Magofna: Earnings from revenue generating bills may not be realized

Sen. Corina L. Magofna (Ind-Saipan) is deeply concerned that the projected earnings from certain revenue generating bills will not be realized within the timeframe that they had hoped to see.

“As of today, these revenue generating bills have yet to be enacted into law. Additionally, I’m not sure when or if these bills will even pass both the House and the Senate and enacted into law by the governor,” said Magofna during the Senate emergency session on Monday.

This comes soon after the Senate failed to override Gov. Arnold I. Palacios’ line-item veto of the allotments for the utility costs of Tinian, Rota, Saipan, and Northern Islands in the budget law for fiscal year 2024.

Magofna was the only one of six senators present who voted “no” for the override. Three senators, however, were absent so the Senate failed to muster the needed two-third votes needed for the override.

Magofna explained at the session that she cannot in good conscience transfer the additional financial obligation to the Executive Branch, given the current status of the pending revenue generating bills.

Magofna said the motion to override the governor’s veto places them all in a double-edged sword situation—regardless of which way they vote, there will be disappointments and disagreements.

“But that’s a given because this is part of our job. And I see and understand both sides of the arguments and justifications,” she said.

At the end of the day, Magofna said, she has to make a conscious decision that is sound and rational, but most importantly, render a vote that would give people a sense of hope, stability, and confidence that they—as elected leaders—are doing everything within their abilities and authority to find amicable and diplomatic solutions for everyone’s benefit.

She pointed out that the agreement between the House of Representatives and Senate conferees during the budget conference pertaining to the allocation for utilities came with the assumption that the House will introduce revenue generating bills. Magofna said the House has done so to help supplement and fill the gaps in the budgetary shortfalls.

Magofna noted that she reached out to several department heads to get some information so that she can make a sound and rational decision.

She disclosed that after having communications with agencies such as the Department of Labor, Department of Community and Cultural Affairs, and the Aging Office on Saipan, she has learned that they are already taking actions to help Tinian.

“I’ve been provided a purchase order from the Aging Office to show me that they are taking actions to help pay for the utilities of Tinian so that their office on Tinian will not be disconnected,” she said.

Magofna said she is confident that the Palacios-Apatang administration will not turn its back on Tinian or Rota when it comes down to the health, safety, and welfare of people.

Sen. Francisco Q. Cruz (R-Tinian) said that, as an alternate member of the Senate conference committee during the budget deliberations, he witnessed what both sides had agreed.

Cruz said the governor told the Legislature when he submitted the proposed budget that $1.8 million will be put under public programs for utility.

“And I believe that he can use that. I’m not sure how much exactly for the entire CNMI,” he said.

For that reason, Cruz said, he supports the 100% reprogramming authority for the governor because he knows there’s money coming in from reimbursements. Cruz said the governor can use that reprogramming authority to subsidize utilities.

Sen. Dennis James C. Mendiola (R-Rota) said this is the second time they had a veto that deals with the municipalities of Rota and Tinian. Mendiola said it is starting to get frustrating because it seems like “they’re kind of tap dancing around the administration.”

“And I think it’s time for us to start exercising this right,” he said.

Mendiola said when the conferees met, they all voted in favor of that budget to include language that spells out the utility costs. “It seems like everybody’s trying to backpedal off this agreement. It’s kind of frustrating,” said Mendiola.

Sen. Jude U. Hofschneider (R-Tinian) said that whenever they do pass a budget appropriation, they explore the possibility or option of having the Executive Branch or the central government take care of utilities. That is simply because the funding is controlled by the Finance secretary, Hofschneider said,

“But at the end of the day, we need to circle back and say that we need to bless this provision and that we should move forward and find an amicable way to address this thing moving forward,” he added.

Sen. Karl Rosario King-Nabors (R-Tinian), who moved for the override, said there was an agreement with the Senate and House conferees because of the addition of a non-existent $9.1 million that was a tax rider was unconstitutional.

“That’s why we had to dip into GHLI and Medicaid to begin with. Whose fault was that? Was that Tinian? Was that Senate?” said King-Nabors asked.