Fitial revises proposed redirected CIP funds from $4.35M to $3.5M

Gov. Benigno R. Fitial wrote a second letter to Interior Assistant Secretary for Insular Affairs Tony M. Babauta, reducing the amount of capital improvement project funds he wants redirected-from $4.35 million to $3.5 million-as well as to change the “redirected use” from paying utility bills and paying the salaries of doctors and nurses to that of helping the Commonwealth Utilities Corp. comply with a consent order.

Press secretary Angel Demapan said yesterday that Fitial’s April 16th letter to OIA’s Babauta “supersedes” the Feb. 18th letter.

The stated purpose also changed, he said.

But just the same, the U.S. Department of the Interior’s Office of Insular Affairs is still reviewing Fitial’s letter requesting for redirection of CIP funds from the Puerto Rico Dump closure project.

OIA said on Wednesday that CIP funds “cannot be used for operational expenses of the CNMI government.”

Fitial’s first request letter wanted to use over $4.35 million in redirected CIP funds to pay public school and hospital “utility costs,” “housing allotments for doctors and nurses,” and hospital “payroll allotments.”

The governor’s second letter asks OIA’s Babauta to redirect $3.5 million in 2006, 2007 and 2008 grant awards for the Puerto Rico Dump closure project to CUC, specifically for its capital improvement requirements “related to compliance with the United States Environmental Protection Consent Order.”

“In order to ensure appropriate funding of the Puerto Rico Dump closure project, it is the Commonwealth’s intent to restore these redirected funds with an amended FY 2013 CIP grant application,” Fitial told Babauta in a one-page letter.

The proposed redirection of $3.5 million includes $87,294 previously given to the Puerto Rico Dump closure project in grant year 2006; $2,990,160 from 2007; and $422,546 from 2008.

Fitial asks OIA to provide flexibility to the CNMI in the use of grant awards “in order to meet critical needs of the community.”

Rebecca Zepeda, policy advisor at OIA, earlier told Saipan Tribune in an email interview that Fitial’s request “is still under consideration.”

“However, OIA recognizes that a recipient’s Capital Improvement Project (CIP) priorities may change due to unforeseen circumstances. As a result, from time to time, CIP funds could be requested for redirection from their original purpose to facilitate the efficient and effective use of grant funds,” she said.

Zepeda said the CNMI currently has $52 million in unspent CIP funds.

At $52 million, the CNMI is the territory with the highest amount of unspent CIP funds, Zepeda said.

Delegate Gregorio Kilili Sablan (Ind-MP) earlier said that by end-September, the CNMI will have a total of unspent CIP funds of $54 million.