Kilili: $94 million to NMI in first year of American Recovery and Reinvestment Act: $15.9 million in direct credits for taxpayers

Saipan, MP — Today marks the one-year anniversary of the enactment of the American Recovery and Reinvestment Act.  So far, $84,313,902 has been awarded to government agencies, non-profits, private contractors, and individuals in the Northern Mariana Islands under the Act, according to the official tally at Recovery. gov.  In addition, another $15.9 million is being paid out in credits to individual NMI taxpayers. The money is creating jobs, making investments in the infrastructure needed for economic development, and putting extra cash in people’s pockets to help them through these tough times.

“Some of the first votes I made in Congress in January last year were in favor of a strong Recovery Act, because I knew we needed to take immediate action that would give significant help to the Northern Marianas economy,” reflected Congressman Gregorio Kilili Camacho Sablan.

“I am very glad to see that money going to work now in our islands. About $16 million has been received by the CNMI already, and about $10 million actually spent. So the full economic benefits of the Recovery Act are still to come.”

Among the top recipients of Recovery Act funding is the Public School System, which has gotten $24 million in State Fiscal Stabilization Funds and several additional smaller grants. These funds allowed PSS to restore 99 teaching positions that had been cut over the last three years due to local budget reductions. PSS is also renovating schools long overdue for repairs.

Another major grantee is the CNMI Division of Energy, which has been awarded $19.5 million so far with the goal of increasing energy efficiency in the Commonwealth and reducing the import of costly fossil fuel.

“The large awards to government for education and energy efficiency and conservation are very important for the long-term health of the Northern Mariana Islands,” says Kilili.

“In the short term, however, the money that is going directly to individuals is going to give the most relief.

“Especially the Making Work Pay tax credit, which is putting $15.9 million into Northern Mariana Islands paychecks over the course of 2009 and 2010, is helping families to pay their bills and boosting demand at local businesses.”

Individual taxpayers can receive up to $400 and joint filers up to $800 from the Making Work Pay credit. The money shows up as an extra $10 or $20 in paychecks through the year. And the U.S. Treasury covers over the credits to the CNMI Treasury on a regular basis so there is no cost to the local government.

“Another important Recovery Act program that puts cash in people’s pockets is the one-time $250 payment to seniors,” Sablan says.

“According to the data I have received, 2,570 individuals in the Northern Mariana Islands received these checks – $642,420 in total.”

Individuals in the NMI also took advantage of the Cash for Clunkers program, turning in older, fuel-inefficient vehicles for more cars that cost less to run. And the CNMI has been awarded $100,000 for a similar program that allows people to get a rebate when they swap an inefficient refrigerator or air-conditioner for a newer model.

“In addition to the increased demand for goods and services created by these programs for individuals, the Recovery Act is providing direct assistance for businesses,” according to Sablan.

“Here in the NMI we have had over a million dollars in operating loans and loan guarantees extended to farmers and the fishing industry. And, of course, there is all of the work that is being contracted out to local construction firms.

“For example, the NMI is getting an extra $4.5 million in highway construction funds from the Recovery Act and $1.6 million from the Clean Water fund. Only about $100,000 of those funds has been outlayed so far. So there is really a significant positive economic impact yet to come, when that money is paid out.

“And, of course, investing in better infrastructure makes us that much more a place tourists will want to visit and developers will want to look at.”

Although $84 million has been awarded to the Northern Marianas from the Recovery Act, there is still more in the pipeline.

“The Division of Energy will see over $30 million by the time Recovery Act ends,” says Sablan. “There’s another $8 million in State Fiscal Stabilization Funds due.

“And these are just formula grants – the kind that are awarded to the Northern Marianas automatically.

“We have also been the beneficiaries of discretionary grants that are in the hands of various members of the Cabinet. Interior Secretary Salazar, for instance, awarded $750,000 to put in more solar electrical panels at American Memorial Park.

“There are also still millions of dollars more to be won through competitive grants, such as the $3 million grant to protect coral reefs at Laolao that our Division of Environmental Quality won. So we have to be aggressive at going after those funds as well.”


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Editor: A table of grants awarded to date is attached. Grant amounts are accurate through 12/31/09 and do not include awards made since the beginning of 2010. Grant data is generally available at Recovery.gov.