The governor's chief financial adviser, Rudolph Krigger Sr., says the budget process is moving along smoothly and the proposed spending plan should be sent to the Legislature as promised.
"Things are moving along and we feel that we will have a good budget," Krigger said Thursday. "But I want the public to understand that the budget is based on anticipated revenues. There is no intention to mislead or provide bogus information."
He cautioned that the forecasting of revenues from one year to another is not an exact science, so the budget numbers are subject to change, one way or the other.
Asked whether the administration will propose new taxes to counter the fall of in actual revenues for FY 2001, Krigger said that is difficult given the territory's poor economic condition.
"That is part of the fight in coming up with a balanced budget," he said.
Krigger discounted recommendations that the payroll be slashed as a cost-cutting measure. "Where are they going to go?" he asked, noting that mass layoffs will lead to civil unrest.
On another issue, Krigger confirmed statements made by a military spokesman in Puerto Rico this week that the territory could lose up to $4 million a year for every year that the Navy scales back its rest-and-relaxation port calls in the U.S. Virgin Islands.
Navy spokesman Jeff Gordon said in published reports this week that the dramatically reduced training activity in nearby Vieques will mean fewer port calls for large ships and carriers.
"The military has always provided a significant infusion of funds into the economy," Krigger said. "When I was with the National Guard we projected that naval ships and military aircrafts brought in over $10 million a year. That's hard to replace when it suddenly is not there."
