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Pay cuts eyed for Cabinet members
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Posted on Feb 27 2006
Cabinet members are facing a likely 10- to 20-percent cut in their salaries as part of the cash-strapped government’s efforts to reduce personnel costs.
Gov. Benigno R. Fitial disclosed this plan during a Cabinet meeting yesterday morning, according to press secretary Charles P. Reyes Jr.
The cuts would include Fitial’s top executives and government employees earning more than $20,000 a year. The threshold would spare low-income government workers.
Most Cabinet members earn $50,000 a year. If implemented, the cut could amount to $5,000 to $10,000 annually.
A separate plan announced earlier entails a 32-hour workweek for government employees.
The four-member Financial Relief Task Force is now reviewing the financial status of the CNMI, as well as making recommendations on salary and work hour reductions. The task force is made up of the Office of Personnel Management, the special assistant for administration, the Department of Finance, and the Office of Management and Budget.
The governor’s special legal counsel and the Attorney General’s Office are also reviewing the legality of the work-hour and salary reduction proposals.
“All this is just a proposal. Hopefully, we will have a more solid report from the task force next week. It’s very unfortunate that everybody’s going to be hurt. But this is the situation we find ourselves in. Many are still hoping that any cuts made will be restored when the economy gets better,” Reyes said.
The proposals come in the wake of the CNMI government’s worsening financial condition, as well as the decline in the apparel industry and reduced tourist arrivals.
“The Fitial administration is taking these difficult steps to live within its means and adhere to the constitutional mandate on the retirement of the government’s deficit,” Reyes said.
Since taking office, Fitial has reduced the government’s revenue projection from $213 million to a “more realistic” $198.5 million.
The governor has ordered a freeze on all government travel and hiring. He has also issued a directive discouraging the purchase of government cars and other costly capital equipment, including brand new computers, as well as the use of government mobile phones.
