Tenorio says CIP funding may increase to $12.42M

Washington Rep. Pete A. Tenorio disclosed yesterday that the CNMI’s capital improvement funds might increase by over $1.4 million in the new fiscal year, on top of the threshold $11 million that the CNMI is supposed to get per year.

If adopted by the U.S. Congress, the total CIP funds for the CNMI for FY 2005 would reach some $12.423 million, Tenorio said.

Tenorio expressed optimism on the possible increase in funding after the federal House Sub-committee on Appropriations endorsed the Office of Insular Affairs and the CNMI’s joint recommendation to accelerate construction of critically needed infrastructure, such as water and sewer projects. These projects were outlined in the CNMI Capital Improvement Plan earlier submitted to the OIA.

“My request for an additional amount of $1 million dollars to continue to improve the CNMI water system, particularly Saipan’s water has been approved by the subcommittee. This one million dollars is in addition to the Covenant Section 702 CIP funds of $12.423 million,” Tenorio said in a media release. “A provision is included in the appropriations bill which will not require the local government to match the federal contribution for FY 2005 CIP.”

The committee’s decision to provide an additional $1 million for water on top of the CNMI’s CIP entitlement for FY 200505 “is another significant sign that my cry for help has not fallen on deaf ears,” said Tenorio.

He expressed optimism that the U.S. Senate would endorse the recommendation for fund increases by the lower house.

Tax funds

Tenorio also disclosed that a Senate committee has recommended the expedited review by the Secretary of the Interior on the CNMI’s request to release withheld tax funds.

“Another significant item in the Senate Committee’s Report #108-341 is its recommendation to the Secretary of the Department of the Interior to expedite its review of the CNMI’s request on the cover over of tax revenue to the CNMI pursuant to section 703 (b) of the Covenant,” Tenorio said.

“If positive action is taken by DOI, with concurrence by IRS, the CNMI might very well be awarded with a substantial amount of tax funds from prior years of collection, which were retained by IRS due to disagreement on the Covenant’s provision on tax cover over,” he added.

Tenorio credited the support of Deputy Assistant Secretary David Cohen in advancing the interests of the Commonwealth.

“With the continuing support of our Executive and Legislative branch to present a unified and unequivocal position to Congress as one Commonwealth and as one people, much will be accomplished,” Tenorio said.