"Fitial mischaracterizes GAO report...."

The U.S. Government Accountability Office (GAO) has issued its report on the economic impact of the federalization of the CNMI's immigration laws. The bottom line is that the impact will depend on how the feds (specifically, the Executive Branch) implement the law, and that the feds will need additional data to guide them properly. The Variety news account of the report, under the headline "GAO Downplays Fitial's Economic Disaster Scenario," can be found here.

One thing GAO makes clear is that the Fitial administration has mischaracterized what the report says: "By focusing on one of several scenarios developed for illustrative purposes rather than the full range of scenarios included in our report, the CNMI government comments...inaccurately stated that the report predicts a substantial decline in the CNMI economy as a result of the legislation" (emphasis added).

It appears that the Governor has repeated this mischaracterization of the GAO report: Fitial said today that "the GAO concludes, even with the most favorable (and unrealistic) assumptions, that the law's implementation will most probably result in a 50-percent decline in the economic output (or GDP) of the Commonwealth by 2021 if not sooner." GAO would strenuously object to that mischaracterization of its conclusions.

The Fitial team had requested repeatedly that Congress delay passage of the federalization bill until GAO issued its report.

Congressional leaders replied that such a delay was not necessary. They said that the federalization bill itself would not harm the CNMI, and that the impact would depend on how the bill was implemented. They said that economic studies would be useful not to Congress in deciding whether to pass the bill, but rather to the Executive Branch in developing the regulations that would implement the bill. GAO appears to have endorsed this view.

Now, the feds have the very serious obligation of gathering the additional data that needs to be gathered and ensuring that federalization is implemented in a manner that allows the CNMI to develop a strong economy. We all have an interest in keeping the pressure on the feds to make sure that they do their job properly.