A good idea
THE elimination of zoning was one of the many recommendations of the 2020 Fiscal Response Summit. Due to the Covid restrictions that shut down the CNMI’s only industry — tourism — the Commonwealth was facing a budget deficit of $64.8 million (!) and $85.2 million (!!) in FYs 2020 and 2021. But then the CNMI government received close to half a billion ARPA dollars, and the urgent need for fiscal prudence was conveniently forgotten by Commonwealth officials — until now.
Recently, Senate Bill 24-23 was introduced to “suspend the administration and implementation of the Commonwealth Zoning Code and the Saipan Zoning Law, and dissolve the Commonwealth Zoning Board for five years.”
Lawmakers should pass the bill and the governor should sign it into law. The bill’s authors are right. The zoning law’s implementation has been “problematic.” (A more fitting word exists, but it’s not suitable for a family newspaper.) More often than not, zoning has also hindered economic growth on Saipan.
Lawmakers, to be sure, should conduct public hearings and produce committee reports. They should also identify other government agencies that can perform or are already handling some or most of the Zoning Office’s regulatory functions. Perhaps the sunset provision should take effect after 10 years, not just five.
In any case, the current draft of the Senate bill is a good place to start.
You can’t spin away economic decline
THE CNMI Department of Labor-Employment Services Division has released its most recent annual report, which shows job vacancy trends over the past five years. In a news release, CNMI DOL reported “significant declines” in many sectors except for the construction and extraction industry. This “finding,” of course, is painfully obvious to anyone who resides on the island.
To put a positive spin on what, for most of us, is yet another confirmation of the CNMI’s bleak economic landscape, CNMI DOL used phrases like “evolving dynamics,” “shifting needs,” and “opportunities in flux” — as if an octopus were releasing ink to make a quick getaway.
There is nothing “dynamic” about businesses downsizing or shutting down, work-hour cuts or job losses. And the economy is not “evolving.” It is reverting to what it once was in the TT and early Commonwealth days when the government was practically the only “industry” and was mostly funded by Uncle Sam.
Regression is not progress.
The wrong question
IT seems that for this administration, the primary question is how to obtain the funding it needs to pay for the government’s never-ending expenses. But that’s the wrong question. Instead, the administration should ask itself how it can resuscitate the islands’ tourism-based economy so that everyone benefits, including a government that is insatiable for other people’s money.
For two long years now, the governor has been pursuing his “pivot” policy with little to show for it. “Pivot” smacks of faith-based governance. The governor believes that the federal cavalry (i.e., a bailout) is on its way, so we, like him, should have faith. But even if most of us are economically obtuse — as the administration seems to believe we are — how can the government meet its (mounting) financial obligations in the meantime?
Because it leads to a decline in tourism activities, the pivot will require spending cuts and even tax hikes. Who on Capital Hill will dare discuss such unpleasantries while another election year approaches? The administration would rather talk about 702 funds, specifically their “restoration” for the CNMI. That would require U.S. congressional approval and the signature of a President who promised to reduce federal government spending.
And, meanwhile, while we wait for federal charity, what? Tourist arrivals and hotel occupancy rates are not expected to improve anytime soon. More businesses are likely to downsize or, worse, shut down. More private sector workers will have to endure work-hour cuts or job losses. Residents will continue to leave the island. The government’s tax base will contract further, and construction projects are not enough to offset the significant reduction in revenue caused by a shrinking tourism industry.
Besides tirelessly begging the feds, what else is this administration offering as a “solution”?
Government employees, retirees, the business community, taxpayers and other members of the public would want to know.
