May 3, 2004–The Senate Finance Committee is considering a $590 supplemental budget, submitted by Gov. Charles Turnbull, to relieve a financial short fall, officials said Monday.
The territory is running on the same $588 million budget as 2003 because the governor and legislators were unable to agree on a new budget.
Spending needs, however, have changed.
By shifting money between government agencies, the supplemental budget addresses needs not covered by current spending, such as $16.5 million in payments on bonds issued late in 2003, said Nathan Simmonds, the governor's fiscal and economic director.
The territory owes around $1 billion in bond debt on which it will pay more than $45 million this year.
The bond debt payment will be made regardless, Simmonds said.
The supplemental budget adds more than $5 million to education while decreasing funding for the legislature, the territorial courts and public housing by more than $1 million each.
Budget constraints have lead to government agencies having only enough money to cover salaries, not new equipment and raises, said Donastorg.
A lack of funding in 2003 has lead to shortages in manpower and equipment in the fire department, said Daryl George, president of the firefighter's union.
The supplemental budget allots $1.3 million to reopen and equip two, fire stations, but does not address raises George said were promised in the union's collective bargaining agreement.
Donastorg said his committee has had less than a week to analyze the supplemental budget, and he is not confident it will be passed to the Rules Committee quickly.
In February, Financial Commissioner Bernice Turnbull said time has run out for an effective 2004 budget, which was to have become law in Oct. 2003. She was one of the people invited to testify today.
Donastorg said, although preliminary reports show an increase in revenue so far in 2004, due largely to increased tourist arrivals, it will not be enough to cover debt payments.
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