This was what former governor Juan N. Babauta disclosed to Variety, citing the need to consider the option to help save the ailing economy of the islands.
He said the CNMI may gain between $25-$30 million a year due to the compact impact — a commitment made by Congress in U.S. Public Law 99-239 which was approved in 1986.
“It has been 22 years since the Compact became law. If you multiply 22 years X $25 million [on average] = $550 million. This is how much the CNMI should go after the federal government for a commitment that has remained unfulfilled. A commitment made by Congress in U.S. Public Law 99-239,” said Babauta, who was also a former representative to the U.S.
Variety learned that under the said public law, it required the administration, the Department of Interior to report to Congress, annually on the actual cost of the Compact Impact.
The Department of the Interior, however, since 1986, have failed to deliver any substantive and definitive report to the Congress.
“The meager money that we have come our way were all tokens with out a single report to base them on,” Babauta describing the meager amount received by the CNMI under the compact impact funds.
Variety learned that following are the amounts of compact aid since 1986 for the CNMI: 1993-$400,000; 1994-$400,000; 1995-$1.6 million; 2001-$1 million; 2002-$2 million; 2003-$840,000; 2004 through 2007-$5.1 million each year.
Babauta said that the amount of compact aid received by CNMI since 1986 is as “miniscule” as it is few and far between.
From 1986 to 1993, seven years since the law came into effect, the Congress appropriated no money for aid.
“While we can only hope for Congress to deliver on its long awaited promise, the costs on the impact of the compact continues to mount,” Babauta said, adding that in FY 1998-1999, based on a OIA commissioned report, “The CNMI was impacted by nearly $33.4 million in capital expenditures and $16.2 million in operating expenditures.”
Babauta added that despite efforts urging the responsible agencies to produce the required “compact report,” nothing materialized that prompted the neighboring island Guam to file a lawsuit in 1996 seeking judicial order for preparation of a report on the impact of the compact. Guam reportedly was impacted in the tune of $70 million for FY 1996 alone.
The Congress approved the “Compact of Free Association Act of 1985” and signed into law on January 14, 1986 becoming Public Law 99-239. It allows the citizens of the Marshall Islands and the Federated States of Micronesia to enter the U.S. territories and commonwealths or the State of Hawaii.
