Legislators rush to aid of mayor

Saipan legislators are forging ahead with a plan to bail out the Mayor’s Office from its worsening cash-flow problems which have reportedly forced the layoff of 12 employees as well as a 10 percent salary rollback this coming May for its personnel.

In a local bill sponsored by Vice Speaker Jesus T. Attao, the Saipan and Northern Islands Legislative Delegation is looking at appropriating some $500,000 from the poker license fees to the Mayor’s Office in efforts to deal with the financial difficulties.

At least $240,000 will cover the salary of 12 full-time employees for another year after their contracts expired last January without hopes of getting renewed due to lack of funds.

The balance of $260,000 will fund its operations, including salary of more than 60 employees who are getting a 10 percent pay cut next month in view of the 13.4 percent slash in its FY 1999 allocation.

But a legislator, speaking on condition of anonymity, yesterday expressed opposition against the move, noting the revenues from the recent raise in poker license fees are not expected to be collected at least until early next year.

He also supported the termination of the 12 employees who should not be retained in the positions as part of the austerity measures of the government.

“I don’t think we need those employees in the mayor’s office,” the legislator explained. “They are political hires and I don’t think we can afford them right now.”

But he stressed the local delegation should be prepared to back up the $3.63 million in revenues which it has identified from the $2,000 additional fee from poker and pachinko slot licenses on top of the raise imposed last January by the central government.

Finance officials previously have said the revenues will only be realized in December this year when amusement machine operators renew their license under the new fee schedule.

“The delegation should prove whether there will be collections soon or they will be put on the spot due to lack of funds,” he said.

The Saipan’s Mayor Office has come under scrutiny in recent weeks after disclosure of its weak financial shape, which has been compounded by infighting among its high-ranking officials over the financial problems.

Last January, the delegation passed a resolution setting aside $500,000 from the poker fees for the office — a move now being questioned by the Attorney General’s Office.

Hoping to receive funding boost from lawmakers, municipal officials have reprogrammed available funds to pay the salary of the 12 employees, as well as meet other financial obligations.

The island is battered by the financial turmoil in Asia, its main tourism market and source of investments, that has pulled down government revenues and forced Gov. Pedro P. Tenorio to cut down appropriation to all departments and agencies to prevent budget deficit.