Torres vetoes provision ‘that would delay spending of ARPA funds’

Gov. Ralph DLG Torres has vetoed a provision in the fiscal year 2022 budget bill that mandates that no changes be made to the allocations of outside sourced funds in the American Rescue Plan Act spending plan without legislative consent in the form of a House joint resolution.

Torres said he strongly disapproves of this section of the bill in its entirety because any additional authorizations or appropriations of ARPA funding is not only unnecessary but would delay efficient processes already in place.

The ARPA funding provision was among the issues that Torres line-item vetoed in the budget bill that he signed into Public Law 22-08.

The governor noted that significant changes to the spending plan were made between the April and July 2021 budget submission in order to restore the working hours of government employees from 64 to 80, to reinstate furloughed employees, and to cancel a reduction-in-force.

“While conversation, oversight, and cooperation regarding the adequate expenditure of these resources are welcomed, the fact of the matter remains that the purposes of the available resources have already been identified and are for costs directly related to the COVID-19 Public Health Emergency, off-setting revenue loss, bolstering economic recovery, and providing premium pay for essential workers,” he said.

Torres added that these ARPA funds are already accompanied by rigorous reporting and oversight mechanisms within the federal government and are locally monitored by the Office of the Public Auditor.

Thus, he said, these funds are treated as a grant governed by the accountability procedures already in place under CNMI and federal law.

The governor said the CNMI is adept at the management and fiscal controls of federal funds and has the statutory obligation to ensure the prudent expenditure of these funds.

Torres also vetoed the bill’s provision that gives expenditure authorities to all branches, municipalities, departments, agencies, instrumentalities, and offices to which ARPA funds are allocated, plus the authority to reprogram funds allocated for personnel expenses to non-personnel expenses in accordance with the CNMI Planning and Budgeting Act.

“Because this provision unnecessarily interferes with ARPA fund allocations already in place and hinders our ability to stabilize the finances of the government and account for economic disruptions caused by the pandemic, I must respectfully veto this provision,” Torres said.

The governor signed into law Thursday the $103.3-million budget bill for the CNMI government’s operations for fiscal year 2022, averting a partial shutdown of government operations.

Combining the $103.3 million from the general fund and the $175 million allocated to the CNMI for ARPA, the CNMI government will have at its disposal a total of $278.38 million for government operations in the new fiscal year.