WASHINGTON — Resident Rep. Pedro A. Tenorio, in a media release, is once again expressing concern over the extension of austerity holidays to federally funded programs and grants.
“I am raising this question again because of feedback I have received from several Region 9 administrators, who worry that their programs are being eroded and their effectiveness is deteriorating,” Tenorio said.
The CNMI receives somewhere in the area of $100 million a year in various types of federal assistance.
“We are fighting to keep many types of tax revenue flowing, why are we cutting our most secure source of government funds?”
In a follow-up letter addressed to the governor, the Legislature, and several key department secretaries and directors, Tenorio wrote, “I would like to ask for your assistance in helping me understand the repercussions of these cuts since the austerity law took effect last year. I am trying to gauge the impact through different programs to determine whether further action is needed to preserve your funding.”
Tenorio added, “When our obligations with these federal grants are unfulfilled, the funding of our programs in turn is cut. I feel that the CNMI cannot afford to be losing these much needed federal grants to fund vital programs and services, given our desperate financial situation.”
With fiscal year 2007 ending on Sept. 30, Tenorio said his concern is especially for the next fiscal year. “I fear many of these programs stand to lose money.”
On Aug. 28, 2006, Tenorio wrote a letter to Gov. Benigno R. Fitial after the new austerity law had been signed.
Tenorio wrote, “Furloughing federally funded personnel will disrupt the smooth implementation of grants and could result in the loss of federal dollars, which are badly needed.”
Tenorio acknowledged that every agency has a different approach to deal with its grantees saying, “While there are differences that exist from program to program and between federal agencies, on the whole, reducing work hours could very likely result in a great reduction of federal revenue into the CNMI.”
The current budget proposal from the governor, Tenorio claimed, will only exacerbate the problem.
“It remains a concern to me that the budget cuts proposed by the governor have not taken into account the amount of money we actually receive from the federal government. They also do not distinguish between locally and federally funded programs.”
While “fairness” had become a top issue with the executive branch in implementing budget cuts, Tenorio said “once we cut access to these federal funds, we are in danger of actually losing them. So everyone loses.”
He added, “These cuts defy common sense. To put up road blocks and obstacles to free federal funds is illogical. We need to manage these funds differently.”