Four agencies again exceed Q2 budget—Atalig

Atalig

For the second quarter of fiscal year 2022, four law enforcement agencies exceeded their total combined budget of $6.71 million by incurring total of actual expenditures of $8.45 million, with the excess attributed to the CNMI’s efforts in responding to the COVID-19 pandemic.

In his financial report for the second quarter of fiscal year 2022 submitted to the Legislature Monday, Finance Secretary David DLG Atalig said this trend was again seen with the Department of Public Safety, Department of Fire and Emergency Medical Services, Department of Corrections, and the Department of Finance-Division of Customs and Biosecurity.

Atalig also disclosed that revenue collection for the second quarter, amounting to $38,597,806, is 5.9% greater than the forecasted amount of $36,443,584.

With respect to the CNMI’s economic outlook, he reiterated his statement in his report for the first quarter of fiscal year 2022 that, while federal assistance in the form of the American Rescue Plan Act has supported expenditures despite the widespread impact of COVID-19 on the CNMI labor market, the data from the second quarter showcases continual impacts on the wider economy outside of domestic consumption.

Atalig said that DPS was appropriated $2,469,438 for the second quarter of fiscal year 2022, but its actual expenditure exceeded that, at $3,333,723.

For DOC, the actual appropriation of $1,396,724 was insufficient to cover the actual expenditure amount of $1,719,104.

For DFEMS, the actual appropriation of $1,888,129 was surpassed by its actual expenditure amount of $2,241,817.

Atalig said the Custom Division was appropriated $964,872, but the actual expenditures reached $1,159,033.

Atalig said the second quarter appropriation is about 9.6% less than actual expenditures.

In sum, he said, unanticipated expenses and under-budgeted accounts resulted in a significant deficiency, when comparing expenditures and appropriations for the second quarter.

On revenues, Atalig said that Wage and Salary Tax collections stood at $6,171,656 or approximately 0.7% lesser than the forecasted budget collection.

He said the second quarter Northern Marianas Territorial Income Tax collections of personal income amounted to $3,937,041.

Atalig said corporate income tax collection was valued at $534,097, or approximately 3.7% lesser than the forecasted amount of $554,433.

He said Business Gross Revenue Tax collection for the period is $17,012,465, which is approximately 21.8% more than the forecasted amount.

In addition, he said, Excise Tax collections yielded $6,471,684, or 28.1% less than the forecasted budget.

Last February, Atalig reported in his first quarter of fiscal year 2022 that the same four law enforcement agencies exceeded their total combined budget of $3.35 million by incurring total of actual expenditures of $4.98 million, with most of the excess going to the CNMI’s COVID-19 response.

He also disclosed that in the first quarter, the revenue collection in the amount of $35.34 million was 4.5% greater than the forecasted amount of $33.83 million for that period.