House wants to recall $20M borrowing bill

House members now want to take back the bill that calls for a $20-million loan for government employees’ pay hike and retroactive pay, saying that it might only worsen the government’s financial standing.

The government currently faces a nearly $100- million deficit.

House Speaker Benigno R. Fitial said during Thursday’s session that the bill should be reconsidered due to “language” problems.

“We also favor the recall of that bill because that’s not what we originally voted on,” said House minority member Ray Tebuteb yesterday.

The House earlier sanctioned House Bill 14-304, which appropriates $10.9 million for fiscal year 2005 to raise government employees’ salaries, pay off retroactive compensation, as well as retirement and health insurance contributions.

The bill, authored by Rep. Jesus Attao, said the funds would be sourced from the additional revenues identified by the Babauta administration for FY 2005.

The Senate, however, amended the bill to increase the amount to $20 million and, instead, of tapping government revenues, the Senate moved to authorize the Commonwealth Development Authority to borrow the needed amount.

The initial amendment wanted to raise the figure to $15,000 to include a $4 million rebate payment. This was later deleted in favor of the replenishment of the Saipan and Northern Island local funds, which were used to pay off the retroactive pay of Saipan government employees.

The local delegation requires some $9 million in reimbursement.

The Senate passed this version, which was accepted by the House during a session last week.

With this new development, acting Speaker Tim Villagomez said yesterday that H.B. 14-304 will be referred back to the committee.

The bill aims to settle “unpaid frozen steps, within-grade increases and retroactive adjustments” over the past years.

Rota employees would get a total of $1.9 million.

• $224,163 for frozen steps, $1.04 million for retroactive pay, and $702,933 for WGI;

Tinian personnel would receive $1.5 million.

• $316,990 for frozen steps, $904,157 for retroactive pay, and $344,971 for WGI;

Saipan employees would have $5.03 million.

• $1.6 million for frozen steps and $3.5 million for WGI.

Saipan employees’ retroactive pay had already been paid off.

The bill also wants to give $2.4 million for government employees’ retirement, Medicare, and health insurance contributions.