Gov’t. suspends pay hikes, promotions

The Office of the Governor has suspended all pay increases due to permanent or temporary promotions, acting or detail assignment, reallocation or reclassification of position, step increases and other training programs because of the current austerity measures.

In a memorandum to all department and activity heads issued by Jose I Deleon Guerrero, special assistant for administration, he said the Civil Service Commission has put into effect regulations suspending all salary increases.

Guerrero asked all government officials to adhere strictly to the regulations since none of the above will be considered regardless of sources of funding.

The Office of the Governor has submitted a $206 million budget for FY 2000, or two percent down from the FY 1999 revised spending level of $210 million amid the continuous decline in revenues brought about by the plunge of the island’s tourism economy.

The House Ways and Means Committee is still reviewing the proposed budget and giving the various departments and agencies time to seek additional money.

Six departments including Public Health, Labor and Immigration, Public Safety and Public Works, as well as the Public School System and the Northern Marianas College may ask for bigger funding next year.

The Legislature has until September to approve the proposal submitted by the administration on April 1.

House Ways and Means Committee chaired by Karl T. Reyes is tasked with the budget review before it goes to the legislative floor of voting, which under the Constitution must be completed before the current fiscal year ends on September 30.

Over 60 percent of the CNMI budget goes to salaries and benefits of over 4,000 government employees. Gov. Pedro P. Tenorio had implemented a 13.4 percent slash in this year’s spending limit due to the continuous drop in revenues as a result of the effects of Asia’s financial crisis.

The plunge in revenue from tourism has left the island with no other choice but to depend on the garment industry. Unfortunately, garment manufacturers have already warned of a drop in collections from user fees in the next few months due to the increasing global competition and the impact of the recent $1 billion lawsuit.

Earlier, the Ways and Means Committee head has warned that FY 2000 budget may dip further to $180 million which could force government to further cut down on personnel costs as a result of the reduction in revenues from local garment industry.