Don’t blow the cash
To our leaders, how futuristic are you? Look at 2017 to 2019—the economic factors, simple view but relevant, wavering, and precipitous: Anytime our government grants pay raises because they deem the economy to be booming, it raises eyebrows, not out of spite but out of concern. Let’s face it, our economy is not booming. BSI came ashore and started spending millions. In the process, speculation and investments drove the prices for real estate as well as other goods and services and our citizens assumed that the time was ripe to spend. Buy new cars, build new homes, spend money like there is no tomorrow.
For the record, the primary source of the revenue that led to the supplemental budget was, of course, BSI. Other sources included new investments by CNMI residents and especially from other countries, many of them with CW permits.
The casino is a welcome addition to Saipan, but it is a casino and on a very small Pacific island, and we all know or hear that casinos, regardless of location, are a volatile industry. Casinos cater to people with money. Lots of money. There are other factors that come into play—a good 24-hour working airport and working infrastructure (water and power, for example). Tinian and Rota need an airport that would allow night landing between 1800 hours and 0600 hours. Why? Because most players that frequent casinos are visitors from other countries, the main source being China, and they mostly come in at those hours. Casinos need players with big money to play with if it is to work, otherwise, they would falter or fail, and we’re back to poker machines and “High Chicago.” And if you read the news regularly, you’ll notice that Trump has been waging an economic war with China. At this point, should China decide to control the export of cash from China through its gamblers and tourists, we stand a very good chance of repeating another post-garment industry recession. Except this one will be far worse than anyone can fathom.
Add the possible exit of our CW workers and start counting the days. Would I run into a wall of prejudice if I suggest we make these CWs permanent residents of the CNMI? And should Congress decide to massage Trump and ignore any extension of the CW program, then the “good times,” as we know it, will just stop. Our elected representatives really have done little to nothing to address this issue at the federal level, preferring instead to issue excuse after excuse without regard to the unique relationship we have, which by the way, gives us a lot of opportunities not available elsewhere. And Congress? That’s the body that has jurisdiction on immigration. Not the Office of the President. Congress slammed President Obama on the jurisdictional issue. To understand the gravity of our workforce problems, take a look at the 2010 CNMI Census and compare the size of our local workforce to the number of workers from other countries. We know that short of a federal miracle, we will lose all of the CW workers and their families. After Dec. 31, 2019, the CNMI’s workforce will consist of only U.S. citizens and residents as well as those from the FSM. Common sense and logic dictate that many businesses, perhaps even BSI, will close due to the lack of employees, the lack of shoppers, lack of revenue, the lack of almost everything. To label the CNMI a ghost town will be an understatement. 1980?
Now, instead of blowing the cash, how about taking a really serious look at our economy, i.e., the sources of our revenue, showing fiscal responsibility and maturity and start paying the government’s billion-plus dollars in liabilities. Stop the tap dance. The music was over on Election Day. No need to prolong the butt kissing; we’re not dumb. Sooner or later, we’ll be looking for accountability and answers, perhaps as early as 2019 or shortly thereafter.
Let’s see, save for the members of the House, most of our current leadership will still be around. So for those on the hill, a word to the wise—act responsibly. As for the workforce, and in the interest of our economic future and wellbeing, how about a few simple suggestions: Trim the government, remove the non-essentials, amend the Constitution and reduce the Legislature to unicameral with five senators representing Rota, Tinian and Saipan. Do away with the in-house lawyers and utilize the OAG. Sit down with the feds and work out a CNMI-residency program for our non-local workforce and investors to include those who are out of status so they can work legally and start paying taxes like FICA and H/Ins. Focus on public safety, zero tolerance on drugs, clean up downtown Garapan, especially that farm that has been an eyesore for decades, focus on our tourists, yep, put up signs in Chinese, Japanese and Korean starting at the arrival terminal of our airport and for all the tourist sites. Pay off the government’s obligations, all land compensations, etc. Give more money to DPS, and to CHCC to function as a hospital instead of a clinic, more money for medical referrals and doctors and nurses so we can stop hearing the horror stories of negligence and gross ineptitude, and ease up on increasing the salaries, wages and operational funds of elected officials. Please don’t blow our money away. The economic source is volatile. Let’s see what happens in 2017 through 2019. Just watch the expenditures. Or we may be back to fiscal year 1980. No money, just federal grants, and matching funds.
Rudy M. Sablan
Garapan, Saipan
Russ: If they employe Chamorro Logic–where everything is basically illogical–we could get by even by accident!
Mr. Sablan,
It is sad to say that your comment above would fall on deaf ears. The 2018 CNMI General Election is on the horizon and unfortunately more money for the ungraded political hires. Great piece.
I could not agree more. These nebishes get two dimes to rub together and they go out and spend $10…
All we need is for Trump to cancel the Chinese Visa program (which there is more than enough reason to do) and we’re up a creek – and with greater liability in the form of higher salaries and bloated workforce than before.
You just have to wonder what will wake these clowns up
Thanks Rudy for putting your words in print for all to read. So many of us could not agree with you more. Shore up past debts, bring our infrastructure up to par and support the hospital so it can actually save lives. These should be our priorities as they affect all of us. We all benefit when our collective needs are considered.
Until the political processes in place change (i.e. buying votes with promises of jobs, politicians and appointees using their positions to enrich themselves and their families) we can never expect changes for the better.
It was no secret the garment factories would start closing down in 2000. Even with years of advance warning, our leaders did nothing but drink harder from the quickly drying teet. The decline of the local economy was fast and furious. Add in the unforeseen financial crisis in Japan and the CNMI became the ghost town you described. Rota is already a ghost town. We could be headed for an even worse fate sooner than later if limits are placed on incoming tourists by China or the US. Local government budget in the mid-1990’s was almost $300 million annually. Only a few years ago (pre BSI) the budget was down to $110 million. Let’s don’t repeat that same cycle just to buy votes in the short term.
It’s entirely possible this monstrosity being built in Garapan may never be finished if sufficient bond funding the company seeks cannot be raised. Imagine that half built skeleton looming over our tourism bread and butter zone. No one will EVER pay to finish it or to tear it down. Can you imagine another La Fiesta in the middle of Garapan, only 30 stories high? Will that be worth a few months of free utilities?
To Rudy and others, how can I begin a direct conversation with you and those who hold great concern for the future in the CNMI? I’d like to help. I’ve seen similar factors lead to incredible shortsightedness elsewhere. The economic boon of Silicon Valley tech workers and Google shuttles gentrifying San Francisco. The cheap land of Fresno snatched up by developers wanting the quickest profits; creating irreparable urban sprawl. The cash grabs/scams like California’s Altamont Pass wind farms.
What about job creation? Investments in infrastructure, environment, and education. What about something more innovative? Like a community currency, to help keep money local? I believe there are many proof-of-concept applications.