…as MVA escapes the axe

Gov. Juan N. Babauta yesterday exempted the Marianas Visitors Authority from the 8-percent reduction in the quarterly allotment of all government agencies.

The exemption was apparently made in efforts to allow the MVA to launch an intensive marketing and promotional activities, which are hoped to realize the Babauta Administration’s goal for one million tourists.

Babauta earlier instructed an 8-percent across-the-board reduction in the quarterly allotments of government agencies, in line with his administration’s renewed call for austerity.

Citing the MVA’s role in the revival of the Commonwealth economy, however, the Governor agreed to exempt the MVA from the budget cuts. He also earlier exempted the Public School System from the 8 percent quarterly allotment reduction.

Babauta approved the MVA’s request – made by Board Chair Dave M. Sablan – during the proclamation signing for the Tourism Month yesterday morning.

“We appeal to the government that a waiver from the 8-percent reduction on budget be given to the MVA. Our job is twice as difficult, and being the productive arm of the administration, we need to promote the CNMI,” Sablan told Babauta, Lt. Gov. Diego T. Benavente and Rep. Frank Aldan.

Sablan, who informed the Governor that a formal request will be made so as not to pressure the government to award the exemption without due discussion, received an affirmative response from Babauta after a five-minute closed-door meeting.

“We received complaints from a number of agencies that wish to be exempted from the cuts. These cuts have to be made across the board and only the PSS was spared from that. Yes, we will grant you the exemption,” Babauta told MVA officials.

The MVA’s quarterly allotment of $482,000 or 8-percent of its original budget will be restored to help the agency defray promotional and marketing activities abroad.

MVA officials said that although they recognize the need for these reductions, there is also a need to infuse more money to the agency’s advertising campaign to help the CNMI compete against other Asian and Pacific destinations.

Last month, the administration issued a memorandum ordering the Office of Management and Budget and the Department of Finance to closely monitor the overall financial situation and to reprogram funds when necessary.

“This reduction puts us in a very difficult situation, especially with respect to the Department of Public Safety and the Department of Public Health, which are both seriously under funded even before the cuts. I have asked the Legislature to give me unlimited reprogramming authority over executive branch funds,” stated the memorandum.

It explained that reprogramming from other agencies will be necessary to enable the DPH and the DPS, to continue providing essential public services throughout the fiscal year.

The projected revenue for the current fiscal year is $13.6 million less than previously estimated, it pointed out.

The Legislature had been advised that total projected resources are reduced from $206,974,997 to $193,369,114, which represents a total reduction of 6.57 percent.