Open letter to the people of the CNMI

Editor’s Note: The following was originally published in the opinion section of the Saipan Tribune in June 2016. It is being republished here at the request of the author. Due to its length, it is being published in two parts.

First of a two-part series

The following is my personal views and concerns that I feel should be brought to the attention of the business community and to our elected leaders. I sincerely hope that there will be collaborative effort between leaders of the business community and our elected leaders. I am concerned about what will happen to our economy if we do not act forthwith and solve the difficult labor issues facing us today.

For years we have been aware of the eventual phase-out of the CW-1 program, but we probably did not consider the serious consequences facing our economy. There has been one extension granted to the CNMI on the CW phase-out. The federal government was hoping that local residents would take on the needed manpower to boost the economic development. The influx of investors, especially in the area of tourism, is flourishing and will continue to flourish to a point where available local workers are unable to meet the demand.

The growth of our economy indispensably requires the importation of nonresident workers. I find the need for more workers still exists today. The only solution is to restrict further growth of our economy. Obviously, that is unrealistic.

I have therefore prepared the following points in hope to truly assess where the deficiency lies, find an acceptable balance to continue our economic growth, and its need for more workers.

Can we operate within our means?
Over the past decade or so, the CNMI has suffered financially to a point where it was unable to meet its obligations. The financial deficiencies still exist today. This problem needs to be dealt with by the Legislative Branch, the Executive Branch, the Saipan Chamber of Commerce, and other organizations in the CNMI.

We are all aware of the serious financial liability that the CNMI government is presently facing. It is inevitable that such liability must be shouldered by all of us living in the CNMI. I have not been able to pinpoint the exact amount of that liability but I am sure it is in the millions. I suggest the appropriate agency of this government prepare a financial statement. We must all work together and find the least painful way to resolve the serious financial crisis of this government, lest we forget that the financial obligations of this government is, in fact, the obligation of every taxpayers in the CNMI.

One solution that would ease the financial tension is to reduce the cost of operating the government down to the departmental and division levels—reduce the number of government employees to a bearable level and arrange with businesses to absorb them. Provide for a program where business firms will train the new locally hired employees. This would solve the needed reduction of operating costs to the government while the private sector would gain someone who may be permanently employed.

In Guam, for instance, its legislature is unicameral, with 15 senators. Guam’s population is about 175,000. Here in the CNMI the estimated population is about 55,000, including nonresidents. We should seriously consider reducing our number of senators and House members to, say, six and 10 members, respectively. The lawmakers could meet 10 working days per quarter and be paid $100 per diem. Reduce the number of Legislative Bureau staff to four attorneys and eight to 10 supporting staff and have them work permanently. The Legislature might be able to operate on a budget of, say, $1.5 million per annum. The excess number of employees can be absorbed by the private sector.

I fully recognize that the above scenario might be construed as “ridiculous” by some. However, as a taxpayer, it is critically important that we have to find a way to reduce the expenses of operating our government. What I am suggesting is probably next to impossible but how else are we going to cope with the needed manpower in the private sector?

We need to know the answers to the following questions. We will then be in a much better position to fine-tune the overall manpower needs of the CNMI.

What is the total number of workers in the CNMI government?

What is the total number of resident workers presently employed in the private sector?

What is the total number of CNMI residents who are unemployed?

How many CW-1 workers does the CNMI have at the present time?

What is the estimated number of additional workers needed now?

What is the estimated number of additional workers needed annually as of 2018?

According to U.S. Homeland Security/Immigration, the CW program will be phased out by 2019. Perhaps the business community should consider converting some, if not all, to H-1 and H-2 categories.

To be continued tomorrow

David M. Sablan Sr. is a former president of the Saipan Chamber of Commerce and a retired executive of TanHoldings Corp.