The Fitial administration targets to limit government spending to $14.62 million a month in the hope of avoiding more deficits.<\/p>\n
Gov. Benigno R. Fitial reported that cost-cutting measures implemented by his administration had reduced monthly expenditures from a high of nearly $21 million at the end of 2005, to $18 million in February, and $16.8 million in March.<\/p>\n
He added that, with only $117 million in revenues available for the period between February and September 2006, the government could only spend $14.62 million a month to avoid incurring a deficit at the end of fiscal year 2006.<\/p>\n
“During the remainder of this year we will be enforcing very tough measures to reduce the deficit, which is currently projected to be $37.5 million. We need to get the deficit down to as near zero as humanly possible,” the governor said in his State of the Commonwealth Address Friday.<\/p>\n
The government hopes to generate $16.2 million by reversing the Commonwealth Utilities Corporation’s utility reserve fund. This move, he said, would remove the burden of paying for CUC’s fuel costs from the general fund within 60 days.<\/p>\n
The Legislature will also be asked to effect an “employer contribution holiday,” during which the Executive Branch would make no contributions to the Retirement Fund. Fitial assured members that having the holiday would not affect the benefits of retirees.<\/p>\n
The governor estimated that the contribution holiday would generate about $11.4 million for government operations.<\/p>\n
He also bared a plan to reprogram the FY2006 deficit reserve, amounting to about $3.3 million, to address the current year’s shortfall. Pursuant to Public Law 13-24, the last enacted government budget, each government agency is required to set aside two percent of its allocation for the retirement of the government’s deficit.<\/p>\n
As of the end of 2005, the CNMI’s cumulative deficit amounted to $108 million. The figure could balloon to $155 million if unliquidated obligations were taken into account.<\/p>\n
Wage reductions, which could save the government about $3 million, are at the end of the list, Fitial said.<\/p>\n
“The wage reduction legislation pending in the Legislature is intended to be a temporary measure to help the Commonwealth survive this current crisis. <\/p>\n
I recommend that the legislation make clear that its provisions will expire at the end of this fiscal year. I cannot reduce the deficit sufficiently if we do not take this step,” he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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