$13M OK’d for CNMl projects

The Commonwealth will receive $12.423 million in CIP funds—plus another $1 million for water system improvements—under provisions of the fiscal year 2005 spending bill approved by the Appropriations Committee of the U.S. House of Representatives last week.

Gov. Juan N. Babauta, who was in Washington D.C. lobbying for the Commonwealth prior to the committee’s action, said in a statement that he is grateful for the strong support Congress and the Bush administration are giving to the CNMI.

“The President gave us an increase from $11 million to $12.423 in his FY06 budget, which was great,” said Babauta. “And now, at a time when the Appropriations Committee is cutting the overall budget for the Interior Department, the committee is adding another $1 million to what the President proposed for the CNMI.

Babauta described the new funding as recognition of the continued need to improve services in the CNMI and is also recognition by Congress of the “efficiency and professionalism” of the CNMI Water Task Force led by Lt. Gov. Diego T. Benavente and Secretary Juan Reyes’ Department of Public Works in using the money the federal government is giving the Commonwealth.

The Babauta administration made CIP spending a key part of its strategy to bring the sluggish CNMI economy back to life.

In the statement, the administration claims that since coming into office, it has pumped over $67 million of capital improvement money into the economy, which it said is more than the CIP spending of any previous administration during the same time period.

President’s distribution approved

In approving the $12.423 million budget for CNMI infrastructure, the U.S. House committee agreed with the recommendation of President Bush on how the money should be used.

The president’s plan calls for spending with a focus on projects established by the CNMI in the 1999 Capital Improvements Plan.

Major projects expected in 2005 are:

*critical water distribution system improvements
*additional pipeline projects
*water conservation/leak detection and elimination
*optimizing of existing wells
*test drilling program
*surface water catchment at CMS/BMC Quarry (A&E)
*Rota sewer construction
*Puerto Rico dump closure

The President’s FY05 budget reflects a new competitive allocation system of CIP funds among the U.S. insular areas. Those areas targeting CIP expenditures on projects that have clear economic goals and serve a significant portion of the population receive priority in the distribution of federal funds.

The insular areas will also be graded on their performance in spending funds in a timely fashion and keeping projects within budget. Good performance will be rewarded with additional grant funds each year; poor performance will lose funding.

The House Committee on Appropriation reported out its recommendations for FY05 funding on June 9. Next, the bill goes to the full House for approval. The Senate has not yet acted on its version of the FY06 spending plan for the Interior Department.