Hofschneider, who voted against the passage of Tinian Local Bill 16-2 last Thursday, said the bill should not be passed due to unanswered questions.
The measure did not specify the projects for which the borrowed money will be spent.
But it has a provision stating that it will be spent “as…specified by a resolution of the Tinian and Aguiguan Legislative Delegation.”
Hofschneider said it is not right to pass the bill without having the loan discussed with MPLT and presented to the people of Tinian in a public hearing.
The Tinian delegation, which is dominated by the Covenant Party, passed the bill despite his opposition.
In a letter to the chairman of the delegation, Covenant Sen. Joseph M. Mendiola, Hofschneider said the measure will further increase their island’s deficit.
Hofschneider also noted that the Tinian delegation should insist that the Fitial administration keep its promise of paying the 14 percent retroactive pay raise reimbursement, which is part of the intended purpose of the proposed loan.
“If the mayor ignored the budget act and squandered those funds on other projects, then why should we now authorize a substantial new loan? How can we possibly expect the loan to be repaid if the provisions of the budget act were not followed in the first place,” the senator told Mendiola.
“Further, if enacted, this loan will only add to a deficit already swollen by unremitted contributions to the Retirement Fund for our local employees’ retirement, a court judgment in the amount of $1.3 million to the [United States Geological Survey], over $200,000 owed to Tinian Dynasty, and unpaid FY 2009 obligations,” he added.
With 18 days left before the general elections, Hofschneider said the Tinian delegation should ask the administration to issue the reimbursement checks that were promised to be delivered as early as the first day of fiscal year 2010 — Oct. 1.
“Rather than pass this unwise measure, we should appeal to the administration to deliver on their promise before the election,” said Hofschneider and added the delegation should also call for an audit of the Tinian municipal fund and pass a new budget.
