Murkowski slams OIA •Senator takes issue at CIP cut for CNMI

Sen. Frank Murkowski (R-Alaska), chairman of the Senate Committee on Energy and Natural Resources, has lashed out at the Office of Insular Affairs for what he described as apparent reluctance of the agency to help US territories.

In a speech at a recent committee hearing to tackle the FY 2000 spending plan of OIA, Murkowski said the budget proposal poorly reflects steps the agency intends to implement to address fiscal and economic woes of the jurisdictions.

A major concern raised by Murkowski is Washington’s plan to slash the commonwealth’s annual construction grants by 51 percent to $5.6 million for its failure to use Capital Improvement Project monies in the past.

The cutback in infrastructure funds will benefit Guam, where President Clinton promised to pump in more federal money during a visit in November. Under the proposed budget, the neighboring island will receive a total of $10 million, part of which represents payment for the cost of hosting citizens from the Freely Associated States.

Gov. Pedro P. Tenorio had protested to federal officials such plan in fear the move may push the islands into economic instability. CNMI stands to lose $16.2 million until year 2001 under the proposal despite a seven-year financial agreement with the US.

“My frustration comes from what I perceive is a reluctance or unwillingness on the part of the Administration to deal honestly with long-term commitment to the islands…Now the Administration proposes to go back on the commitment for some unknown reason and take money from the Marianas to Guam,” Murkowski said.

“I simply do not understand how you (OIA) can propose an overall $832 million increase for the Department for your favorite constituencies, yet must steal $5 million from the Marianas to fund a presidential promise to Guam,” added Murkowski, a known ally of CNMI.

The committee chairman commended Clinton for visiting Guam, which is host to key US military installations in the Pacific, but said “that is not a justification for undoing the carefully restructured entitlement for the Marianas” while it has yet to receive payment for the Compact Impact along with Hawaii.

He said any increase to Guam’s appropriation to reflect additional funding to cover the island’s expenses for accommodating FAS citizens should have been sought through a separate request.

Concerns were also raised on OIA’s plan for Virgin Islands and American Samoa, two US territories which will substantially benefit from the budget increase. Federal officials underscored the need to shovel in money to these island entities to help them battle growing deficit.

Murkowski noted the proposal to give additional $12 million to Virgin Islands, whose accumulated operating deficit swelled to $138 million in 1997, did not indicate if the increase would be earmarked for deficit reduction.

“Had the Department (of the Interior) been as concerned about obtaining better fiscal operations in the Virgin Islands as it was in obtaining funding for the Conservation Trust, it might have been proposed something more substantive than limited technical assistance,” Murkowski said.