No choice
FOUR months after declaring that the state of the CNMI was “getting better,” the administration removed its rose-colored glasses and took a hard, long look at the government’s actual situation — it was not pretty.
In a joint press conference on Monday, the governor admitted that the “real picture” of the budget was “kind of shocking.” It’s an assessment other officials — including the delegate — had made months, even years, ago, so it is heartening to see the administration and lawmakers finally on the same page. The CNMI has a problem. Downplaying it won’t make it go away.
We are now told that the government’s unfunded obligations total $103 million. The government was hoping to collect $179 million in the coming fiscal year, but that number has gone down to $156 million, of which $53 million is for debt service and only $103 will be available for appropriation.
It now appears that, beginning in 2024 — an election year — the government simply delayed the inevitable. The financial chickens have come home to roost.
CNMI officials must now make tough decisions. From now on, they must be consistently forthcoming to voters regarding the government’s finances. Quit dazzling us with fairy tales of “new industries” forever on the cusp of fruition.
The government is running out of money, but not on debts. So what now? It’s not as simple as waving a wand. Any cost-cutting measures will have to pass muster with elected officials — who will face the wrath of government employees and retirees, perhaps the CNMI’s most entrenched and influential voting bloc.
The alternative, however, is a payroll the government can’t meet, vendors it can’t pay, and lawsuits it can’t avoid.
It’s about time
WE’RE also glad to hear top officials finally mention the recommendations from the federally funded 2020 Fiscal Response Summit, convened after Covid restrictions put the tourism industry in a coma. At the time, the CNMI government was staring at deficits of $64.8 million and $85.2 million in consecutive fiscal years.
The summit report — available online — is comprehensive. It’s about time its proposals were taken seriously.
Why was it ignored for the past five years? Because the CNMI got nearly half a billion dollars in ARPA funds from the feds. Unless Washington is ready to deliver a similarly stupendous bailout anytime soon, CNMI officials need to start deciding which of the summit’s many proposals they’re actually willing to pass. We suggest starting with the reduction of legislative seats.
Walk the talk, lawmakers.