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‘Drastic spending cuts needed for CNMI govt’
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Posted on Mar 24 2006
Saipan Chamber of Commerce president Charles V. Cepeda agrees with the Fitial administration’s cost-cutting measures, including the proposed work-hour or wage reduction scheme, saying it is needed to ensure fiscal stability.
“In order for the government to get its fiscal stability back, it would need to take cuts. It’s hard but if we don’t take the drastic measures, it would keep the momentum low or worse, come to a standstill,” said Cepeda in an interview.
He recalled that the Guam government undertook the same painful path of cutting its spending a few years back.
“They were in this kind of situation about four years ago. They took drastic measures and patiently complied and those helped them recover their economy,” he said.
He said, though, that the CNMI government should really take time to study the impact of the proposed work-hour or wage percentage.
“It’s good that they’re taking it slow, reviewing it thoroughly,” he said.
The Fitial administration, which floated early last month the idea of cutting government employees’ work-hour by eight hours a week to save on funds, recently modified it to only four hours a week. The proposal remains under review.
The administration had said that it is considering implementing either an hourly or wage percentage reduction.
Likewise, the administration said that the reduction program will exempt “essential personnel” such as teachers, police personnel, nurses and doctors, among others.
Early on, Gov. Benigno R. Fitial also ordered all government offices to freeze all government-paid travels and hiring of new personnel.
Upon assumption to office, the governor also revised the government’s annual spending level. From $213 million, he reduced it to $198 million, citing a lack of available resources to meet the previous budget plan.
