As expected, House junks Senate-crafted budget bill

As expected, the House unanimously voted yesterday to reject the Senate-passed budget due to the cost-cutting provisions included in the bill.

After the vote, Speaker Arnold I. Palacios appointed four House members to confer with the Senate and reconcile the differences of the two chambers over the budget. The House members are Representatives Victor Hocog, Ray Yumul, Justo Quitugua, and Edwin Aldan.

Senate President Pete P. Reyes is expected to officially name Senators Maria Pangelinan, Joseph Mendiola, and Paul Manglona to the conference committee today.

During a session, the House members enumerated the issues they want the ad hoc legislative committee to address when it crafts a compromise budget bill.

On top of the list is whether to implement austerity measures such as the “austerity Fridays” and unpaid holidays proposed by the governor and adopted by the Senate. Hocog said the measures would place additional burden on the families already saddled with the high cost of living in the CNMI. Rep. Tina Sablan said that “austerity Fridays”—or the biweekly shutdown of government offices—is “fundamentally unfair” and breeds resentment among employees.

The budget for education, particularly for the Public School System and Northern Marianas College, needs particular attention, according to Rep. Ralph Torres. He said both agencies, as well as other critical services, should be funded fully.

For his part, Rep. Heinz Hofschneider called on the conference committee to look into the 90-day contracts given to many employees across the government.

The other issues raised include the funding for the governor’s immigration federalization lawsuit, the ban on lawsuits within the CNMI government, and the Senate-proposed funding increase for each lawmaker.

The budget currently under deliberation is for the 2009 fiscal year, which covers the period from Oct. 1, 2008 to Sept. 30, 2009.

On Oct. 2, the House approved the original budget bill, appropriating $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. Last week, the Senate passed a substitute bill to replace the House-approved version. The substitute includes a host of changes to the House’s proposal.