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House OKs $193.5M budget resolution
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Posted on May 22 2006
The House of Representatives has approved the $193.5 million appropriation limit submitted by the Fitial administration for fiscal year 2007.
In a 15-0 vote, the lawmakers adopted House Concurrent Resolution 15-1 to endorse $208.6 million as the total identified budgetary resources for FY 2007. But this amount was reduced to $193.5 million after consideration of fund transfers and certain fixed expenses.
Some $1.6 million of the proceeds of the cigarette excise tax needs to be transferred to the tobacco control fund. Another 10 percent or $2.5 million of excise taxes is due for transfer to the solid waste fund.
The House also identified government debts that need servicing. Some $2 million is set aside for the Public School System’s bond repayment; $5.2 million for the government’s general obligation bond; $1.1 million for the Northern Marianas Housing Corp.; and $2.7 million for land compensation debt services.
The Department of Public Lands will receive a separate budget of $4.7 million. The funds will come from the department’s income from the lease of public lands.
The Fitial administration’s $193.5 million budget proposal represents a $5-million cut from the current fiscal year’s already reduced budget of $198.5 million.
It is also nearly $20 million less than the government’s last enacted budget of $213 million.
In submitting the budget proposal to the Legislature, Gov. Benigno R. Fitial said government offices had requested a combined budget amounting to $251.8 million. But he cut the amount because “it is imperative that we all continue to exercise great fiscal prudence.”
The reduced budget will mean the elimination of certain employee benefits, removal of vacant positions and termination of funding for capital improvement equipment, implementation of a flat tax system, among other things.
