‘A vast majority of gov’t employees’ financial stability drastically impeded

The Commonwealth’s tight financial condition has greatly affected government revenues and has drastically cut into the financial stability of a vast majority of government employees, according to Office of Personnel Management director Frances Salas yesterday.

Chief of what is causing this was the cut in work hours, but Salas said this was necessary in order to preserve jobs.

“The need to cut work hours was unavoidable if the government departments were to remain open to continue to serve the general public,” Salas said.

She said some government employees, however, were luckier than others as their employment is funded by federal grants and remained at 80 hours every two weeks.

The OPM director talked about the CNMI’s current financial condition in her comments before the Senate Fiscal Affairs Committee on House Bill 23-56 that seeks to use the remaining 60% of indirect costs revenue or reimbursement by fiscal year collected for each grant to address the CNMI government’s financial deficit.

The House of Representatives passed the legislation last June.

According to the bill, 40% of indirect cost reimbursements from grants are directed to the Office of Grants Management, while the remaining 60% is not currently directed to any specific program.

After hearing comments and answers from Salas and other resource persons, Sen. Donald M. Manglona (Ind-Rota), who chairs the Fiscal Affairs Committee, tabled House Bill 23-56.

Manglona said committee members had concerns over OGM administrator Epiphanio E. Cabrera Jr.’s proposed allocation of the percentages as well as several amendments.

Additionally, Manglona said, they received comments from OPM and the Civil Service Commission that would support their argument for these percentages.

He said, though, that some committee members have questions as to the allocation of percentages and why some entities are receiving a certain percentage compared to what other divisions will receive.

Manglona said they will summon Cabrera to answer some of these questions before the committee.

Among the amendments to the bill that Cabrera had recommended is the designation of indirect cost reimbursements.

Cabrera suggested that OPM would get 5% and the Civil Service Commission, 2.5%.

Salas explained why OPM should be allocated a percentage of these indirect administrative costs.

She said all government employees—specifically within the executive, legislative, and judicial branches and the municipalities—are processed through OPM from start to finish.

Salas also gave the same pitch in past budget submissions—for the administration to mandate the OGM to allocate funds to OPM on a quarterly basis to assist and augment the financial needs of the office.

Salas said OPM currently operates at a 70-hour work period. With the allocation of indirect administrative costs, she said OPM will begin to regain the 80-hour work period to continue the work needed to ensure all employee documents are properly reviewed, approved, and entered into the system for payroll.

Salas said that, based on her analysis for this fiscal year, if OPM could get a share of the indirect cost revenue, that’s $107,000 that will keep the office at 80 hours for the whole year.

She said OPM is a vital component of the entire processing of employment documents. She said there are critical sections within OPM that review and ensure compliance with local and federal employment laws for all federally funded and locally funded employees.

Salas provided the outline of employment process to illustrate the importance of OPM’s role and why OPM should be afforded funding from the indirect administrative costs as OPM’s responsibility is administrative in nature.

She requested the committee to consider passing legislation that will allocate at least 5% to 10% of the indirect administrative costs to OPM.

This, Salas said, assures OPM is given the needed resources to continue providing services to all government employees.

“We are at 70 hours per bi-weekly pay period. And it really hinders our staff when things begin to pile up and we cannot get everyone entered in a timely fashion,” she said.