Administration submits higher FY2002 budget

The Administration of Gov. Pedro P. Tenorio has finalized the proposed Fiscal Year 2002 budget allocation of about $229 million, up from the previous year’s $221.66 million.

The increase in the proposed FY2002 budget mirrors the additional revenues expected to be generated by the CNMI government during the forthcoming financial year, according to Gov. Pedro P. Tenorio.

Mr. Tenorio said new laws aimed at generating additional money for the government coffers, as well as the continued implementation of austerity measures, contribute to the government’s higher projected income in the next financial year.

In an interview with reporters Friday, the CNMI chief executive disclosed the proposed appropriations will be submitted today to the Legislature for review and approval.

The FY2002 budget is over $8 million higher than the FY2001’s $221.66 million proposed appropriation earlier junked by the Legislature. Even if this was the case in FY2001, Mr. Tenorio is confident both legislative chambers will give their approval on the proposed budget.

He said possibilities are high that the CNMI will meet its financial responsibilities, with legislative measures in place to bolster the Commonwealth’s economy and drum up its generating capacity.

Included in the proposed budget is the separate utility allocation to each government office, as well as for the Tinian and Rota local governments. This way, each office will be responsible for their utility needs and pay them on time.

The allocation is in response to the recommendations earlier made by the Commonwealth Utilities Corporation to issue separate budget appropriations to each department and senatorial district to cover overblown utility charges.

Possible sources of revenues for the government include the infusion of fresh investments to the Northern Marianas and tax measures earlier approved by the Legislature.

In the offing is the qualifying certificates ready to be issued by the Commonwealth Development Authority for fresh investments, as well as existing businesses which are up for expansion.

Also last week, 59 Chinese and Hong Kong investors visited the Northern Marianas to determine types of businesses that are likely to thrive in the Commonwealth.

Last year, the House of the Representatives failed to hammer out a budget deal which forced the government to operate on a continuing budget resolution.

The House was firm on its decision not to pass the FY 2001 budget due to questionable provisions and appropriation items such as the $700,000 allocation for lobbying campaign in Washington DC; the $16 million funding level for each of the Tinian and Rota municipalities, and the earmarking of $1 million from the Marianas Visitors Authority to create new offices on each island.

The budget problem and differences on how to distribute cash resources of the government have come to mark the budget process in the Legislature in the past few years, mainly due to the decline in revenues and jostling for bigger share.