VIDEO: CNMI Collects Only Half of Projected Revenues in First 2 Months of FY 11

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Guam – Budget shortfalls continue to be a burden for the CNMI. And they are once again causing pay-days to be delayed for some government employees.

            

CNMI finance department officials told lawmakers at a hearing Tuesday that the CNMI government collected only about half of the projected $11 million in monthly income in the first two months of fiscal year 2011.

They said the severe cash shortage is causing delays in payroll for non-critical government employees, despite the 16-hour cut and the unpaid holidays, already included in the fiscal year 2011 budget.

Because of this, finance officials said government employees in non-critical positions will again not receive their paychecks on Friday and will have to wait until next week.

Only federally funded and those in critical areas like public safety and health care will receive their checks on time. If the trend continues, the government’s projected $33 million in collection from taxes and fees for October to December could end up at just $15 million.

However, because the deadline for tax payments for the first quarter is at the end of January, finance officials said collections can still go up.