Impasse on budget issues resolved

Government employees and the public fearing another partial shutdown may now heave a sigh of relief after a joint House and Senate committee was able to break the deadlock yesterday on most issues that were blocking the forward momentum of the fiscal year 2012 budget plan.

The eight-member conference committee was able to reach a compromise on the major differences between the House and Senate versions of the $102 million spending bill, including increased funding for education, lawmakers’ and leadership accounts, and Rota and Tinian allocations, sources said.

The breakthrough comes with less than two weeks to go before the start of the fiscal year on Oct. 1.

Among other things, the 29 lawmakers’ individual allocation will no longer be “zeroed out” as senators had proposed but will remain at the current level of over $71,000 a year.

The House and Senate leadership accounts are also no longer zeroed out, but will remain at $138,000 each.

“I am confident there will be no shutdown,” said one of the lawmakers.

The Northern Marianas College and the Public School System will get additional funding of $2 million to $3 million as senators had proposed, but details as to how much of this will come from employers’ fee of $150 for each foreign worker hired will be known today.

Acting governor Eloy S. Inos, who joined the conference committee meeting yesterday afternoon, had a conservative estimate of $1.5 million to be collected from the Commonwealth-only worker rule.

Most of these, according to lawmakers, will be given to PSS and NMC.

Tinian and Rota won’t get additional funding of $362,719 and $250,000, respectively, as senators had proposed, but Tinian’s budget under the House version will be increased by some $110,000, equal to Rota’s funding.

The Fitial administration will also provide more information today as to the impact of discontinuing the land lease payment for La Fiesta, which costs the CNMI government some $200,000 annually.

Conferees, as well as the administration, will also find out whether some $500,000 to $700,000 in additional MPLT funds have been remitted and could be an added source of funding.

The conferees are led by Rep. Ray Basa (Cov-Saipan) and Sen. Jovita Taimanao (Ind-Rota).

The other members are Senate vice president Jude Hofschneider (R-Tinian), floor leader Pete Reyes (R-Saipan), Sen. Ralph Torres (R-Saipan), Rep. Ralph Demapan (Cov-Saipan), Rep. Fred Deleon Guerrero (R-Saipan) and Rep. Sylvester Iguel.

If and when the conference committee comes up with a draft bill by noon today, that bill could be introduced in today’s House session at 2pm.

If the draft bill isn’t finalized by tomorrow, then the House could postpone today’s session and reset it for Thursday.

Senate President Paul Manglona (Ind-Rota) also scheduled yesterday a Friday, 10am session.

The progress made by the conference committee gives hope that the CNMI will not have another partial government shutdown at the start of the fiscal year.

Stanley’s local budget bill

In other news, Rep. Stanley Torres (Ind-Saipan) prefiled a local budget bill for fiscal year 2012.

Torres, in an interview, said he cannot sit down and do nothing to address a possible shutdown should the budget deadlock continues.

As precautionary measure, he prefiled House Local Bill 17-57, to make appropriations for the operations of Saipan within the CNMI government.

The local bill identifies $94 million in net budgetary resources available for appropriations for the new fiscal year.