House adopts concurrent resolution on budget edits

House of Representatives Ways and Means Committee chair Rep. Ralph N. Yumul (Ind-Saipan) introduces during a session yesterday afternoon House Concurrent Resolution 23-1 that approves revenues and resources of the CNMI for fiscal year 2023, to reflect proposed revisions to the FY 2023 Annual Appropriations Act. (FERDIE DE LA TORRE)

The House of Representatives unanimously adopted yesterday a concurrent resolution that agrees with the projected $116.19 million total local revenue and resources of the CNMI government that Gov. Arnold I. Palacios had identified as available for appropriation, to reflect proposed revisions to the fiscal year 2023 budget law, Public Law 22-22.

With all 20 House members voting “yes” to adopt House Concurrent Resolution 23-1, the resolution will now be transmitted to the Senate for action.

At the end of yesterday afternoon’s session, House Speaker Edmund S. Villagomez (Ind-Saipan) said they are just waiting for the House Ways and Means Committee on the changes to the budget.

Villagomez said he is looking at possibly calling for a session either this Friday afternoon or Saturday morning, depending on when the Ways and Means can get the budget out of committee.

House Ways and Means Committee chair Rep. Ralph N. Yumul (Ind-Saipan) introduced HCR 23-1 yesterday. Several other representatives co-sponsored the resolution.

The concurrent resolution places the total estimated gross budgetary resources for fiscal year 2023 at $164,198,068. Minus earmarks and transfers out in the total amount of $48,004,271, the total local revenue and resources available for appropriation in fiscal year 2023 is $116,193,797.

Adding the $5,407,897 budget for the Department of Public Lands, the grand total local revenue and resources available for appropriation is $121,601,694.

In an interview after the session, Yumul said that passing HCR 23-1 is the first step of the budget process. He said the Ways and Means Committee had a meeting yesterday morning and would convene that afternoon to start a budget process submitted by the administration. He said the resolution will go to the Senate and they will have time to review it.

“We will try to finish the budget by the end of the week, or the next couple of days,” Yumul said. He said the numbers will remain the same and that they are not touching anything.

He said the meeting later that afternoon is to discuss the proposal of the administration.

Although they have already passed the concurrent resolution, Yumul said the Ways and Means Committee can start the process right away so they can have a product by the end of the week.

With respect to the current fiscal year 2023, then-governor Ralph DLG Torres had identified projected resources in the amount of $150,415,492 for the CNMI government and related agencies for fiscal year 2023. This resulted in the enactment of Public Law 22-22, the Appropriations Act of 2023 which had a total amount identified for appropriations at $104,374,369.

Palacios has now determined that the amount of $104.37 million should now be revised.

Palacios submitted last March 8 a proposed revision to the Appropriations and Budget Authority Act for FY 2023, that set the level of total revenue prior to transfers out at $164,198,069, minus earmarks of $1,361,918, to reflect a net amount of $162,836,151 for the government and related agencies for fiscal year 2023.

Yumul stated in the concurrent resolution that after just the first quarter of fiscal year 2023, a significant portion of the funds from the American Rescue Plan Act that were available for appropriation in fiscal year 2023 have already been expended and are unavailable for the remainder of fiscal year 2023.

Yumul said these unavailable ARPA funds were originally earmarked as the funding source of 20% for the personnel costs as well as operations within the Executive Branch.

Due to the substantial loss of ARPA funds after just the first quarter of fiscal year 2023, Palacios has indicated that there will be an eight-hour reduction in personnel hours for the Executive Branch for the remainder of fiscal year 2023.

Yumul urged Palacios to submit a report as soon as possible setting forth any amendments in the budget, including actual revenues and expenditures to date for fiscal year 2022, any policy changes proposed since the March 8, 2023, letter submittal of the fiscal year 2023 amendment budget, and other significant factors affecting the budget for fiscal year 2023.

At yesterday’s session, with no objection, Villagomez placed the resolution on calendar for action. Floor leader Rep. Edwin K. Propst (D-Saipan) moved to adopt the House Concurrent Resolution 23-1.

Before the voting, House Ways and Means Committee vice chair Rep. Blas Jonathan T. Attao (Ind-Saipan) said just for informational purposes for the House members, they learned from the Senate president that they’ve done their analysis on the budget.

Attao said they (House) do not have to change the concurrent resolution as written right now, at least the numbers that were submitted by the administration.

He said until the administration comes up with new numbers then the House Ways and Means will be amending the numbers on the concurrent resolution.

“So I just want to put that for the record that those monies that are potentially new monies for the actual budget will be reflected on the budget bill itself, but it would not change the ceiling of this current budget,” Attao said.

Yumul said the Ways and Means Committee would convene later yesterday afternoon and encouraged members to sit in and take part as they deliberate on the budget.

Attao said all Ways and Means Committee members should participate in the meeting as they have a short window to take care of this matter.

Attao said the target date to put into effect this 72-hour work schedule for government employees is April 1.

“So if we can put our minds together to work on the provisions, the provisions are the big meat of this legislation,” he said.