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Reclaiming Poker and Casino License Fees for Local LB Operations | Community News

Legislative Bureau Operations Under Financial Strain: A Call for Reallocation

In a recent development poised to affect the operational capabilities of the Legislative Bureau (LB) in the Northern Mariana Islands, Chair John Paul Sablan is working to draft a local bill aimed at reallocating leftover gambling revenue. This initiative was prompted by a request from Legislative Bureau Director Perry John Tenorio, who has communicated the dire state of funding for the bureau’s current fiscal year.

Funding Crisis: What’s at Stake?

Tenorio’s announcement highlighted a troubling reality: without immediate funding, essential services and operations within the bureau are on the brink of termination. These cuts would impact crucial areas, including:

  1. Communication Services: Termination of internet, landline, and cellular phone services.
  2. Maintenance and Cleaning: Suspension of cleaning services and repair maintenance.
  3. Professional Memberships: Halting payments for professional memberships, which include affiliations with the CNMI Bar Association, the Association of Pacific Island Legislatures, and the National Congress of State Legislatures.
  4. Interisland Travel: An end to the necessary travel for legislative functions.

The urgency of addressing these financial shortfalls cannot be overstated. Public Law 23-26, known as the Fiscal Year 2025 Appropriation Act, notably does not allocate any funds for the operations of the Legislative Bureau, compounding the challenge.

Previous Financial Aid: What Happened to the ARPA Funds?

The backdrop to this funding crisis lies in the American Rescue Plan Act (ARPA) funds that had previously been allocated to the Legislature. Out of a total of $8 million set aside for the Legislature, $3.5 million was earmarked for the Legislative Bureau under Governor Ralph DLG Torres’ administration. However, that support seems to have fallen short of fulfilling current operational needs.

Governor Arnold I. Palacios informed Tenorio that the remaining ARPA funds appropriated for the LB were no longer available, highlighting the precariousness of the bureau’s financial status.

Discovery of Unutilized Funds: A Potential Solution

In a glimmer of hope, Tenorio shared recent findings from a fund status report by the Department of Finance. The report identified:

  • $59,491 in leftover poker and pachinko fee collections dating back to 2018.
  • An additional $150,000 in unused exclusive casino license fees collected from Imperial Pacific International, which was initially appropriated for a generator for the LB.

With these funds identified, Sablan is considering a legislative solution to reappropriate a total of $209,491 from these fees for the bureau’s immediate operational costs.

A Pragmatic Approach: Reappropriating Resources

In an interview, Sablan expressed optimism about drafting the local appropriation bill to reallocate these identified funds. Originally, the poker and casino license fees were intended for the purchase of a generator and the construction of a generator house for the bureau. However, with the generator already obtained through ARPA funds, Sablan believes the leftover funds can now be redirected towards operational expenses.

Sablan remarked, "We are hoping that it could last two quarters of the fiscal year, or six months. Along the way, we can identify other funding sources to continue to support the operations of the bureau." This approach seeks not only to sustain the bureau in the short term but also to establish a framework for continued support.

Conclusion: The Path Forward

Despite the challenges faced by the Legislative Bureau, the proactive measures being taken by John Paul Sablan and Perry John Tenorio signal a commitment to maintaining the essential functions of the bureau. As the legislative process unfolds, all eyes will be on the proposed bill and its potential to restore critical funding to ensure that the Legislative Bureau can continue its fundamental operations without interruption. The situation highlights broader questions regarding fiscal management and the prioritization of resources within the territory, compelling lawmakers and officials to consider sustainable solutions that extend beyond the immediate crisis.

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