Squandering taxpayer dollars

A short time after Juan N. Babauta took office as the fifth governor of the Commonwealth of the Northern Marianas in January 2002, the overall deficit for the CNMI was just under $100 million. Several months into office, Babauta declared that he inherited a substantial deficit from his predecessors. Although he did not mention any names, he appeared to be referring to the last two governors who were in office before he was inaugurated.

During Babauta’s first 100 days in office, he declared “austerity measures” so that he CNMI government could place itself in a more financially stable disposition. What is interesting about this declaration made four years ago is that the island community is now beginning to find out that Babauta was never serious about saving any money whatsoever. The recent media story reflecting the revelation that the former governor hired three new employees a week completely contradicts the austerity declaration he made during the early stages of his gubernatorial tenure. Furthermore, if anyone went back to an old CNMI Government Listing and looked at the Office of the Governor’s section, one would notice that Babauta had roughly 30 staff members on the payroll. Approximately, 12 of those staff members were “special assistants.” The indiscriminate hiring of people to work for the government without any apparent justification made a significant contribution to the deficit for the Commonwealth going from $98 million in 2001 to an estimated $200 million in 2006.

The other area that appeared to be a major contributor to the deficit was the millions spent in countless jaunts off-island, as well as the lodging, food, and alcohol purchased while on those trips. The question that needs to be posed is: Would Babauta have spent that kind of money if it was his own and not taxpayer dollars?

During the first week of Benigno R. Fitial’s administration, it became apparent that he would follow his campaign format that included reducing the deficit by saving as much as possible in terms of the expenditure of government funds. The memorandum issued on Jan. 9, 2006 to all government agencies listing individuals to key positions within the new Fitial-Villagomez administration had only two special assistants compared to the 12 Babauta hired. Clearly, Governor Fitial is being fiscally prudent.

It will take time for Governor Fitial to build back the financial foundation that Babauta destroyed from January 2002 until he officially left office on Jan. 8, 2006. The new Secretary of Finance Eloy Inos will be instrumental in assisting the new governor with sorting everything out and repairing the fiscal damage inflicted upon the government by Babauta. Because it will take a considerable amount of time and energy to get back to fiscal normalcy, it might be a good idea to be patient while the new administration works painstakingly to move the government out of the red and safely into the black.

Dr. Jesus D. Camacho
Delano, California