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PACIFIC ISLANDS REPORT Pacific Islands Development Program/East-West Center |
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CNMI REVENUE SHORT $1 MILLION IN FIRST HALF OF
2011 By Haidee V. Eugenio These figures are contained in acting Finance secretary Larrisa Larson’s financial report to the Legislature and are based on the revised budget of US$122 million instead of US$132 million. Even with the revised budget for 2011, the total deficit in the first half of the year totaled US$1,745,023. This is, however, below Lt. Gov. Eloy S. Inos’ earlier estimate of US$3 million. Larson, in her report, said actual revenue in the first half of the year totaled only US$56,540,964, which was US$1,087 or almost 2 percent below the estimate of US$57,628,750. "A closer inspection of the individual revenue items shows that, with the exception of hospital collection and a few minor areas, virtually all items of revenue either exceeded the budget or were within range of the estimates," Larson said in her letter to Senate President Paul Manglona (Ind-Rota) and House Speaker Eli Cabrera (R-Saipan). Were it not for the hospital collection-which was US$3.319 million less than estimate-Larson said there would have been a surplus in the first half of the year. "The management of Commonwealth Health Center has been informed of the condition of the hospital financials and urged to bring billing activities current and step up collection efforts," Larson said. Senate Fiscal Affairs Committee chair Jovita Taimanao (Ind-Rota) said yesterday that the financial report for the first half of fiscal year 2011 is critical in reviewing the 2012 budget. House Ways and Means Committee chair Ray Basa (Cov-Saipan) said they wanted to see whether CHC would really be turned into a corporation because this in itself will affect the projected budget for 2012. Fitial’s 2012 budget submission is only US$102 million instead of US$120 million. This is because the US$18 million was projected CHC revenue, which will no longer be part of the general fund as it is expected to become a corporation as early as July or as late as Oct. 1. Larson also said actual collection from corporation tax was also below the estimate by almost US$800,000. "This may be the result of lower taxable income due to increases in the cost of doing business, especially utilities expense," she said. Larson said total expenditures for the first six months of the year exceeded total allotments by US$657,236. Total personnel spending for the period was within the budget allotment of US$188,599. But total expenditures and obligations under the "all others" category exceeded allotments by US$845,835. This resulted in a net overexpenditure or "deficit" of US$657,236. "The gross overexpenditure was contributed primarily by the Department of Public Health operations, including medical referral and operations at the Commonwealth Health Center," Larson said. She noted that if the allotments were based on the revised budget of US$122 million and allocated retroactively to the first two quarters of the fiscal year, the excess expenditures for the first two quarters would have been significantly higher. Allotments for the second half of the year have since been adjusted to reflect the revised budget level at US$122 million. "Accordingly, obligations and expenditures for the revised second half of the fiscal year will be severely reduced," Larson added. Unlike the House, the Senate has yet to concur with the administration’s reduced monthly allotment. While the Judiciary posted an overexpenditure or deficit of US$54,217 and the Executive Branch also a deficit mainly because of DPH in the first half of the year, the Legislature spent below its allotment by almost US$232,000. Saipan Tribune:
www.saipantribune.com |
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