Questions remain over $2-M Compact money

If the $2 million Compact impact money was included in the projections for the continuing resolution, then the Governor has every authority to expend that money without supplemental appropriation.

However, if it is not included in the projection identified as revenue for this fiscal year, then the expenditure of that fund should have been forwarded to the Legislature for appropriation.

House Speaker Heinz S. Hofschneider pointed out these points when asked to comment on the recent motion adopted by the Saipan and Northern Islands Legislative Delegation questioning Gov. Juan N. Babauta’s decision to allocate the Compact impact money to finish the stalled construction of the Tinian High School.

The Office of Insular Affairs made the $2 million available to the CNMI in February this year and Babauta had said he would allocate the entire amount to the Tinian High School. The delegation, however, agreed Thursday last week to question the Governor’s move, saying it is Saipan that is most impacted by the Compact of Free Association. At the same time, they pointed out that only the Legislature has the authority to allocate the money since it has the power over the government’s purse.

Lt. Gov. Diego T. Benavente insisted, though, that what he and the Governor did was merely to live up to their commitment to education and they both felt at that time that the Tinian High School needed the money more.

“The project has been stalled and has never been completed and we saw the need to put the money on the project directly and get that job over with. It’s a priority in education and that’s what I would say as far as supporting what the Governor did with that money,” he said Sunday.

As to the question of legal authority in the expenditure of the fund, Benavente said that that issue remains to be looked at “but we still think that that [Tinian High School] is where the money was needed most.”

Although he was not present during Thursday’s delegation session, Hofschneider described the delegation’s motion as “interesting” because he was just writing a letter to the Governor to ask for his assistance in mitigating some of the impact of the Compact on Saipan, which he declined to specify.

“I hope they haven’t exhausted that money yet,” he added.

When asked about this, Benavente said he is not aware if the money has already been expended or exhausted.

The Compact allows other U.S. territories to enter the Commonwealth freely, resulting in a massive influx of people from Micronesia and other territories. This has resulted in higher than expected demands for education services, health care, and other Compact costs.