The real issue
AS with most of the “burning issues of the day,” the discussion surrounding the Commonwealth Casino Commission and the governor’s executive order to abolish it has devolved into (mostly ad hominem) arguments over politics and political figures.
The issue, however, is pretty much clear-cut. Does the governor’s E.O. pass constitutional and legal muster?
The issue, in other words, is not about the viability of casino gaming on Saipan, nor about the usefulness — or lack thereof — of the CCC, or the competence of its members, and so on. No. The question before lawmakers — who can approve, disapprove or modify the E.O. — is whether the governor can get rid of the CCC and transfer its duties to the Lottery Commission through an executive order.
According to the Senate legal counsel, the governor cannot legislate by executive order. She cited a 2009 CNMI Supreme Court decision (Torres v. Commonwealth) to support her opinion, which comes across as solid and dead-on.
To avoid digging a deeper legal hole, the governor should cut his losses and try to achieve what his executive order aims to do — through legislation. Despite the ongoing political realignment on Capital Hill, surely he still has some allies in the House or Senate who can be relied upon to introduce a legislative version of his executive order.
Asking for a friend
DESPITE persistently gloomy economic news, the governor is sticking to his over $20 million budget hike proposal for FY 2026 because he has made an offer that MPLT — and most lawmakers — cannot refuse. He intends to obtain a $29 million bond (loan) from MPLT, whose trustees are gubernatorial appointees. Lawmakers must approve the deal, or risk being blamed for the “significant cuts to vital services” that would otherwise follow. The FY 2026 budget will be in effect until Sept. 30, 2026 — a general election year.
And what do you think elected officials will do to fund the FY 2027 budget next year if a federal bailout — as requested by the governor, who says it’s not a bailout — doesn’t materialize and tourism arrivals remain dismal? Most likely, more loans.
As any decent economist would point out, unchecked government borrowing can lead to prolonged economic stagnation, higher costs for the public, reduced public services, and increased financial instability.
But for most politicians, “long-term” means the next election. Many will continue campaigning as Santa Claus, promising Christmas every day.
Incidentally, can taxpayers take the Board of Education to court for failing to insist on PSS’s 25% share of the government’s annual revenue, as mandated by the CNMI Constitution?
