Kilili, Fitial admin clash on health study, food stamp

Delegate Gregorio Kilili Sablan criticized the Fitial administration anew for not allowing the local economy to get an additional $12 million to $24 million by fully supporting the CNMI’s inclusion in the national food stamp program, and for turning its back on a $1 million grant that could have helped determine how the CNMI could subsidize private health insurance premiums for the middle class.

Press secretary Angel Demapan countered this yesterday, saying the Fitial administration does not oppose getting more funds for nutrition assistance or food stamp, and that the administration is doing something about health insurance.

“However, because of the financial constraints of the central government, the CNMI cannot immediately commit to any added costs without a thorough analysis of the program,” Demapan said, referring to the food stamp program.

Sablan, who was one of three guest speakers at the Rotary Club of Saipan’s weekly membership meeting at the Hyatt Regency yesterday, said while it’s true that the CNMI government would need to cover half—or $600,000 to $700,000—of administrative costs in order to be included in the national food stamp program, the benefits will be $12 million to $24 million more being infused into the local economy.

“That’s a very good return on investment,” Sablan said.

Because the national food stamp program will require the CNMI to use “plastic cards” instead of coupons, it will also reduce fraud, he said.

“Hungry people get fed. The economy gets a shot in the arm. Government revenues go up. Fraud is reduced. What’s not to like? I do wish our government would agree with me on this,” Sablan said in his remarks to Rotary members and guests.

He said CNMI government officials should not come to work “if they don’t want to do anything.”

Demapan, for his part, said that Department of Community and Cultural Affairs Secretary Melvin Faisao and the CNMI Nutrition Assistance Program administrator are taking the lead in the food stamp negotiations.

“The governor is awaiting an update of their negotiations and their recommendations,” he added.

Faisao is opposed to Sablan’s HR 1465, which would allow the CNMI to be covered by the national Supplemental Nutrition Assistance Program or SNAP, instead of by the nutritional assistance block grant that the CNMI annually negotiates.

Faisao separately said yesterday that DCCA analyzed the impact of Sablan’s HR 1465 or the Ayuda Act which he said will place the CNMI government in a “very un-feasible local matching requirement and restrictive compliance.”

He said the national food stamp program will require the CNMI government to use a cost-reimbursement procedure and require strict adherence to cost-matching share.

“The unlikely anticipation by the SNAP System is that operational cost can be reimbursed, but USDA will review and approve cost incurred by the CNMI government if allowable by the reimbursable requirements pursuant to SNAP System (National Programs). The federal government under the SNAP System will always provide a 100 percent funding only for benefits at $12.148 million,” Faisao said.

This is the current CNMI DCCA-NAP figure, he added.

Faisao said the CNMI must provide the matching share at $1.6 million.

The DCCA secretary also said that HR 1465 does not take into account the CNMI government being forced to allocate local fund on revamping fiscal procedures and policies to be consistent with national program requirements.

“In the meantime, [the] Ayuda Act still lacks indicators on the food market surveys that will determine the Thrifty Food Plan for the respective islands (Saipan, Tinian, Rota, and Northern Islands) if it is to be implemented. The Ayuda Act is most likely to encourage our low-income household families to continue receiving temporary public assistance, rather than to prepare the CNMI low-income families to transition away from the public or welfare system,” Faisao.

He said the national program will also affect local farmers. The current food stamp program helps local farmers because 30 percent of DCCA clients’ monthly benefits should be from locally produced food or catches.

DCCA remains firm that the only viable option is to place the CNMI under the Farm Bill 2008 (Block Grant) just like Puerto Rico and American Samoa.

“Notably, this Block Grant will provide the CNMI DCCA-NAP a 100 percent federal funding for administration and benefits cost. CNMI will receive its equivalent share whenever the National Program receives their increase. Additionally, $1.5 million is already circulating in our community pursuant to current DCCA-NAP funding and should Ayuda Act be implemented, then it will be incumbent upon [the] CNMI government to find the matching through local appropriation, which in turn will force the CNMI government to cut other critical government agencies’ budgets,” Faisao added.

Sablan said that U.S. Agriculture Secretary Tom Vilsack also has the authority to bring the CNMI food stamp into the national program.

He made a formal request to Vilsack to put the CNMI in with the rest of the United States but Vilsack is still mulling over it.

“And frankly, the local government’s reluctance gives him an excuse to delay. Why should he let go of millions of dollars when he can say, ‘Talk to me when you are all in agreement.’ Well, we will get into the national program—whether my legislation forces the change or whether I convince the secretary to give fair treatment to people in the Northern Marianas,” Sablan said.

The delegate said he’s also frustrated by the CNMI government’s “decision to turn down a $1 million grant to look at how we could subsidize private health insurance premiums for the middle class.”

A national healthcare reform sets aside monies for U.S. states and territories. For four territories alone including the CNMI, Guam, American Samoa and the U.S. Virgin Islands, $75 million has been set aside.

But Sablan said the CNMI did not take the grant, to help evaluate the choice of whether to help the middle class pay for their health insurance or put the money into Medicaid for the poor.

“The $1 million grant was supposed to help local governments evaluate that choice,” he said.

Sablan noted that the CNMI is one of only two U.S. states and territories that did not take the $1 million grant.

“At the very least we could have put some consultants to work. And it could have meant that middle class families who are struggling with cuts in hours and increases in insurance premiums, would get some help. I wish to God we’d taken that grant,” he said.

But the Fitial administration said the delegate needs to be clear about the grant he’s referring to.

“If he’s referring to the Rate Review Grant, then he is wrong. Governor Fitial had informed the Federal Regional Council in San Francisco that the Commonwealth was getting ready to start spending the $1 million afforded through the Rate Review Grant. Acting Commerce secretary [Sixto] Igisomar is taking the lead on this grant,” Demapan told Saipan Tribune.

Rotarians Agnes McPhetres and David Sablan also wanted to know why the administration didn’t take the $1 million grant, as Sablan had said.

Sablan also asked the delegate about his HR 1466, which proposes a “CNMI-only resident status” for a limited group of people.

“Those who will be affected are already here, and how could somebody who is already here would have additional devastating effect if 1466 passes?” the Rotarian asked.

The delegate said that contrary to elected officials’ and other community members’ beliefs, his HR 1466 will not provide eligibility to affected individuals to own land in the CNMI, vote in the CNMI, or participate in social services.

Sablan also reiterated that there are only some 4,000 parents of U.S. citizens who will be affected by his bill, and not 11,000 as the Fitial administration had said.

But Sablan said the Fitial administration is not sure about its figure of 11,000 when it said it wants Congress to hold off action on HR 1466 until after the 2010 Census data are released.

“Make up your mind,” Sablan said. “Do you have 11,000 or you want to wait until the census because you don’t know what your number is? We’ve got to stop all this nonsense.”