Government workers should have their late paychecks by Monday.
After more than seven hours of testimony, questioning and debate, the Senate voted 13-2 Thursday to pass Gov. Charles W. Turnbull's measure authorizing him to borrow from existing government accounts and to negotiate a $35 million line of credit with a local bank to assure workers will be paid through Sept. 30, the end of the fiscal year.
The bill also contains a 90-day amnesty on delinquent property and gross receipts taxes and business license fees, plus oversight on the amounts borrowed from government funds.
Though only Sens. Adelbert M. Bryan and Alicia "Chucky" Hansen voted against the bill, most senators voiced concern that it will not solve the bottom-line problem of the government consistently spending more money than it takes in.
The governor called the special session after revenues fell short to meet the government's $13 million payroll Thursday.
Ira R. Mills, director of Management and Budget, outlined measures that the administration will take to avoid a recurrence of the current crunch.
Pointing out that upwards of 85 percent of the territory's budget goes to personnel costs, Mills said department heads have been ordered to cut personal services costs by 5 percent per year. He also said productivity and overtime had to be scrutinized carefully.
Internal Revenue Director Claudette Farrington pushed for the tax amnesty, saying she believed $20 million to $25 million could be collected. Farrington also thanked her staff who worked "tirelessly"over the Transfer Day and Holy Thursday holidays, resulting in $6 million in tax collections.
The governor's proposed bill included provisions to authorize emergency borrowing to meet the government's obligations; to establish a tax-amnesty program; to clarify the set-aside for income tax refunds; and to provide an appropriation for repayment and matching of community disaster loans.