MALAYBALAY CITY – The Local Government Unit of Malaybalay City will face a reduction of a total of P100 million, or 15 percent, of its internal revenue allotment (IRA) share in 2012, Herculano Ronolo, City Administrator-designate told Bukidnon News.

The city government has an internal revenue allotment of P600 million in 2011, he added.

Ronolo said in a telephone interview Monday the bad news was announced in City Hall’s convocation program today. Because of a reduction of the national revenue in 2009, the base year for the allotment of the 2012 budget, he said the city government will receive 5 percent or P40 million less of the IRA next year.

He said the 5 percent reduction was announced by Interior and Local Government Sec. Jessie Robredo to local chief executives in Northern Mindanao in a meeting on June 16.

He added that the city’s IRA will also be cut by additional 10 percent or P60 million because of the entry of 16 new cities. The Supreme Court upheld the constitutionality of the laws declaring the 16 new cities.

The 16 new cities are Lamitan in Basilan, Baybay in Leyte, Bogo in Cebu, Catbalogan in Samar, Tandag in Surigao del Sur, Borongan in Samar, Tayabas in Quezon, Tabuk in Kalinga, Bayugan in Agusan del Sur, Batac in Ilocos Norte, Mati in Davao Oriental, Guihulngan in Negros Oriental, Cabadbaran in Agusan del Norte, El Salvador in Misamis Oriental, Carcar in Cebu, and Naga also in Cebu.

Ronolo, who was previously the city’s planning and development coordinator, said the P100 million cut is a big blow to the city government.

“It will cause belt-tightening for 2012,” he added.

But Ronolo clarified that the reduction will not affect basic and social services.

He added the first target of the cuts is the budget for the city’s at least 1,600 job order employees. Some of them may have to go, he added. But he clarified that only those who did not fare well in the performance evaluation will face possible termination.

Ronolo said expenses for travels and trainings may also be cut. “But those activities considered as priority to the development of the city will be kept,” he added.

He said budget for the maintenance and other operating expenses (MOOE) like supplies could also be cut. (Walter I. Balane)

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