Uproar Over $44K Per Commissioner in Non-Existent Casino Industry on Saipan

The amended fiscal year 2025 budget bill that was recently signed into law by Gov. Arnold I. Palacios included language that would pave the way for the members of the Commonwealth Casino Commission to get paid their $44,000 annual salary.

And this provision in section 709 (g) and scheduled B of the amended Public Law 24-01 has caught the ire of two lawmakers who voted no to the passage of the appropriations bill, despite the measure restoring 80 hours to government workers previously under austerity, more earmarks for the CNMI Public School System, among others.

Sen. Celina Babauta (D-Saipan) said the provision allowing CCC members to draw their salary is plain right unconscionable.

'It is difficult to ask the people to continuously sacrifice themselves through austerity when they know that with each passing day, the priorities of elected officials with political agendas, are eating away at the very institution that put them in office in the first place. They have every right to be infuriated for having their hours cut in the first place. This budget prioritized the backpay of a defunct casino commission regulating a non-existent casino.'

In her prepared remarks that she wasn’t able to finish during the amended budget bill’s discussion last Friday, Babauta let known her strong opposition to the proposed amended budget being presented for first and final reading without proper committee vetting.

She, however, reserved her sharpest criticism to the payment of salaries to CCC members.

'This budget proposes to allocate funds for the back pay of all the casino commissioners that are clearly not the obligation of the central government. I am deeply troubled that this was the priority of those who negotiated the This represents a dangerous expansion of government spending into areas where it has no legitimate purview. It is called revenue diversion, and it is illegal according to federal laws and our own laws. Diverting scarce resources to extraneous projects sets a dangerous precedent and ultimately harms the taxpayers of the CNMI. We will pay more in the long run.'

She added the expenditure is not only a gross misallocation of taxpayer money, but there is also no legal obligation or requirement for the central government to shoulder this burden at the expense of civil service employees who have not gotten any merit increases or at the cost of land compensation claimants who have had their land taken by the government with impunity.

'Some land claimants have been waiting for 30 plus years. Many have since died. I encourage the governor, present today, to exercise his constitutional authority to line-item veto that provision and re-allocate the $250,000 to the Public School System since they were not allocated anything further from these additional resources. Additionally, the Judiciary was not even a passing thought. I further urge the governor to provide additional resources to the Judiciary.'

House floor leader Rep. Marissa Renee Flores (Ind-Saipan), the other lawmaker who voted no to the amended budget bill, said she cannot in good conscience support the revised fiscal year 2025 budget in House Bill 24-6.

'Attempting to fund the commissioners’ salaries in this bill is unacceptable when the law is clear, it is supposed to come from casino licensing fees (P.L. 18-56, 19-24, and 21-38). I attended many CCC meetings demanding accountability and transparency, with CCC members openly disrespecting my role as an elected official. I have pleaded with CCC to revoke Imperial Pacific International’s license, yet they did nothing. It is not a secret that I have been very vocal about my desire to abolish the Commonwealth Casino Commission.'

Instead of funding the salaries of CCC members, Flores said the money could’ve been used for more worthwhile outstanding payments.

'Our economy is collapsing, and we are at historically low levels of investment and revenue. We have obligations such as the Pacific Mini Games and COVID-19 programs that were given approved POs but have yet to be paid and reconciled; people and businesses who have provided services and done work for the Commonwealth. We cannot afford to pay the commissioners' salaries when these funds can be utilized to help so many more in our community. More than ever, we need to be prudent with our money, responsible and honest with our spending.'

She added that in no way will she compromise her integrity in passing a bill chockfull of questionable appropriations.

'This is about integrity and my promise to my constituents and our Commonwealth. We were elected to office on a platform advocating for change, anti-corruption, accountability, and transparency. Our community has spoken, and these actions maintain the status quo our voters have condemned. I will not compromise my principles and will continue my commitment to the Commonwealth to do what is right. The governor can and should have line-itemed veto that portion but as we know, he chose not to.'

Rep. Vincent S. Aldan (Ind-Saipan), more or less, agreed with Babauta and Flores regarding the CCC issue.

'When it comes to CCC salary; they get paid by collection from operating casinos. Hence, if there are no operating casinos, no paycheck, simple as that. Their failures as casino commissioners should not be rewarded by having the taxpayers' funds used for their backup salaries. IPI until this day holds the exclusive casino license, how is that helping our economy?'

He then implored the community to have their voices heard especially when it comes to the Commonwealth’s coffers.

'The public should be more involved, and not just during an election season. We get out voted on issues like this.

The public can protest and petition to line-item veto and place those funds to medical referral, and/or something more meaningful, impactful, and beneficial to the public.'

Community member Jack Muna seems up to the challenge when he questioned the amended bill providing backpay to CCC members on social media.

'All salaries intended to pay the casino commissions should be stopped and only paid when a meeting is called. Why pay the full salary when there are no casinos? Get paid when you really earn it!'

CCC member Mariano Taitano implored the public to give Saipan’s casino industry a chance.

He said investors are waiting in line to revive the casino industry and the CCC has sent its recommendations to the Legislature on how to help jump-start the casino industry. One such option is opening up the exclusivity clause of the casino industry and Taitano said IPI is open to that possibility.

Taitano also lamented how people quickly forget the benefits they reaped during IPI’s heyday.

'Where did that come from? It came from the casino industry and other projects that they appropriated the money to assist within our communities. At the start, at the beginning of this industry, IPI pumped millions and millions of dollars. And now we're going to turn around and be critical of it? I mean, you know, we should be fair to IPI or whoever casino investor may come in and try to establish itself. We should give it a chance. And that was the main reason why this casino law was enacted. So, you know, give it a chance.'

For his part, Sen. Jude Hofschneider (R-Tinian), the Senate Fiscal Committee chair, said it’s about time that CCC members get compensated.

'The current and former CCC commissioners ceased compensation since early 2023 and they still performed their task nonetheless. Like many other obligations, this is one that the leadership of the Senate agreed to address in the revised budget of FY 2025.'