IPI contributes to fund public services, programs

Just two months ago, the NMI government disbursed the largest outstanding land compensation payments in history, totaling about $20.7 million.

The Legislature then appropriated $7.1 million to fulfill the government’s settlement agreement obligations, to pay for the pension of the Commonwealth’s over 3,000 retirees.

Both are time-sensitive and have court-ordered deadlines.

And both sources of funding came from the fees and taxes—the business gross revenue tax—paid by Imperial Pacific International.

Both programs were just among the critical and vital public services that have received additional funding support as a result of Imperial Pacific’s economic and investment contributions.

So far, IPI has already invested in over half-a-billion dollars in the CNMI.

This fiscal year, the government is expected to generate its second supplemental budget.

In enacting last fiscal year’s supplemental budget—Public Law 19-75— the NMI government identified the largest additional revenue by far. It was an unexpected but much-needed financial lifeline for critical public services and programs.

It was also for the first time in many years that the government had rolled out a supplemental appropriation. P.L. 19-75 identified $47 million sourced from the business gross revenue tax paid by Imperial Pacific.

Gov. Ralph DLG Torres signed the supplemental appropriation on Dec. 19, 2016.

That pushed the government’s overall budget to over $200 million.

The Torres administration declared it the “largest budget in NMI history.”

Funding critical programs

Records shows that Imperial Pacific, now the largest private sector employer, has helped supplement the government’s need to continually fund critical and essential public services and programs.

Last year alone, a total of 11 critical programs and services received immediate funding support. Among them was the $2 million for Fuel Adjustment Clause Rate Subsidy. It was only last August, pursuant to P.L. 19-54, that it went into effect: each Commonwealth Utilities Corp. residential customer received credits by subsidizing their fuel adjustment charge.

The Commonwealth Healthcare Corp. received $7 million to pay its outstanding balance owed CUC.

Additionally, the CNMI’s Medical Referral Program, which continues to assist Saipan patients, received $2 million. The program operates three satellite offices in Guam, Hawaii, and the Philippines.

Of the amount earmarked, $1.6 million was tapped to pay for the outstanding obligations with the Guam Memorial Hospital and $400,000 was used to supplement the operation of the program.

Nine million dollars was appropriated for land compensation “stipulated, consented and/or other judgments.”

Another $1 million was set aside for the Substance Abuse and Rehabilitation Program to support the Community Guidance Center programs and operations.

A separate $9 million for land compensation payment—the first large tranche of disbursement—was also issued out.

A total of $3.5 million was “equally distributed to pay bonuses to retirees and retirees’ beneficiaries.”

Public education received the largest funding—$10.24 million—providing direct support to the islands’ over-10,000 students.

The Northern Marianas College received $1 million and another $150,000 was earmarked to the Northern Marianas Technical Institute.

Outstanding retroactive lump-sum payment were made to active and inactive employees, whose wages had been frozen.

Imperial Pacific’s contributions have already showed significant positive impact to the local economy, triggering an increase in tax collections across the board, the government declared.