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CPA opposes proposed wage cutback measures
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Posted on Apr 13 2006
The Commonwealth Ports Authority is opposing the passage of two bills seeking to cut the salaries of government employees by 10 percent, particularly as it applies to the agency.
In an April 7 letter to the Legislature, CPA acting executive director Regino M. Celis said the proposed bills—Senate Bill 15-40 and House Bill 15-115—“will not directly impact the authority” in the first place. He cited that the CPA is not self-supporting and does not receive general tax revenues.
“Thus a reduction in its employees wages has no effect upon the Commonwealth government’s obligations. The authority has its own obligations with which it must deal with within its own income,” he said.
In spite of this, “CPA does not support the [proposed] method …to reduce government expenditures.”
“We feel it hits and hurts those who are least able to withstand such a decrease in income. That is, people who are on a fixed wage with a rising cost of living,” the CDA official said.
He said the “best method” would be an across-the-board reduction in hours, which impacts everyone.
Earlier, Marianas Visitors Authority, an autonomous agency that which receives funding from the Legislature, also expressed concerns about the 10-percent cut. The MVA had also opposed an earlier proposal to cut work-hours, saying that it has its own way of reducing personnel costs.
“As an autonomous agency, the MVA is accountable for its own personnel obligations,” said MVA.
H.B. 15-115 seeks to reduce by 10 percent the salaries set forth in Title 1, Section 8213 of the Commonwealth Code, which lists the salary schedules for civil service employees.
The bill said that the salary reduction “is necessary to prevent further deterioration in the Commonwealth’s financial situation, and hopefully prevent a reduction in the government workforce.”
S.B. 15-40 is a similar bill introduced in the upper chamber.
