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Joint panel created for FY06 budget
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Posted on Jan 23 2006
With the government facing a potential deficit of over $51 million, the Fitial administration and the lawmakers are now rushing to pass a budget for fiscal year 2006.
Gov. Benigno R. Fitial and Lt. Gov. Timothy P. Villagomez, along with House Speaker Oscar Babauta and Senate President Joseph P. Mendiola, have formed a joint committee to immediately develop a budget for the current fiscal year.
Acting Finance Secretary Eloy S. Inos, acting Commerce Secretary Clarence Tenorio, and governor’s special assistant for management and budget Antonio Muña will represent the Executive Branch in the Fund Management Committee.
From the 15th Legislature, committee members will be Senate Fiscal Affairs Committee chair Felix Mendiola and House Ways and Means Committee chair Crispin Ogo.
“The committee will prioritize public spending needs and develop and recommend the outline budget for FY2006, which must be based on realistic revenue projections,” reads a portion of the leaders’ agreement.
The committee is also tasked to report regularly on its progress. It will dissolve once a budget has been adopted for FY2006 or at the end of the fiscal year.
FY2006 began on Oct. 1, 2005.
Because of a lack of a new budget, the CNMI government is currently running under the FY2003 budget as authorized by the last enacted appropriation law.
Government leaders agree on the need for a new budget law that truly reflects revenue projections.
Inos reported Friday that the Finance Department might collect only $180 million to $206 million in revenues this fiscal year, a significant reduction from the $213-million budget provided by Public Law 13-24.
On top of this difference comes a potential $51-million shortfall, Fitial said.
The governor has already implemented different austerity measures. But if worse comes to worst, he said, the government may have to take drastic measures such as floating a bond or cutting existing services.
Only five essential services will continue to be fully funded: the Public School System, Commonwealth Health Center, Commonwealth Utilities Corp., Department of Public Safety, and the Department of Corrections.
All other departments and agencies can expect a reduction in funding.
