Attao bats for mayor's employees
More than $800,000 in revenues from poker license fees is ready for appropriation by the Saipan delegation to the Mayor’s Office in a bid to save 12 employees facing layoff due to budget shortfall, according to local legislators.
House Vice Speaker Jesus T. Attao said that from these funds, about $500,000, including $240,000 for personnel salary, will be earmarked to the municipal government to meet serious deficit this fiscal year.
He said that the finance department has assured him of the availability of the funds when he sponsored a legislation that will set aside $3.63 million from poker fees for Saipan delegation expenditures.
Although the 12 full-time employees have been retained despite lack of funds to pay their salary, Attao maintained they would pass the proposed measure to ensure they don’t get laid off.
The plan to bail out the Mayor’s Office stems from its worsening cash-flow problems which have reportedly forced a 10 percent salary rollback this coming May for its personnel.
At least $240,000 will cover the salary of the 12 FTEs for another year after their contracts expired last January without hopes of getting renewed due to lack of funds.
The balance of $260,000 will fund its operations, including salary of more than 60 employees who are getting a 10 percent pay cut next month in view of the 13.4 percent slash in its FY 1999 allocation.
But the proposed appropriation is expected to meet strong challenge as some legislators have expressed opposition against the move, noting the revenues from the recent raise in poker license fees are not expected to be collected at least until early next year.
The local delegation must back up the $3.63 million in revenues which it has identified from the $2,000 additional fee from poker license on top of the raise imposed last January by the central government.
Finance officials previously have said the revenues will only be realized in December this year when poker machine operators renew their license under the new fee schedule.
The Saipan’s Mayor Office has come under scrutiny in recent weeks after disclosure of its weak financial shape, which has been compounded by in fighting among its high-ranking officials.
Last January, the delegation passed a resolution setting aside $500,000 from the poker fees for the office — a move now being questioned by the Attorney General’s Office.
Hoping to receive funding boost from lawmakers, municipal officials have reprogrammed available funds to pay the salary of the 12 employees, as well as meet other financial obligations.
The island is battered by the financial turmoil in Asia, its main tourism market and source of investments, that has pulled down government revenues and forced Gov. Pedro P. Tenorio to cut down appropriation to all departments and agencies to prevent budget deficit.
