Further reduction of poker machines will ‘kill’ SHEFA

Saipan Higher Education Financial Assistance board members Frank Cabrera, left, and Ray Muna, second left, listen to vice chair Juan Tenorio, third left, while chair Oscar M. Babauta reads a section of their agenda in yesterday’s meeting held at the Saipan Mayor’s Office conference room. Not in photo but also present in the meeting is SHEFA board administrator Melissa Rasa. (Jon Perez)

The Saipan Higher Education Financial Assistance would be gravely affected if ever remaining poker game room operators reduce their machines or worse shut down their operations. This would create a domino effect since SHEFA’s funds, which help Saipan students with their college education, come from poker license fees.

Taxes paid by poker machine operators are SHEFA’s lone source of funds, which they distribute to assist Saipan students with their college education either here on Saipan, the mainland U.S., or Guam.

SHEFA chair Oscar M. Babauta said they must be ready to explore ways on how to get funds aside from the poker industry, especially when Best Sunshine International, Ltd.’s Grand Mariana Resort gets fully operational next year.

Babauta said the local poker industry would greatly feel the impact with operators saying they are seeing the natural death of their business. That’s why House Local Bill 19-66, introduced by Rep. Francis Taimanao (Ind-Saipan), aims to help them.

Taimanao’s local bill aims to amend a provision on Saipan Local Law 18-05, which mandates the poker industry to move to the Adult Gaming Zone’s geographical location in October next year. Taimanao wants to prolong the move in the next three to four years.

“They wanted to prolong the movement to another three to four years. They wanted to allow themselves time to see if there’s an impact [in the poker industry]. [Poker] operators would soon make a choice of either reduce [machines] or close their operations,” said Babauta.

“If that happens, SHEFA is doomed financially. The SHEFA program has no other revenue source other than the poker industry. The CNMI continues to gain in the poker industry that’s why we’re going to work hard to resolve the funding issue,” Babauta added.

In general, the CNMI government gets $8.4 million in poker license fees with $3.2 million to $3.4 million going to SHEFA, while $5 million is appropriated to other agencies.

The impending decrease on SHEFA’s funds worries students like Jonathan Reyes Pangelinan. The Mt. Carmel School High School valedictorian is set to begin his studies in computer science at Seattle University this fall.

He said he wasn’t aware of SHEFA’s situation. “I actually wasn’t aware that was the case with SHEFA’s funds.”

SHEFA’s current predicament had him worried about his future and the rest of his classmates who are also under SHEFA. “I actually am, since it’s one of the very few sources for financial aid on Saipan I’m putting trust into.

“And if it can no longer help me, it could be very difficult on my end. And from the amount of people I know who applied for it too, they will be heavily affected, as well,” said Pangelinan, who added that about half of their graduating class at MCS is under the program.