By Moneth G. Deposa
Variety News Staff

SPEAKER Oscar M. Babauta says federalization will negatively effect the local economy and “bury all our economic programs.”
“I am afraid that…federalization…will curtail and decrease the public services for our people,” Babauta said in an interview Friday.
Babauta, Covenant-Saipan, was among the CNMI government representatives at the recently held U.S. Senate committee hearing on local immigration,
“Although no bill has yet been introduced in Congress regarding CNMI immigration, we have to make our point clear to the federal governmkät that the move will have a great effect on our private sector,” he said.
Babauta said federalization may affect the CNMI government’s negotiations with new investors including those who have expressed interest in opening educational institutions on island.
“Now that there are investors willing to pour in their capital, this federalization may drive them away,” he said.
Vice Speaker Justo S. Quitugua echoed the speaker’s sentiment.
He said the CNMI government should present “clear scenarios” to Washington, D.C. regarding the effect of federalization on the local economy.
Two U.S. Senate staffers and an attorney with the U.S. Department of Homeland Security are scheduled to meet with Gov. Benigno R. Fitial and other administration officials on Feb. 27 at the governor’s office on Capital Hill.
The staffers are former Insular Affairs Director Allen Stayman and Josh Johnson who are with the Energy and Natural Resources Committee.
Alex Gisser is the attorney from of Homeland Security.
The CNMI government and local business leaders remain opposed to the extension of federal minimum wage and immigration laws to the islands.