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Guidelines out on adjusting agencies’ budgets for FY06
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Posted on Feb 02 2006
Department and other agency heads were given guidelines Wednesday on how to adjust their budget for the remainder of fiscal year 2006, in view of the administration’s revised revenue projection for the year.
The government agencies, except for five essential services, were asked to submit their worksheets by the middle of February, according to press secretary Charles P. Reyes Jr.
This occurred during a closed-door meeting headed by the governor’s special assistant for management and budget Antonio Muña and acting Finance Secretary Eloy Inos at the Multi Purpose Center yesterday afternoon.
“All were asked to do their part by cutting expenses. They were given guidelines as to how to proceed under the new revenue limitation,” Reyes said.
Gov. Benigno R. Fitial recently announced that the revenue projection for FY2006 had been reduced from the $213 million authorized by the continuing resolution to a “more realistic” estimate of $198.5 million.
Inevitably, all agencies must face budget cuts. Only the Public School System, Commonwealth Utilities Corp. and the departments of Public Health, Public Safety, Corrections will be spared from the budget reduction.
On top of the budget cuts resulting from the lowered revenue estimate, government agencies will face a pro-rated decrease in funding to ensure that CUC has the $24.4 million needed for fuel purchases for the remainder of the fiscal year.
FY2006 ends on Sept. 30, 2006.
“It is imperative that we all strive for the utmost efficiency in delivering needed services to our CNMI. We must endeavor to eliminate redundancy, duplication of efforts, and wastefulness. We must reconcile our expenditure decision by choosing between what is nice to have versus what we need. We must share our resources, consolidate administrative support requirements, and pool our assets such that required services are delivered at the least amount of cost. Regrettably, we will continue to be unable to approve within grade increases and merit increases for our deserving employees,” Fitial said in a memorandum.
