Legislators call for fiscal prudence

Two key legislators yesterday issued calls for prudent spending of dwindling public funds in the wake of a recent implementation of the 13.4 percent cut in the budget allotted for the second quarter to all departments and agencies of the NMI government.

The reduction, imposed last week by finance officials, has slashed legislature’s share for January to March by a hefty 26.8 percent — an amount which may affect operations of several legislative committees.

Rep. Karl T. Reyes, chair of the House Ways and Means Committee, said the cuts reflected the inability of the government to raise enough funds at this time of worsening economic slowdown.

“We are cognizant of the shortfall in the revenue collections and we hope the administration will instruct various departments and agencies to be prudent in their spending,” he told in an interview.

The cash-strapped government last week began implementing the reduced budget in the second quarter allotment in all government offices to deal with the projected decline in actual revenue collections.

While departments and agencies got a uniform cut, the Public School System has received just nine percent slash and the legislature, a 26.8 percent, according to Reyes.

Senate Floor leader Pete P. Reyes, chair of the Fiscal Affairs committee, said legislators have no choice but to live within the limit of their spending level.

A cut down on the salary of legislative staff as well as leaner community programs are two measures under review by some members of the House of Representatives and the Senate.

“We shouldn’t be exempted from the cuts. Everyone has to participate and sacrifice if necessary,” the senator told in a separate interview.

Both lawmakers, however, expressed hope that Gov. Pedro P. Tenorio will step up ongoing austerity measures to help prevent the island government from falling into potential bankruptcy by this year.

The Northern Marianas has been struck heavily by the prolonged economic crisis in Asia, its prime tourism market, forcing closure of more than 1,000 businesses and pulling down revenues in recent months.

Last November, Tenorio revised the 1999 budget package from high $249.26 million to $216.75 million due to continous drop in actual cash collections.