Over $38.5M casino BGRT, $16.5M up for appropriation

Over $38.5 million in casino business gross revenue tax has been collected, but only $16.5 million is available for appropriation because of a recently passed law.

According to a document Saipan Tribune obtained from the Governor’s Office, only $16.5 million would be available for appropriation because $22 million is being set aside in a special account to pay 5 percent of retiree pensions as well as the payment for this year’s “bonus to our retirees and the survivors of the retirees, in accordance with Public Law 20-10.”

Though significantly less than what was expected, P.L. 20-10 also states that $2 million of the casino license fee each goes to Rota and Tinian, while the remaining $11 million goes to Saipan.

Despite the substantial cut, Torres, in his letter addressed to Senate President Arnold I. Palacios (R-Saipan) and House Speaker Rafael Demapan (R-Saipan), stated that the amount for fiscal year 2017 “speaks volumes toward the strength of our economy and the viability of our gaming industry.”

Enclosed in his letter was a letter from Finance Secretary Larissa Larson as well as Torres’ recommendation on how to allocate the funds.

Torres recommended that $2 million be given to the Public School System; however, during yesterday’s House session, PSS members requested that the House refrain from taking action on an allocation bill for PSS due to the constitutional mandate that states PSS should receive 25 percent of “general funds.”

“We would like [the House] to hold off on any appropriation unless we reach [the constitutional mandate]. That is my message. We need at least 25 percent to operate our schools, pay our Commonwealth Utilities Corp. bills, etc.,” said Tim Thornburgh, PSS federal programs officer.

During a recess, Rep. Joseph Deleon Guerrero (R-Saipan) approached Thornburgh and assured him that House Speaker Demapan would assign the governor’s communication to the House Ways and Means Committee to aid in legislating an appropriation bill.

Also included in Torres’ recommendation for allocation was $3 million for land compensation obligations; $2 million for the Northern Marianas College; $1 million for public-private job placements and training; $500,000 for the Department of Community and Cultural Affairs’ Child Care Development Fund; $500,000 for substance abuse recovery and prevention programs; $850,000 each for Rota and Tinian’s telecommunications infrastructure; $500,000 to the Planning and Development Office; $800,000 to the Commonwealth Office of Transit Authority’s fixed route transit system; $100,000 to the CNMI Drug Court; $300,000 to the Northern Marianas Trades Institute; $370,000 to the Office of Management and Budget; $144,000 to the Governor’s Office; $1 million to CNMI Customs; $350,000 to the Department of Public Safety; $250,000 to the Commonwealth Healthcare Corp.’s electronic health records system, and $2 million to the CHCC indigent care.