These federal monies, Fitial told Variety last week, used to be for CNMI government operations and CIPs under Section 702 of the Covenant.
U.S. Public Law 104-134, however, amended Covenant’s Section 702 to spread out a significant portion of the funds to Guam, American Samoa and the U.S. Virgin Islands.
Asked if Fitial’s request is possible, Sablan said no.
He said Fitial should try asking the governors of Guam, American Samoa and the U.S. Virgin Islands to give up their share of the CIP money.
In his letter to Sablan dated Feb. 24, 2011, Fitial said a critical element of the Covenant, the U.S. law that made the islands part of America, was for the federal government to provide financial assistance to the commonwealth “for the establishment of infrastructure needed for health and safety of the NMI people.”
The governor believes the U.S. has not lived up to its commitment.
As a result, he said, “our schools are inadequate, utilities cannot meet U.S. environmental protection requirement and our health care falls below standards of adequate service.”
He said the commonwealth is under two federal stipulated orders for the failure of Commonwealth Utilities Corp. to meet U.S. environmental protection requirement. The landfills on Tinian, Rota and Saipan are also required to meet U.S. standards, he added.
These require large-scale investments, the governor said.
But the cost of compliance for landfill and utility operations exceeds the CNMI’s Covenant 702 funding, he added.
“How can the U.S. expect the small populations of the islands of Rota and Tinian to bear the costs of construction of a $6 million landfill, the $4 million landfill closure costs, upgrades to the ports and utilities and the provision of schools, roads and medical care equal to that enjoyed by other citizens of the U.S.? Fitial asked Sablan in his letter.
The governor said “this indicates a complete lack of understanding of the capacities of small island economies and their capacity to fund compliance with U.S. standards.”
He said due to reductions of Section 702 funding in 17 years, the commonwealth has been “deprived” of $297 million in funding which could have been used to meet its infrastructure needs.
At a minimum, Fitial said the commonwealth should be provided $27.2 million in federal CIP funding. The funds that were “lost” through previous reductions should also be restored, he added.
