Previous Story
New budget needed to avoid deficit in ’06
|
Posted on Jul 12 2005
The Senate is asking the House of Representative to fast track the budget process, warning that the absence of a new budget for fiscal year 2006 would result in a deficit of at least $7 million.
Sen. Joseph Mendiola, chair of the Senate Committee on Fiscal Affairs, warned that there may not be a budget passed by September because the House “has not taken any formal discussion” on the proposed $226 million for FY 2006.
“I’m very concerned. I’m afraid that we may end up doing a new budget by end of the calendar year. Everybody knows it’s a political year, but we owe it to the government to pass a new spending plan,” said Mendiola in yesterday’s session.
He said the lack of a new budget for the next fiscal year would result in a deficit, following the administration’s certification that the government can only collect $206 million in FY 2006, which is $7 million below the continuing resolution of $213 million.
The administration had informed the Legislature about the reduced projected revenues on April 1. On July 1, the administration reiterated the limited resources of $206 million, while pushing for the passage of a $20-million worth of proposed revenue generating measures.
Mendiola said yesterday that the Legislature has no choice but to make cuts with limited revenues.
“If we need to cut the budget, then by all means, let’s do it. We better do it than run on a deficit. We’ve got no choice since the reality says $206 million, but the spending authority is $213 million,” he said.
Mendiola asked the Senate leadership “to send a strong message to the House” on the need to act on the budget.
Senate President Joaquin Adriano said his office would send a letter to the Speaker’s Office on the matter.
House Ways and Means Committee chair Norman S. Palacios, meantime, said that his panel will soon introduce a concurrent resolution identifying $206 million for FY 2006.
“We are doing what we could,” he said.
