Legislature likely to pass $229M budget for FY ’02

Legislative leaders yesterday dropped strong hints they will pass the Fiscal Year 2002 budget proposed by Gov. Pedro P. Tenorio, to ensure that the CNMI government will operate under a definite spending package.

This early, Senate leaders have sent feelers to their counterparts in the House of Representatives of their desire to sit down and come up with a compromise agreement on how the proposed $229 million budget will be divided among the three senatorial districts.

House Floor Leader Oscar M. Babauta, who also serves as member of the House Committee on Ways and Means, said the sincerity of Senate leaders to work together as an assurance that a budget will finally be passed for the next financial year.

Mr. Babauta said revenues anticipated from the new tax incentive program will be enough to fund the government’s existing needs and continued efforts by key agencies to improve its services.

The administration has finalized the proposed Fiscal Year 2002 budget 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.

The governor 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.

Mr. Tenorio earlier expressed confidence 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.

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.

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.