THE ASSISTANCE PROVIDED BY OTIA, WE HAVE ENTERED INTO A CONTRACT WITH ARTHUR D. LITTLE OF BOSTON, MASSACHUSETTS, A CONSULTING FIRM, TO ASSIST US TO FINALIZE THE SEVEN YEAR PLAN IN ACCORDANCE PLAN, IN THE INTERIM, OTIA HAS AGREED TO PROVIDE FUNDING OF CIP DETAILED BUDGET SUBMISSION. THE FISCAL YEAR 1989 OPERATIONS AND CAPITAL IMPROVEMENT BUDGET SUBMISSION FOR THE CNMI IS IN FULL COMPLIANCE WITH THE BALANCED BUDGET PROVISION REQUIRED BY THE CNMI CONSTITUTION, THE APPROPRIATE U.S. LAWS, AND GRANT FUNDS MANAGEMENT RULES AND REGULATIONS. WE HAVE IDENTIFIED THE CAPITAL IMPROVEMENT PROJECTS (CIP) THAT WILL BE FUNDED DURING FISCAL YEAR 1989 FOLLOWING PRUDENT AND TIMELY IMPLEMENTATION SCHEDULES FOR ONGOING PROJECTS, AND ADHERING TO THE CNMI SENATORIAL DISTRICT CERTIFICATION OF APPROVED PROJECTS. FISCAL YEAR 1989 THE FEDERAL FINANCIAL ASSISTANCE FOR THE CNMI FOR FISCAL YEAR 1989 IS $40,150,000. THIS BUDGET HAS BEEN SUBMITTED TO THE COMMITTEE IN COMPLIANCE WITH THE SPECIAL REPRESENTATIVES IN ADDITION TO THE PRESIDENT'S BUDGET RECOMMENDATIONS FOR FISCAL YEAR 1989 WHICH WE SUPPORT, OUR UNIQUE CIRCUMSTANCES WARRANT A SPECIAL REQUEST FOR CAPITAL DEVELOPMENT FUNDS ABOVE THE LEVEL RECOMMENDED. PUBLIC LAW 99-396 PLACES EMPHASIS ON CAPITAL DEVELOPMENT FUNDING. THE PLANNED OUTLAYS FOR FISCAL YEAR 1989, COMBINED WITH THE AUTHORIZED FUNDING THROUGH FISCAL YEAR 1992, WILL NOT MEET THE IMMEDIATE NEEDS IN THE AREAS OF WATER AND HARBOR .ND WILL ONLY KEEP THE OTHER INFRASTRUCTURE DEVELOPMENTS AHEAD OF THE ADDED DEMAND RESULTING FROM AN EXPANDING AND GROWING PRIVATE SECTOR ECONOMY. U.S. PUBLIC LAW 98-254 AUTHORIZED $15 MILLION FOR WATER SYSTEMS IMPROVEMENTS IN SAIPAN. THIS WAS REAUTHORIZED UNDER PUBLIC LAW 99-662 FOR WATER SYSTEMS IMPROVEMENTS IN THE NORTHERN MARIANA ISLANDS. OF THIS AUTHORIZATION, $4.671 MILLION WAS APPROPRIATED AND EXPENDED IN CRITICAL WATER SYSTEM IMPROVEMENT NEEDS. THE BALANCE OF $10.329 MILLION IS NEEDED FOR DESIGN, ENGINEERING AND CONSTRUCTION OF THE CRITICAL WATER SOURCE DEVELOPMENT, TRANSMISSION AND DISTRIBUTION SYSTEM THROUGHOUT THE CNMI. WE REQUEST THAT THIS COMMITTEE CONSIDER, AND SUPPORT OUR REQUEST WATER PRODUCTION HAS INCREASED BUT IS INSUFFICIENT TO MEET THE AND DISTRIBUTION SYSTEMS. DETAILED PLANS FOR NEW WATER SOURCE DEVELOPMENT AND PLANS TO REPLACE MAIN TRANSMISSION AND DISTRIBUTION LINES HAVE BEEN DEVELOPED AND ARE NOW AWAITING FUNDING FOR CONSTRUCTION. WE REQUEST THAT THIS COMMITTEE CONSIDER, AND SUPPORT, OUR REQUEST FOR THE APPROPRIATION OF $10.329 MILLION AS AUTHORIZED BY U.S. PUBLIC LAW 98-254 FURTHER REAUTHORIZED UNDER U.S. PUBLIC LAW 99-662. THE PROPOSED PROJECTS TO BE FUNDED ARE DETAILED IN ATTACHMENT I OF OUR BUDGET SUBMISSION. AS IN THE PAST, IT IS RECOMMENDED THAT THESE FUNDS, WHEN APPROPRIATED, BE ADMINISTERED BY THE DEPARTMENT OF THE INTERIOR. APPROVAL OF THIS REQUEST AND THE APPROPRIATION OF THE FUNDS WILL MOVE US CLOSER TO MEETING THE U.S. PUBLIC HEALTH DRINKING WATER STANDARDS. THE SAIPAN SEAPORT CONTINUES TO BE A MAJOR THREAT TO CONTINUED ECONOMIC GROWTH. THE PRESENT DOCK WAS CONSTRUCTED BY THE JAPANESE DURING THE LATE 1930'S. IT IS UNSAFE, SMALL, AND INCAPABLE OF ACCOMMODATING ADDITIONAL SEAPORT TRAFFIC. IF FURTHER DAMAGED BY STORM OR HEAVY USE, IT COULD FORCE THE CNMI TO AIRLIFT OR LIGHTER SEVERAL HUNDRED THOUSAND TONS OF MATERIALS, GOODS, SUPPLIES INCLUDING FOOD, WHICH WOULD BE AN IMPOSSIBLE TASK. THE SAIPAN COMPREHENSIVE PORT DEVELOPMENT PLAN PREPARED BY THE U.S. ARMY CORPS OF ENGINEERS ESTIMATES A COST OF $28,000,000 FOR ONSHORE AND $14,000,000 FOR OFFSHORE IMPROVEMENTS AND REPAIRS FOR A TOTAL PROJECT DEVELOPMENT COST OF $42,000,000. IT IS ESTIMATED THAT IF THE OFFSHORE AND ONSHORE PROJECTS ARE CONSTRUCTED ON OR ABOUT THE SAME TIME CONSIDERABLE SAVINGS OF APPROXIMATELY $5 MILLION WOULD BE REALIZED. THIS WILL BE ACHIEVED BY UTILIZING THE OFFSHORE DREDGING SPOILS FOR THE ONSHORE LANDFILL. IN THIS CONNECTION, THE CNMI HAS EARMARKED $12.5 MILLION OF ITS COVENANT CIP FUNDS FOR THE PROJECTS. WE RESPECTFULLY REQUEST THE COMMITTEE TO INCLUDE IN THE FISCAL YEAR 1989 APPROPRIATION, THE $14 MILLION AUTHORIZED UNDER U.S PUBLIC LAW 99-662, AND AN ADDITIONAL $15.5 MILLION TO FULLY FUND THE PROJECTS. THE CNMI HAS EARMARKED $12,500,000 OF COVENANT CIP FUNDS FOR PHASE-ONE ONSHORE IMPROVEMENTS COMMENCING EARLY IN FISCAL YEAR 1989. IN THE EVENT THE PROJECTS ARE NOT UNDERTAKEN IN A COORDINATED AND TIMELY CONSTRUCTION SCHEDULE, THE COST WILL BE INCREASED BY THE REQUIREMENT OF OBTAINING LANDFILL MATERIALS FROM ONSHORE QUARRIES. THE DETAILS OF THE SAIPAN PORT IMPROVEMENT PROJECTS ARE ENCLOSED AS ATTACHMENT II OF THE BUDGET SUBMISSION. THIS INFORMATION IS FURTHER SUPPORTED WITH THE NECESSARY FEASIBILITY STUDIES AND ENGINEERING DRAWINGS. COMMONWEALTH PORTS AUTHORITY IS READY TO PREPARE BIDDING THE DOCUMENTS AND ADVERTISE FOR CONSTRUCTION BIDS, WHEN ADEQUATE FUNDING IS AVAILABLE. WE WISH TO THANK THIS COMMITTEE FOR ITS SUPPORT AND INCLUSION OF THE $12,100,000 OF FUNDS FOR WAR CLAIMS PAYMENT IN PUBLIC LAW 100-202. WE PRAY THAT THE COMMITTEE WILL SUPPORT AN APPROPRIATION OF THE BALANCE IN THE FISCAL YEAR 1929 BUDGET. WE APPRECIATE THE $8,000,000 APPROPRIATION AS A PARTIAL FUNDING FOR PRIOR YEAR SERVICE BENEFITS. WE REQUEST THE COMMITTEE'S CONTINUED SUPPORT FOR THE APPROPRIATION OF THE BALANCE AFTER THE NEW ACTUARIAL STUDY HAS BEEN COMPLETED. IT IS OUR POSITION THAT WITH THAT APPROPRIATION THE FEDERAL GOVERNMENT WILL HAVE MET ITS LEGAL OBLIGATION TO FUND THE BENEFITS UNDER THE PROVISIONS OF |