Senate committee cuts admin’s $175M revenue estimate by $9M

The Senate Fiscal Affairs Committee has decreased by $9 million the administration’s projected $175 million revenue in fiscal year 2024.

On the other hand, House of Representatives Ways and Means Committee chair Rep. Ralph N. Yumul (Ind-Saipan) said yesterday that they are already finalizing their budget version, as he expects going into a conference committee with the Senate.

In response to Saipan Tribune’s inquiry yesterday, Sen. Donald M. Manglona (Ind-Rota), who chairs the Fiscal Affairs Committee, underscored the need to reduce the anticipated revenue, noting that the administration projected a tax increase that isn’t law.

Manglona was referring to Gov. Arnold I. Palacios’ proposed budget, which includes a proposal to increase the Business Gross Revenue Tax in the second quarter of the fiscal year for an additional estimated revenue of $9.1 million.

When asked about concerns by some representatives about the constitutionality of the Fiscal Affairs’ amendment of the concurrent resolution, Manglona said he believes some House members think that what his committee did was unconstitutional because they increased the bottom line number in the proposed budget.

“But our interpretation is that the constitution applies to the overall budgetary resources,” the senator said.

He said their next step in the budget process is just finish up with Rota and Tinian then wait for the House to see if they will be going into a conference committee—which typically happens when the Senate and House have differing budget versions.

Yumul said in an interview yesterday that, with the Senate Fiscal Affairs Committee’s action, they actually increased the budget ceiling to $118,823,585.

“That’s where we’re having counsels see if they overreach. It’s up for discussion right now,” Yumul said.

He said as their counsel stated, they might have a different opinion with the Senate so they left it at that as they cannot dwell on what they’ve done.

“We’ll just move forward with our version and hopefully, what we’ve done maybe they would not consider amending the concurrent resolution,” Yumul said.

He said with the projected revenues, they didn’t touch anything because there’s some anticipated revenue coming in from outside source, which the administration has shared with them that would address the shortage.

Yumul said the administration asked that they remain within what was submitted to them and then they would address the shortfall in the coming months.

“There’s some grants specifically to address personnel that’s coming in,” he said.

Yumul said with the $9 million that was submitted by the administration, they anticipated increasing the Business Gross Revenue Tax, excise tax, and a lot of taxes that were put on the table.

He said, however, most House members didn’t agree with taxing people right now, when things are getting harder. “So that’s why we stayed away and veered off and we are still working with the construction tax. And that’s what everybody’s talking about,” Yumul said.

Yumul said they are optimistic that the $9 million will not be a $9 million shortage. “I think it would be lower than that. But just like with any fiscal year, whatever we’re anticipating, it’s always a shortfall,” he said.

Yumul said they’re just working on the administration’s submittal as the provisions of the draft budget bill were all done last week.

Ralph Yumul