By Jayvee Vallejera
Instead of a short-term fix like asking the federal government for more money to offset revenue losses from the anemic tourism industry, the CNMI would be better off fixing structural issues that created its current problems. With the cost-cutting frenzy gripping Washington, D.C. these days, any request for more federal dollars faces slim chances.
This was the gist of a letter CNMI Del. Kimberlyn King-Hinds sent to Gov. Arnold I. Palacios on March 12, in which she disagreed with the governor over how to sustain its remaining industry—tourism—which has yet to recover from near-total collapse due to Covid-19.
Palacios is requesting a $412 million federal appropriation to offset revenue losses caused by the collapse of tourism.
But King-Hing said asking the federal government for emergency relief may provide short-term relief, but does nothing to fix the structural issues that put the CNMI in its position in the first place.
“More concerningly, it signals that when economic downturns occur, we expect Washington to bail us out, rather than taking responsibility for charting our own path toward self-sufficiency,” she said.
King-Hinds said she will still explore what options exist in Congress to fulfill Palacios’ request, but cautioned him about the current cost-cutting mood sweeping Washington, D.C.
“I believe it is important that both you and the public understand the reality of the current federal fiscal climate,” she said in her letter to the governor.
With Washington working to cut $2 trillion across all programs and agencies, the chance of the CNMI getting the $412 million it is asking for is not only unlikely, King-Hinds said, but also risks making the CNMI appear unserious about its own economic responsibility.
“We must be transparent with the public about the slim prospects for this effort,” she added.
King-Hinds emphasized though that this is more of a genuine policy disagreement—not a personal conflict. “We must recognize that we can disagree and still collaborate," the delegate said.
“What is undeniable, though, is the hardship our people and businesses are facing—business closures, declining revenues, and…decreasing tax payments. While our approaches may differ, I believe we can both agree that action is necessary,” she added.
King-Hinds urged Palacios to co-sign with her a letter she is preparing for Interior Secretary Doug Burgum, co-chair of the Interagency Group on Insular Areas, for the IGIA to take the lead in coordinating efforts between the departments of State and Transportation to make expanding air service for the CNMI happen, as a means to rejuvenate its faltering tourism sector.
King-Hinds also urged Palacios to advocate for continued funding for critical federal programs that serve the people of the commonwealth.
“It is our joint responsibility. …Protecting these programs will require both of us to speak with one voice to justify their importance and ensure accountability for their use.
“I am committed to working to protect and to making the case for the continued funding of essential federal services, but I will need your support to do so effectively,” she added.
King-Hinds asked Palacios about his plans and ideas for the direction of the CNMI economy, “particularly how Congress can best support recovery and foster the development of a stronger, more resilient private sector.”
To ensure that CNMI workers are prepared to adapt to what’s ahead, King-Hinds has introduced her first bill, H.R.1797, to amend the Wagner-Peyser Act of 1933 and include the CNMI in federal employment service programs.
The legislation would ensure that workers in the CNMI receive the same employment assistance, job training and labor exchange services that are now available in the 50 states, Puerto Rico and Guam.
The Wagner-Peyser Act of 1933 set up a nationwide system of public employment offices to help job seekers connect with employers.
“For too long, workers in the CNMI have been excluded from the same employment services that benefit other Americans,” said King-Hinds. “We are dealing with rising rates of business closures and serious disruptions to our labor force, and if we don’t take action now, we will not be able to rebuild in the years ahead.”
H.R.1797 would also provide funding to establish workforce training programs, helping residents gain the skills needed to stay in the CNMI and find viable job opportunities.
It would also ensure funding for the CNMI that is comparable to those received by Guam, fair access to job placement, career counseling and labor exchange services.
King-Hinds said her bill aims to ensure that the CNMI workers have access to job training, career counseling, and workforce development programs “that will help them stay in the Commonwealth and build sustainable careers.”
In the case of the CNMI’s lone industry, King-Hinds said her focus has been on restoring and expanding tourism through a multi-pronged approach.
Among the structural changes she is working on are:
· Pushing the Department of Transportation to reopen scheduled air service allowances from China;
· Urging the Department of State to mobilize American embassies in South Korea, Japan, the Philippines, and Australia to support increased air service;
· Introduced legislation to remove restrictions on cabotage for key regional partners;
· Advocated for expanded visitor processing through EVS-TAP; and
· Fighting against efforts to impose new visa requirements on tourists.
“This is not just about China. This is about stabilizing the CNMI's economy by increasing arrivals from multiple markets and ensuring that businesses large and small have the customer base necessary to survive,” she said.
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