AGO tells OPA: Salary cap exemption unconstitutional

The Office of the Public Auditor’s request to the Legislature that its auditors be exempted from the compensation package ceiling of the government is unconstitutional, the Attorney General’s Office said.

Asst. Atty. General Elliot A. Sattler hinted that the provision stated under House Bill 12-174, or the “Commonwealth Auditing Amendments Act of 2000,” violates the Commonwealth Constitution.

In his comment delivered to the Senate Committee on Resources, Economic Development and Program, Mr. Sattler made special mention to the wordings of Section 3 (a).

He remarked, “The requirement in Section 3 (a) of the Act that those higher compensation rates which are exempt from the salary ceiling “shall be approved by the Legislature” is contrary to the constitutional concepts of separation of powers pursuant to the NMI Constitution.”

Mr. Sattler further commented that establishment of salaries is an administrative function of the Executive Branch of which the OPA, as an autonomous agency, is a member.

By tinkering with the compensation packages of OPA, the Legislature might unknowingly be exercising the jurisdiction of the Executive.

Letting the Legislature decide on the request may also politicize the payment of salaries to certain Executive Branch employees and may even allow Congress to “shut down” OPA by the mere act of disapproving the exemption, Mr. Sattler added.

Instead of enacting a bill to exempt OPA auditors from the salary cap, Mr. Sattler recommended that the Legislature establish a “ceiling” or a “range” for salaries of various positions within the OPA, and for that matter for other government agencies.

“OPA would then have the authority, subject to appropriation and the existence of funding, to compensate their employees within the established salary range without the direct involvement of the Legislature approving the particular salary to be paid to each employee of the OPA,” the assistant attorney general said.

With the aforementioned measures in place, the OPA would now be able to compensate its auditors with competitive rates. Currently, the government office can only offer the maximum annual salary of $50,000. On the other hand, private firms offshore could easily pay auditors $80,000 a year.