Senate approves $221 million budget • But Kiyu, Manglona trade diatribes over alleged ‘payback’

The government’s proposed spending package of $221.66 million for the current fiscal year finally received yesterday the Senate’s stamp of approval, clouded by accusations of political intimidation in the budget process.

Senate Vice President Thomas P. Villagomez was the lone dissenting voice as eight of the nine senators voted to pass the budget proposal that has substantial changes from what the governor and the House have recommended.

He said more than $10 million were taken away from the budget of the Executive Branch to fund programs endorsed or supported by the senators.

“We have succeeded cutting down [appropriation] for the Executive Branch by ten million dollars,” he told his colleagues in what seemed a sarcastic remark following passage of the budget.

He enumerated which agencies received substantial cuts, including public safety from $14 million to $13.5 million; public health, $38 million to $34 million; labor and immigration, from $8 million to $6.7 million; commerce, finance and the Attorney General’s Office.

Mr. Villagomez had pressed rejection during the session of an amendment offered by Senate President Paul A. Manglona that would provide separate funding for the three members of the Rota Municipal Council.

He claimed this was a payback to one member who went with his decision to endorse the candidacy of Washington Rep. Juan N. Babauta and Rep. Diego T. Benavente for the Republican open primary.

Mr. Manglona backed the tandem and campaigned for the two on Rota against Mr. Villagomez’ team-up with Lt. Gov. Jesus R. Sablan which lost in the Nov. 4 exercise.

According to the Saipan senator, separate funding for each member of the council on Rota would lead to morale problem since it could divide the staff working for the council.

“We want them to work together… We [Pepero-Kiyu’s supporters] are being harassed now,” he explained. “Senator Paul is the biggest supporter of Babauta-Benavente and one influential guy on Rota. This is political intimidation.”

The Senate leader refuted the accusation, saying the provision is fair and is intended to comply with legislative initiative approved in a referendum to provide minimum funds for each member of the municipal council.

“I don’t see how that can be associated with political intimidation when actually we are trying to guarantee funding for each member,” said Mr. Manglona. “If it were to take the money away, then there’s something wrong in there.”

The provision was approved by four members — Mr. Manglona, Senate Floor Leader Pete P. Reyes, Sen. Edward U. Maratita and Sen. Joaquin G. Adriano.

Mr. Villagomez, Sen. Richardo S. Atalig and Sen. Jose M. Dela Cruz voted against it, while Sen. David M. Cing and Sen. Ramon S. Guerrero abstained.

Substantial changes

Senators were putting last-minute changes to the budget bill, although the Senate Fiscal Affairs Committee had taken three months to scrutinize the lower house proposal.

Under the Senate version, several programs received increases in their funding, notably the scholarship and medical referral as well as the Rota and Tinian municipalities.

The $700,000 earmarked by the House for Washington lobbyists were eliminated to shift the funds to the implementation of the free trade zone law signed earlier by the governor.

Marianas Visitors Authority also got lower allocation this year as more than a million dollars were diverted to create separate offices for each of the islands of Rota and Tinian.

Mr. Reyes expressed disappointment that this was the consensus of the senators, noting it could the CNMI’s economic base which is the tourism industry.

“But the entire budget package presented with a lot of advantages outweighs the separation of MVA offices,” he said at the session.

Among the significant changes to the budget were the $2 million allotment to pay close to 2,000 employees who have been awaiting their retroactive salary hike for the past nine years as well as establishment of a new office that would handle employment requirement of returning students.

Senators praised themselves for coming up with the budget that they said involved “complex and very tedious hardwork.”

Mr. Maratita, who heads the Fiscal Affairs Committee, said the panel based its review from the FY 2000 budget proposal vetoed by the governor last June which had $10 million less in cash resources.

He disclosed most of these funds were restored in the critical agencies and programs that were cut under the House version of the budget, including the FTZ program that he said is more important that hiring lobbyists in Washington D.C.

The Senate took three months of close scrutiny on the spending package which is expected to be rejected by the lower house — particularly due to zero funding for the lobbyists, Mr. Maratita said — to bring the review back into bicameral conference committee.

“With the resources that we have, everybody wants a piece of the cake. Unfortunately we have only a small amount of money, so we have to address first the most critical areas,” said the fiscal affairs chair.