Despite austerity program Legislature posts 126 percent hike in vehicle procurement By ALDWIN R. FAJARDO

The CNMI government cut down by 28 percent its expenses on leased vehicles in fiscal year 1999 which amounted to $1.4 million compared to FY 1998 as part of its austerity measure, according to a report made from the Department of Finance.

However, records show that the savings would have been bigger had the Legislature reduced its purchase of vehicles during FY 1999. The Legislature recorded a 126 percent jump in vehicle procurement and another six percent growth in leased vehicle spending during

Overall, the CNMI government leased only 148 vehicles in FY-1999, from 211 units during the previous fiscal year.

The most significant reduction was noted in the government’s procurement of vehicles, which dropped by 54 percent in FY-1999 compared with the FY-1997 tally.

The Office of the Governor has reduced its leased vehicle expenses by 76 percent, indicating the strict implementation by Gov. Pedro P. Tenorio of the government-wide austerity measure.

According to the DOF report, the Office of Management and Budget managed to reduce its leased vehicle expenses by 76 percent. OMB has disposed all but one of its vehicles, the report said.

The finance department minimized its vehicle use by 25 percent, keeping only 19 of its previous 30 leased cars. Most of the units left are required for Customs services.

At the same time, government records mentioned that the CNMI court did not purchase or lease any vehicle in the last fiscal year.

Finance officials said it will monitor strict compliance on the governor’s call to further trim government expenses in light of declining revenues.

DOF Secretary Lucy Nielsen said the government will actualize further savings by careful scrutiny of the vehicle requirements of each department.

Nielsen said many government offices did not only minimize lease vehicle inventory but also leased more economical and less expensive cars.

The finance department also said strict federal specifications determine the type, class of vehicle and even the mileage of the vehicles maintained by certain agencies like the Departments of Public Safety and of Public Health,

The government has been exploring more ways that would help cut down expenditures, in light of the continued decline in revenue collections due to the dipping visitor arrivals to the CNMI.

The governor said there may be a need to institute further cuts in expenses in order for the Administration to run the government more effectively amid the worsening economic conditions in the region.

Mr. Tenorio maintained that the government will continue to live within the available resources, dismissing the possibility of deficit spending which has been a normal practice when revenue collections are not enough to sustain expenditures.

Government earnings are expected to suffer a sharp decline in the next two years as officials see a gloomier picture of the local economy.

The government is not hoping any increase in fiscal year 2000 earnings since major Asian economies, from where CNMI is heavily dependent, are not showing significant growth.