Teno orders agencies ‘Observe overtime restrictions’

Gov. Pedro P. Tenorio directed all CNMI government agencies to strictly observe cost-cutting measures implemented in financial year 1998, following the recent discovery of excessive amounts of Compensatory Time Off.

Compensatory Time Off comes in a form of leave-with-pay made to government employees for work rendered beyond the legally-allowed 80-hour per pay period.

In a memorandum issued Feb. 2, 2001 to all department and activity heads, Mr. Tenorio sounded the alarm against possible abuse by some government employees of their eligibility to work beyond the 80-hour per pay period despite existing restrictions on overtime work.

“It has come to my attention that numerous overtime-eligible employees in departments throughout the government have accumulated excessive amounts of compensatory time off,” the governor said.

He pointed out that this “unbudgeted-cost situation” comes in violation of his earlier instruction against overtime, which was contained in the Governor’s Directive No. 207 issued on Oct. 20, 1998.

The governor stressed that this directive specifically mentioned only government employees engaged in law enforcement, fire protection, emergency management or medical service activities will be allowed to work extra hours, apart from the legally-mandated 80-hour per pay period.

“Overtime work that results in overtime-eligible employee earning Compensatory Time Off should only occur under extraordinary circumstances. Overtime-exempt employees cannot earn Compensatory Time Off,” Mr. Tenorio emphasized.

In order to address the problem and stop abusive employees from taking advantage of their eligibility to work overtime, the CNMI chief executive ordered all department and activity heads to come up with a list of all employees who have Compensatory Time off due.

He said the listing must be reviewed immediately and listed employees must be scheduled for Compensatory Time Off, adding that department and activity heads should ensure that vital services are continuously available while employees granted Compensatory Time Off are absent.

Compensatory Time Off authorized through overtime should be immediately scheduled following two pay periods, according to the memorandum dispatched by the Office of the Governor to all government agencies.

It underscored that the Department of Finance will not pay cash for Compensatory Time Off under any circumstances other than termination of employment.

Those who earned comptime off in excess of eighty hours should be scheduled for immediate time off to avoid conflict with the existing regulations, the governor said.

Mr. Tenorio also announced that the Office of Personnel Management and the Overtime Task Force will conduct a review of Compensatory Time Off accumulation and will review actions taken to liquidate this liability.

“All department and activity heads are urged to take immediate action to ensure full utilization of all accumulated Compensatory Time Off,” he said.

Cost-cutting measures

In December 2000, the governor reminded all CNMI government agencies that cost-cutting measures implemented in financial year 1998 remain in effect as he asked officials to ensure that their offices continue to strictly practice austerity.

The governor said delivery of essential government services like education, public health and safety, should not be disrupted by declining revenues especially when there are available effective ways to reduce the cost of government operations.

The austerity plan was crafted and implemented, beginning FY-98 or when visitor arrivals to the islands started to trickle, in a way that it would not entail drastic moves that could require general decrease in work hours for employees.

Mr. Tenorio said cost-savings measures have resulted in a noticeable decrease in government expenditures, primarily because of strong cooperation by public offices in reducing or eliminating their respective non-essential expenses.

The austerity program instituted by the administration of Mr. Tenorio resulted in major reduction in government spending that range from as low as nine percent to as high as 50 percent.

In the period covering Fiscal Years 1997 to 1999, the Tenorio Administration managed to cut personnel expenditures by nine percent; professional services by 50 percent; travel expenses by 24 percent; communication costs by 32 percent; and lease vehicles by 27 percent.