Propst: Possible $20M shortfall ‘extremely alarming’; suggests creating working group

House of Representatives floor leader Rep. Edwin K. Propst (D-Saipan) suggested Friday for the House to consider putting together a working group to address a possible $20-million shortfall this fiscal year, which he thinks is “extremely alarming.”

“We can’t just accept this trend and expect a $20-million shortfall,” said Propst during the miscellaneous portion of a House session.

He cited a recent news article that quoted Rep. Ralph N. Yumul (Ind-Saipan) as saying during their previous session that the total amount of taxes and fees collected by the CNMI government in the first quarter of this fiscal year was short by $5.3 million.

“That is very alarming news,” said Propst, adding that, as Yumul, who chairs the House Ways and Means Committee, had mentioned, if this collection trend continues and the government does not see more revenues coming in, they are looking at a possible $20-million shortfall this fiscal year.

At this point, he said, they need to reach out to Gov. Arnold I. Palacios, the business sector, their Senate counterparts, and Senate President Edith E. DeLeon Guerrero (D-Saipan), to discuss how and what they are going to do, “moving on from here.”

To change the collection shortfall trend, Propst believes that everyone in the Legislature, including the minority leadership, has to fully work together. “This is just critical. The last thing what we want to see is more hours cut or jobs cut. People are hurt, our families are hurting,” Propst said.

He underscored the need to do everything to regain the CNMI’s tourists. “I say this because it seems almost a contrast to what we’re seeing in Guam,” Propst said.

He said he has a friend who was passing through Guam and they couldn’t even get a hotel room because they were full. “We’re at 30% [hotel room] occupancy,” the floor leader said.

EVS-TAP