Several significant policy amendments are delaying the progress of the FY 2024 Supplemental Budget bill. The latest version, which passed the Senate’s third reading but was rejected by the House, includes seven separate policy issues.
The supplemental budget, designed to supplement the FY 2024 unified budget and restore budgets to pre-COVID-19 levels, initially included policy amendments proposed by President Surangel Whipps Jr. These amendments proposed increasing the child-raising subsidy, amending compensation language for both the Special Prosecutor and Public Auditor, and extending employee tax refund eligibility for those earning $15,000 to $30,000. The most controversial amendment in the bill proposes a minimum wage increase of approximately 17% in October 2024.
The House added its own policy amendments, such as a proposal to divide certain tax proceeds between states and the national government, while the Senate included retirees in the eligibility requirements for tax refunds. The Senate version also amended the definition and qualifications for lawyers practicing in Palau.
Each of these amendments is substantial and requires thorough investigation and public hearings to gather public opinion. Adding them to the supplemental budget bill reduces the attention needed to properly address them. The need to fund immediate programs compromises the critical legislation the country needs.
The House rejected the Senate’s version, and both chambers are now negotiating which version to approve.