The House of Representatives accepted Friday afternoon the Senate version the government\u2019s budget for fiscal year 2020, skipping what has become a standard practice since 2010 of going into a conference committee that is tasked with the job of coming up with a compromise version.<\/p>\n
Notably, the bill does not contain austerity cuts, which signals that the CNMI government will go back to regular operations when the fiscal year starts on Oct. 1, 2019.<\/p>\n
The fiscal year 2020 budget identified over $233.2 million in revenue, of which over $148.8 million is available for appropriation.<\/p>\n
The House voted 14-2 to accept the budget bill, with Reps. Edwin K. Propst (Ind-Saipan) and Tina Sablan (Ind-Saipan) voting against.<\/p>\n
The bill now heads to Gov. Ralph DLG Torres\u2019 desk for review and enactment. His office has 20 days to review the budget bill.<\/p>\n
House Bill 21-64 HD2, SD1 was introduced by Rep. Ivan A. Blanco (R-Saipan), who said Friday that the budget is a product of the hard work of each member of the House Ways and Means Committee, which he chairs.<\/p>\n
He also acknowledged the efforts of the Senate, led by Fiscal Affairs Committee chair Sen. Jude Hofschneider (R-Tinian).<\/p>\n
Although fiscal year 2019 ends with austerity measures, the budget bill for fiscal year 2020 left the Legislature without austerity measures. However, with reports of a possible $19 million shortfall in fiscal year 2019, Propst noted his concern over the budget and wishes to discuss it further at the conference committee.<\/p>\n
\u201cI have a hard time to believe realistically that the amount projected [in this budget] is fair and more than that, accurate,\u201d Propst stated. \u201cIn fiscal year 2018, well before Super Typhoon Yutu hit us, we found out we had a $26-million deficit. Today\u2026there is a $19-million shortfall. I am concerned,\u201d he added.<\/p>\n
Sablan further pointed out that, with the revelation of a possible $19-million shortfall, there is no reason to believe that austerity measure will not continue through fiscal year 2020.<\/p>\n
\u201c\u2026We have had no signal from the governor yet as to whether austerity measures will continue through fiscal year 2020, but we have no reason to believe that it would not continue. [But there is] every reason that it will [with] no new economic activity; we are already in a hole of $19.5 million,\u201d she said. \u201cThe best way out of a hole is to stop digging.\u201d<\/p>\n
\u201cI do understand that the projection does not reflect the current economic crisis we have right now,\u201d Rep. Ralph Yumul (R-Saipan) noted in a statement. Yumul represented the House during Senate discussions of the budget.<\/p>\n
\u201cAs a government, we need to\u2026take a position to make projections and follow through on that [to set course toward] the stabilization of the economy,\u201d he added. \u201cWe may come to a shortfall, but we don\u2019t know that. We are hoping the administration and the Department of [Finance] does follow through with the tax\u2026but that is not our position as this body. Our job is to look at the budget and accept or [reject Senate amendments].\u201d He pointed out that if the House fails to accept the Senate amendments, the CNMI government will have to shut down.<\/p>\n
Rep. Janet Maratita (R-Saipan) noted that the House\u2019s political climate differs from the Senate\u2019s political climate.<\/p>\n
\u201cI just don\u2019t want to see a shutdown,\u201d she stated. \u201cIf we go into conference committee, we don\u2019t know the games or politics at the Senate. I will just be very disappointed if we reject this and the Senate plays their games,\u201d she said. \u201cI don\u2019t want a shutdown, I don\u2019t want\u2026the people of the Marianas to suffer. I know this is not a perfect bill, but I ask the members [of the House] to please consider and let\u2019s move on.\u201d<\/p>\n
Unprecedented<\/p>\n
In a later interview, House Speaker Blas Jonathan \u201cB.J.\u201d Attao (R-Saipan), described the budget as a collaborative effort, noting that this was the first budget to skip the conference committee panel since the 17th Legislature back in 2010, prior to the ratification of the CNMI constitutional mandate that required the Legislature to enact a budget bill instead of the government going into continuing resolution.<\/p>\n
\u201cAt the end of the day, the House members\u2019 concerns at the beginning of the budget process from the House Committee on Ways and Means\u2026were addressed during the House session and those concerns were maintained at the Senate,\u201d he noted.<\/p>\n
\u201cA lot of the issues that brings the budget to the conference committee are differences in how the money is shifted,\u201d he said. \u201cThe senators did work on how they took care of their senatorial districts without touching our [districts],\u201d he added.<\/p>\n
Reps. Sheila Babauta (Ind-Saipan), Joseph Arriola Flores (Ind-Saipan), Joseph \u201cLee Pan\u201d Guerrero (R-Saipan), and Marco Peter (R-Saipan) were absent from the session last Friday.<\/p>\n
***<\/p>\n
FY 2020 Budget (PARTIAL ONLY)<\/p>\n
Judicial Branch $5,669,224
\nLegislative Branch $6,756,666
\nGovernor\u2019s and Lt. Governor\u2019s $2,102,895
\nDepartment of Commerce $1,755,515
\nDepartment of Community and Cultural Affairs $3,352,372
\nDepartment of Fire and Emergency Services $5,108,905
\nDepartment of Corrections $4,449,894
\nDepartment of Finance $6,582,426
\nDepartment of Labor $1,131,449
\nDepartment of Lands and Natural Resources $3,240,923
\nDepartment of Public Safety $6,936,138
\nDepartment of Public Works $2,928,389
\nDepartment of Public Lands $4,103,865
\nRota Mayor\u2019s Office $3,201,629
\nRota Municipal Council $298,618
\nTinian Mayor\u2019s Office $4,030,208
\nTinian Municipal Council $201,814
\nSaipan Mayor\u2019s Office $2,900,971
\nSaipan Municipal Council $149,792
\nNorthern Islands Mayor\u2019s Office $495,507
\nCommonwealth Cannabis Commission $551,479
\nCNMI Scholarship Office $1,985,039
\nCommonwealth Health Care Corporation $ 2,020,000
\nNorthern Marianas College $5,965,277
\nPublic School System $37, 718,904
\nBoard of Education $322,837
\nNMC Board of Regents $107,853<\/p>\n","protected":false},"excerpt":{"rendered":"
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