Money for SNILD pet projects disapproved

Acting Gov. Jesus R. Sablan has vetoed a local measure appropriating some $806,000 for the Saipan Mayor’s office and other municipal concerns, quashing attempt by lawmakers to set aside revenues from poker license fees for their pet projects.

Although it was expected, the veto followed last week’s decision by the Saipan and Northern Islands Legislative Delegation not to recall House Local Bill 11-21 from the Office of the Governor despite uncertainties on funding.

“As much as I would like to sign this bill into law in order to address some of the CNMI Government’s obligations, I have no choice but to disapprove this measure due to lack of funds from the resources identified,” Sablan said in his veto message.

There is no immediate comment from SNILD on the decision of the Tenorio administration, but appropriation measures passed by the Legislature have always faced difficulties at the governor’s office because of the financial crisis besetting the Commonwealth.

Claiming they were assured by finance officials that revenues from poker fees were available for appropriation, the local legislative body stood firm in its earlier plan to earmark the $806,000.

Finance officials had warned against the move due to insufficient funds as the money is part of the $1.3 million previously allocated by the Legislature to match federal construction grants under the capital improvement projects.

These funds are projected to be collected from the $2,000 fee imposed by the municipal government — on top of the $6,000 license fee that goes directly to the central government — on each poker machine on the island following the lifting of the cap on its number.

According to legislators, over 1,000 new machines have been registered by the Department of Finance since last year when the restrictions were eased, which would generate revenues to the municipal government at least $2 million.

SNILD chair Rep. Heinz S. Hofschneider has said that there has been a lot of “ambiguity” since the implementation of the two laws and that the delegation may have overlooked another law that set aside $1.3 million of the collections for CIP matching requirement.

HLB 11-21 was passed by members early this month only after overhauling their initial estimate of $3.6 million ,which would have funded operations of the Saipan Mayor’s office, assist the scholarship program of the Northern Marianas College and raise money for other local concerns.

Since that amount was not available, SNILD agreed to provide $250,000 to the Office of the Mayor to keep 12 of its employees on board until September; $256,000 for land acquisition compensation; and $300,000 for the Northern Marianas Housing Corporation.

In an interview Thursday, Finance Sec. Lucy DLG. Nielsen maintained there was no money available for appropriation even as she admitted oversight when she gave the go-signal for the delegation to tap these funds for their respective projects.