Minority questions reduction in govt’s projected revenue for 2006

The House minority bloc has raised questions about the governor’s move to decrease the CNMI government’s revenue projection for the current fiscal year from $213 million to $198.5 million.

Rep. Arnold I. Palacios, House minority leader, said that Gov. Benigno R. Fitial has failed to follow the statute on changing the government’s revenue estimates because the governor did not include a detailed explanation about the change in revenues, including the specific accounts affected and the reasons for the changes.

Palacios also questioned the acting Finance secretary’s use of actual revenues collected in FY 2005 and in the first quarter of FY 2006 as basis for the revised revenue estimate for this fiscal year.

According to Palacios, the actual revenues of FY 2005 amounted to $214 million, “which is definitely more than $198.505 million.

He also noted that the actual amount of collected revenues in the first quarter of FY 2006 was never transmitted with the governor’s message. This, he said, leaves the Legislature in the dark on fiscal matters.

Furthermore, Palacios said Fitial seemed to be trying to exceed his statutory authority in reprogramming the budgets of the legislative, judicial, resident representative, mayors and municipal authority. Such an attempt, he said, is “in direct conflict” with Public Law 15-2, which gave the governor almost unrestricted power to reprogram funds within the Executive Branch and autonomous agencies.

In light of these concerns, Palacios asked Speaker Oscar M. Babauta to conduct a House executive session to discuss the budget reduction, with administration officials in attendance.

Specifically, he requested Babauta to invite acting Finance Secretary Eloy Inos, special assistant for management and budget Antonio Muna, Attorney General Matthew Gregory, and special assistant for administration Esther Fleming to the session.

“[T]he minority members of the House stand ready to assist the Commonwealth in these challenging times. However, it behooves the House speaker to call an executive session in order to ask for a detailed explanation of the CNMI’s financial state of affairs, and to request the Executive Branch to thoroughly audit and seriously implement measures for all of its offices, departments, agencies, and instrumentalities,” the minority leader said.

Speaking on behalf of the administration, press secretary Charles P. Reyes Jr. said the administration was open to any discussion with members of the Legislature, including the minority members.

“We respect Mr. Palacios’ concerns and we’ll work with him,” Reyes said.