Inos reports on govt finances at Chamber meeting

Lt. Gov. Eloy S. Inos delivered yesterday a state of the Commonwealth government finance address that was a mixture of good and bad—a surplus of $1.06 million in the first quarter of fiscal year 2012 but possible deficits in the next quarters, as well as a projected budget of still $102 million in fiscal year 2013 but one that calls for consolidation and elimination of certain government positions.

Inos, one of two guest speakers at the Saipan Chamber of Commerce’s general membership meeting at the Saipan World Resort in Susupe yesterday, said that while the first quarter of 2012 was “good,” it “could have been better” without overspending in utilities and medical referral costs.

“If we maintain this trend [of quarterly surplus], we’re looking at a good year…We could avert deficit which we can’t afford to see,” he said, adding that the separation of the now Commonwealth Healthcare Corp. from the general fund is among the reasons behind the rosy picture in October to December.

Inos, who oversees government finances, said that government agencies are being asked to consolidate functions to eliminate certain government positions, promote efficiency, and reduce government size.

Douglas Brennan, president of the Saipan Chamber of Commerce, said it’s a difficult task for the government to reduce the size of the Legislature, for example, despite the release of U.S. Census data that shows a considerable decrease in population.

“I don’t think they will cut their own throat,” he told the members, adding that he himself feels “overrepresented.”

Rep. Joseph Palacios’ (R-Saipan) initiative seeking to reduce the number of Saipan members in the House of Representatives from 18 to nine remains with a committee, and some businessmen think 2012 being an election year would make it harder for lawmakers to pass this initiative for voters’ ratification.

Brennan reiterated that the government needs to run as a business.

Inos said the administration is reviewing the Census data and the issue of reapportionment. An opinion from the Office of the Attorney General has yet to be completed.

In response to a question from the audience, Inos said the public has lots of opportunities to participate in helping save the NMI Retirement Fund, which Brennan described as a “ticking time bomb.”

“You don’t need to wait for the Legislature,” he said, referring to a popular initiative.

Inos also brought up the idea of a legislative initiative that he said provides the public an opportunity to participate.

He said a government debt is public debt, referring to the $300 million that the government owes the Fund.

Inos cited some positive things in the horizon, including the planned launching of Tan Holdings’ Saipan Air that’s expected to boost tourist arrivals.

Brennan, in his message to Chamber members, said E Land Corp.’s purchase of Pacific Islands Club, The Palms, and the old La Fiesta Mall is “great news.”

“Someone from the outside still views the CNMI as a business investment worth the time, energy and money,” he said.

Brennan also cited the new owner of Ladera School who has expressed interest in bringing investors from Los Angeles and China to the CNMI in mid-March.