64-hour work by March 15

House Speaker Blas Jonathan T. Attao presides over a regular session Friday in the House of Representatives chamber at the Jesus P. Mafnas Memorial Building on Capital Hill. It was during the closing part of the session when Rep. Joel C. Camacho (R-Saipan) announced that Gov. Ralph DLG. Torres had just sent a communication to Attao about the need to adjust/reduce by $48.38 million the projected resources for fiscal year 2020. (FERDIE DE LA TORRE)

Citing an estimated $48.38 million revenue loss in fiscal year 2020 from the adverse impact of the coronavirus outbreak and the residual effects of Super Typhoon Yutu, the Torres-Palacios administration announced Friday another round of austerity measures that will cut the regular 80 work hours of government employees to 64 hours, starting on March 15.

Gov. Ralph DLG Torres said this coronavirus outbreak has essentially brought the CNMI’s tourism industry to a standstill for an undetermined period, causing a severe disruption in revenue and affecting many CNMI businesses and residents.

“As a government, we have to adapt and make adjustments for this unforeseen circumstance,” said Torres in a statement issued Friday.

The CNMI government had just lifted last December 2019—a little over a month ago—the austerity measures it implemented as a result of Super Typhoon Yutu, which hit the CNMI in the latter part of 2018.

Lt. Gov. Arnold I. Palacios blamed the latest cost-cutting measure on factors outside of the CNMI’s control.

“These are challenging times, but we understand that almost every economy in the Asia-Pacific region are experiencing revenue downturns,” said Palacios in the statement.

As outlined in Directive 2020-002, business hours for departments and agencies under the Executive Branch will be closed during every Friday beginning March 20 until further notice.

In addition, there will also be hiring freezes, overtime and travel restrictions, fuel and utility conservation, and government procurement restrictions.

A source said all autonomous agencies may likely follow the administration’s implementation of the 64-hour work schedule. The last time, when the Torres administration implemented austerity measures that included a 72-hour work schedule, only the Marianas Visitors Authority followed suit. The Commonwealth Ports Authority and the Commonwealth Utilities Corp. both opted not to implement the 72-hour schedule.

While the coronavirus has so far not entered the CNMI, press secretary Kevin Bautista said the temporary suspensions of flights from China has led to a significant loss of economic activity and revenue.

Finance Secretary David DLG Atalig has already recommended to Torres to revise the annual revenue estimate for fiscal year 2020 by a reduction of 20.7% and budgetary resources by 28.3% for the remainder of the fiscal year.

Atalig said this reduces revenue estimates for fiscal year 2020 by $48.39 million.

Bautista said both the Executive Branch and Legislature are working together to implement these reductions.

Bautista said the Office of Personnel Management and the Office of the Attorney General have been directed to work with all departments and agencies to ensure that all civil, excepted, and exempted service employees are properly notified and advised of the modified work schedule.

In order to keep essential public services like education and public safety intact, Torres said they had to lay all options on the table and determine the government’s priorities.

Torres said they have had to make cuts of this size in order to protect the retirees’ pensions, which provide for their basic needs.

“Since 2015, we have kept that commitment to ensure their full pensions, and we will continue to meet that as much as we can,” the governor said.

Torres said while they understand that public health is at the top of their priorities, financial recovery is being done so that they can eventually revert back to a normal work schedule.

Torres said he and Palacios appreciate all government employees for their patience during these financial challenges and for their continued commitment to serve the people of the Marianas.

Palacios noted that it is unfortunate that certain members of the community are spreading rumors of a cut to the retirees’ pensions.

“Unfortunately, there are people out there that have been painting a picture that we made that decision. That’s not the case,” he said.

Palacios said they continue to be mindful to give retirees their full pensions but, that at the end of the day, they continue to look at the priorities with the limited resources that the CNMI now have as a result of the coronavirus outbreak.

Torres and Palacios said the Executive Branch, together with the Legislature, have determined a collective approach to addressing these challenges head-on, “because this is what a responsible government should do in challenging times.”

They said they will continue to work to promote the Marianas as a world-class destination to the CNMI’s other source markets and that economics and financial recovery are at the forefront of policy initiatives, so that the CNMI can return to normalcy.

A government employee said in an interview that the 64-hour work schedule is better than being furloughed.

The employee, who asked not to be identified, said they had been through that 16-hour cut during the administration of the late governor Eloy S. Inos in 2011.

It’s just sad, she said, because she had just obtained a loan to fix her garage after the Federal Emergency Management Agency told her she’s not qualified for benefits.

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AUSTERITY MEASURES

– 4-day govt work
– Govt offices closed every Friday
– Hiring freeze
– Overtime restrictions
– Travel restrictions
– Fuel conservation