‘124 employees will be out of jobs’

Tinian and Aguiguan Mayor Edwin P. Aldan is interviewed by the local media. (FERDIE DE LA TORRE)

Tinian and Aguiguan Mayor Edwin P. Aldan is concerned that, if Gov. Arnold I. Palacios’ proposed budget for the municipality in fiscal year 2024 is enacted, about 124 Tinian Mayor’s Office employees will be out of jobs come Oct. 1, 2023.

Speaking before the House of Representatives Ways and Means Committee’s Fiscal 2024 budget hearing for the Tinian municipality yesterday, Aldan described the proposed budget as “unbalanced” and “frustrating” for the municipality. He said he has been in politics for over 20 years and that he has never seen a budget proposal that excludes a mayor’s office from the general fund.

“Not only is this budget unbalanced but the people of Tinian will not be provided the same public services as the rest of the CNMI,” he said. “We are not simply talking about numbers here. We are playing with people’s lives.”

Aldan said the governor’s submission of the budget provides the Tinian Mayor’s Office with only one full-time employee—or an FTE—and that is his position as mayor.

Moreover, he pointed out, it does not provide a single dollar from the general fund for the operation of the entire municipality.

Aldan noted that there are legal issues involved and that he does not want to sue the Palacios administration. However, if his hands are tied and the people of Tinian are left struggling, it will leave him with no choice but to go to court.

Aldan submitted a budget request of $10.7 million, but Palacios’ budget proposal of $4.6 million, reflects a significant cut of $6.1 million, equivalent to a cut of 57%.

He explained that the Tinian Mayor’s Office has 125 FTEs because they are responsible for operating the library, youth center, dog control division, ID division, ground maintenance of nearly all parks and tourist sites on Tinian, building repairs, new project planning, municipal scholarship, the slaughterhouse, the municipal treasury, emergency preparedness, grant writing and management, the Saipan guest house, military liaison, and planning and budget.

Moreover, Aldan said, they assist every state department and agency, including the Public School System, Marianas Visitors Authority, and Tinian Health Center, by providing personnel through a memorandum of understanding.

Without the Tinian Mayor’s Office’s 124 FTEs, the Tinian municipality “will essentially grind to a halt” as they not only oversee all the state departments on Tinian but they also coordinate with all autonomous agencies on municipal matters.

The mayor said the governor’s proposal intends to include $3 million in American Rescue Plan Act funds that is currently being held in the Tinian Municipal Treasury to cover the difference. Aldan said, however, that, as he had explained to Palacios during the governor’s council meeting, these funds will not be available on Oct. 1, 2023, as most of the funds have already been allocated.

In fact, he said, as of today, they don’t even have a cash balance of $3 million as they have been using these funds for local payroll and operations since the passage of the revised fiscal year 2023 budget.

Regarding the $3 million ARPA funds that Tinian is supposed to use in fiscal year 2024 for personnel and operations, Aldan said that former governor Ralph DLG Torres gave Tinian $3.6 million in ARPA funds last year for Capital Improvement Projects as outlined in the CNMI ARPA Spending Plan. Upon receipt of the funds, the Tinian Legislative Delegation passed Resolution 22-8 identifying the local ARPA CIP projects, to include the veterans cemetery, a new fire station, a Tinian Mayor’s Office warehouse, a multi-sports facility, and Taga and Tachogna beach renovations, to name a few, he said.

The mayor said all $3.6 million was allocated and, prior to the passage of the revised fiscal year 2023 budget, some $600,000 had already been spent or encumbered, leaving a balance of $3 million.

He said it wasn’t until days before the Legislature’s conference committee passed the revised fiscal year 2023 budget did Finance Secretary Tracy B. Norita inform him that these funds were incorrectly booked and, instead of being 604 funds, they were actually 602 funds and could be used for personnel and operation.

As a result, Aldan said, the Legislature removed the $225,000 of operating funds that was supposed to be given to the Tinian municipal departments and passed the revised fiscal year 2023 budget.

He said he further explained to Palacios that he has already reallocated most of the funds as follows:

*$294,000 for payroll for 19 municipal FTEs for the remaining of fiscal year 2023.

*$840,000 for payroll for municipal FTEs for fiscal year 2024.

*$320,000 for fiscal years 2023 and 2024 annual events and ground maintenance for tourists sites.

*$100,000 for professional services for fiscal years 2023 and 2024.

*$400,000 for operations for the departments for fiscal year 2023 since no operating funds were appropriated to Tinian for operations.

Therefore, Aldan said, they expect to only have $849,000 in remaining ARPA funds, which still need to be used for their multi sports facility, veterans cemetery, tennis court resurfacing, guest house operations, and municipal department operations for fiscal year 2024.

The mayor said if the 124 employees will be out of jobs, he will not be the one to explain to the people of Tinian why the governor and Legislature were unable to save their jobs when every other job in the entire CNMI was maintained.

Aldan said his request to the Ways and Means Committee, chaired by Rep. Ralph N. Yumul (Ind-Saipan), is to reinstate all of the 124 FTEs and provide at least $800,000 in operations for the departments.

“If this body is unable to do, come Oct. 1st, 124 Tinian Mayor’s Office employees will be out of a job as I do not have an alternative funding source to keep them all employed,” he said.

Aldan pointed out that, at the beginning of the Palacios-Apatang administration, there were questions or concerns as to how much ARPA funds were remaining. Six months into the administration, he said, there has never been any reporting or accountability as to how much ARPA funds are still available to supplement the general fund for personnel and operations.

He told committee members that they should first hold the administration accountable for the balance of those funds before they eliminate 124 FTEs from Tinian’s budget.

Moreover, Aldan said, there have also been discussions to amend the CNMI ARPA Spending Plan to shift funds to 602 so they can supplement general fund for personnel and operations.

He said Norita stated during the revised fiscal year 2023 budget deliberations that 604 funds have yet to be spent so they (legislators) know there are still tens of millions of dollars of ARPA funds that are unspent.

“Although we might not know the exact balance of ARPA 602 funds, what we do know is that there are still funds available,” he said.

In fact, Aldan said, Senate president Edith E. DeLeon Guerrero (D-Saipan) cited during a recent Senate session a spreadsheet obtained by the Department of Finance indicating that there is $93.4 million in ARPA funds available as of May 31, 2023.

All he is asking is for the Ways and Means Committee to hold the administration accountable for identifying the balance and appropriate the funds for accordingly as it appears there are sufficient ARPA funds available to reinstate all 124 mayor’s office FTEs, he added.

If the proposed budget is truly equitable, then why is his budget cut when his colleague, Saipan Mayor Ramon Blas Camacho, has nearly $7 million in ARPA funds and his budget wasn’t cut, Aldan asked.

“All I ask is that you do the right thing and allocate the general funds fairly,” he said.

Aldan pointed out that many of the committee’s members campaigned and were elected on a platform of accountability and transparency. “Here is your best opportunity to prove to the people of the CNMI that your actions and decisions in passing the [fiscal year] 2024 budget will be fair, equitable, and just for all the municipalities, and people of the CNMI,” he added.