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Senate OKs separation of local funds
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Posted on Apr 28 2005
The Senate approved yesterday a bill that aims to separate the collection and use of local funds generated from each senatorial district.
The Senate passed on final reading House Bill 14-311, which seeks to create a local fund account for each senatorial district into which local revenues shall be deposited, and not shared with other districts.
The measure, authored by Rep. Jesus Attao, received eight “yes” votes and only one abstention from Saipan Sen. Luis P. Crisostimo.
“We are one Commonwealth. If local revenues are only to be appropriated for local use, we might be shortchanging other senatorial districts. In the future, what if other districts do the same to us,” asked Crisostimo.
He cited that Tinian, for one, has a very promising casino industry.
“If Tinian’s casino industry booms and collects big revenue, would it be time for us to ask them if they’re willing to share their local revenues with us? Casino is very lucrative. We need to be mindful. If it becomes profitable, does it mean that we won’t share with their revenue because it’s a local revenue?” he asked.
He said the bill would also result in some senatorial districts offering less scholarship grants because of less revenue.
The bill wants to create three funds for each senatorial district, namely Rota Local Funds, Tinian Local Funds, and Saipan Local Funds.
The use of local funds is only limited for the district where the revenues come from.
The proposed measure further provides that within 15 days after the end of each fiscal year, the Secretary of Finance shall submit a written financial report to the chair of each legislative delegation.
It said that only fund balances for scholarship shall be carried over to the next fiscal year without further appropriation.
