By Zaldy Dandan – Variety Editor
The good, the bad, and the muddled
FOR the past few years, the administration’s annual fiscal report has read like 80% press release and only 20% useful information. The latest report is quite an improvement. It’s still a multi-page pat-on-the-back, but it now includes more pertinent details, some of which can be considered key data and not just wishful thinking dressed up as statistics.
For starters, this report, unlike the previous ones, did not “bury the lead.” It disclosed right away that the reason the government collected 8% percent more than its projection was the “non-recurring” — that is, one-time — revenue sources that included a $4.6 million loan from MPLT and a $2.3 million payment from casino penalties and interest.
The report also highlighted what many members of the public — including non-political government hires — have known since 2023: the economy is still shrinking. This is indicated by continued drops in excise taxes (46%); hotel, bar, and beautification taxes (20%); beverage container tax revenues (28%); amusement machine license revenues (13%); other revenues (19%); and job vacancy announcement postings, which declined to 2,986 in FY 2025 from 3,729 in FY 2024 and 4,204 in FY 2023.
But some of the writers of this report, as usual, cannot help themselves. They have to point to the half-full glass, regardless of the water quality. Even with fewer JVA postings, the report claims that “labor demand remains strong.” What this means is that key positions remain hard to fill. How, under these conditions, can the CNMI attract new investors?
But not to worry. “Moving forward, workforce strategies should focus on targeted employer engagement, aligning training with high-demand occupations, and ensuring job seekers are connected to available opportunities….” How is that wordy lump of generalities any different from the workforce goals proclaimed by government officials since the CNMI was established in 1978?
Apparently, someone also inserted the following trumpet-blowing passage on page 4 of the report, which appears inconsistent with what was stated on page 1:
“FY 2025 closed with a positive balance…, underscoring the effectiveness of fiscal discipline, improved collections, and strategic reprogramming.”
So, taking out a loan from MPLT and relying on a one-time penalty payment — this is “effective fiscal discipline”?
There was a time when “effective fiscal discipline” meant living within your means, prioritizing spending, and not spending money you don’t have. The CNMI government is still nowhere near those standards.
A way forward
TO its credit, the administration, once again, acknowledged the utmost importance of reviving tourism in any economic recovery effort. The report noted the “continued work of the Tourism Recovery Task Force, which will unify government and private-sector partners to remove barriers, improve the visitor experience, and deliver data-driven recommendations to the Governor through short-, mid-, and long-term action plans.”
These include MVA’s ongoing campaign to “strengthen destination awareness under the Far From Ordinary brand through a combination of authentic storytelling, targeted digital marketing, and strategic collaborations with content creators and influencers…. This approach emphasizes meaningful, experience-driven content that highlights the islands’ culture, natural beauty, and everyday life, ensuring the Marianas maintains a strong and consistent presence across digital and social media platforms at a time when visibility is critical to sustained demand and supporting air service.”
In addition, MVA will continue pursuing product development and destination enhancement. This includes capital improvement projects at tourism sites in Marpi, site beautification projects, and safety and accessibility improvements.
However, the report pointed out that without additional funding, “MVA’s ability to implement recovery programs at the scale required will remain limited, increasing the risk of prolonged stagnation.”
Providing MVA with the funds — or at least some of them — that it needs to help revive the islands’ only industry should be a priority for the CNMI’s elected officials. Otherwise, the increasingly desperate scraping of an almost empty financial barrel will continue, producing ever-diminishing results.
Where credit is due
THE administration should be commended for the “improved working relations between the private sector and the government,” which “instill confidence in potential progress.” Clearly, the “administration’s commitment to innovative approaches and a sense of urgency is already evident,” as seen in the resumption of the Governor’s Council of Economic Advisers, the creation of the Tourism Recovery Task Force, and the One-Stop Permitting Center. Last week, the governor signed a local law establishing the Saipan Economic Incentive District.
“These initiatives demonstrate the administration’s priority toward economic recovery by collaborating with the private sector and removing barriers to interagency cooperation, ultimately improving services for all businesses and the quality of life for all in the Commonwealth.”
Other elected officials should take their cue from the governor — and not make things worse.
Zaldy Dandan is the recipient of the NMI Society of Professional Journalists’ Best in Editorial Writing Award and the NMI Humanities Award for Outstanding Contributions to Journalism. His four books are available on amazon.com/.
