IN Feb. 1984, one of Variety’s top news stories was titled, “Government Urged to Trim Budget Spending.” Two key House leaders — Democrats — said the government’s $50 million budget (worth about $146.8 million today) should be cut in light of the Interior assistant secretary’s statement that the federal government “cannot continue to pour money into the territories. They need to cut spending or raise taxes. I have seen a lot of waste in the islands and something has to be done.” The House leaders said the business community and local residents should not be burdened by another tax increase. “Instead, we believe that the Northern Marianas Government has to face the hard alternative of cutting spending….”
The House leaders proposed the following:
• The reorganization of the executive and legislative branches to remove waste and duplication by eliminating or merging certain agencies, functions and programs.
• Turning certain public services and programs, including power generation, garbage collection, housing, etc., over to the private sector.
• The elimination of personal benefits, including government vehicles for department heads and other high government officials, and the elimination of government housing for high officials, etc.
• The establishment of an employment ceiling in the executive and legislative branches, “stressing quality instead of quantity.”
• Revamping the civil service system to eliminate political interference and to introduce efficiency and cost-effective management.
• Reduction of salaries of department heads and other high officials of the executive and legislative branches “to more reasonable levels.”
Close to four decades later, those proposals still sound very reasonable, urgently needed, and politically unfeasible.
In his State of the Commonwealth Address delivered on Feb. 10, 1984 at the island’s convention center (now the Arts Council gallery), the Republican governor reminded lawmakers that the CNMI, “at this critical time in its history, cannot afford the luxury of engaging in partisan politics. We have a choice. We can be the captains of our destiny or we can be the victims of political infighting….” He said they must “convince the members of the United States Congress that we need additional funding in the areas of operations, capital improvements and economic development loan fund….” He said the cost of delivering public services “has increased dramatically,” and many “departments have been forced to operate on appropriations which are insufficient.” As for schools, their facilities “need to be upgraded. We need to train our young people so that they can compete successfully in the age of computers and high technology. Vocational education must be given a high priority.”
The governor also reported, “with deep regret,” that “criminal acts appear to be increasing at an alarming rate and crime is becoming a serious problem in the Commonwealth.” He said violent crimes “have increased dramatically during recent years, in spite of increased penalties, diligent prosecution and harsh prison sentences. The social and economic cost to the Commonwealth is enormous. I recently formed a committee to study the problem and recommend ways to reduce criminal behavior.”
As for the delivery of public services, the governor said “there is an immediate need to identify additional revenues.” Otherwise, “we will have no choice but to reduce non-essential government service. If we do not jointly take action to stop unnecessary expenditures or jointly agree on ways to raise new revenues and collect delinquencies, the delivery of essential services will be seriously hampered.” Power costs alone, he added, were underbudgeted by almost $3 million. (Worth about $8.8 million today. As of May 2023, incidentally, the CNMI government’s unpaid utility bills amounted to over $59 million.)
On Feb. 24, 1984, Variety reported that the governor had vetoed a $3.4 million (worth about $9.9 million today) budget proposal for the continued operations of the Senate and the House of Representatives until Sept. 30, 1984. “I feel this amount is excessive considering the serious financial problems now facing the government,” the governor told lawmakers. Lawmakers responded by “threatening” to send employees home and cease operations. “We prefer to close till we receive additional funding,” a lawmaker said. “I am even prepared to resign…as are some representatives,” he added. Another lawmaker said even though the governor claimed that several executive departments were underfunded, “sources have advised me that the Governor is in the process of hiring scores and scores of people as a prelude to the 1985 election campaign.”
In an editorial, Variety asked, “Who needs overpaid workers?,” referring to various news stories indicating that “legislative staff salaries have gotten out of hand.” Variety “agrees with [the] Public Auditor…that something must be done about legislative salaries…. [T]hey appear to simply be political payoffs to friends and relatives.” Variety also noted that “many highly paid employees…spend most of their working hours rushing to local stores to buy newspapers or making several trips during the day to the post office or just looking out the window…. If these people have nothing to do, they should be fired. We also see that the House…has four Xerox operators. Why does the House needs that many…operators when there are only two Xerox machines in the House? … We support the House plan to cut the cost of government and we suggest they…start at the Legislature.”
How about that. Eliminating the government’s do-nothing, taxpayer-funded jobs. A radical idea whose time…has yet to come.
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