EIC trickles out soon •Governor meets with advisers for EIC release

The government is close to releasing portion of the $6.2 million in Earned Income Credit to over 2,500 recipients after Gov. Pedro P. Tenorio convened his financial advisers to finalize a payment plan for the release of the long delayed EIC checks.

In a meeting yesterday, the governor instructed his finance managers to begin disbursing the checks as soon as possible even on an installment basis if money is still short to pay the full amount.

“A lot of people are concerned about EIC and what we are doing is drawing up recommendations so we can start distributing some money to people entitle to receive the benefit,” Tenorio told reporters.

He, however, did not say where the funds would be sourced to cover payment for EIC, whose beneficiaries are mostly from low-income families. The governor previously said he was looking into the possibility of tapping part of the money deposited in the special rebate trust account to reduce the government’s financial obligation to taxpayers.

The release of EIC checks for tax year 1997 has been held up since last ear due to funding problem. In 1998 taxpayers did not receive their refunds and rebates until July due to shortfall in the special trust account.

In the past tax rebates, refunds and EIC were released in lump sum during the month of May. When Tenorio took office in January last year, his officials discovered that money intended for rebates was almost wiped out and was believed to have been merged with the general funds.

In a separate interview, Michael S. Sablan, the governor’s special advisor on finance and budget, said they are still weighing whether to release EIC checks it based on the date of filing or percentage to be applied across the board.

“We are working on a plan to disburse the money on installment,” Sablan said in a phone interview. “Considering our financial condition, we simply cannot afford to pay $6.2 million in lump sum.”

According to Sablan, plans are also being prepared for the disbursement of rebates and refunds the tax year 1998 that is expected to cost the government approximately $25 million.

A total of $28.07 million in rebates and refunds have been paid out by the Department of Finance for the previous tax year to more than 42,000 individual and corporate taxpayers.

Over $20.45 million have been spent to pay back 42,780 individual filers and some $7.62 million for 51 corporate taxpayers. For tax year 1996, the government spent $31 million for refunds and rebates.