Cabinet salary hike omitted from budget

Fiscal year 2019 budget talks in the House of Representatives officially come to an end last Friday after they shot the budget bill over the Senate for their review and action 113 days before the deadline of the fiscal year budget and the start of fiscal year 2019 on Oct. 1, 2018.

The House of Representatives passed with a vote of 16-1 Rep. Angel Demapan’s (R-Saipan) House Bill 20-173 on its first and final reading during a session at the House chamber on Capitol Hill. Only Rep. Edwin K. Propst (Ind-Saipan) opposed the bill.

The 39-page bill appropriates a total of a little over $167 million to the various government agencies of the Commonwealth government.

“A bulk of H.B. 20-173 mirrors the governor’s proposal,” said Demapan during the House session as he explains to his colleagues some of the key differences between his bill and Gov. Ralph DLG Torres’ proposed budget for fiscal year 2019.

Demapan noted that the most significant change to the bill was the removal of funding for the salary increase of Cabinet members. He noted that the reason for omitting the funds from the appropriation was due to Rep. John Paul Sablan’s (R-Saipan) H.B. 20-35’s status at the Senate.

Demapan pointed out that the Senate has yet to act on the bill, which effectively increases the salaries of appointed officials and increases the salary ceiling.

“The funding provided for the increases were in anticipation and the presumption that H.B. 20-35 would become law during the [budget] process,” said Demapan, adding that his committee, the House Ways and Means Committee, recognized the bill’s status at the Senate.

“The committee took the position not to fund things that are not created by statute or any other executive action, [and] prompted the committee to pull back the funds appropriated for that purpose,” he continued.

Demapan said the $250,000 originally for the salary hike of appointed officials went to the respite care program under the Department of Community and Cultural Affairs.

A total of $450,000 of the Judiciary budget for mold mediation was pulled back as well from the fiscal year 2019 budget proposal from Torres after Demapan noted that the governor enacted Public Law 20-61 in mid-June 2018, which appropriated $7 million to the Judiciary for the mold mediation at the Guma Hustisia.

Demapan further noted additional funding appropriated towards the Division of Youth Services after the committee received information that the division is anticipating a shortfall in federal grants.

Funding distributions toward the Rota Department of Public Safety and the Rota Department of Public Works were also adjusted after receiving communications from Rep. Glenn Maratita’s (R-Rota) office.

The Public School System, which requested for $55 million for their operations, was appropriated $41.8 million, which meets the constitutional mandate entitling PSS to at least 25 percent of funds.

“…We recognize that this is below the PSS’ request for this fiscal year, however, as we have seen in the current fiscal year, we were able to increase the PSS’ current budget by $12 million and we expect at least another $3.7 million. For fiscal year 2019, it is also the intent of this body to further support public education in any supplemental revenues that become available,” Demapan said.

The Commonwealth Healthcare Corp. is appropriated a large amount for this fiscal year compared to the minute appropriation last fiscal year 2018 of less than $1 million.

For fiscal year 2019, Demapan said a total of $5.5 million is appropriated to CHCC for this fiscal year. The figure also includes amounts outside of the general fund.

Demapan reported that his committee concurred with Torres’ budget proposal for the Northern Marianas College budget of $4.89 million. The lone community college in the CNMI requested for a minimum of $6 million.Like PSS, Demapan noted that NMC was also one of the priorities for the supplemental revenue appropriations.

A significant increase for the Commonwealth Office of Transit Authority was highlighted as the office that focuses on on-island transportation on Saipan recently opened a service route targeting NMC students. The route is from Garapan to the college and costs $2 for unlimited riding within a two-hour span.

COTA was appropriated $1.15 million.

Demapan said the appropriation was made in order to allow COTA to further open new routes.

“This funding is necessary so that public transit is fully implemented this fiscal year,” he said.

The House appropriated $40,000 to the Emergency Operations Center to acquire a web EOC software.

“In the face of natural disaster and emergency response, the CNMI is one of the last U.S. territories to acquire a web EOC software,” said Demapan, adding that the passing of tropical depression 10W, which is now known as super typhoon Maria, further underscores the need for such.

Without much discussion on the House floor, the bill heads to the Senate.