72 work hours enforced

Jamie expects to tighten her family’s purse strings some more following the government’s decision to implement a 72-hour work schedule beginning next month’s pay period on June 23 for the July 5 payday. She will be among the thousands of government employees affected by the government’s recent austerity measure.

“I’m very concerned about it because, as an employee of the Public School System and a student at the Northern Marianas College, I know there will be cuts somewhere.

“It is very disappointing to see us come to this point after being so hopeful for our islands over the last few years,” said Jamie, who asked that her name be withheld.

She recalled the dark times that some of her family members experienced less than a decade ago, when the CNMI economy was at an all-time low.

“So much for progress. I really hope it does not get any worse because my family and friends still remember the bad times when people didn’t get paid. So many were struggling to make ends meet. It wasn’t too long ago and I hope solutions are found soon because too many promises were made and look at where we are now,” she said.

The cost-cutting directive, which was issued yesterday, will have agencies and departments under the Executive Branch closing every payday Friday, starting on July 5 and until further notice.

The new work schedule will apply to all locally- and federally-funded government employees—both among civil service and excepted service employees in the Executive Branch.

First responders, law enforcement, treasury cashiers, and other employees with critical government functions will have a modified 72-hour work schedule to keep needed public services functioning.

The directive also include no accrual and overtime payment, and compensatory time hours, plus no new hiring for locally funded positions under the Executive Branch.

Tough decision

Gov. Ralph DLG Torres said this measure faces head-on the challenges the CNMI is facing right now.

“This is a very difficult decision, but it is necessary in order to protect our government employees from other more drastic options that would have more severe impacts, and to ensure that our obligations and services remain stable,” he said in his directive.

In a statement about the directive, Lt. Gov. Arnold I. Palacios said that financial recovery remains the top priority in order to return to the normal 80-hour work schedule.

“While revenue collections continue to be challenging following the impact of Super Typhoon Yutu, it is clear that revenue at the current levels will not be sufficient to fund government payroll on an 80-hour work schedule,” he said.

Palacios said the 72-hour work schedule minimizes the impact on people’s lives and would give the CNMI government the means to take the government through the rest of fiscal year 2019, which ends on Sept. 30

Torres said the 72-hour work week would avoid payless Fridays, allow the government to continue its obligations on bond payments and the Settlement Fund, and ensure payments to the government’s vendors. “This is the most prudent option in order to protect our employees and safeguard public services from more drastic alternatives.”

The administration also met with members of the Legislature’s leadership yesterday to discuss the current fiscal condition.

After Yutu hit the islands in October last year, the administration already reduced its budget projection by $29.9 million and implemented other cost-containment measures.

Trickle-down effect

Hotel Association of the Northern Mariana Islands president Gloria Cavanagh pointed out that several hotels in the CNMI, especially those gravely impacted by Yutu, have also implemented austerity measures.

“[Austerity] is something that we had to do in order ensure fiscal health,” she said.

“[As for] the trickle-down aspect, I believe our business and restaurants will be the first ones to feel the shrinking purchasing power. I believe, however, that reacting quickly after the typhoon, puts us in a better position to handle this temporary loss.”

She said the CNMI had experienced this before. “However, we may be in a better position since the last round of government austerity measures. I believe the key is to work on bringing back the tourism numbers in order to bring back health to our economy. As HANMI chief, I must remind our officials that the existing hoteliers and its owners have seen the best of times and the worst of times. They have seen these austerity measures.”

“They have stayed and helped the community when the government couldn’t afford to, they have helped in promoting our destination when [the Marianas Visitors Authority] did not have any money and they helped grow our economy back up where we enjoyed unprecedented growth.”

Cavanagh added stability is needed to ensure the CNMI’s economy rebounds. “We have two hotels—the Fiesta Resort & Spa and the Hyatt Regency Saipan—that have two years and two-and-a-half years, respectively, left on their leases. Now more than ever, we need such companies to ensure stability.”

“We encourage our Department of Public Lands to come to a negotiable solution to keep such proven companies.”

Comments

Sen. Teresita A. Santos (Ind-Rota) said Rota was hit hardest when the government implemented austerity measures in 2010. “Rota experienced the hardest and will again encounter the same impact. …While we understand the economic challenges before us and the underlying reasons for the application of austerity, it is our hope that our economy will eventually improve.”

She is hopeful new revenue sources would come up, even suggesting to revisit Article XII of the CNMI Constitution. “It is our hope that we can identify other new sources of revenue so the austerity measure will no longer be in effect. Lifting [restrictions in Article XII] may entice potential investors or developers into the CNMI, which may translate into having new sources of funding or revenues.”

House minority leader Rep. Edwin K. Propst (Ind-Saipan) said ordinary government employees would feel the pinch. “These are hard times for everyone, but no one will have it worse than the lowest paid government employees who are already struggling to make ends meet.”

He suggested that a second casino investor should be allowed. “Can the governor, the administration, and the [Commonwealth Casino Commission] explain why they are not considering a second casino license?

“[Imperial Pacific International] only paid $41,000 in [business gross revenue tax] in the last eight months. Can they tell us the status of the $20-million community benefit fund?”

Rep. Tina Sablan (Ind-Saipan) said she was not surprised but it was disappointing to see the Judiciary, Northern Marianas College, and the Public School System already making painful cuts. “I think many of us were wondering when the administration would follow suit…”

“The governor must address the many still unanswered questions of the Legislature and give the people of this Commonwealth the truth about our finances and his plan going forward. This plan should include not only cutting costs, but also raising revenues and enforcing our laws so that everyone is paying their fair share. No more sweetheart deals.”

She added that concessions should no longer be made that abuse the people’s generosity. “This includes holding IPI accountable for the taxes they haven’t paid, the vendors they owe, the obligations of the exclusive license agreement that they are not meeting, and the community chest fund disbursements that they have yet to make.”

“We need the governor to show us his plan, give our people some sense of direction and leadership. Right now, we see none.”