MVA warns vs reduced budget

The Marianas Visitors Authority warns that its promotional activities will be adversely affected if the administration continues with its plan to reduce the funding of all government agencies.

Acting Gov. Timothy P. Villagomez quoted MVA as saying that the proposed cut “is too large.”

“MVA said this would impact its promotional programs,” said Villagomez.

MVA receives some $5 million a year from the government, which is about three times lower than what its counterpart in Guam receives from its government.

MVA has repeatedly asked the Legislature for increased funding, citing its crucial role in attracting tourists to the CNMI.

Villagomez said the Washington Representative’s Office also wrote the Executive Branch, appealing against any budget cut. Villagomez said this sentiment was “anticipated.”

“Again, the bottom line is, we don’t have cash. We’ve got to reduce our budget. The $213 million budget level is misleading,” said the official.

Newly installed Gov. Benigno R. Fitial, who recently received an unrestricted reprogramming authority from the Legislature, has adjusted the budget of most government agencies to reflect a revised revenue estimate of $198.5 million.

Fitial said the Office of Management and Budget would be implementing necessary allotment changes for the second quarter of FY 2006.

Further, the governor said that government agencies would face a pro-rated decrease in funding to ensure that the Commonwealth Utilities Corp. gets the needed $24.4 million for fuel purchases for the remainder of the fiscal year.

The revised allocation prepared by OMB will effectively supersede Public Law 13-24, which authorizes up to $213 million in government spending.