Senate backs full reprogramming power for Fitial

The Senate passed yesterday a House bill giving Gov. Benigno R. Fitial full reprogramming authority until a budget law has been enacted for Fiscal Year 2006.

House Bill 15-33 received a unanimous vote from the 15th Senate, which had its first regular session yesterday. The bill now goes to the Governor’s Office for approval. Fitial is expected to sign the bill into law.

The bill would grant the governor unlimited authority to reprogram funds available under Public Law 13-24, the last enacted budget law. This authority covers funds appropriated to all public corporations, autonomous agencies, and other entities of the CNMI government.

In yesterday’s session, Sen. Paul Manglona noted that funds from independent agencies may, in effect, be used to supplement the general fund.

Senate legal counsel Michael Ernest said that the bill would indeed allow Fitial to exceed the $213-million budget set by P.L. 13-24 for the central government. With the governor having this authority, the Executive Branch may not need to implement belt-tightening measures—at least technically.

“We have to have some trust in the system. We should proceed with faith and trust. If we find the governor is improperly exercising his authority, we can always recall it. But I ask you to consider his bill,” Senate President Joseph Mendiola appealed to his colleagues.

He also asked Sen. Luis Crisostimo to withdraw the latter’s proposed amendment to the House bill. Crisostimo wanted to insert a provision requiring that surplus funds, if any, be paid to agencies whose funding was cut in the governor’s exercise of his unlimited authority.

Mendiola cited the delay that would result from amending the House bill. “If we amend it, it’s going to return to the House and will probably be amended again,” he said.

The House of Representatives also passed the bill at first and final reading during its first regular session on Wednesday, Jan. 18, 2006.

Crisostimo withdrew his motion to amend the bill. He later voted in favor of the bill, albeit “with reservation.”

For his part, Manglona said that he supported the bill. But he stressed that the government needed a budget that truly reflects the CNMI’s financial condition and will eliminate the governor’s need for full reprogramming authority. “We should work together with the House and pass a budget,” he said.

“The Legislature finds that it is financially imperative that the new administration be authorized reprogramming authority over and beyond the provisions of 1 CMC 7402 in order to avoid fiscal crisis and deficit spending. The purpose of this act is to assist the new administration with prioritizing needs until a comprehensive budget for FY2006 is enacted,” a portion of H.B. 15-33 read.

The bill would give the governor unlimited authority to reprogram P.L. 13-24 funds, including funds available to autonomous agencies.

However, this authority does not cover funds restricted from reprogramming by federal law, federal grant conditions, CNMI constitutional prohibitions, and deposit and other security restrictions related to bond covenants and the financing of public projects.

The reprogramming authority also excludes trust funds invested by the Marianas Public Land Trust and the NMI Retirement Fund, and all funds appropriated under all local laws.

Furthermore, the governor would not be allowed to reprogram funds of the legislative branch, judicial branch, Washington Representative’s Office, mayors, or municipal councils.