The ‘Economy Governors’

Governor Benigno R. Fitial is sworn in as the CNMI's sixth governor. His wife, Josie, looks on.

Fitial and Villagomez didn't waste any time in their pursuit of their goal. Shortly after being declared the victors of the four-way gubernatorial race in November, they left on a week-long trip to meet with foreign investors in Japan, South Korea and the Philippines, some of whom attended the inauguration.

"Tim and I will be the 'economy governors'," Fitial declared in his inaugural speech, "because we were elected on that basis and under this economic crisis, and because we cannot serve our constituents well if our economy continues to languish as it has for the past four years."

Fitial also had a warning for all government officials at departments and agencies that deal with the economy: "All must adopt a pro-business mindset, ready to welcome and facilitate lasting investments into our islands. If you have a different agenda, then be prepared for a permanent reassignment elsewhere." That phrase drew the loudest cheers from the 1,500 people who attended the ceremony at the Marianas High School gymnasium.

"Today, the CNMI government faces its greatest financial challenge since we became a substantially self-governing Commonwealth of the United States," Fitial declared. "Today we have our work cut out for us."

He noted that as the sixth elected governor, he faces a "monumental challenge to revive our slumping economy and restore the financial integrity of our government," warning that this is not going to be an easy task. The bleak financial situation will get worse before it gets better, the new chief executive pointed out. But Fitial said he is confident the CNMI's economic ills will eventually go away if the government is managed properly.

As the first elected governor of Carolinian descent, the former business executive announced that the Northern Marianas will refocus its tourism effort and other business endeavors on Japan, the world's second largest economy, which is only three hours away by jet from Saipan. Japan has more than 127 million people but Fitial said all the CNMI needs is 1 million Japanese tourists a year. In 1997 the CNMI welcomed more than 700,000 tourists. That number has since dropped by more than 27 percent, down to 530,000. Guam, on the other hand, a 30-minute flight south of Saipan, enjoys more than 1 million tourists a year.

Fitial promised to cut government spending, ensure continued control of immigration and labor and repatriate non-resident workers who are no longer needed by the private sector and replace them with local workers. He added there are critics who doubt he can accomplish everything his administration promises.

"After all, public cynicism easily develops after so many past promises have been broken-after the previous administration has failed to deliver," the new governor said.

Just a week after taking office, Fitial implemented a dress code for his Cabinet members, special assistants and division directors-long sleeves and ties for men and business attire for women. He also instructed his Cabinet members to take drug tests, saying their jobs depend on the results of the tests. No Cabinet member will receive salaries beyond what the law specified, something the previous administration did.

The CNMI last had an approved budget in 2002 of $214 million and has since been operating under a "continuing resolution," which means that the government cannot spend anything over that amount in the event that there is no approved budget. Some financial analysts have publicly stated that the actual annual tax collection is anywhere between $180 and $196 million.

Members of the 15th Legislature promised to work together to assist the failing economy in light of the dwindling government coffers. Fitial says the accumulated deficit is fast approaching over $150 million. Sen. Joseph Mendiola has been elected as president of the Senate, which for the first time since the inception of the Commonwealth in 1978, has its first woman senator, Maria "Frica" T. Pangelinan. Rep. Oscar Babauta is the new speaker of the 18-member House of Representatives.