NMI to get $96M in stimulus package

The CNMI could get as much as $96 million in new federal funds directly from the $787 billion economic stimulus package that the U.S. Senate passed Friday night. The American Recovery and Reinvestment Act now goes to President Obama’s desk, where he plans to sign it into law by President’s Day.

Delegate Gregorio “Kilili” C. Sablan urged Gov. Benigno R. Fitial and other local officials to use the funds “wisely and quickly.”

The funds are meant to stimulate the CNMI economy right now and help build a better economic future by funding schools, roads, water and sewer systems, government operations, train workers for new jobs, food assistance, and weatherize homes to help people cut back on power expenses, among other things.

Of the $96 million in expected new federal funds for the CNMI, some $8.8 million will go to the Public School System through existing programs, Sablan said.

But Sablan said the federal funds do not come without strings attached. The CNMI government, he said, will have to put together applications for the funds, sometimes competing with other jurisdictions.

“And the CNMI government will have to do so quickly. Because this money is meant to stimulate immediate economic activity…there are ‘use it or lose it’ provisions throughout the bill,” Sablan said in a statement.

Press Secretary Charles P. Reyes Jr. yesterday said Gov. Benigno R. Fitial agrees with Sablan on the use of the new federal funds and appreciates his support.

“The administration is committed to making full use of available federal funds for the CNMI’s maximum benefit,” said Reyes.

He added that Fitial instructed executive branch departments during the last Cabinet meeting to quickly comply with federal fund requirements.

President Obama hopes the $787 billion recovery package will help boost an economy in freefall with a combination of government spending and tax cuts and credits. (See related story on page 14)

Spending in the package includes about $120 billion for infrastructure, more than $100 billion for education and $30 billion on energy-related projects. More than $212 billion goes to tax breaks for individuals and businesses. Most individuals will get a $400 tax credit, and couples will get $800. Another $267 billion goes to direct spending like food stamps and unemployment benefits.

Sablan said the money that the American Recovery and Reinvestment Act will make available to the CNMI is in addition to the tens of millions of dollars that it is already receiving from the federal government on an annual basis.

“It is intended to help our economy at this time when we need help the most…So I urge the governor and Commonwealth officials to make full use of these funds in a way that will make the most impact and help get our people and islands out of the economic doldrums,” he said.

He said the bill has money for school modernization, for government operations, for highways, water and sewer systems, as well as help those in need with food assistance, to train workers for new jobs, and to weatherize homes to help people cut back on power expenses.

Sablan said he is particularly pleased that the stimulus package focuses strongly on education, with $8.8 million going to PSS through existing programs.

“The education of our children is the best investment we can make in the CNMI’s future. I am pleased that Speaker Nancy Pelosi and Education and Labor Committee chairman George Miller were successful in ensuring that the bulk of the money available to the CNMI is targeted at education,” said Sablan.

In addition, a pool of $219.2 million will be available to the CNMI, Guam, American Samoa, and the U.S. Virgin Islands on a need basis. The secretary of Education in consultation with the secretary of the U.S. Department of the Interior, will make the distribution.

Sablan said the new money is intended to restore school funding levels that have been cut over the last several years. The money can also be used to repair existing school facilities and to make them ore energy efficient to cut down on the cost of utilities.

“All of this additional funding is really just a first step to ensuring that our children catch up, and keep pace, with the rest of the world,” said Sablan.

Sablan said he has been in constant communication with CNMI school administrators and the Board of Education about the needs of schools. Now that he is a member of the U.S. House Committee on Education and Labor, he said he will be able to do much more to help teachers and students.

Another large pool of $48.8 million will be available to the four insular areas for police and other public services, including higher education. These funds will also be distributed on a need basis on grant applications submitted by the governor.

It is not clear yet, however, whether CNMI individuals will also be getting tax credits and other benefits. In the U.S., most individuals affected will get a $400 tax credit, and most couples will get an $800 credit.

According to national media reports, that amounts to an extra $13 a week in a person’s paycheck, starting in June. That’s less than what Obama campaigned on: $500 for individuals and $1,000 per couple.

Many students will get a $2,500 tuition tax credit. First-time home buyers may qualify for a tax credit of up to $8,000. Moreover, people who receive Social Security will get a one-time payment of $250.