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$198M budget eyed in FY07
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Posted on Apr 24 2006
The administration is eyeing a $198.5 million budget for fiscal year 2007, Gov. Benigno R. Fitial said.
This figure mirrors the adjusted revenue estimate that the Executive Branch has put in effect since January 2006.
“Based on an assessment of current government resources, I think I can safely say that we can collect up to $198.5 million,” the governor said. He also expressed hope that the actual revenue collection would exceed this projection, citing “new potential investments.”
The Legislature’s deadline for the administration to submit a budget proposal for FY2007 is May 1, 2006.
The new fiscal year will cover the period between Oct. 1, 2006 and Sept. 30, 2007.
The CNMI government has not enacted a budget since 2002, when the 13th Legislature passed the budget for FY2003. Public Law 13-24 set a $213-million spending limit for the government.
The 14th Legislature found that there was $206 million available to the government for FY2006. But when Fitial stepped in three months ago, he reduced the revenue estimate to $198.5 million in view of declining collections.
The new administration projected decreases of $3.1 million in income and business taxes; $2.3 million in garment users fees; $1.1 million in excise taxes; $200,000 in beverage taxes; $200,000 in amusement taxes; and $100,000 in other charges. The administration also estimated that government transfers-in would decline by $700,000.
A committee composed of executive and legislative officials is tasked with creating a budget for FY2007.
Finance Secretary Eloy S. Inos, acting Commerce Secretary James Santos, and the governor’s special assistant for management and budget Antonio Muna represent the Executive Branch in the committee.
From the Legislature, the representatives are Senate Fiscal Affairs Committee chairman Felix Mendiola and House Ways and Means Committee chairman Crispin Ogo.
