Senate poised to reject House-approved budget

The Senate is poised to offer a substitute bill to replace the budget legislation passed by the House of Representatives.

The Senate Fiscal Affairs Committee, according to its chairwoman, Sen. Maria T. Pangelinan, is preparing a measure that will include an itemized appropriations for Executive Branch agencies.

The House-approved measure provides a lump sum budget for the administration. Proponents of the idea in the House argue that the governor, who will have full authority over the $75 million budget for the Executive Branch, knows best how to manage the limited resources.

But Pangelinan says the Legislature should set specific spending guidelines precisely because general fund resources are scarce. She adds that it is the Legislature’s responsibility to do so.

“The [Senate] Fiscal Affairs Committee believes that the FY 2009 appropriation must be made with care, attention to detail and, to the greatest extent possible, preserve provision of the basic services of safety, health, and education,” she said. “The House abdicated from its responsibility by giving the Governor a lump sum amount and allowing him to decide how he would use the money. So the House basically approved a budget for the Executive Branch not knowing how it would be spent. In other words, they do not know what they are approving.”

She adds, “The Senate is taking a different approach. My committee believes that based on review of prior budgets and the CNMI Code, this fiscal year presents challenges of a magnitude sufficient to warrant the close monitoring of spending. Unlike the House, we will have a detailed budget with a committee report that will explain our findings and final decision.”

Senate President Pete P. Reyes echoed Pangelinan’s views and said the House-passed budget will not clear the Senate. He also said he does not expect the House to approve the Senate substitute. The likely scenario, he said, is that the House and Senate will end up forming a joint conference committee that will resolve their differences and come up with a budget acceptable to both houses.

The House-passed budget appropriates $165.37 million in resources, including $156.7 million in projected government revenue, $5.17 million in Compact Impact aid, and $3.5 million in “unencumbered” funds from different accounts outside the general fund.

It gives the governor free rein over how to spend $75 million for the Executive Branch, but specifically bars him from using any public funds for the lawsuit he had filed against the U.S. government over the new immigration law.