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Veto on surcharge repeal certain—Callaghan
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Posted on Jul 21 2005
The governor’s veto of the proposed repeal of fuel surcharge is almost certain due to the lack of needed appropriation, said press secretary Pete A. Callaghan yesterday.
“The governor will veto it,” he said, noting that the two bills introduced in the House of Representatives Wednesday appropriating a total of $20 million over two years is insufficient for the Commonwealth Utilities Corp.’s fuel needs.
‘That’s not enough. The cost of fuel jumped from $30 million to $60 million a year,” said Callaghan.
The House leadership said that the lawmakers would be ready to override the governor’s veto on the bill.
The majority bloc said that the CUC’s problems are the result of Babauta’s “mismanagement.” It also said that the governor has all the authority to reprogram funds to address CUC’s problems.
Rep. David Apatang authored House Bill 14-360 to appropriate $10 million for CUC in the current fiscal year and H.B. 14-361 to provide another $10 million in FY 2006—both aiming to help CUC pay for its fuel consumption and reimburse the public of the 3.5 cent fuel surcharge fee per kilowatt-hour.
The bills, which are also endorsed by other members of the minority bloc in the House of Representatives, want to tap the General Fund for the appropriation.
This, according to Callaghan, “is like asking the government to give people further rebate on their taxes.”
“People tend to think that the general fund is self-generating. It’s the people’s taxes. Where are we going to get the money from? Public health? Education? We hope the Legislature can designate what areas they think we can tap the $10 million from,” said Callaghan.
Babauta earlier wrote the Legislature, saying he would only approve the fuel surcharge repeal as proposed in House Bill 14-343 if the Legislature can identify funds for CUC.
He asked the Legislature “to provide the needed appropriation by July 22.”
He has up to July 29 to decide on the measure.
The Legislature earlier passed H.B. 14-343, which seeks to repeal 4 CMC Section 8148(b) to get rid of the fuel surcharge provision.
The existing law currently allows the CUC board of directors to impose a surcharge fee of up to 3.5 cents per kilowatt-hour.
