This revenue loss will affect the $4.7 million local appropriation law signed by Gov. Benigno R. Fitial last September and the $156 million revenue projection for fiscal year 2009.
According to data from the Division of Revenue and Taxation, the number of poker machines decreased by 12 in October.
Saipan had 697 poker machines in September.
On Rota, the number of poker machines went down from 58 to 51.
The number of poker machines in the CNMI decreased by 19 from September to October.
From each poker machine, according to Finance Secretary Eloy Inos, the commonwealth gets $12,000 in license fee.
Half of this amount goes to the general fund and the other half is appropriated by the Saipan and Northern Islands legislative delegation for the Saipan Higher Education Financial Assistance program and other local projects.
Inos said the government is now doing a “balancing act” in implementing new policies so as not to lose important revenues.
The new zoning law that mandates the relocation of poker arcades to certain areas on island should be implemented in a way that will not discourage businesses, he said.
Inos believes that some poker arcade operators may not renew their licenses if they are required to relocate.
Rep. Justo S. Quitugua, D-Saipan, anticipates that more poker parlors will shut down due to the island’s economic downturn.
If this trend will continue, he said, several government programs on Saipan will suffer.
The number of poker machines in the CNMI slightly increased from 868 in January to 890 in February.
The number went down to 811 in June, but increased by 10 machines in July only to go down to 794 last month.
Saipan Local Law 16-14, which Fitial signed on Sept. 5, earmarks $3.1 million for the Saipan Higher Education Financial Assistance program.
The rest of the $4.7 million is to be distributed as follows: $450,000 for the Rota Gaming Commission; $100,000 for the establishment of the Northern Marianas Trades Institute; $45,000 for the 2009 Liberation Day activities; $50,000 for the CNMI Little League; $25,000 for the fishing derby; $20,000 for the 2009 Agricultural Fair; $15,000 for next year’s Flame Tree Arts Festival; $75,000 for the Saipan Zoning Board; $30,000 for the design and construction of a baseball field on Navy Hill; $111,000 for the road improvement and paving of Gloria Drive on Navy Hill; $200,000 for the road paving of Egigi Road, Piligro Lane, Sea Coast Lane, Rota Place and Orhopay Place; $100,000 for the construction of a children’s playground on Capital Hill; $200,000 for the paving of Gangoche Road to Pika Road in Precinct 1; $200,000 for road paving, drainage improvements and renovation of public facilities in Precinct 2; $10,000 for the improvement of Pakpak Beach Park; and $21,000 for the repair and maintenance of Dandan Elementary School classrooms.
In case the revenue collections do not meet the appropriated amount, the law states that Finance “shall allot each of some of the programs an amount based on the percentage of the programs’ appropriation proportionately.”
