Payless payday threatens

The Department of Finance is now scrambling for funds for the next payday, the administration said yesterday.

Press secretary Charles P. Reyes Jr. said public sector employees may experience a payless payday on April 28 because the government may not have enough funds.

“Finance is now scrambling for funds to meet the next payday,” Reyes said, adding that the matter was discussed during the governor’s weekly meeting with his Cabinet.

The Saipan Tribune tried, but failed to reach Finance Secretary Eloy Inos for further information.

Special assistant for budget and management Antonio Muna had said earlier that the government’s gross payroll currently amounts to $6.3 million every 15 days.

Reyes said there was no special reason the government could not meet the next payroll. He explained that it was simply a product of worsening fiscal problems.

“Since we came in, we’ve warned people of a serious financial problem. As days go by, we’re increasingly short of funds. We knew this was going to happen [sooner or later],” he said.

He added that the declining user fee collections from the garment industry was a significant factor. “It’s been happening for quite sometime. The trend just continues. It’s been increasingly difficult to raise funds, despite all the cost-cutting measures we have already implemented,” he said.

Reyes expressed hope that the threat of a payless payday would “drive home the point” about the government’s serious financial condition and the urgent need for a wage reduction.

“The governor has been repeating himself over and over again about our financial reality. We’re surprised there’s still a significant, vocal portion of the electorate who do not understand. It’s just not registering to some people,” Reyes said.

“Maybe if they don’t get their paychecks, that’s when people will start realizing the urgency of our problem. Right now, they’re still getting their paychecks and going about their daily lives,” he added.

Reyes maintained that the administration would continue cooperating with the Legislature on the wage reduction bills, amid wide opposition to the measure.

“We realize it’s an unpopular move. But let’s not waver, let’s not back out at all because it’s absolutely necessary,” he said.