As Wendy Doromal has pointed out in her Unheard No More blogsite, the Commonwealth Economic Development Commission, chaired by the governor’s former lobbyist, hired the same firm before the desk audit contract was awarded. The governor and the firm’s executives, moreover, attended last year’s economic summit on Saipan.
Since she left the CNMI, the former lobbyist’s name has been repeatedly link with the firm. Like Doromal, we find it extremely hard to believe that the governor did not know that his former lobbyist worked for the firm that received a $300,000 contract from his administration.
It is interesting, in any case, that the DCCA/DPS positions recommended by the desk audit for cuts seem to be excepted service and contract jobs only. This administration disclosed early on its commitment to cut all excepted service and other contract positions, preferring a predominance of civil service positions in the government. This is a problem because civil service positions are doled out as political patronage. Once the civil service employees are secure, politicians will have a political base that guarantees a certain outcome. The public must ensure that this does not happen.
Lawmakers were quoted as saying that they had “no idea” these agencies were bloated, and immediately fell in behind the recommendation of the desk audit report. Like the governor, lawmakers are also “big supporters” of public education, public health, public safety, the environment, motherhood and apple pie.
It will get worse
THE crisis is not over. Already, administration officials are stating the obvious; that payroll will be made only when cash is on hand.
This is why it is extremely urgent that legislators take up some of the suggestions offered by the general public, like closing all the “Affairs” offices and cutting or suspending the Youth Congress activities, which were funded to the tune of $42,000. This small item is the clearest evidence that the Legislature still refuses to appreciate the magnitude of the financial crisis. The administration readily admits it will have trouble making regular payroll even with the passage of the budget, but lawmakers still want to fund the Youth Congress, an activity that doesn’t save lives, doesn’t protect the public, and isn’t an urgent need by any assessment.
After the passage of the bill, it is natural for many employees to assume that the hardship is over, but the budget signed by the governor only masks the severity of the crisis and, once again, postpones the need to make targeted cuts.
The next thing on the agenda seems to be a series of “revenue-generating” measures that won’t generate as much as the lawmakers anticipate. Economic recovery efforts should be their priority not more punishments for the private sector which has been cutting costs and downsizing for 12 years now.
These lawmakers can’t pass a budget on time, can’t identify essential services and are unaware of the real state of the government’s finances. Most of them are either former bureaucrats or political appointees. Some have dismal, if not pathetic, records as “businesspersons.” But now they want us to believe that just because they could raise fees and taxes, additional revenue would materialize in this economy.
The economy will collapse unless specific actions are taken to make the CNMI an attractive investment bet, again. Increasing the cost of doing business will result in less not more revenue.
What the administration and the Legislature should do is to get serious about improving the investment climate by investing in infrastructure, undertaking environmental cleanup and beautification projects, revitalizing Garapan, Beach Road, and providing public safety for residents and visitors alike. Tourists are easy targets as they stroll through Garapan. Where are the police officers? In another meet and greet event?
With the U.S. government making drastic cuts, there will be less federal assistance available to local governments, making it more important that all CNMI government expenditures be applied to meet important obligations that save and protect lives or have an economic benefit.
