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Extra funds in FY 2013 Fono budget to finish IT building

Included in the Legislature’s fiscal year 2013 budget proposal is a supplemental funding request to complete the new Fono building which will house the new information technology and computer system.

The two-story IT building, which includes construction and its “Paperless MIS System” project, last year received $500,000 from the American Recovery and Reinvestment Act, and when the project was first announced last year, it was expected to be completed last month.

However, senators started voicing concerns late last month following reports that the project is in need of additional money to be completed and that finishing work for the construction is on hold due to the lack of funds.

The Fono’s $6.7 million budget proposal for FY 2013 includes two separate budget items to finish the work, which total $150,000.

There is a supplemental proposal totaling $200,000 with an explanation that $50,000 — under the Contractual Service budget item — is for “services rendered essential to complete Fono building.”

Additionally, under the “All Other” budget item, there is a request of $100,000 “to complete new Fono building and computer system”, according to the Fono budget document. Included also under this budget item is $50,000 for electricity for the IT building.

PERSONNEL COSTS

Of the total Fono budget, $2.26 million is allocated to the Senate with 64 employees including 18 senators; $2.39 million for the House with 67 employees including 21 lawmakers; $926,500 for the Legislative Reference Bureau with 32 employees; and the $916,500 for the Legislative Financial Office with about 32 workers.

Personnel costs are once again the largest expenditure at $4.77 million for about 201 workers, followed by material and supplies at $1.33 million, $270,000 in travel and the rest to “all others" and "contractual service” costs.

In FY 2012, the Fono’s approved budget was $6.13 million with 207 workers — including lawmakers; and personnel costs at $4.75 million was the largest expenditure. In FY 2011, actual total expenditures came to $6.59 million with 201 employees including lawmakers and the largest budget item was also personnel costs at $4.70 million, according to the budget book, which includes budget allocations from the two previous fiscal years.

Under the FY 2013 budget, the Senate President and the House Speaker's annual salaries are $30,000 each, while the rest of the members each earn $25,000 annually. (The Swains Delegate’s annual salary, according to current law, is $20,000.)

However, the FY 2013 budget book states that salaries of $25,000 each are for the “20 representatives”, which does not include the House Speaker. From this “20 Representatives”, one can only interpret this as to include the Swains Island Delegate, as no where else in the budget does it cites a different salary amount for the Swains delegate.

ANNUAL OFFICE ALLOWANCE

Also in the budget is the lawmakers’ annual office allowance, which is $40,000 each for the Senate President and House Speaker, and $30,000 each for the rest of the lawmakers — including the Swains Island delegate (which by law gets $30,000 as well).

Office allowance for lawmakers is listed under the “Material & Supplies” budget column, because allowances are not considered payroll, and are therefore tax free.

However, a  law passed more than a year ago allows lawmakers to choose whether they want to include the allowance as part of their salaries. By claiming allowance as salaries, it means this money is considered wages and subject to wage income tax.

Several lawmakers wanted the allowance to be considered wages, and taxed, so that there is higher amount claimed for social security purposes, when it comes retirement time, to collect social security benefits.

Salaries and allowances for lawmakers are set by law and a current sitting legislature cannot raise their own salaries, but can do so for a future legislature. However, a current sitting legislature can raise allowances for the current legislature.