House rejects Senate version of budget

The House of Representatives unanimously voted to reject yesterday the Senate-amended budget bill of $218 million for 2005, prompting House Speaker Benigno Fitial to call for a conference committee to resolve their differences.

The House earlier approved a $213 million funding level for fiscal year 2005.

Fitial appointed the following lawmakers to the conference committee: Vice Speaker Timothy Villagomez, House Ways and Means committee chair Norman S. Palacios, Education Committee chair Justo S. Quitugua, Health and Welfare Committee chair Crispin Ogo, and two minority bloc members: Jesus Attao and Arnold I. Palacios.

Senate President Joaquin Adriano was reached but he refused to respond to calls.

The Senate earlier approved a $217.7 million budget in consideration of $5.1 million in additional resources identified by the Babauta administration.

This excludes a $1.5 million additional projection submitted by the administration last week from increased annual registration fee of nonresident workers (The Department of Labor adopted a new schedule of fees, including a $50 increase in the annual nonresident workers fee, effective July this year.).

“Sufficient collection experience now exists that the Secretary of Finance can make an estimate of the full-year revenue effect,” said Gov. Juan N. Babauta in an Oct. 20 letter to the Legislature. “I hope this information will aid the Legislature in completing the FY05 budget.”

At the same time, he called on lawmakers to reconsider his administration’s Integrated Fiscal Plan, which aims to generate some $13 million. Part of the plan is the imposition of $100 increase in nonresident workers’ fee.

The House, in passing a $212.7 million budget, deleted revenues attributable to IFP, including the increased fees for foreign workers.

Meantime, the Senate-approved budget bill restored the cuts made on the Marianas Visitors Authority’s budget, raising its funding level from $4 million to $5.9 million and government utilities budget from $4 million to $5 million.

The Senate also approved $10.9 million for Public Safety, $38.3 million for Public Health, and $37.2 million for the Public School System.

The House approved $38.4 million for Public Health, $14.6 million for Public Safety, $2 million for Department of Corrections, and $38.5 for PSS.

The governor said that unless the PSS funding is restored to $41,859,928, he would have to consider vetoing any budget bill reaching his desk.