This, according to DOI Assistant Secretary on Insular Affairs Tony Babauta yesterday, is enough to request the programs’ solicitor for a review in response to Gov. Benigno Fitial’s decision to include federally funded grant program employees under austerity.
“We requested our Solicitor to review Gov. Fitial’s austerity measures as they apply to the Brown Tree Snake and Coral Reef Initiative grant programs to ensure compliance and the review is currently in progress,” said Babauta.
The Office of Insular Affairs has direct oversight of the BTS and CRI programs as the granting agency.
To Babauta’s knowledge, the OIA has not received from NMI’s Executive Branch a written request to “Redirect” funds or outline a “Scope of work amendment” as mandated in the OIA’s Financial Assistance Manual.
With regard to the OIA grant programs under review, Babauta stated, “Of course, I’m concerned about how the austerity cuts may reduce the programs’ operations.”
According to Babauta no discussion between himself and the governor has occurred on the austerity issue because of the in-progress review by the Solicitor.
Babauta would not comment on non-OIA federal grants nor the governor’s local authority to reprogram grant funds from salaries to other uses.
AG’s Opinion
On this same issue, the Office of the Attorney General released its opinion yesterday on two questions concerning federally funded employees.
The first question is: “Does the governor have authority to place federally funded employees under austerity?”
AG’s conclusion: Yes.
The second question is: “Can the legislature place limitations in the budget on the governor’s power to impose, modify or rescind parts of his austerity directive?”
AG’s conclusion: No.
For both questions the AG’s legal arguments cited the executive powers “to spend or not to spend” funds vested in the governor by the NMI Constitution.
Additionally, the five-page opinion addressed the question of the legislature’s disputed 25-word budget sentence “…any employee whose salary is paid in full by federal funds shall be exempt from any work hour reduction or reduction in salary.”
The stipulation was “constitutionally and procedurally deficient” because a budget bill was for local funds, not federal and that such sweeping changes need to be made in “separate, single subject bills.”
Asst. Secretary Babauta had no comment when presented with the AG’s opinion.
DOI-OIA’s Role
Due to Babauta’s reticence to comment on local issues or non-OIA grant programs, Variety asked whether he and the OIA office felt they were advocates for local governments or the citizens.
His response tilted toward advocacy for the local governments and mirrored the DOI’s official description of insular activities, “…as coordinating federal policy” in American Samoa, Guam, U.S. Virgin Islands and the CNMI.
Oversight of federal programs and funds was listed only for FAS states of the Federated States of Micronesia, the Republic of the Marshall Islands and the Republic of Palau.
Federalization of Immigration
When asked for his assessment of the immigration process since Nov. 27 – the umbrella permit expiration date – Babauta noted it is an on-going process.
“It’s still confusing for everyone … we’re encouraging the Department of Homeland Security to keep visiting and explaining the process and regulations until they’re fully understood.”


