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‘Cut $2M spending on off-island hires’ perks’
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Posted on Nov 21 2011
If Rep. Ralph Demapan (Cov-Saipan) would have his way, he would reduce the government’s estimated annual spending of $2 million in housing, expatriation, and repatriation benefits for most off-island hires by limiting the applicability of these perks.
Among other things, he is proposing that housing allowance benefits for off-island hires and those hired within the CNMI and transferred to a post outside the CNMI shall not exceed five years.
Demapan said the government’s present financial circumstances “can no longer sustain the benefit package” being offered to off-island hires and employees hired within the CNMI and transferred to a post outside the Commonwealth.
From Oct. 1, 2010, to Aug. 24, 2011, the government spent some $1.76 million in housing, expatriation, and repatriation benefits alone, Demapan said.
“In essence, the general fund expends approximately $2 million annually for these benefits,” he said.
Demapan concedes, however, that the government needs to recruit qualified professionals fro certain jobs and the need to maintain some benefits.
If Demapan’s House Bill 17-239 becomes law, a repatriation ticket will only be given upon the employee’s full separation from government, and employees shall not receive cash in lieu of repatriation tickets.
Demapan also proposes that housing allowance for off-island hires and employees hired within the CNMI and transferred to a post outside the CNMI will be given to employees upon their separation from his/her initial hiring and transfer to a new place of employment within the CNMI government.
The Commonwealth Healthcare Corp. is also considering scrapping the housing perks currently being provided to hospital workers who were hired from off-island because of the health organization’s shaky financial condition, but there is no final decision on this matter yet.
Public health provides $800 monthly housing allowance to employees who were hired from outside the CNMI with dependents, while $600 is provided each month for single employees. Over 200 personnel presently get this allowance, most of them nurses.
