Territorial highlights emerge from Obama’s budget

WASHINGTON, D.C.—President Obama released his budget proposal for fiscal year 2015 yesterday and highlights for the Northern Mariana Islands and other U.S. insular areas were to be found within the hundreds of pages outlining the President’s plans and detailing individual agency’s spending.
Among the proposals particularly aimed at the insular areas were an exemption from Medicaid funding caps to support fraud control units, a continuation of the higher set-aside for water and sewer funding from the U.S. Environmental Protection Agency, and an increase in technical assistance monies managed by the Office of Insular Affairs at the Interior Department.

“I appreciate that the President was able to respond to the request the delegates sent him for increased funding for technical assistance this year,” Sablan said. “While $3 million is not much in the context of the entire federal budget, targeted in the insular areas that money can make a difference.”

Technical assistance funding from the Office of Insular Affairs was one of the financial lifelines that has helped the Northern Marianas hospital work through its certification problems.

“Another area of particular importance to us is a proposal to expand Early Head Start-Child Care Partnership and a request for an additional $120 million to strengthen Head Start. It is well established that children who are able to receive educational services at a very early age do better all through their school years and into later life. We want as many children as possible in the Northern Marianas to have that advantage.”

The President’s budget also calls for continuation of the 1.5 percent set-aside for insular areas from the Clean Water and Safe Drinking Water grant programs. The set-asides jumped from 0.28 percent and 0.33 percent, respectively, in fiscal year 2010 after Sablan made improved infrastructure funding a priority. Since then the Northern Marianas has received over $35 million and achieved 24/7 water service on Saipan 94 percent of the time.

The President’s budget also supports lifting the cap on federal Medicaid expenditures in territories for the purpose of setting up fraud control units. Ten million dollars is allotted for this purpose over 10 years. “Medicaid Fraud Control Units have demonstrated success in recovering Medicaid dollars,” the budget reads. Territories would also be exempted from the statutory ceiling on quarterly federal payments for the units.

The President’s budget submission to Congress is a first step in the annual process of funding the federal government. Next, congressional subcommittees will begin writing the legislation that actually appropriates money; and Members of Congress, who have been lobbying the President for inclusion in his budget, will shift their focus to their colleagues, the appropriators, who make the call on which programs should be funded and at what amounts.

Fiscal year 2015 begins on Oct. 1. (Office of the Delegate)