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CPA board OKs budget supplement
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Posted on Jan 21 1999
The Commonwealth Ports Authority board has approved a supplemental budget amounting to $66,264 to carry out capital improvement projects on Saipan, Rota and Tinian.
Of this, some $42,264 will go to the airport while $24,000 will go to the seaport. This include additional funding for the expansion of West Tinian Airport amounting to $33,822.
The ports authority had earlier approved a total of $11.10 million budget for fiscal year 1999. This include an appropriation of some $9.73 million for the airport operation, an 11 percent decline over the previous year. At least 58 percent of the airport budget goes to salaries and wages of personnel.
In making the budget, management took into consideration the decline in landings of major carriers, plunge in international flights and decline in tourist arrivals.
The seaport’s budget totaled $1.37 million or a 19 percent increase from fiscal year 1998.
As a result of the slowdown in tourism economy, the management has carried out various cost-cutting measures such as freeze in hiring, overtime, capital purchases, travels including attendance in meetings, conferences and workshops.
With the burden of paying a $53 million debt, the ports authority is set to implement an increase in airport fees. The continuous decline in revenue brought about by Asia’s financial crisis threatens CPA’s operation and its capability to meet debt service.
Due to shrinking revenue, the ports authority will target a 15 percent reduction in salaries and benefits for fiscal year 2000 and an additional 15 percent in 2001.
In the first quarter of 1999 alone, CPA is eyeing a 35 percent cut in cost of operations due to the downtrend in tourist arrivals.
