Government revenue peaked in 1997 at $248 million, plunging to $198 in 2006.
This figure dropped to $163 million in 2007; $158 million last year; and $148 million for this year.
In a report, the commission, which is chaired by Hotel Association of Northern Mariana Islands president Lynn Knight, enumerated other internal government challenges that contributed to the downfall of the economy, including the Commonwealth Utilities Corp.’s critical financial condition and rising costs, its dilapidated equipment which affects residents and businesses with the frequent power outages, and CUC’s condition itself which is a deterrent to new investments.
The commission also pointed out several external factors that affect the CNMI economy including the costs of fuel and the reduction of outbound cargo from 140 containers a week to only five containers a week, causing a rapid increase of costs for all goods in and out of the commonwealth.
Other external factors include the rise in tariff rates for shipping which went up to 115 percent in 18 months and affecting the prices of all goods; the outmigration of workforce which increased the costs of power and costs of living; and the looming Guam military buildup which is expected to foster an outmigration of people from the CNMI to Guam.
In light these challenges, the commission drafted a five-year strategic plan that aims to address the CNMI’s economic difficulties.
The commission, whose members are appointees of Gov. Benigno R. Fitial, is expecting to complete its field work for the strategic plan this month.
