Legislators: It’s better late than never

Legislators yesterday welcomed a move by the U.S. Senate Appropriations Committee to defer a proposed 51 percent cut on the federal construction grants to the Northern Marianas, saying this will not harm government plans to undertake overdue infrastructure projects in the future.

They also underscored the results of lobbying by island leaders against attempt to reduce Washington’s financial assistance, which the CNMI views as its only hope to spur the local economy following a two-year decline in business activities in the island.

But Rep. Oscar M. Babauta raised fear that efforts to identify local resources to match the annual grants earmarked under the Covenant’s capital improvement projects would be derailed because the federal government is not ready to release the money.

“Although we may not probably match it this year or next year but withholding it would further hamper the ability of the government to move forward with important projects,” he said in an interview.

“The question is that ‘what if the Commonwealth government comes up with the money early next year? Where would the other half be?” added Babauta, who also chairs the House Commerce and Tourism Committee.

By deferring the proposed CIP funding cut, members of the US Senate Appropriations Committee, however, have agreed to reduce the amount from $11 million to $5.58 million for FY 2000 only on the condition that the remaining $5.52 million will be given to the CNMI in FY 2003.

This means that the island would still receive the $77 million obligated by Washington for its Covenant commitment under the seven-year CIP program from 1996-2002, although it will extend to FY 2003.

“Yes, we have to wait until 2003, but we can’t wait that long,” Babauta pointed out. “We want to spur the economy now by pushing these projects and one (way of financing it) is through the direct funding from Congress.”

Rep. Karl T. Reyes, chair of the House Ways and Means Committee who has been in the forefront to raise matching funds for these federal grants, assured this move will not impact the implementation of the CIP master plan drawn up last year by the Tenorio administration.

“Deferment is not always good, but it’s okay,” he explained in a separate interview. “I don’t think it will affect the master plan because the overall amount is still intact. There is no change. It’s just a matter of waiting for the tail-end of the (program).”

House Speaker Diego T. Benavente echoed his view, saying that Washington would disburse the money once the island government comes up with the dollar-for-dollar matching funds.

“All of those things will fall into place. It will not affect the master plan and also the fact that this money will be available and ready for use for our infrastructure needs as soon as we find the matching,” he said.

Benavente hailed the campaign initiated by local leaders to oppose the cut requested by Clinton Administration under its FY 2000 budget proposal, which has maintained that the CNMI still has significant backlog in unspent CIP funds.

“It’s great news and I know everybody, especially the Washington representative fought to make sure that the money is retained,” he said. “Our efforts in appropriating (local matching funds)… in spending some of the CIP money is the reason why the Committee has agreed to let us keep the money that is rightly ours.”