Teno eyes more belt-tightening

Due to continuous harsh economic conditions on the island, Gov. Pedro P. Tenorio is eyeing further cost-cutting measures he has put in place over the past 20 months to boost savings of the cash-strapped government and improve delivery of services to the community.

“The austerity measures really help us because we were able to reduce all the unnecessary expenses and we have to continue providing the essential needs of the public,” he said in an interview.

Among the critical areas that his administration plans to increase funding include the medical referral program, police and public schools, which have been asking for larger share of the government budget.

According to the governor, almost all the departments and agencies have requested additional money to meet their obligations to the public and provide efficient service.

“Whatever money we save, of course, will be made available to those … that immediately need them to continue providing the public service,” Tenorio explained.

Asked whether he plans to continue the austerity program, the local chief executive said that it will always be part of his administration. “Everybody, even the business sector, is now trying to save money, too,” he added.

So far, the administration has cut government expenditures by over $19 million in the last two years, most of which from reduction in the professional service contracts.

Finance officials credited the savings to the belt-tightening efforts being implemented in efforts to continue providing services to the public as well as to ease the financial woes confronting the Northern Marianas.

Expenditures from the professional service contracts reached a high of some $28 million during the last year of the administration of former Gov. Froilan C. Tenorio, which the current government has been able to pare down to about $8.65 million in 1999.

These savings were part of an analysis of the professional service contract expenditures for FY 1997 to 1999 conducted by the Department of Finance. The analysis revealed a downtrend in professional services expenses in most departments and agencies, except for the Legislature and the Office of the Mayor on Rota.

Other savings have also been realized in the reduction of the number of leased cars and cellular phones being used by government officials.

The island has been hit badly by the prolonged economic recession in Asia, its main tourism market, that has forced closure of several businesses and plunged down government revenues since late 1997.