By Zaldy Dandan
Variety Editor

As worst comes to worst

STILL unresolved for many government agencies and their employees is how the additional 15 percent budget cut proposed by the Department of Finance and the Office of Management and Budget will be carried out. Exempted government agencies now include CHC, DPS, PSS and NMC. The proposed revised budget hovers around $160 million, which is probably where it should have been pegged six years ago. This figure, however, is still higher than it should be because the government still isn’t paying its share of retirement contributions or utility bills. Subtract those obligations and the government budget should be around $140 million — or even less.
The austerity measures, including travel and cell phone use reduction, and other operational cuts, keep the government running, but they only go so far and, in the long run, penalize local businesses which, in turn, reduces government collections. A vicious cycle is triggered. The all important consumer confidence is dampened, and individual spending goes down, cutting business activity and government collections even further.
Except for Asiana Airlines’ purchase of Laolao golf resort, there is no new investment. Meanwhile, federal money available for capital improvement projects has not been released because local government agencies have changed project priorities and have not been able to demonstrate that infrastructure is in place to assure that the money will be spent correctly. We are talking about tens of millions of dollars that could help to keep the local economy afloat.
Meanwhile, according to the Commonwealth Utilities Corp., hundreds of families are without power and water, disconnected for lack of payment. Thousands more are applying for food stamps and other welfare programs each month. Part-time employment is now an option even for the private sector which has been paying its workers $3.05 a hour since 1996.
The real story of poverty in the CNMI is probably under reported, but it is evident enough for the bishop to exhort the faithful to forego lavish meals during memorial services.
How the people are dealing with this creeping immiserisation is a testament to their inner strength and resilience. But that doesn’t mean that they no longer expect their expensive government to create an environment that promotes economic development, private sector employment opportunities, and an educated workforce to service local economic activity.

Government policies should be simple and transparent

OUTSOURCING and privatizing government services should be explored beyond power and water. Services that can be performed more efficiently and effectively than the government is able to do should be completely privatized. In order to achieve this, however, it is important that complicated transactions be structured well at the outset. Part of this process includes transparency.
So why would CUC charge such an exorbitant sum of money — close to $100,000 — just to get a set of bidding documents. This arrangement limits the number of competitors, but why would it be in the public interest to limit the number of qualified bidders?
Poor procurement practices result in delays which will cost the public more because of the resulting protests and delayed implementation.
Bad privatizations are a thing to fear. If not properly structured, they could mean worse service at a higher cost. Every administration, for nearly two decades now, has attempted utilities privatization, and all have failed because the process was flawed.
It still is.

Sadly

PROCUREMENT problems are not unique to CUC. The Public School System is also beset with them. In the case of PSS, problems are concentrated in a procurement office managed by individuals that have little or no experience in procurement. Procurement for services have been delayed due to protests, repeated bid cancellations and questionable evaluation processes.
The Board of Education and the education commissioner are generous to give their employees so much time to learn the process, but they are doing so at the people’s expense. Delays in procuring goods and services cost the public and hurt the students and teachers. It may even jeopardize federal funding, which would be unacceptable in light of the level of federal contribution to the CNMI education budget.