‘NMI cannot be spending money that is not there’

“We have to work within what’s the reality.”

Thus said House Ways and Means Committee chair Rep. Ivan A. Blanco (R-Saipan) in reaction to the Torres administration’s austerity measures being instituted as a result of reduced revenues.

In an interview Wednesday, Blanco said the CNMI cannot be spending money that is not there.

Jazmin Camacho, the acting special assistant for the Office of Management and Budget, recently informed Blanco’s committee that, following Gov. Ralph DLG Torres’ special message to the Legislature, the OMD has effectuated beginning last April 1 a proportionate reduction in the allotment authority of all branches, offices, departments, and agencies of the Commonwealth.

Prior to this, the Torres administration implemented budget cuts across the board in order for the government to finish out this fiscal year—up until Sept. 30, 2019—without laying off workers or shutting down the government.

In her letter, Camacho said that Torres’ subsequent special message to the legislature dated May 8, 2019, further reduced the gross revenue projection pursuant to the second revision reported by the Finance secretary by 11.60 percent.

Camacho said the adjustment in revenue triggered a 15.28-percent proportionate reduction across all branches and activities of the government.

Camacho wrote the letter in response to Rep. Ralph N. Yumul’s (R-Saipan) request for a detailed breakdown on the allotments for the months of April, May, and June.

Asked for comments about OMD’s disclosure, Blanco said there was an initial reduction of the budgeted resources a few months back; there was a second budgetary cut a few months later.

“Everybody gets proportionate cut. And that’s where we are, on the second,” he said.

Blanco does not expect a third proportionate cut.

From his discussions with OMD and from Camacho’s letter, the government is now on the second portion of the cut.

d of laying off employees and cutting back hours from 72 hours to 60-some, the administration is only doing the 72 hours and cutting back on contracts, purchase orders, travels, and new hires, he said.

“Those are mechanisms that they are taking…so that we don’t go over, we don’t run at deficit,” he said.

Blanco said by doing the 15-percent cut proportionately, the administration feels that the government should be able to make it through Sept. 30 without incurring further deficit, without laying off of employees, and without shutting down the government.

Whether he agrees or not with such cuts, Blanco said it’s really “down to the numbers.”

He said OMD looked at the numbers and how much business gross revenue the government is collecting.

“This is what we had anticipated when we were working on the budget for 2019. This is the reality,” the lawmaker said.

Blanco said OMD had mentioned that there will be additional reimbursement from the Federal Emergency Management Agency by last June 30.