Babauta said to decide on 2005 budget today

Gov. Juan N. Babauta will decide today on the $218 million proposed appropriation for fiscal year 2005.

Babauta is expected to announce his action—whether to approve, disapprove, or line-item veto House Bill 14-250—during a press conference at 9am today at the Governor’s Office.

Legislators earlier urged the governor to pass the bill, saying that there is no major reason why it should be rejected.

Lawmakers from both the lower and upper chambers noted that the governor’s main concern—raising the Public School System’s budget—was “adequately” addressed.

The governor earlier threatened to veto any budget bill that would not raise the PSS budget. The Babauta administration had asked for $42 million for PSS while the budget conference committee approved nearly $40 million.

Earlier, Finance Secretary Fermin Atalig said that the chief executive may do a line-item veto, citing PSS and utilities budget as “major” concerns.

The administration had complained that the Legislature only approved $4 million for payment of utilities when its actual cost would reach $8 million a year.

The continuing resolution identifies $5 million for government utilities.

Sources said that the Judiciary also aired concerns over its budget. Under the 2005 budget bill, the judicial branch would get no increases in its budget.

On Dec. 17, 2004, both chambers of the Legislature finally agreed to endorse a $218 million funding level for fiscal year 2005, highlighted by a $4.1 million appropriation for salary adjustment of government employees.

House budget conference committee chair Rep. Oscar Babauta said the panel had approved a $38.2 million budget for PSS but inserted a provision in the bill specifying that PSS would also receive the revenues out of the $50 labor fee increase for nonresident workers. This is estimated to generate at least $1.5 million.

“So we are meeting the governor’s request for PSS. PSS’ budget would be $40 million or a little over $40 million,” said Rep. Babauta.

Under the continuing resolution, the PSS receives $37.2 million.

The budget conference committee, which was co-chaired by Sen. Joseph Mendiola, said that of the $4.1 million allotted budget for salary adjustment, $2.2 million shall be used to pay the within-grade increase of qualified government employees or those civil service-covered employees, $1 million for frozen steps personnel under Public Law 10-76, and $942,522 for the retroactive payment of Rota and Tinian government personnel pursuant to P.L. 7-31.

The committee said the WGI and frozen step personnel “shall be paid an equal pro-rated percentage amount from each category.”

Rep. Babauta admitted that the salary adjustment would not be enough to cover all dues owed the government personnel, which he said, amounts to some $6 million. But he said that whatever is left would be paid using the lapsed funds on a quarterly basis.

“We’re hoping that by end of the fiscal year [September 2005], all salary adjustments are settled,” said the lawmaker.

The Babauta administration originally submitted in April 2004 a $226-million budget for FY 2005. In September, the House approved only $212.7 million budget, rejecting the administration’s $13- million Integrated Fiscal Plan.

The Senate raised the funding level to $217.7 million after getting a $5.1 million additional revenue projection from the administration, which the Legislature had opted to use for salary adjustments.