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‘Supplemental budget bill may dissolve credit union’
»Sablan cites major uses for ‘estimated $9M’
House Ways and Means Committee chair Tony Sablan (Ind-Saipan) said yesterday that Gov. Eloy S. Inos’ proposed fiscal year 2014 supplemental budget could be “around $9 million,” which would include $5 million for the retirement settlement trust fund and “a little over $300,000” to refund members of the Commonwealth Government Employees Credit Union. The supplemental budget bill could therefore contain a provision dissolving the credit union, Sablan said.
The governor, in an interview last week, said he is close to sending his 2014 supplemental budget to the Legislature, ahead of the April 1 deadline to submit a 2015 proposed budget.
The bulk of the supplemental budget—or $5 million—will be added to the $20 million already appropriated under the fiscal year 2014 budget for the minimum required payment of $25 million this year to the retirement settlement trust fund.
Another major portion will cover the government’s employer share of the health insurance premium.
Sablan said “a little over $300,000” is expected to be set aside to refund credit union members, while those who have outstanding debts to the credit union will be referred to the Office of the Attorney General for action.
“The goal is to pay those who have money in there and refer to the AG’s office those who owe money to the credit union. So basically the credit union will be dissolved after this is done. So the supplemental budget bill could have an administrative provision dissolving the credit union,” the Ways and Means chairman said.
Where did money come from?
Sablan said the governor’s submission to the House and Senate will identify where the supplemental budget comes from, although based on his meeting with the governor, most of them came from increased business gross revenue tax collection as tourism continues to improve.
He said there is also millions of dollars coming from a major tax settlement, but this is outside the tax amnesty program.
The governor said a portion of the supplemental budget includes proceeds from the sale of the Mariana House in Washington, D.C. to a real estate firm for over $900,000. The former official residence of the CNMI’s resident representative to the nation’s capital was originally bought for $250,000 to $300,000.
It’s barely a week before the governor’s April 1 deadline to submit his fiscal year 2015 budget to the Legislature.
Inos said Office of Management and Budget personnel were on Rota last Friday for budget hearings. Government agencies asked a total of some $170 million in spending plans, even though the administration said the proposed budget could still be $123.4 million, the same level as the current fiscal year.
