House panel endorses $206M for FY 2006

The House Ways and Means Committee agreed yesterday to endorse a $206 million appropriations bill for Fiscal Year 2006.

House majority leader Oscar M. Babauta said the figure was decided during the committee’s meeting yesterday morning.

“We decided to adopt a resources [bill] of $206 million based on the governor’s submission,” said Babauta, a key member of the committee.

The Executive Branch submitted a $225.8 million proposed budget for FY 2006. The package included proposed revenue generating measures—a $6,000 poker fee hike, suspension of Tobacco Control and Tobacco Settlement Funds, and diversion of local poker funds to the General Fund—that are projected to raise $19 million.

The administration said that without these measures, the government would only collect $206 million from existing resources, in view of the projected decline in revenue from the garment sector.

The government currently operates on a $213 million continuing resolution.

“That’s [$206 million] the bottom line of the administration’s submission,” said congressman Babauta.

He said the panel’s move is not meant to reject the $19-million package; he said a separate legislation must be made to implement those.

He pointed out that the House is now deliberating on a bill, authored by Rep. Clyde Norita, which aims to raise the poker license fee by $4,000.

“What the committee did was to take the governor’s submission based on available resources. The proposed poker fee is not rejected at all but it has to be taken separately,” he said.

Babauta also said that panel members do not agree taking local poker funds to give to the General Fund.

“Local funds, say, for Saipan would remain in the delegation because it is needed for local programs. The majority does not favor co-mingling the funds with the General Fund,” said the lawmaker.

He said the committee was “reluctant” to suspend the appropriation of tobacco funds because they have been earmarked for certain programs.

“These programs are ongoing at the Department of Public Health [and] Public School System. It would be unwise to suspend those funds and have it appropriated in the General Fund,” said Babauta.

Meantime, minority bloc spokesman Rep. Ray Tebuteb raised “the lack of in-depth consultation” with concerned agencies on the budget.

“Have they gone through the process? I don’t think they sat down with concerned agencies. If they disagree with the suspension of tobacco funds, did they even make an effort to get feedback from the affected programs?” asked Tebuteb.

He said that not including the $19-million package would mean inadequate funding in key essential services.

“That proposal was well-thought of. Those increases are needed to fund schools and other essential agencies. Did they consider the population increase in our schools?” he asked.

For his part, governor press secretary Pete A. Callaghan said, “I’m curious to know which departments they plan on cutting.”

“It means not fully funding PSS, DPH, and DPS,” he added.

Finance Secretary Fermin M. Atalig said that any reduction in the FY 2006 budget would result in reduced services. “Obviously some services will be cut,” he said.

House Ways and Means Committee chair Norman S. Palacios said yesterday that his committee has yet to get more information from the Division of Revenue and Taxation.