FLASHBACK December 4, 1998-2001

Health chief argues for bigger hospital[/B]

Health Secretary Joseph K. Villagomez yesterday said the need for a bigger hospital becomes obvious with the rise in the population of the CNMI. A plan to construct a new Department of Health building has been in the pipeline, and he hopes that the government will make it a priority. A meeting has been set for next week to discuss the project, he said. “It’s part of the CIP (Capital Improvement Projects) and is one of the top 20 projects. I hope that it will go easily. We’re meeting next week to finalize the projects,” he said.

The financially-troubled government is expecting to save some $15 million from a new austerity package it plans to put in place in anticipation of further drop in revenue collections, but the amount is not enough to cover the 13.4 percent reduction in FY99 spending level. According to Gov. Pedro P. Tenorio, more belt-tightening will have to be done in order to stay within the revised appropriation package of $216.75 million for the current fiscal year. “Our projection is a $32 million decline in collections…so we have to find ways where to reduce,” Tenorio said in an interview, “So far we cannot meet the $32 million,” he added, in justifying a new package of cost-cutting steps his administration is considering to cope with declining revenues and ballooning deficit.

‘Settle retro pay’[/B]

Amid potential deadlock on budget discussion between the House and the Senate, a lawmaker appealed to his colleagues on Friday to appropriate money for payment of the so-called retroactive salary increase for government employees. Rep. Jesus T. Attao said this is the time to settle the overdue compensation of these employees who have been awaiting the benefits for nearly 10 years. Public Law 7-31 was enacted in 1991 to give government employees a 14 percent across-the-board salary hike, but many of them have yet to receive the raise until now due to financial difficulties confronting the CNMI and alleged politicizing of the issue by the previous administrations.

The Northern Marianas Housing Corporation Board of Directors has thrown support to a housing project on Rota which seeks to build a 30-unit housing subdivision in Sinapalo village. In a letter addressed to Rep. William S. Torres, NMHC Manager Diana P. Crisostimo said the planning and preparation contained in the project proposal submitted by Rota Mayor Benjamin T. Manglona has impressed the NMHC Board of Directors which, in turn, vowed to support its completion. However, Ms. Crisostimo pointed out that existing regulations, initially crafted for a similar project on Tinian, only allow a maximum of 24 dwelling units for a housing project due to the lack of sewer system on the island.

Bank assets nearing $700M mark[/B]

While economic indicators point to flat growth, the Commonwealth’s half-a-billion dollar banking industry is inching its way to the $700 million-mark, indicating a strong financial infrastructure in the Northern Marianas. Bank assets registered consistent growth in each of the three quarters this year reaching $691.2 million as of end-September 2001 up from the previous quarter figure of $690 million in the second quarter of 2000. Deposits totaled $612.8 million in the third quarter of 2001, higher by about $2.3 million from the quarter-ago’s $610.5 million. In the second quarter, total bank deposits amounted to $610.5 million, inching upwards from the previous period’s $601.2 million.

If the Legislature pushes through with the bill setting a ceiling on utility rates in the CNMI, the Commonwealth Utilities Corp. would lose more than $7.6 million per year in revenue. Not only that but CUC would also lose the flexibility to adjust rates to compensate for fuel price increases and could possibly lose out on future Capital Improvement Project funding and grants. These were all pointed out by CUC officials during yesterday’s public hearing held by the House Committee on Public Utilities, Transportation and Communication on Senate Bill 12-115. The committee also deliberated on Senate Bill 12-122, which seeks to lower the water rates for local farmers.