Discontinue the continuing illusion

On Sept. 10, 2002, Public Law 13-24 pegged the Commonwealth budget at $213 million for fiscal year 2003. Two fiscal years came and passed, but there has been no change in the spending level of the Commonwealth. The spending level for fiscal years 2004 and 2005 was $213 million and 2006 will be the same under continuing resolution. The continuing resolution, in my opinion, is synonymous with “continuing illusion.”

On April 1, 2005, the governor submitted the proposal FY 2006 budget. The proposal contains expenditures of approximately $226 million, although the Department of Finance projected a little over $206 million available as General Fund resources for FY 2006. It does not take a rocket scientist to do a simple subtraction and come up with a shortfall of approximately $20 million when you are actually looking at $206 million.

What is the governor’s solution to make up the shortfall? Well, let me tell you. One, increase the poker fees by $6,000 so the operator will be paying $18,000 per machine each year. This will generate approximately $8 million. The projection assumes that although you raise the poker fees by 33 percent the number of licensed poker machines will absolutely not decrease. This is a scary assumption!

Two, suspend the earmarking of all poker fees, a little over $8 million from local funds. Do you understand this proposal? Each senatorial district (Saipan, Rota and Tinian) in the Commonwealth collect poker fees pursuant to each island’s local law mandating that the operator pay, in addition to the Commonwealth law of $6,000 per machine, another $6,000 per machine which goes into a local fund for each island for appropriation by its respective legislative delegation. For better understanding, I’ll use Saipan as an example. Under the existing laws, the poker operator pays $12,000 per machine and $6,000 of it goes into the general fund and $6,000 goes into Saipan’s local fund. The general fund revenue is appropriated by the Legislature and the local fund is appropriated by the Saipan and Northern Islands Legislative Delegation (commonly referred to as SNILD).

Earmarking the poker fees means all the local poker fees for Saipan, Tinian, and Rota will be transferred into the general fund account for general appropriation. This will kill the Saipan Higher Education Financial Assistance (Mayor of Saipan scholarship) for the students from Saipan. Moreover, it will take all the appropriation power from the SNILD, Rota and Tinian delegations as well, and funds for important local pet projects will become a thing of the past.

Third, suspend earmarking of Tobacco Settlement and Control Funds. This proposal will make available a little over $2 million for general appropriation. Again, this idiotic proposal will take all the funds away from the programs envisioned by Public Law 13-38 (monitoring of morbidity and mortality from cancer and other tobacco-related illnesses; prenatal and maternal care, incorporating smoking cessation assistance and guidance regarding the harmful effects of smoking on fetal development; comprehensive school health education programs, to be administered jointly by the Department of Health and the Public School System relating to the hazards of tobacco use by CNMI youth; and workplace-based and community smoking prevention and smoking cessation programs, for tobacco-related public service advertising and education programs, to be administered by the Department of Public Health). The life of these programs will end should the Legislature heed the governor’s proposal. Is the Public School System the only important department in the Commonwealth?

Finally, the governor wants all the Tobacco Control Fund balance, approximately $2 million, transferred into the general fund. Again, the intended purposed of the funding will be terminated.

Simply add the governor’s proposed additional funding with what the DOF estimates is available for FY 2006, and you will get approximately $226 million. The governor wants all the eggs (even “guero” ones) in one basket so that he can deliver the “$50 million” promise to the Public School System at the expense of the other departments.

The House passed a House concurrent resolution setting the spending level for FY 2006 at $206 million. The Senate on the other hand, is waiting for…I don’t know what!

My dear public servants put together a $206 million budget for FY 2006 so that the government expenditure can be put in check. The continuing illusion of $213 million must stop because the economy is not darn good. Do you want greater public debt so that your children’s children and theirs will be burdened due to your irresponsible act? The $50 million promise is unrealistic and irresponsible to say the least. Simple math tells it: $213 million minus $206 million equals $7 million. The $7 million dollar shortfall should be shouldered by everyone. This is the only responsible thing to do.

Are you irresponsible?

Alfonso Dela Cruz
Kagman, Saipan