Net budgetary resources increase from $101.35M to $104.35M

Gov. Ralph DLG Torres has submitted a revised proposed budget for the CNMI government and related agencies for fiscal year 2023 that increased the net budgetary resources from $101.35 million to $104.35 million.

In his revised proposed budget submitted last Friday to House of Representatives Speaker Edmund S. Villagomez (Ind-Saipan) and Senate President Jude U. Hofschneider (R-Tinian), Torres said the revision reflect changes, among others, the $475,000 allocated to the Northern Marianas Sports Association to support athletes.

The revised budget submission reflects changes to Volume 4 (American Rescue Plan Act Fund), among others, funding for the remaining 20% of wages to maintain 80-hour weeks, and $400,000 to the Northern Marianas Sports Association to support athletes who will participate in the 2023 Pacific Mini Games and the Micronesian Games.

Torres said that, as of June 30, 2022, Finance Secretary David DLG Atalig had reported no changes to the gross budgetary resources of $150,415,492 for fiscal year 2023.

However, the governor said, an update on the Minimum Annual Payment received by the NMI Settlement Fund has resulted in a change to the CNMI’s net budgetary resources from $101,352,567 to $104,352,567.

He said the Planning and Budgeting Act affords him the opportunity to revise their April proposed budget submission.

Torres said the revision reflects changes to Volume 1 (proposed net budgetary resources), Volume 2 to reflect changes to personnel listing as of May 31, 2022, and Volume 4 to reflect the remaining 20% allocation of personnel salaries, among other items.

Torres said the revision in Volume 1 (general fund) includes $75,000 allocation to the Northern Marianas Sports Association to support athletes invited for representation at off-island sporting events.

He said the other changes to Volume 1 are the following:
Additional 25% allocation to the Public School System as a result of the increase to net budgetary resources.

The 100% allocation of funds for personnel and operational funding to the Judiciary and Legislature.
The 80% allocation of personnel funding with the exception of constitutionally mandated salaries.
$103,020 to the Office of Vocational Rehabilitation Services for its mandatory local matching as required by its grantor.

The allocation of funds for personnel to the Department of Corrections for its 9th Cycle Corrections Academy.

Torres said the $150.41 million gross revenue resources are derived from taxes such as business gross revenue taxes, income taxes, excise taxes, and other taxes such as hotel, bar, and beautification taxes, which make up 91% of total budgetary resources.

He said the revisions continue to reflect the proposed suspension of earmarks from his April 1, 2022, submission as recommended by House Concurrent Resolution 22-1, HD1.

Torres said the net resources available has now changed from $101,352,567 to $104,352,567.
Torres said the budget allocation for personnel in the general fund remains unchanged at 80%, with the exception of constitutionally mandated salaries, elected officials, and all other personnel at the Judiciary and Legislature.

He said the 20% allocation for all other employees is funded under the ARPA.
There are 3,617 filled and vacant positions assigned to the general fund.
Aside from the allocation for the remaining 20% of wages and the $400,00 to the Northern Marianas Sports Association, the other changes in the revised budget submission for Volume 4 (ARPA fund) are the following:

The funding for 401K Defined Contributions and Government Health/Life Insurance for active employees.
An additional one-step within-grade increase for all qualified civil service positions.
$1,250,000 to the Northern Marianas College, of which $250,000 is committed to its Proa Promise Initiative, a program that provides U.S. citizen students last-dollar scholarship. This scholarship will cover the cost of tuition and mandatory fees that are not covered by the Pell grant, federal financial aid, CNMI Scholarship, municipal scholarships, military educational benefits, and private scholarships.

Torres said utility expenses for eligible agencies will continue to be covered by the ARPA fund.
He said the Department of Finance and the Office of Management and Budget will continue to work together to finalize a revised ARPA spending plan that may result in the redistribution of ARPA funding across all agencies.