Poker fee increase bill may be introduced

Senate fiscal affairs committee chair Joseph Mendiola favors introducing a bill reflecting the administration’s proposal to increase the poker license fee by $6,000, likening current discussions about the issue to counting ones chicks before the eggs are hatched.

“It’s premature to start counting the poker fee increase for government’s expenditure in fiscal year 2006 unless there is a measure introduced or passed by House,” said Mendiola yesterday.

He said that, based on initial discussion, House Ways and Means Committee chair Norman S. Palacios would introduce the bill that seeks to impose an additional $6,000 to the poker fee licensure.

Mendiola and Palacios met last week with administration officials led by Gov. Juan N. Babauta to iron out initial differences on the proposed $225.8 million budget for FY 2006.

Mendiola earlier warned that the Legislature is most likely to reject the administration’s proposed poker fee increase.

For his part, Babauta maintains that the proposal “is realistic.” He said that any revenues from poker fees would go to the Public School System.

Aside from the proposed poker fee increase, the administration also aims to use local poker fee funds for general appropriation.

Poker operators on Saipan pay $12,000 to license each poker machine. Half of the amount goes to the General Fund while the other half goes to the local delegation.

At the same time, the administrations aims to divert all available funds from Tobacco Control Fund, and Tobacco Settlement Fund to the General Fund to be able to finance the government’s operations in FY 2006.

All these proposed measures are aimed to generate some $19 million in revenues.

The administration said that existing resources would only generate $206 million in view of the projected decline in revenue from the garment sector.

Mendiola said that while the use of local poker fees may be possible, he is worried about its impact on the scholarship and other programs that currently tap into the account.

“The scholarship program and other educational programs might be affected, so we’d ask if its possible to withhold projects for PSS, at least in FY 2006,” said Mendiola.

The administration is endorsing a $50-million budget for PSS in FY 2006.

PSS is currently budgeted at $37.2 million.