Some people say its the extravagance, the spendings of the government, and with the backing of the Casino at the time, who would've thought we'd be in this situation once again, yet here we are.
A Seven-Million shortfall is no chump change and from what I am hearing their is a possibility of a 10% salary cut across the entire government. How does this fair with you?
You see, during the campaign trails, TP staunch supporters brought up Babauta's record of austerity measures during his tenure as Governor of the CNMI. Similar situations when shortfalls of government revenue plagued his administration had him make tough decisions that many were not happy with or supported such actions.
The economy tanked as tourism faced critical challenges that are not stemmed from the CNMI as a destination, but that of a global scale. It is said when Japan has the sniffles, the CNMI had the flu. With our destination attracting asian travelers at most of our arrivals, the statement holds true that if our targeted market travelers have their financial woes, you bet the CNMI will face devastating consequences to it.
Today you have the TP administration facing a similar shortfall. Government revenues are down due to the storms that halted business activity. Wait, sounds familiar with global economic recession in our region?
My point is simple. I've heard during the election WARS that Babauta was a horrible governor for many things and in particular the economic downfall of our CNMI. Some portions to that may be true, but the bigger picture is what could've been done? TP faces their challenge in the first quarter of their term. How long will the 10% salary cut go? Will this take place, if so when? Are the Governor and Lt. Governor following suit with this salary cut as well legislators? The ones who will hurt most are those earning under $20K per year to survive.
Tough situation for our Governor and Lt. Governor, but sacrifices have to be made to ensure the government stays afloat. Wait lets analyze this situation a bit further.- Babauta Administration placed austerity measures and cutting back hours from every employee, hence paying them for what they worked for.
- TP is rumored to be cutting 10% of salaries across the board, but with this cut, are employees still expected to work the full 40 hours per week? Will they impose an austerity measure concept?
I guess, no matter how it is played, a reduction in hours or salary to help the government reduce its operating deficit will happen with each administration doing what is necessary. However, those that spoke ill of former governor Babauta, the trends of running a government is like a business. sacrifices, budget cuts, salary cuts, benefits cuts, everything CUTs will happen based on the type of economy we have.
Whats important now more than ever is a few things listed below, however, the changing landscape requires a lot more than what is listed below.
1. IPI to continue to flourish and pay up what is owed to the people and the CNMI.
2. CPA airports must compete globally for flights, it has to have a marketing purpose to bring in more flights.
3. The CNMI needs to invest on its own national carrier. We are depended with foreign or outside carriers and should they decide to pull out, we will once again feel and see an economic downturn.
4. Roads and other infrastructure needs to be upgraded.
5. Hospitals to ensure proper healthcare requires doctors specialized in fields that cater to our people as well visiting guest.
6. Stop the payout for airlines to fly our route, this had set precedence with them. Now it is easy to say, we will pull out because the route isn't making money! Then we throw a bone (money) to them. Hence, we continue to hemmorhaging our fragile economy.
Please know these are just my opinions and no one else's and it is not intended to attack anyone or any administration, but I am simply looking at what is transpiring before my eyes. I hope that what the rumor is stating about cuts will not happen, but if it does, be frugal CNMIers.
.jpg)