Palacios: Legislative delegations keep circumventing legal budget process
Notwithstanding the approved budget for the Legislature, Gov. Arnold I. Palacios said that legislative delegations continue to circumvent the legal budget process to pump more operating expenditures into items that are already funded under the annual budget acts of the fiscal year.
Palacios made the statement in signing into law House Local Law 23-29, S1, which would inject limited appropriations for the personnel and operations of the Tinian Casino Gaming Control Commission, Office of the Mayor of Tinian & Aguiguan, the Tinian Municipal Council, and the Tinian Municipal Treasury in fiscal year 2024.
Based on the opinion of the attorney general, the governor line-item vetoed a provision in the bill that proposes a $20,000 appropriation for the Tinian and Aguiguan Delegation for personnel, saying this provision is “constitutionally problematic.”
The governor also line-item vetoed the bill’s provision for the TALD chair to be the expenditure authority for these funds, citing the same grounds.
With the exception of the vetoed portions, the bill now becomes Tinian Local Law 23-05.
“Notwithstanding the prior approval of similar appropriations, I restate my concern regarding the constitutionality of the appropriation to legislative delegations to fund operational costs,” said Palacios in his letter Tuesday to TALD chair Sen. Karl R. King-Nabors (R-Tinian) and House of Representatives Speaker Edmund S. Villagomez (Ind-Saipan).
The governor said the Legislature has approved for Tinian and Aguiguan a funding ceiling of $6,791,324 for fiscal year 2024.
He pointed out that each delegation is a component unit of the Commonwealth Legislature and may not incur expenditures beyond that which is already set every fiscal year in the annual budget acts for the Legislature.
He said the Commonwealth Code states, “No expenditures of Commonwealth funds shall be made unless the funds are appropriated in currently effective annual appropriation act or pursuant to a Commonwealth Code.”
Palacios cited the Commonwealth Code: “Funds for operations of the Commonwealth shall be appropriated pursuant to annual appropriations acts.”
Rep. Patrick H. San Nicolas (R-Tinian) introduced the local bill last Oct. 5. The TALD passed the bill with some amendments last Oct. 17.
According to the bill, the Office of the Tinian Municipal Treasurer had told the TALD last Sept. 27, 2023, that local revenue for fiscal year 2024 in the amount of $507,750 is available for appropriation.
The TALD, however, determined that this is insufficient to satisfy in full all the personnel and operation expenses of the TCGCC, Office of the Mayor of Tinian, Tinian Municipal Council, and the Tinian Municipal Treasurer up to the end of the fiscal year on Sept. 30, 2024.
Tinian municipal treasurer Maria Barbara Borja informed King-Nabors and San Nicolas last Sept. 27 that she received $500,000 in casino license fee from Bridge Investment Group; $2,000 in casino service industry fee; $5,000 in casino key employee license fee, and $750 in casino employee license fee; for a total of $507,750 in local revenue. Borja certified that the $507,750 is available for appropriation.
Under the bill, of $507,750 in total local revenues, TALD appropriates $447,750 to the TCGCC commissioners and enforcement administration, with $411,750 allocated to personnel and $36,000 to its operations.
TALD also appropriates $30,000 for the discretionary fund and operations of the Mayor of Tinian and Aguiguan; $10,000 to the Tinian Municipal Council for operations; and $20,000 to the TALD for personnel. Palacios vetoed the $20,000 for personnel.
Legislative Building in Capital Hill
