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‘House has not passed any revenue-generating bill to fund retirees’ 25% pension’
Torres: Unused ARPA money will be used for gov’t operations in FY ’23
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Posted on Jul 21 2022
The House of Representatives has not passed a revenue-generating bill to provide funding for the retirees’ 25% pension. Also, there is no casino Business Gross Revenue Tax collections this fiscal year that can be used for the retirees’ 25% pension.
Gov. Ralph DLG Torres outlined the House’s failure to pass revenue generating bill in response to Saipan Tribune’s request for comments regarding two House members’ criticism of the governor’s revised budget submission for the government’s operations in fiscal year 2023.
At a House session Monday, House Ways and Means Committee chair Rep. Donald M. Manglona (Ind-Rota) questioned Torres’ proposed revised budget submission, which according to him does not include operational budget for any of the agencies, yet allocates funding for salary increases for Cabinet members. At the same session, Rep. Christina E. Sablan (D-Saipan) shared Manglona’s disappointment over the governor’s proposed revised budget submission, which she described as “reckless and completely irresponsible.”
Torres said yesterday that Finance Secretary David DLG Torres has provided the Legislature with answers to their concerns over the usage of American Rescue Plan Act funding for the retirees’ 25% pension, which is not something that the CNMI can do with any of the ARPA funding given to the CNMI.
Casino BGRT collected from Imperial Pacific International (CNMI) LLC used to pay for the retirees’ 25% pension. IPI’s casino, however, has remains closed since March 2020.
The governor said the Legislature has been, and is still encouraged, to locate new sources of funding to pay for the 25% pension.
As for the concerns of the House majority about lack of funding for operations within the budget, Torres said operations for the CNMI government will be funded using unused ARPA funding that will be carried over from fiscal year 2022 and allocations from ARPA for fiscal year 2023.
“My administration continues to work hard to revive this tourism industry, and explore ways to develop other industries to generate revenue for the Commonwealth,” he said.
