‘Passage of new budget unlikely’

Both the Senate and the House of Representatives have named appointees to the conference committee that would address the two legislative bodies’ differences on the CNMI budget for fiscal year 2006.

But with a transition of power taking place on Jan. 9, 2006, the passage of a new government budget appears more unlikely now than before the election.

“A lot of things have changed that may factor in future actions concerning the budget. The speaker is preparing for his takeover and he has a lot of things in his mind. He won’t be back until next week. And we have the holidays coming,” House leadership spokesperson Charles Reyes Jr. said.

“We may just end up under continuing resolution. The new administration can just focus on passing a budget for the next fiscal year (FY 2007),” he added.

The Senate and the House each formed a group to represent them in a conference committee last month. This occurred after the House unanimously rejected the Senate’s amendments to House Bill 14-371, the appropriation measure for FY 2006.

The current fiscal year started on Oct. 1, 2005.

Senate President Joaquin G. Adriano has appointed Fiscal Affairs Committee chairman Joseph Mendiola to lead the Senate group in the conference committee. Mendiola’s members are senators Henry H. San Nicolas, Luis P. Crisostimo, Thomas P. Villagomez, Diego M. Songao, and Paul A. Manglona.

House Ways and Means Committee chairman Norman Palacios has been designated to lead the five-member group that would represent the House in the conference committee. Palacios’ members are Reps. Justo Quitugua, Oscar M. Babauta, Arnold Palacios, and Jesus Attao.

H.B. 14-371 identified a $206.5-million budget for FY 2006.

The Senate amended the measure by setting lump-sum funding levels for each government unit.

Citing the House legal counsel’s advice, however, the House members disapproved the Senate’s budget version. They said fiscal problems might occur if the Legislature passed a budget law that provided no separate figures for personnel and operating expenses.

Babauta also noted that the Senate’s proposal failed to grant the requested $50-million budget for PSS.

The Senate’ budget bill sets the PSS’ funding level at $48 million. However, it also mandates the Department of Finance to remit to PSS the deficit reduction amounts collected from all government agencies. These amounts are estimated to reach $2 million.