House clears 2000 budget

The House of Representatives finally passed the much-delayed FY 2000 budget yesterday halfway through the fiscal year, agreeing to augment share of key agencies, including that of the Legislature, while slashing appropriation to several government programs.

Education, health, and public safety will eat up nearly half of the $211 million proposed spending level as their funding have been increased by the House Ways and Means Committee.

The budget proposal was unanimously approved by representatives with only one abstention during yesterday’s session, the last day of the first regular session of the 18-member chamber. It now heads to the Senate for action.

House Speaker Benigno R. Fitial, however, stressed personnel costs and salaries for close to 5,000 government employees represent 75 percent of the total budget, which he said is “unhealthy” for any government.

“We need to be constantly mindful of the way we are allocating our financial resources which should go to services and programs rather than personnel,” he said during floor deliberation of the budget.

Budget cuts

Total revenues for the fiscal year ending September 30,2000 is estimated at $211 million, of which $4.2 million will be set aside strictly for public lands’ use. This projection is slightly higher than initial estimate, although lower by $5 million from FY 99 income.

But House Bill 12-1 or the budget act altered the proposal submitted by Gov. Pedro P. Tenorio to the Legislature in April last year by chopping allocation to programs deemed non-essential.

Most of the agencies received drastic cuts, particularly those independent programs which collectively suffered a 37 percent reduction compared to what the governor requested.

From $22.97 million, programs such as Karidat, Little League and the Marianas Visitors Authority, the proposed appropriation is now down to $14.5 million.

Others receiving smaller share this year include the judicial branch, the Office of the Washington Representatives and several departments under the executive branch.

Those getting budget hike are the Legislature, the Office of the Governor, Rota and Tinian municipalities as well as the Saipan mayor’s office.

$10,000 cut

Some House members were not too happy with the increase given to the legislative branch, whose proposed spending level for FY 2000 rose to $7.7 million, compared with the $7 million initially set aside by the administration.

Rep. Diego T. Benavente attempted to slice $10,000 off from each representative’s individual account of $155,000 in an amendment to the budget bill, but he was turned down by most of the members. Only him, Reps. Heinz S. Hofschneider and Stanley Torres agreed to the plan.

He said this would provide more funding for the acquisition and maintenance of school buses or for repair and upkeep of police vehicles.

“The Legislature should not increase its budget when others have been reduced,” said Mr. Benavente. “I don’t think it’s fair at this time when we’re having financial strains.”

No increase

According to Mr. Fitial, the Legislature is not increasing its own budget but it is just complying with the legislative initiative that sets its individual account for each House representative at $155,000.

Vice Speaker Alejo M. Mendiola objected to the recommendation, saying that the additional $2 million allotted to the Public School System will help take care of the busing problem.

He also pointed out that this has been a problem for most public schools which the Legislature had tried to resolve by giving $10,000 out of each member’s account in the previous budget measure.

Rep. Brigida Ichihara, chair of the Education Committee, said she has been using her own funds to buy equipment for her office as she has not been provided enough money.

She added however that PSS officials had assured her the increase in the education budget could help address the transportation dilemma.

PSS share

Under HB 12-1, PSS will receive $41.2 million — the highest spending level for any government agency — up from the $38.7 million proposed by the administration. In FY 99 revised budget, the sector was given only $36 million.

Appropriation to the Department of Public Health, on the other hand, will go up from $33.9 million to $34.4 million, as the medical referral program has been a given a $400,000 increase over last year’s funding.

The House also agreed to hike up funding for the scholarship program to $3.8 million from the $2.3 million as requested by Mr. Tenorio. The increase is reflected in the budget of the Governor’s Office, representing nearly a quarter of its share.

Noting that one-third of the scholarship funds will go to the Educational Assistance Program of the Northern Marianas College, Mr. Hofschneider urged that this money should be strictly spent for its operations and not for payroll of the island’s lone higher learning institution.