The Torres administration left a more-than-$80 million over-obligation of federal pandemic funds, and the Senate president recklessly assumed and asserted otherwise without attending the weekly fiscal meetings, where she could have simply learned the facts. This is a summary of a scathing two-and-a-half page scolding CNMI Secretary of Finance Tracy Norita wrote to Sen. Edith Deleon Guerrero.
Ms. Deleon Guerrero on Friday, at a session of the Senate said: “There are still ARPA funds. And, no, we are not confused at all. As a matter of fact, when we first took office, a worksheet was provided. As of December 31, 2022, on ARPA funds Section A, B, C, and D, adding it over to the last column, available ARPA, SLFRF: $65,789,171.85. The latest report, as of May 31, 2023, available ARPA : $93,419,465.62.”
Cash vs. budget
The May 31, 2023 spreadsheet Ms. Deleon Guerrero referred to in her statements was issued by the Department of Finance to the governor’s Fiscal Response Team, and provide a budgetary – not cash – figure of more than $93 million in American Rescue Plan Act (ARPA) funds that had yet to be reconciled against far greater expenses and allocations.
The difference between budget and cash in government accounting is a fundamental and critical distinction, especially for lawmakers, who dissect and approve spending authority.
“As you know, we cannot pay our vendors with figures represented on a budget; ultimately, cash is the real decision-making factor,” Ms. Norita wrote to the senate president.
In sum and substance, Ms. Deleon Guerrero’s statements were completely false, according to the finance secretary. The senate president confused a budgetary entry with a cash balance, and made a reckless public statement based on the false assumption.
“Your recent statements that the administration terminated 500+ employees despite having $93 million in ARPA funds were wholly inaccurate and dangerously misleading; $93 million is not available in cash. Although it was a painful decision to terminate 500+ employees funded by ARPA, it was absolutely necessary to maintain critical operations considering the General Fund is not able to shoulder the cost.
“On April 27, I had met virtually with the US Treasury regarding our need to revise the current ARPA Spending Plan. We were advised that the revision is communicated in the semi-annual compliance reporting on expenditures. No other submission is required at this time. The fact that you are unaware of this information is questionable. This updated information was immediately provided to those present at the subsequent FRT meetings, including your analyst.”
Ms. Norita pulled no punches on what is evidently a schooling of the senate president in both basic government finances and ethics in providing truthful information to the Commonwealth’s people. She repeatedly questioned why the senate president, if she was sincere about understanding the true fiscal affairs of the CNMI government, did not attend the weekly FRT meetings, where those public discussions were made, and the data distributed.
“Other legislators who needed more information to understand the numbers have made the effort to attend these meetings to gain insight and directly communicate their questions, concerns, and proposed solutions. I encourage you to do the same; the invitation to actively participate remains open,” Ms. Norita wrote to Ms. Deleon Guerrero.
‘We are working while your statements are misleading the public’
Ms. Norita also challenged Ms. Deleon Guerrero, who is one of the two heads of the legislative branch, to put her money where mouth is, and lead cost containment measures in her branch of government just as the executive branch is doing.
“This administration has reduced employee hours to 72 per pay period, vacated rental spaces, disconnected phone lines, returned vehicles, canceled contracts – all to cut costs,” Ms. Norita wrote. “We welcome the same effort from others.
“Thus, you have taken this genuine effort to assist agencies in reducing their outstanding obligations and have blown it out of context. This is an example of numerous meetings being held to come up with solutions to help the current fiscal crisis, while your statements mislead the public,” she continued in her scolding of Ms. Deleon Guerrero.
You may read the full letter from the secretary below:
