After ‘problematic’ budget’s passage comes raising government revenues

With a “problematic” $102-million budget bill now law, the Fitial administration and the Legislature are now setting their sights on raising government revenue to restore 80 hours biweekly and provide better and more public services and to prolong the lifespan of the NMI Retirement Fund.

While the House leadership has a local casino bill now on the governor’s desk, the Fitial administration has yet to act on it. The 40-day period to act on the bill will lapse in early October; otherwise, the bill automatically becomes law without the governor’s signature.

Rep. Ray Basa (Cov-Saipan) said a new conference committee has been formed to break the House and Senate deadlock on his House Bill 17-163, which seeks to create a tax rate for foreign corporations earning income from outside the CNMI.

The House rejected the Senate’s amendments, prompting House Speaker Eli Cabrera (R-Saipan) and Senate President Paul Manglona (Ind-Rota) to appoint conferees.

“This is something new that we really have to look into,” Basa said.

Senate President Paul Manglona (Ind-Rota) said the Senate also would like to see this foreign corporation bill pass both houses. His appointed conferees are led by Sen. Jovita Taimanao (Ind-Rota), along with Senate floor leader Pete Reyes (R-Saipan), and Sen. Henry San Nicolas (Cov-Saipan).

Manglona said the Legislature should also put to a vote the issue of whether to maintain or repeal Article 12 of the NMI Constitution, which restricts land ownership to people of Northern Marianas descent.

Press secretary Angel Demapan said the Fitial administration’s priority “will be focused on working with the Legislature on the passage of revenue-generating bills.”

“Without such additional revenues, the government will not be able to restore work hours back to 80 nor will it be able to guarantee timely payment of wages,” he said.

Lt. Gov. Eloy S. Inos said Monday that the administration was expecting the Senate to pass House Bill 17-179 simultaneously with the budget bill since the Legislature cut the Marianas Visitors Authority’s operational budget by 56 percent.

Manglona said the Senate will hold a session on Monday, and HB 17-179 will be acted on.

The bill seeks to charge passengers from non-U.S. destinations a new $15 “travel promotion fee,” collections from which will supplement MVA’s budget.

House floor leader George Camacho (Ind-Saipan), author of HB 17-179, reiterated the need to pass this tourism incentive bill. “This bill will restore MVA’s budget as well as stimulate the economy in the private sector,” he said.

Rep. Teresita Santos (Ind-Rota) said the primary focus should be tourism enhancement “which should be an all-out concerted effort by all three senatorial districts and in close collaboration with the Marianas Visitors Authority, including a review of Article 12; whether to retain or repeal in its entirety, putting the issue to rest.”

Rep. Ray Tebuteb (R-Saipan) and Rep. Ray Yumul (R-Saipan) said the Legislature should prioritize helping the NMI Retirement Fund.

Yumul said the Legislature should also work on the issues that Inos pointed out in the budget law, including funding for the Office of the Public Auditor and MVA.

Cabrera, for his part, said there’s a revenue-generating bill that’s already on the governor’s desk, referring to Rep. Stanley Torres’ (Ind-Saipan) bill legalizing casino gambling on Saipan.

The press secretary said there’s “no decision at this time.”

Rep. Fred Deleon Guerrero (Ind-Saipan) said there should be a short-term and long-term goal “of which sustainability would be the mission.”

Rep. Trenton Conner (R-Tinian) cited the issues brought up during the economic summit months ago, specifically those in the “10-point plan” as well as retirement bill, the MVA bill, and Article 12 initiative.

The House and Senate passed a fiscal year 2012 budget bill that Inos, when he was acting governor on Monday, signed into law despite 12 “problematic provisions” to avoid another partial government shutdown.

Inos said the administration was “forced” to approve a bill that “could have been drafted with more care, precision, and fairness” had lawmakers not waited for the “11th hour” to tackle the budget.