‘64-hour work is the best option’

The Department of Finance made the correct changes to project a 64-hour work schedule instead of the earlier projected 72 hours, according to press secretary Kevin Bautista yesterday.

He said that implementing the 64-hour work schedule is the best option available without sending government employees home on furlough and protecting the retirees’ pension, he added, responding to what Sen. Paul A. Manglona’s (Ind-Rota) raised during Monday’s Senate session.

He also said that Manglona continues to politicize the economic downturn by bringing up the deficit issues once again.

In talking about the austerity measures, Manglona had said at the Senate session that the CNMI government appears willing to impose a 16-hour cut for government employees, yet remains silent about the whereabouts of the $40 million that Imperial Pacific International (CNMI) LLC owes the CNMI people.

Bautista said the Division of Revenue and Tax and IPI have already come to a settlement agreement on its taxes, so the enforcement mechanism has remained. Bautista said they continue to work with the Commonwealth Casino Commission in requiring IPI to meet its business requirements while also allowing them to maintain their viability.

“At a time when we need economic development for both the short and long terms, we need to ensure the viability of all of our businesses so they can turn their success into government revenue,” he said.

The press secretary said Manglona once again fails to understand the gravity of the CNMI’s unanticipated economic circumstances.

Bautista said the administration’s decision to implement the 64-hour work schedule is based on an accurate and realistic estimate of the revenue loss of $48.3 million due to the novel coronavirus outbreak. He said this is taking into account the full loss of Chinese tourists for the rest of fiscal year 2020.

“Once the outbreak is contained, international economic analysts project that there will be pent-up demand for travel, so we remain hopeful that our tourism market rebounds quicker than what we have conservatively set in order to protect the health of our residents,” Bautista said.

He said Finance has been monitoring the government’s cash flow and revenue streams closely since the outbreak started, so they have the most accurate numbers in order to make a decision that protects people’s health while keeping public services open.

Bautista said the senator has no basis for calling out Gov. Ralph DLG Torres’ budgetary decision because they communicated with the Legislature before this announcement of austerity measures was made and ensuring that accurate projections will justify the decision.

He said the original estimate by Finance last week projected a 72-hour work schedule, but then due to the outside factors affecting the economy, the revenue loss was projected to be larger after the World Health Organization classified the outbreak as a global health emergency. This, Bautista said, effectively shut down the CNMI’s second largest market, China, altogether.

He emphasized that the persistent deficit spending on Medical Referral happens every year because of the various needs of the economy and places the administration in a position of either exceeding the statutory appropriation or denying essential healthcare services to people.

Bautista said while the administration and the Medical Referral Office are continuing the hard work of instituting changes to reduce overall costs associated with off-island treatment of critical conditions, deficits will continue to grow unless the Legislature puts in the statutory changes needed to cut down on Medical Referral’s spending control, which is mandated to take care the varying needs of critically-ill patients.

Bautista said it is crucial to the advancement of the islands to be truthful in the assessment of responsibility.

“As Gov. Torres has stated, as leaders in the government, we all share in the responsibility to ensure the allocation of resources and the provision of services provides for the needs of our people,” he said.

The administration vowed that financial recovery will be implemented once this outbreak is contained.

Bautista said it’s easy for Manglona to throw rocks from the sidelines yet the senator has been in the Legislature for decades and hasn’t held an executive position to deal with these decisions.

“Politics and blame are helpful to his cause in the short-term, but real leaders take time to ensure accuracy in its revenue projection, maintain public services and retirees’ pensions, and prioritize the public health of our islands,” he said.

Bautista said Torres and Lt. Gov. Arnold I. Palacios will continue to do this difficult, but important work.