Governor urged to drop some building leases

A member of the House of Representatives is prodding Gov. Pedro P. Tenorio to move some administration offices out of private leases into government-owned buildings in line with the current austerity policy.

More than $1 million are spent annually by the government on lease payment alone on offices of some departments and agencies — money that can help boost savings of the Tenorio administration amid the deepening financial crisis of the commonwealth, according to Rep. Melvin Faisao.

The Department of Labor and Immigration is paying $515,600 each year to rent the office located at Afetna Square in San Antonio, while the Department of Finance is spending $260,000 for the space on Joeten Building in Dandan.

The Public School System is renting an office in Nauru Building for $210,000 yearly and the Department of Public Works, $206,920 at the Joeten in Gualo Rai.

By transferring these offices considered the most expensive to maintain, the government will save about $1.19 million from its shrinking coffers and can be used for other essential services, Faisao said in an interview Friday.

“We should carefully consider this in saving public funds,” he explained. “What are the things eating up the budget of each department? They cannot deliver the services because all of these things are eating up precious taxpayers’ dollars.”

Faisao suggested that the newly built Retirement Fund Building in Capitol Hill should be used to house other agencies that are renting commercial spaces to contribute in the cost-cutting measures of the Tenorio administration.

He said he would ask other House members for support to raise the issue so that other public services will not be imperiled due to the shaky financial shape of the commonwealth.

“This $1.19 million should be used for the lobbying efforts for the protection from federal infringement of our sovereignty,” Faisao said, referring to reports that the administration has decided against renewing contract of the prestigious lobbying firm Preston Gates due to lack of funds.

The government is anticipating a 13.4 percent cut in the 1999 fiscal budget because of the continuos drop in tourist arrivals and the closure of more than 1,000 businesses on the island that have pulled down its revenue estimate in the next few months.

While the governor has ruled out lay off of government employees — payroll accounts for about 75 percent of the entire budget package, lawmakers are trying to seek other means to reduce public spending and boost savings.

Earlier, the House has urged Finance Sec. Lucy DLG Nielsen to make an inventory of government cars and determine the need for what it considers luxury vehicles at this time of economic difficulties. At least $1.5 million is allocated for car leases under the 1999 budget submission.

The Northern Marianas is suffering from its worst crisis in years spawned by the year-long economic upheaval in Asia, its main tourism market and source of investments.