PACIFIC ISLANDS REPORT

Pacific Islands Development Program/East-West Center
With Support From Center for Pacific Islands Studies/University of Hawai‘i

By Marian A Maraya

SAIPAN, CNMI (Saipan Tribune, Nov. 16) – Saipan Rep. Pedro P. Castro has introduced legislation that seeks to distribute "compact-impact" funds among the three senatorial districts.

House Bill 13-348 proposes that Saipan receive 75 percent; Tinian 10 percent, and Rota 15 percent of the federal reimbursement for the CNMI's costs in hosting citizens from the Freely Associated States.

The money is subject to appropriation by each senatorial district's legislative delegation, according to the proposed FAS Compact/Impact Fund Fair and Equitable Distribution Act of 2003.

"Since the Compact/Impact is made available to compensate the islands impacted by the citizens of the FAS, it is the consensus of the members of the Legislature to distribute the Compact/Impact fund for the CNMI fairly and equitably to achieve its intended purposes in Saipan, Rota, Tinian and Northern Islands," part of HB 13-348 reads. The bill seeks to direct the Department of Finance to establish special accounts and deposit all Compact/Impact funds in their respective account according to the 75-10-15 suggested formula.

Castro justified that of the 4,091 FAS citizens in the CNMI, 3,990 are on Saipan, 75 are on Rota and 26 are on Tinian. The figures are based on the Census 2000.

These numbers will be updated soon with the completion of the 2003 Micronesian Census.

HB 13-348 comes following the U.S. Congress' action to approve the renewed Compact of Free Association with the Marshall Islands and the Federated States of Micronesia or Compact II.

According to reports, the measure spells out terms of $3.5 billion in aid to the two Pacific countries and continued U.S. access to military facilities for the next 20 years.

The Compact II was approved by the U.S. Senate last Nov. 6 and was on its way to the U.S. House of Representatives for the final approval of Senate amendments.

The Senate's version reportedly contained slight changes, and included a $30-million federal reimbursement for Hawaii, Guam, and the Northern Marianas for the costs of FAS migration.

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