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Another option to address budget shortfall
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Posted on Aug 14 2008
A recent article in the Saipan Tribune mulled ways to close the $19 million revenue shortfall in next year’s budget. A few options identified thus far are “austerity” Fridays, unpaid holidays, and/or doubling the cost of a business license.
Please allow me to offer another alternative, an alternative that would redefine the CNMI as a leader in ocean conservation, lead to increased federal funding, more research and education dollars flowing to our shores, a much needed boost in tourism.
University of Guam professor Tom Iverson, a fellow educator who has been living and working in Micronesia for over 20 years, recently authored an economic study on the economic impart of a proposed Mariana Trench Marine National Monument.
The report is long and is available online, but to break it down into simple bullet points, the economic benefits of a monument would likely be:
-An increase in federal spending to manage the monument and staff the visitor’s center;
-an increase in tourism from the free media exposure surrounding the declaration and subsequent discoveries, expeditions, etc.; and
-an increase in the amount of research, with possible high-end tourism.
Iverson predicts that the first year’s direct spending will be somewhere in the neighborhood of $10 million with tax revenues of approximately $5 million. Furthermore, his best estimate is that around 400 jobs will be created, which could help phase government workers into the private sector, allowing for cuts in the government’s budget.
Will this be enough to meet the shortfall? Probably not, but combined with our fiscal measures it could help make the fall a lot softer.
[B]Agnes McPhetres[/B] [I]San Vicente, Saipan[/I]
