Receding Year 2015

The financial crisis of the CNMI may not be fully apparent to most people. But as the New Year dawns the severity of the fiscal mess—and how it would impact family pocketbooks—should become much clearer to many. Without cutting spending, the towering debts could turn into an avalanche.

Before and after the superstorm the CNMI was already gasping for air in the filthy swamp of bankruptcy. Came speeches of poverty as a prelude to raiding MPLT funds or bond flotation to help finance settlement fund that is a challenge under current fiscal crisis.

Shortfall: The projected FY 2016 budget would be saddled with a budgetary shortfall of not less than $150 million. The latter would reveal serious shortages after the 80 and 25 percent are deducted for operations (salaries) and PSS, respectively. There’s none for all others.

The need for more money would leave this administration combining genuflection and mea culpa 24/7. Budgetary shortfall would become its 2015 annus horibilis—a disastrous issue—under the pretense that everything’s fine. It’s a tough fiscal crisis given that as its effects metastasize or spreads in 2016 it would adversely affect family pocketbooks in the midst of a heavily depressed economy.

Options: Interesting what plans the administration would implement to cut down bloated government expenses. Options include cut in operations, reduction in force or borrow money to cover shortfalls. The first isn’t likely going to happen given that 2016 is the midterm election. The second choice would be impossible given that the private sector isn’t doing well. The last looks suspiciously like a good option but it would equally saddle our young people with debts that ruin their future before reaching the pinnacle of their career.

Evacuation: The net effect of bankruptcy is the disappearance of decent opportunities for our people for meaningful employment to raise their families. It would trigger “evacuation” to other venues across the country where opportunities abound for them. It suffocates investment when the local government turns into the slaves of rich donors at the expense of other significant investors. This is bad all around.

The NMI being a major employer with a good number of its people on food stamps and Medicaid you quiz how would it pay for these external assistance if it were required to begin shouldering a greater percentage of the cost of these programs. After fourteen years of earning the same salaries families deserve doesn’t need any further assault in what little they earn. It’s a fiscal colossus the NMI must pare down!

The Waltz: When the elected elite started waltzing with firms loaded with tons of money it created an unholy relation that effectively alienated our people from them. It’s the elite and cronies versus the downtrodden indigents or the marginalized poor.

The middle class is basically non-existent. Some 51 percent of them earn salaries within federal poverty income level. Though not indigent or abject poor, it’s a class above the indigent group placed in no man’s land and must make do with their meager income. Most are unqualified for federal assistance programs.

The NMI basically accepted a new form of corporate welfare by granting its favorite firm everything from laws to land. I understand wealth and jobs creation but when it’s done for one at the expense of others then the equation merits critical review.

The elected elite is clueless how to find decent opportunities so the 51 percent could improve forced conditions riding on economic stagnancy or dystopia—where nothing works—though they struggle to endure the deepening bad times. It builds distrust in government.

Destiny: Hope we’re still in control of our destiny. Let’s navigate our canoe boldly difficult as it may be. Let’s place the cronyism fostered by this administration on our monitor. We must not wholesale tradition in favor of an industry that would gradually destroy our way of life. It’s our last shot to take back what’s ours!

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Furthermore, it is rumored that foreign firms with tons of money would be bank rolling next year’s midterm election. This is to ensure that their ride into paradise isn’t hindered in the devious agenda to control and bring our people to submission. This is a form of neocolonialism we must stop at the front door!

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Agenda: The triad’s agenda (Fitial/Inos/Torres) to sink the local economy below depressed level has worked down to the letter. The situation kills opportunities for our people to earn decent living with pride. Falling prey to foreign money is almost academic. Without opportunities they’ll take it to ease familial hardship. Must eradicate this scourge!

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Are You…? Not surprising the retardant reaction by local legislators who now question the likely adverse effects the huge development in Garapan would have on water, power and sewer in the commercial and immediate communities. I suppose glitz and glamour must have blinded their vision as to overlook a vital issue before the parade moves out of the ground.

Trouble: Elsewhere, the future of Retirement Fund is in shambles. No worries! It’s a self-inflicted financial mess we’ve seen fit to hide since 1983. In other words, governors simply opted to avoid paying employer’s contribution to the retirement fund. It has now piled-up to $789 million in unfunded liability. Call it deficit!

Nearby: Tinian’s Dynasty has cornered the trophy of bankruptcy with liabilities of some $285 million. What a way to close out the year. Is there a lesson to draw from this experience? Rota must take a second look before it leaps off the cliff. Give Tinian credit, though, for muddling through to revive the industry. For the mind numbing tribulations in 2015 have a blessed Happy New Year’s!