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Local revenue at its lowest since 1994—Inos
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Posted on Dec 24 2008
Local revenue for fiscal year 2008 is the lowest its been since 1994, according to the Department of Finance.
In a declaration supporting Gov. Benigno Fitial’s lawsuit against the federal government, Finance Secretary Eloy Inos attached a statement of revenues and expenditures from 1986 to 2008, showing the CNMI’s local revenue for fiscal year 2008 was $158,485,000. This would be the lowest amount since 1994 when local revenue brought in $152,199,000, according to the statement. The fiscal year 2008 number was unaudited and turned in a few months ago.
According to the statement, revenue reached its peak in 1997 at $242.56 million.
“In recent years, however, local revenues have reflected the decline in the Commonwealth’s two major industries—tourism and the apparel industry,” Inos wrote in the declaration. “Local revenues fell from about $215 million in fiscal year 2005, to about $192 million in 2006, to $163 million in 2007, and an unaudited $158 million in 2008. We are currently discussing a proposed budget for fiscal year 2009 with estimated local revenues of about $157 million. This represents a decline of about 35 percent in revenues from the peak in 1997 and about 27 percent in the last three years since 2005.”
Inos said the decline in revenues has impaired the CNMI’s ability to provide public services to citizens, including health, police protection, the Public School System, correctional facility and youth protective services.
The Commonwealth Health Center, he notes, is unable to attract and retain necessary medical professionals. The Retirement Fund also is an issue, he said.
“The Government’s inability to contribute fully to the Retirement Fund has prompted widespread concern as to the continued viability of the Retirement Fund to meet its obligations over the long term,” he wrote.
