Senate eyeing $1.7M reserve funds in budget

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Posted on Oct 06 2008
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The Senate is looking at reserving money to ensure the Washington Representative’s Office and the Division of Immigration will be funded in case Gov. Benigno R. Fitial succeeds in blocking implementation of the new immigration law.

Sen. Maria T. Pangelinan, chairwoman of the Senate Fiscal Affairs Committee, said the substitute bill being drafted to replace the House-passed budget may include $1.7 million reserve funds for agencies affected by U.S. Public Law 110-229 and other programs.

In anticipation of the election of a CNMI delegate to the U.S. Congress and the pending federal takeover of local immigration, lawmakers propose to fund the Washington Representative’s Office for three months only and the Division of Immigration through May 31, 2009.

But Pangelinan argues that the CNMI government must be prepared to continue funding these programs in case the governor prevails in his lawsuit against the U.S. government over the new law.

“FY2009 is a year of many changes. U.S. Public Law 110-229 may or may not be implemented, based on the ability of the governor to pursue and be successful in his suit for a permanent stay on the implementation of this law,” she said in a report to the Senate.

If the court stops the law from taking effect, she added, both the WRO and the Division of Immigration will remain open and require funding for all of FY2009 or until the lawsuit is resolved.

Currently, the Senate Fiscal Affairs Committee is proposing to grant the WRO’s request for a budget of $347,076, which covers personnel expenses for three months and shut down costs. If P.L. 110-229 does not go into effect, the WRO will require additional funding of $464,630.

As for the Division of Immigration, the funding requirement is expected to increase from $1.46 million for nine months, to $2 million for the entire year.

Combined, the potential additional costs for both agencies will comprise $1 million of the proposed $1.7 million reserve fund. The remainder could go to court judgments against the CNMI government, the government’s pension debt, and the cash-strapped Commonwealth Utilities Corp., Pangelinan said.

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