House thumbs down Senate budget version

House members voted 16-1 to reject the Senate version of the CNMI government’s fiscal year 2019 budget, citing the significant changes made by their counterparts in the Legislature, in yesterday’s session on Capital Hill.

With the rejection, the CNMI budget will go to a conference committee, where both the House and Senate would need to settle their differences in discussing their respective issues and concerns on House Bill 19-173 SS1, which needs to be signed by Gov. Ralph DLG Torres before the start of fiscal year 2019 on Oct. 1.

Torres needs to review the final version before signing the bill on or before Sept. 30 to avert a government shutdown.

House Speaker Rafael S. Demapan (R-Saipan) named Ways and Means Committee chair Angel A. Demapan (R-Saipan) to lead the House conferees and appointed vice speaker Janet U. Maratita (R-Saipan), Rep. B.J. Attao (Ind-Saipan), and alternate Rep. John Paul P. Sablan (R-Saipan) on the House panel.

They will then sit with the Senate representatives on the conference committee—Senate Fiscal Affairs Committee chair Jude U. Hofschneider (R-Tinian), Senate vice president Steve K. Mesngon (R-Rota) and Sen. Sixto K. Igisomar (R-Saipan) as members, with Sen. Justo S. Quitugua (Ind-Saipan) as alternate—to hammer out a final version.

Senate President Arnold I. Palacios (R-Saipan) told Saipan Tribune last night that the Senate leadership would hold an early meeting today to begin planning for the conference committee. “I talked to the members of the Senate and told that we have to meet since we need to have an Open Government Act announcement before the [conference committee].”

During the House session, House majority leader Glenn L. Maratita (R-Rota) was the lone House member who voted no on H.B. 19-173 while Rep. Edwin P. Aldan (R-Tinian), Rep. Alice S. Igitol (R-Saipan) and Rep. Jose I. Itibus (R-Saipan) were absent.

Maratita said he supports the Senate’s version of HB 19-173 as it would be a big help for the people of Rota, especially after Typhoon Mangkhut almost leveled the island. The Senate committee chaired by Hofschneider has appropriated $9.9 million to Rota, an increase of $400,000.

Maratita said the $9.9 million the Senate allocated is a significant amount for him and the people of Rota. “I supported the Senate version, although there’s a lot of difference in terms of distribution for [Rota] and [Tinian].”

“I support my colleagues that did the increase under the Senate version. Any increase for [Rota] would be a lot of help, especially now after the typhoon,” he added.

Demapan said they rejected the Senate amendments due to the changes made on the budget for the Public School System, Northern Marianas College, the Commonwealth Healthcare Corp., the Rota and Tinian municipalities, and the Solid Waste Management System-Saipan among others.

The Senate redistributed the $1.2 million appropriated for the legislators’ controversial salary increase to various agencies, with the amount originally intended to the Commonwealth Healthcare Corp. in the House version. The issue was brought to the Supreme Court, with the Attorney General’s Office saying the increase was unconstitutional. The high court, last month, ruled against the salary increase.

Demapan said the House version states that, in the event that the Supreme Court rules against the salary hike, the entire money would go to CHCC “to help with the indigent care program.

“The ruling came out when the bill was in the Senate and [the Senate], instead of following the House version of sending it to CHCC, only $200,000 went to CHCC. The other $1 million was distributed to other programs and agencies. So we want to take a look at that because the indigent program is…underfunded.”

The Senate’s budget version increased PSS’ funding to $44.7 million from $41.7 million—an increase of $2.9 million—the Northern Marianas College’s budget was up $5.2 million, while CHCC is at $3.2 million from $3 million. The Rota and Tinian municipalities were given an additional $240,666 and $628,462 in funding while Saipan’s Solid Waste Management System is allocated an additional $627,783.

The Senate also took out $2.5 million intended for 75 new positions, $435,000 for the members’ allocations, $200,000 for the leadership accounts, $842961 for utilities, and $521,544 for all other activities.

Demapan added the Senate also reduced the Office of Grants Management budget from $266,000 to $1 and the breadfruit program from $99,000 to zero, with the Executive Branch’s funding going down to $1.7 million.

“We would like to take a look at that and ensure that we can continue the government’s services. For me, as chair, one of my biggest concerns is we can accept decreases on the condition that no existing employees are affected,” said Demapan.

“We can agree to do away with the vacant positions, which we believe is not necessary to be filled. But we can’t support removing positions that are already filled by any individual. That’s displacement and that’s not the route that everyone wants to take.”