FY2018 budget is now law

A government shutdown was averted when Gov. Ralph DLG Torres signed the fiscal year 2018 budget into law yesterday at the Pedro P. Tenorio Multi-Purpose Center, at the same time shooting down several cuts to the Marianas Visitors Authority budget.

Torres exercised his power to veto seven line items in the budget and one funding allocation, most of which were Senate amendments to the $145.2-million budget.

The fiscal year 2018 budget is so far the largest budget of the CNMI government. It was enacted three days before the end of fiscal year 2017.

Torres’ biggest line-item veto was the procurement of batwing mower tractors for both Tinian and Rota. That provision allocated $500,000 from MVA’s budget to the procurement.

He conceded that providing Rota and Tinian with the mowers is a priority but believes that the money could be sourced elsewhere.

“Through further discussion, it seemed…that the $250,000 [each for Rota and Tinian] would be better used to promote the islands and then we could still get the mower through other resources,” Torres said.

Previous Senate amendments that passed the bicameral conference committee included requiring the Commonwealth Healthcare Corp. to hire additional healthcare personnel for both Rota and Tinian. Specifically, the provision requires CHCC to hire at least one physician, one mid-level practitioner, and one dental assistant for the Tinian Health Center in the absence of at least two physicians already employed, plus the hiring of at least one physician, one physician assistant nurse practitioner, and one dental assistant for the Rota Health Center in the absence of at least two physicians already employed.

Torres’ disapproved this provision, saying CHCC should have the “flexibility to address their staffing needs critical to all hospitals.”

He stressed that disapproving this section does not imply that healthcare on both islands are less important.

A provision in the budget proposes to bar reducing the funds appropriated to the CNMI Judiciary and the Legislature without prior legislative approval. Torres said this provision violates the separation of powers doctrine.

A section allocates $75,000 for a leaching field, septic tank, and water reservoir for the Rota Medical Referral facility on Saipan. This was disapproved because Torres believes the owner of the facility must first “obtain free and clear title on the property before any improvements can be funded by the government.”

Citing transparency, Torres also disapproved an allocation of $100,000 to the Lady Diann Torres Foundation. Although he supports programs and activities that promote the indigenous languages through literacy and arts, Torres urged the foundation to “provide [the] administration, the Legislature, and the public with the outcome of these programs for future consideration.”

‘I feel good’

When asked how he feels about next fiscal year’s budget, Torres replied that he felt “good,” saying that, based on the provisions of the budget, the government will create more jobs; pay land compensation judgments; issue salary increases for government employees across the board; issue retroactive back pay to government employees; and increase the minimum wage.

They are all a “step in the right direction,” he added.

“It seems like we are moving in the right direction, so I am happy with the budget,” he said, expressing his gratitude and appreciation to the Legislature.

House Ways and Means chair and author of the budget bill, Rep. Angel Demapan (R-Saipan), said he would like to sit down with the Senate to address issues that have been vetoed, particularly the healthcare issues on Rota and Tinian.

“[The concerns] are obviously deep concerns for the municipalities and there are just some legal issues that led to the line-item veto, so we are going to look at how else we are going to address those needs,” he said, adding that the staffing needs are critical to public health on both municipalities.

Despite the many line-item vetoes, Demapan said this was a “good day for the Commonwealth.”

“The budget is back at a peak that we haven’t seen for many years,” he said. “We are seeing the positive impact of the economic growth that we are experiencing trickle down to the departments and agencies to the employees themselves.”

“This is a good sign for our people,” he concluded.

To obtain a copy of the budget bill, click here.