Summit starts to right-size NMI finances

As Commonwealth leaders met yesterday in a five-day online summit to discuss the $65-million revenue shortfall this fiscal year, and the ways in which the government could cut costs to avoid a deficit in the future, one thing is resounding—that politics must be set aside.

For the first time, according to Gov. Ralph DLG Torres, the CNMI is congregating to right the direction of its finances, after the accumulation of obligations, expenses, and practices that have been left unchecked since the Trust Territory government of the ’70s.

“We have all voiced at one time or another our thoughts on needs for reform, that the government is too bloated, that we must reduce expenses, that we must increase revenue. Now, this is the time to put these thoughts into action,” he said in his opening remarks.

The governor extended an olive branch, and expressed optimism that all can come to a mutual understanding, and work together, to address the issues that has befallen CNMI.

“I believe we can do it, and I look forward to working towards coming together, both public and private, minority and majority, to put our community first and charting our path forward together,” he said.

The governor called for the fiscal summit, in coordination with the Fiscal Response Task Force and Graduate School USA, to provide for an avenue for the islands’ leaders and stakeholders to work collaboratively on policy options in response to the fiscal crisis in the CNMI.

‘The fiscal crisis is real’

“I would like the working group to consider the fiscal crisis—that it is real.”

Thus said Senate President Victor B. Hocog (R-Rota) who urged the CNMI’s political and business leaders to acknowledge the fiscal crisis, and the bloated government that needs to be seriously worked on.

In his opening statement, Hocog stressed the need to review the size of government, to ensure the right size for the government, without hampering the services for the people of the CNMI, and called for the review and merging of departments and programs that show duplication of function.

The Senate president also proposed to consider reducing the number of lawmakers, and that every law must be evaluated for its impact to ensure that no financial burden will be added to the government without proper funding.

Hocog also asked the working group to “properly budget our law enforcement departments, and either provide adequate funding for overtime, or hire more officers to protect our community.”

He also recommended addressing the medical referral program, the creation of a Department of Information Technology, and the need to require the CNMI government to build a rainy day fund to get through disasters and other emergencies.

Respetu yan inaguiaya

“Shutdown cannot be an option because access to justice is crucial to our people today more than ever,” said Chief Justice Alexandro C. Castro. “…The people need the court system to seek justice, to preserve human dignity, and to uphold order, peace, and good governance.”

He reminded government officials that in the performance of its duty, they must apply the norms and values of “respetu yan inaguiaya,” by preserving the principle of checks and balances, and by adhering to the doctrine of separation of powers.

“For the Commonwealth to function smoothly as intended by the U.S. and CNMI constitutions, the Judiciary must be treated at all times as co-equal with and independent of the executive and legislative branches, and not as a department, agency, or instrumentality of the CNMI government,” he added.

Castro said the recent budget cut of 48% “pierces the heart of the Judiciary’s independence” as it effectively shuts down the third branch of government.

“Our fiscal projection indicates that it would be an impossibility for the court to perform its constitutional and statutory duties—no one will be left to supervise the probationers; the Drug Court will cease to exist; the Family Court Division services will come to a complete halt,” he said.

The public will no longer have access to official and pertinent documents, and that the doors of Kotten Tinian and Centron Hustisia on Rota will also be closed to the people. “With restrictions in movement due to COVID-19, domestic violence and sexual abuse are likely to surge. Lost income and unemployment may lead to a rise in property crimes. Without adequate treatment and supervision, drug court participants are already relapsing.”

In proposing ideas to help the government, Castro recommended that the legislative and judicial branches be given a lump sum budget, with 100% reprogramming authority, for both branches to be provided greater flexibility in addressing its internal needs.

He also recommended changing the Office of Management and Budget’s system of monthly budget allocation, stressing that the system amounts to the micro-managing of funds that have already been appropriated.