval of two bills that are expected to generate over $2 million. One is the tax amnesty law; the other is the Revenue and Taxation Act amendment that enhances the government’s tax collection efforts.

The House will hold a session at 10 am today.

Meantime, Senate President Joaquin Adriano said yesterday that the Senate’s session will be held on Oct. 6, Wednesday, at the NMC Conference Room on Rota.

Quitugua also confirmed that House Ways and Means Committee chair Norman S. Palacios pushed for the inclusion in the budget of $500,000 each for Tinian and Rota to fund the retroactive pay of government employees on the two islands.

The Saipan delegation, he said, has neither expressed objection or support for it.

“We just listened,” he said, noting that its funding source remain uncertain.

Earlier, a lawmaker said that the House thought of making a 4 percent across-the -board cut in the budgets of agencies to be able to appropriate up to $1.5 million for the retroactive pay as well as to increase the annual allocation for the retirement of the government’s budget deficit.

Quitugua said that the passed concurrent resolution is 0.175 percent less than the fiscal year 2004 budget level of $213 million.

“Based on that resolution, $212.76 million is all we have. However, since the governor signed the tax bills, we’re including that,” he said.

Meantime, Palacios said that the House is also considering including a budget for the administration’s education initiative program.

“We need to identify a budget for [the] education initiative. We’re putting it also but we don’t know yet how much can be placed there,” the committee chair said.

The Babauta administration said that the program requires $800,000 to $1 million. A source said that the House may be able to find $600,000 for the program.

The administration submitted a $226 million budget for 2005 but some lawmakers said that $215 million would be acceptable to the Executive Branch.