Babauta: More streamlining needed

Gov. Juan N. Babauta called on all department heads and division secretaries to continue streamlining their operational costs to ensure that the government does not exceed its $213-million budget ceiling.

Babauta assured Friday that essential public services would continue to be provided by the government but streamlining of operational costs must be addressed to ensure that the Executive Office works within its means.

Babauta, who left for Washington D.C. for a 10-day meeting with U.S. government and congressional officials, disclosed that overtimes for police officers and budget concerns at the Department of Public Health are now being looked into.

In an interview with reporters, Babauta also disclosed the possibility of increasing the DPH budget to $42 million in the next budget cycle, even as the CNMI government is studying how to address the DPS problem.

“The purpose of the Cabinet meeting Thursday was to brief all department heads, the Attorney General’s Office and all on the financial condition of the CNMI. We are still concerned, like every year, that DPH and DPS are overspending…not really overspending but they exceed their budget,” said Babauta.

According to the governor, Health Secretary James U. Hofschneider had informed the Cabinet that his department has been working on a bare bones budget. The Commonwealth Health Center alone cost the government between $40 and $41 million to operate, he added.

“That was the concern and to operate the CHC below that would be unacceptable. We are addressing this and we are looking at doing some reprogramming even in the next budget cycle, that the budget of DPH would be increased to $42 million,” the governor said.

On the DPS budget shortfall, the governor stressed that the department has to provide essential services to the public and police officers need to patrol the streets. He said overtime would be incorporated, although there would be streamlining of other overtimes.

Babauta said the administration is now working with DPS commissioner Edward Camacho to find out whether the budget level the department has needs to be cut or to increase it in the next budget cycle to ensure that it provides necessary services.

He reminded all department heads that, since the CNMI government is operating on a continuing budget resolution (capped at $213 million), it still needs to streamline operational costs and enforce necessary austerity measures.

The governor is optimistic, though, that the CNMI revenue projection is hitting its target, with the trend in the last seven month showing the government on track to hit its projections.