FLASHBACK — February 1999-2002

Gov’t warns of layoffs[/B]

Commonwealth officials yesterday warned of a 45 percent drop in the revised resource projections for FY 1999 that is threatening to set off massive government job cuts and disruption in critical services provided to the community. The $1 billion dollar lawsuit against local garment manufacturers and US retailers and a further 10 percent reduction in tourism revenues would slash close to $100 million from the general funds previously projected at $216 million by the local government. Michael S. Sablan, special advisor on budget and finance to Gov. Pedro P. Tenorio, told visiting members of the US House Resources Committee the combined fiscal impact of the decrease in anticipated revenue collections would push the island economy into a potential financial nightmare.

A handful of high-ranking officials in the Northern Marianas College had received hefty salary raise, while those under the “graded” category had to wait for available funds before they get pay increase due to the austerity measures of the Tenorio administration. These were the findings of the House Committee on Health, Education and Welfare at the resumption of the oversight hearing on the state college yesterday in what its chair Rep. Heinz Hofschneider considered a violation of existing regulations. The hearing, the fourth in a series of investigation, presented hard evidence to bolster allegations of mismanagement and inconsistency in policy that have thrown NMC into deep financial trouble in the past few years.

Construction industry inches upward[/B]

Major government projects will stimulate the construction business this year as the Department of Public Works revealed the issuance of building and construction permits worth over $6 million last month. The $5.2 million state-of-the-art Youth Detention facility project and two small-scale construction activities comprised the revenue generated by the Building Safety Code Division of DPW, safety official Donald W. Anderson disclosed Friday. In addition to Youth Detention facility, bidding for the $25 million Marpi Landfill project is scheduled to start while the $26 million Correctional facility and two public high schools are set to start late this year.

Governor Pedro P. Tenorio last Friday tossed back to the legislature a bill that seeks to reappropriate unused funds from two public laws amounting to $256,636 for the construction and renovation of school buildings. The two appropriation mesaures were disapproved after Governor Tenorio found that Legislators failed to identify sources of fund. In his statement, the Governor explained that,”Although the bill indicates that the fund balances from Public Laws Nos. 9-1 and 10-38 are to be used for the construction and renovation of various school projects on Saipan, it does not list the specific projects from which the funds will come from.”

Education gap widens[/B]

The Fiscal Year 2002 education revenue per public school student closed at $3,538 per child-a jolting 50 percent less than what US mainland students are getting at $7,081. The standing $3,538-figure is at its lowest in four years, a proximate result of plunging government revenues which started rolling downhill in FY1998, a Public School System FY1998 through 2002 Fiscal Outlook report showed. “For every dollar that US mainland kids get, CNMI kids get 50 cents,” said acting PSS Fiscal and Budget officer William Matson.

The Commonwealth Ports Authority will investigate two incidents involving the Pacific Island Aviation, following reports that 19 passengers were prevented from getting off the aircraft after a near-accident at the Saipan International Airport Saturday night. CPA Executive Director Carlos H. Salas, reacting on reports received about the incidents at the Tinian and Saipan airports, said the ports authority will launch a deeper investigation today. Salas said he has not received any official report from the PIA and Northwest Airlines regarding the incidents as of press time yesterday. “I don’t know about the incident but we heard reports. I will start the inquiry today and find out what really transpired.”