CNMI charges U.S. with strong-arm tactics

A Washington proposal substantially reducing funding for infrastructure projects in the Northern Marianas has alarmed CNMI officials, calling it a ploy to force the commonwealth into accepting a plan on federal takeover of labor and immigration.

The 51 percent cutback, unveiled in the Fiscal 2000 spending package President Bill Clinton has submitted to the US Congress for approval, would pare down to $5.6 million the $11 million yearly appropriation to the local government for Capital Improvement Projects.

Local officials are worried that if the White House proposal goes through, it would adversely impact the commonwealth’s seven-year CIP master plan, which funds will come from federal grants.

“They are trying to intimidate us and the best way to do that is to take away the money,” Senate Vice President Thomas P. Villagomez said in a telephone interview. “They see it as a best way to hurt the CNMI.”

Based on the Clinton administration’s spending plan for next fiscal year, $5.4 million of the Northern Marianas’ allocation for construction grants will be realigned to augment Guam’s appropriation as payment for hosting Micronesians under the Compact-Impact Agreement. This would bring to $10 million the $4.6 million yearly budget the neighboring island receives from the US for its infrastructure program.

“It’s very unfair that the federal government is taking away its commitment to the commonwealth. The OIA was involved in drafting our CIP priority list, but now they are sabotaging the plan,” Villagomez said.

Sources from the administration raised some questions about the timing of the budget submission which came after the Saipan and Washington failed to reconcile huge gaps in resolving problems on local immigration and minimum wage.

Talks between the two sides collapsed last month when CNMI refused to accept a proposal to draft a new legislation that will extend US laws on such policies to the commonwealth.

“The budget cut should not surprise us anymore. The United States will flex all its muscles to get what it wants. The feds know we will not accept the takeover so they are trying to pressure us,” a well-placed source from the administration said on condition anonymity.

Dissatisfied with the failure of the past administration to use up millions of dollars in CIP funds provided under the Section 702 of the Covenant, the Office of Insular Affairs has prodded incumbent leaders to come up with project lists to ensure that grants are utilized.

Fifty infrastructure projects amounting to $154 million have been lined up in the master plan, which was put together with the help of the US Army Corps of Engineers.

Gov. Pedro P. Tenorio was unavailable for comment, but administration sources said the CNMI leader is preparing a letter to respond to federal officials’ comments on the failure of the CNMI to spend the funds.

According to Lt. Gov. Jesus R. Sablan, who led the CNMI panel in last month’s 902 negotiations with White House representatives, the commonwealth is “very much hurt” by the proposal at a time when the island economy is suffering from the worst recession in years.

“Our economy has declined substantially. The revenue drop has hampered the ability of the government to come up with the matching requirement,” Sablan said.

“I think it would be terribly wrong for the US side to diminish…the CIP money,” he added, “I hope the US Congress will support the people of the Northern Marianas.”