By Emmanuel T. Erediano
[email protected]
Variety News Staff
SENATE Vice President Corina Magofna wants the Department of Public Lands to expedite action on pending land lease applications, saying the CNMI cannot afford unnecessary delays at a time when it desperately needs new economic activity, capital investment and revenue generation.
In a letter to DPL Secretary Sixto K. Igisomar on Monday, the Senate vice president requested an update on the status of pending lease applications, including anticipated timelines for action and any outstanding issues preventing final disposition.
“Every delay in processing and approving qualified land leases delays new revenue generation for the CNMI, new job opportunities for residents, new business activity and economic circulation, increased consumer spending within the local economy, and the broader economic recovery that our people desperately need,” Magofna said.
She stressed that the CNMI cannot afford prolonged inaction while viable economic opportunities remain stalled.
“The Commonwealth urgently needs investment, economic activity and revenue generation now more than ever,” she said.
Deeply concerning
The senator said recent events concerning the local economy “paint a deeply concerning picture of the CNMI’s current economic condition.”
Reduced government spending power, rising utility costs, weakened consumer activity, limited private investment and declining business confidence, she said, are contributing to the prolonged economic recession and deepening financial hardship throughout the CNMI.
Right now, she said, the Commonwealth is facing “one of the most economically fragile periods in recent history.”
The aftermath of Super Typhoon Sinlaku, Magofna said, has significantly weakened economic activity across the CNMI by disrupting businesses, straining household finances and further destabilizing an already vulnerable economy.
At the same time, the CNMI government continues to face severe fiscal challenges, she said, citing Gov. David M. Apatang’s $101.8 million fiscal year 2027 budget proposal, which includes the implementation of a 20-hour workweek for government employees due to ongoing revenue shortfalls and financial constraints.
Compounding these hardships, the senator said, is the recent increase in the fuel adjustment charge, or FAC.
The substantial rise in utility costs will inevitably increase the cost of living for residents and place additional financial pressure on families already struggling to recover from the economic impacts of the typhoon and the broader economic downturn, Magofna said.
“Collectively, these developments paint a deeply concerning picture of the CNMI’s current economic condition. Reduced government spending power, rising utility costs, weakened consumer activity, limited private investment and declining business confidence all contribute to prolonging the current economic recession and deepening the financial hardship experienced throughout the CNMI,” she said.
“At a time when the CNMI desperately needs new economic activity, capital investment and revenue generation, the Commonwealth cannot afford unnecessary delays in moving forward with public land leases that have already satisfied all required legal, regulatory and administrative requirements,” she added.
The reality, Magofna said, is simple: without new industries and private-sector investment, the CNMI’s economic recovery will continue to stall.
“Every delay in processing and approving qualified land leases delays new revenue generation for the CNMI, new job opportunities for residents, new business activity and economic circulation, increased consumer spending within the local economy, and the broader economic recovery that our people desperately need,” she said.
The CNMI government, she said, ultimately depends on a functioning and productive private sector to generate the revenues necessary to sustain government operations, public services and critical programs.
Without economic growth and investment, the government’s ability to fund education, healthcare, public safety, infrastructure and social services will continue to deteriorate, she said.
Variety was unable to get a comment from DPL.
