Economic demise of NMI

The governor’s financial consultant explained last week the dismal fiscal posture of the local government. The revised FY `99 budget of $210 million would be cut down further to about $100-150 million, discounting direct revenues of some $40-60 million CPA and CUC receives from the garment industry, annually. If by circumstance the local government must further cut the current fiscal year’s budget, it means $40-60 million less in revenues to meet current public services and payroll. The lead industry (apparel) is the last hope to sustain current levels in revenue generation. But local leadership isn’t prepared to bite the bullet to save it from crumbling into pieces.

IF AND WHEN the garment industry shuts its doors, we know by heart that it also means a lot of employees in both sectors would be jobless for as long as five to ten years. MORE THAN $100 MILLION OF THE $210 MILLION 1999 BUDGET FOR THE CNMI GOVERNMENT COMES FROM GARMENT REVENUE COLLECTIONS. The greater question is: What does local leadership plan to do in proactive fashion to save the NMI from sinking into a total economic meltdown? Do we continue promoting the NMI’s tourism sector that isn’t likely to rebound until about the latter part of 2002? Just where do we invest hard to come by resources to stave-off any further assault of the NMI’s economy?

Lest anybody forget, the number of government employees is more than 4,000 strong. Local government spends $600,000 per hour to ensure that its well-paid brigade bring home the bacon to their families every ten days. At a minimum, government payroll requires some $126 million per year. IF AND WHEN THE GARMENT INDUSTRY DISAPPEARS, THERE WILL BE NOT ENOUGH MONEY IN THE GOVERNMENT BUDGET TO PAY FOR THE GOVERNMENT PAYROLL.

Imagine how many would have to be victims of reduction in force (RIF) if the annual budget is further reduced by as much as $100 million. Many would be jobless and helplessly destitute! In the middle of a deepening crisis, local leadership can’t simply be contented that the steep revenue downturn is a natural expression of the ups and downs of economic life. It must responsibly intervene to save the livelihood of its people before the unemployment line stretches beyond the length of the Marianas Archipelago. It must immediately forge a partnership with the private sector to retain the services of a PR firm in Washington to ward-off all last ditch efforts to sink the last remaining industry here from crumbling into deployment to friendlier investment venues.

Understandably, this matter is awfully difficult to undertake given our poor financial posture. But it is no longer an option either. It’s a matter of dire necessity. Lest local leadership forgets, posterity would hold you accountable not for what you did, but what you failed to do to make life better and brighter FOR YOUR CONSTITUENTS. Si Yuus Maase`!