I’VE been fairly quiet over the last couple months. Work in the Legislature has been demanding. Crafting legislation that will truly correct fundamental problems in our Commonwealth is intense work. With the Defined Benefit Plan Reform Act finally on the floor, I feel I can take some time to share my thoughts with all of you who choose to read this.
First, the Defined Benefit Reform Act is the product of almost a year of research. We looked at what other states have been doing to deal with their pension funding problems and the results of the reforms that were adopted. The same problems of unfunded liabilities and financial decline have occurred in many states. Some of them addressed the issue several years ago, so it was possible to weigh the success of various types of reforms.
Once we had a basic idea of some of the more successful plans, we had to compare those possibilities to the laws governing our own Defined Benefit Plan and see how the concepts could affect its structure. From this research came the choices we decided to create as provisions in our own Act.
By the time S.B. 15-59 was submitted to the Senate, and subsequently sent to the House, I was confident that the provisions designed to alter the structure of the Defined Benefit Plan would reduce or eliminate many parts of the pension benefits that have driven our government to the edge of financial collapse. The bill failed in the house.
We reintroduced the same bill as S.B. 15-79 and the Senate has passed it again. This bill is now under consideration by the House. The bill is carefully balanced, and in concert with the recently enacted Defined Contribution Plan Act of 2006 is critical to the survival of the pension plan, as well as the financial viability of our Commonwealth. I’m optimistic that this time the House will see the long-term benefits and wisdom of passing the Act without any amendments.
Run-off elections
It seems right that our elected officials should come into office with a majority of the electorate behind them. I’ve been doing some serious research into this issue.
I have found that a run-off election has benefits, and costs. A run-off election costs almost as much as the original election. This poses some difficulties for us in our financially precarious situation. Also, voters must make an effort to leave their jobs, make arrangements for their children to be supervised, and employers experience loss of employees while the polls are open. These are not significant issues for the first election, but these costs and challenges add up if a second election must be held. Therefore, voter turn-out for a run-off election is consistently smaller. Fewer voters in a runoff mean that ultimately, true representation of the wishes of the voting population is diminished.
However, I think this is an issue that needs to be addressed and I believe there are ways to mitigate all of these costs and still hold run-off elections. I am in the process of drafting legislation to create an avenue by which we can have runoff elections. By the time the legislation is submitted for introduction in the Senate, it will be solid, sensible, and cost effective.
Downsizing and reshaping the Legislature
I’ve started researching this issue. There has been talk about a unicameral system. I do not believe that it would serve our commonwealth as a whole. Because of the fact that we inhabit multiple islands, there are physically separate “districts.” Each of these districts has distinct identities, populations, and goals regarding their futures.
The Senate has three representatives each from Rota, Tinian and Aguiguan, and Saipan and the Northern Islands. The Senate is the venue for each island group to have an equal voice. Without this balance of representation in a two house legislature the individual voices of each senatorial district could be lost. This would not augment the democratic process in our commonwealth. It is fair, however, to consider the possibility of looking at the number of senators as a whole. My first concern with reducing the number of senators is the concentration of legislative power in a smaller group. This will constitute a part of my research on this issue.
The House of Representatives is theoretically designed to represent all voters based on population distribution. Requiring legislation to pass both houses is one of the checks and balances most utilized in a democratic system of government. There are provisions in our Constitution and laws for reapportioning that representation. This is another area that requires research. I do not yet know if we are up to date on this process. Consideration of this issue is only beginning.
Is the House of Representatives too large? I’m not far along enough in the research process to make any judgment or statement on this issue.
What is extremely important is that every one of you who is qualified must be certain you are registered to vote.
We will need accurate information from the Commonwealth Election Commission if any legislation altering the structure of the Legislature is to be meaningful and a true benefit to our commonwealth.
Legislative expenses
There has been a great deal of public discussion regarding the system of budgeting for our senators and representatives. The “allowance” that is budgeted to each Senator and Representative is used to pay the salaries of any employees we have. All of our office expenses must also come from that budget. That being said, it is more than timely to carefully study the use of these funds, and either justify that use, or change the system as may be needed. Now that I have been in office for a year, I feel I have some insights into that process, and can offer some constructive ideas for improvements.
If any legislation comes from this research, it will be designed to lower costs while preserving full democratic representation of all voters of the commonwealth.
Budget for FY 2008
April 1st is fast approaching, and the Office of the Governor will be submitting a new budget proposal. We were able, for the first time in several years, to pass a budget for Fiscal year 2007. I have pledged to help that happen again. I believe it to be one of the most fundamental responsibilities of the Legislature.
Conclusion
I am chairwoman of the Senate Committee on Resources, Economic Development and Programs. Many pieces of legislation are referred to this committee. It is the responsibility of each standing committee to consider carefully all legislation referred to it and produce a committee report for the legislative record. This is a process that involves research, requesting feedback from agencies and departments, sometimes the attorney general or the mayors, and others, in order to create a committee report that is balanced and justified. Fulfilling this responsibility often takes time away from researching and crafting new legislation.
I wanted you all to know my thoughts about some of the issues that have been receiving public attention. I have watched with interest the points being raised in the media. I applaud the enthusiasm of those who have participated in the public forums. It is encouraging that many of the points being raised are subjects already under examination.
The road between an idea and its fruition as law is the research and thought that goes into creating substantive legislation. Your patience and support is appreciated as we work through that process.

SEN. MARIA FRICA T. PANGELINAN
15th CNMI Legislature