There I sat, along with dozens of educators, administrators, BOE representatives, PTA representatives, and parents. All of us were there for one purpose: to oppose H.B. 17-45, the austerity bill which proposes to cut salaries by 12.5 percent across the board. Many came forward and offered compelling testimony as to why this bill should not pass.
Others came for moral support. But our PSS familia was not alone. We also heard from representatives of NMC, the NMI Retirement Fund, the judicial branch, and the CNMI’s parole board.
Let it be known that the House majority is correct on one thing — this is a very tough pill to swallow. Rep. Ramon Basa and his colleagues who narrowly passed this bill argued that it is best to let everyone bear the brunt of our economic quagmire by cutting everyone’s salaries. They assert that this is the only viable option left to avoid furloughs or payless paydays. Their intentions may be noble, but their assertion is flawed. But don’t take my word for it. Here are a few points made by community members who oppose H.B. 17-45:
H.B. 17-45 punishes the poor. The hardest who will be hit by this bill are the families who are considered low-income. Employees who are barely surviving on $11,000 a year will now be only making $9,625. That translates to $370 a paycheck. But subtract taxes and insurance and retirement and they are left with no more than $300 a paycheck. Now imagine this person pulling in only $300 a paycheck as a single parent with kids to feed. The sad thing is that this is not an isolated example. There are a ton of people in this predicament, who are making very little as it is. Think about our neighbors in Rota, who have to pay as much as $50 for a sack of rice and nearly $4 for just one can of Spam. They can’t just quit their government job and go look for a better-paying job in the private sector in Rota, because no such jobs exist! They will most likely have to pack their bags and do what hundreds of other families have done — move to the mainland and live with their extended families.
H.B. 17-45 will have a ripple effect in the economy. The government may save $3 to $4 million annually by cutting salaries, but it may stand to lose more than that in lost revenue. Why? Sheer economic panic. When salaries are cut, people cut down or stop going to restaurants, bars, floral shops, the movie theater, the beauty parlor, etc. This means that less money will be circulated in our economy. More businesses will close as a result, which means less taxes for our government to collect. If people buy less, the cost of goods will continue to escalate. If you think a can of Spam is expensive today, you ain’t seen nothin’ yet.
H.B 17-45 is unfair. While lawmakers argue that this is the only way to avoid payless paydays, they forget about one of the golden rules of a statesman, which is to promote fairness. While the poor will only get poorer and businesses will close as a result of this bill, it is our lawmakers and our judges who will not suffer along with the rest of us. Why? Because their salaries are “constitutionally protected.” Judges will continue to make well over $100,000 a year, and lawmakers will continue to make at least $39,000 a year, not to mention all the perks that are attached to their salary. Sure, some lawmakers will volunteer a pay cut. But I can assure you, there will be several who will not. As I recall from the last austerity measure put in place, one lawmaker said he won’t cut his salary because his wife would not let him. Our lawmakers will have an option to volunteer a pay cut. But we, the common and poor folk, will not. This bill is not fair, to say the very least.
Those who support H.B. 17-45 will continue to preach that there was no other alternative but to cut salaries. But if you sat and listened to the testimonies, you would have heard different suggestions by community members.
Here are only a few:
Stop leasing office space from private buildings and utilize existing government houses and buildings as offices.
There are tons of government-owned houses and buildings on Capital Hill and in Garapan. Renovation may be necessary, but in the long run, it will save us millions. Have work staff lend a helping hand to renovate and cut down on costs for renovation.
Cut down the size of the CNMI Legislature, or create a part-time legislature. If states as big as Texas can operate on a part-time legislature, then why can’t the CNMI? Almost $10 million is allocated for the legislature’s budget. Do we trim education or do we trim politics?
Allow every government agency to cut their budget on their own. Give every government agency the freedom to make their own budget cuts. Some agencies may be able to cut down on expenses rather than salaries, and they have better, more in-depth knowledge about their budgets.
Eliminate political consultants and stop hiring. The CNMI government continues to fill jobs that are considered non-essential. Political consultants and deputy secretaries cannot be considered essential. There are enough intelligent, highly-skilled members of our community who are willing to give free advice. All our leaders have to do is ask.
Part of being a great leader is carefully examining all angles before rendering any decision. H.B. 17-45 was hastily put together and voted on, without getting proper feedback by the people who matter the most: the B.O.V., or Board of Voters. Why are forums or townhall meetings so difficult to hold? It costs little more than time and a willingness to listen and to dig deep to find solutions to our problems. It also shows that our leaders truly care about us. Allowing testimonials up at Capital Hill during work hours just does not cut it.
Please know that the intent of this letter is not to denigrate our lawmakers. The intent of this letter is to ask our leaders to go back to the drawing board to dissect, re-examine, and re-evaluate H.B. 17-45. Exhaust all other options before cutting salaries that will decimate lower income families who are already suffering enough as it is. Think about the repercussions this will have on our public school system. Can we honestly put a price on our children’s education? In this tough world economy, education is our best bet for economic salvation. For this reason alone, education is priceless!
H.B. 17-45 will go to the Senate now, and I urge our senators to do the right thing. Carefully examine this bill and all other options. Talk to your constituents. Hold a forum or a townhall meeting on an evening or weekend so that community members can come together to discuss this bill. We will be there.
I’m sorry to say this, but a friend of mine advised me not to waste my time in testifying. “Ed, once they have the numbers, they have the numbers. This is an exercise in futility.” Please, for once, prove the skeptics wrong. Show us the difference between a politician and a statesman. Fight for fairness, and do what is right.
Thank you for your time, and regardless of where you stand on H.B. 17-45, may God bless you and your family.
ED PROPST
Dandan, Saipan
P.S. I would be remiss if I did not mention our lawmakers who opposed the passage of H.B. 17-45 and provided valid arguments against this bill. Thank you Representatives Diego Benavente, Joseph Deleon Guerrero, Trenton O’ Conner, Francisco Dela Cruz, Joseph Palacios, Antonio Sablan, Ray Tebuteb, and Ray Yumul!
//
