Senate undecided on $11M salary hike bill

Describing it as a “feel-good” bill, senators failed to reach a consensus Tuesday to pass a measure that aims to appropriate $11 million for salary increase and retroactive payment of government employees.

“This is becoming a feel-good legislation. We better make sure there’s sufficient funding. Otherwise we’re repeating the same mistake. Since 1991, we promised the employees they would get this increase but up to now, we’re not doing it. This is a bad practice,” said minority leader Pete P. Reyes.

House Bill 14-304 was previously amended by the Senate to raise the amount to $20 million and use a portion of the amount, about $9 million, to reimburse the Saipan and Northern Islands local delegation for the retroactive payment it gave Saipan government employees.

The Senate also opted to authorize the Commonwealth Development Authority to borrow the $20 million.

The Senate amendment was later rejected by the House of Representatives, resulting in the formation of a conference committee.

The committee then decided to adopt the original House version of $11 million appropriation. The conference committee report cited that, based on its consultation with three concerned agencies, including the Attorney General’s Office, borrowing the money would violate the Constitution.

The AGO cited that the bill in its amended form “is unconstitutional because it is authorizing public debt for operating expenses, in violation of Article 10 section 4.”

Reyes, who chairs the local delegation, questioned the AGO’s opinion.

“Is it not the Legislature that has the authority under the Constitution to grant full financial backing for public debt? The AGO has a different opinion,” said the senator.

Sen. Joseph M. Mendiola, a co-chair of the conference committee, said the issue was not about the Legislature’s authority.

“The question is, can the government loan money for operations. We cannot,” said Mendiola.

The bill, introduced by Rep. Jesus T. Attao seeks to give Rota a total of $1.9 million: frozen steps, $224,163; retro pay, $1.04 million; and within-grade increase, $702,933.

Tinian personnel would receive $1.5 million: $316,990 for frozen steps; $904,157 for retro 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.

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