Guam gears up for suit vs feds
Friday, 02 January 2009
by Therese Hart
Variety News Staff
WASTING no time before the New Year kicked in, Gov. Felix Camacho has signed into law a bill that paves the way for the government of Guam to take legal action against the federal government for reimbursement of $400 million in Compact Impact funds.
Bill 385 was signed into law on Monday. The bill’s author, Sen. Frank Blas Jr., said the enactment of Bill 385 will now allow Guam to move forward.
Attached to the bill was an amendment that waives the government’s sovereign immunity protection as required by the financing contract that was negotiated with the Guam Economic Development and Commerce Authority and the Bank of Guam for the $20 million bridge loan that must be deposited to federal receiver, Gershman, Bricker & Bratton’s trustee by next Monday.
“We must move forward with the closure of the Ordot Dump and the construction of a new landfill to comply with the federal consent decree obligations placed on this government,” Camacho said.
In an earlier interview, Blas said Guam has spent a total of $400.87 million for the social services rendered to Freely Associated States citizens between 1987 and 2007 but the amount that the federal government reimburses to the island is not commensurate to the actual cost of hosting Micronesians.
According to the Compact Impact Reconciliation Report, Guam spent $269 million from 1987 to 2003 for medical, educational and security services provided to FAS citizens. "The total amount owed to Guam now is $400.87 million when we include the un-reimbursed amounts from 2004 to 2007," Blas told Variety during an interview last August.
Guam has been receiving $14 million in Compact Impact money every year since 2004. That amount is part of the $30 million that the federal government releases annually and shared with Hawaii and the CNMI, which are also affected by migration of FAS citizens migration.
David B. Cohen, former deputy assistant secretary of the Department of Interior, disagreed with the local government’s claim that the federal government owed Guam money.
“I don’t agree that Guam is owed $400 million,” Cohen told Variety in an interview during his visit to Guam last month.
He said the law authorizes reimbursements for the impact of migration from Palau, the Federated States of Micronesia and the Marshall Islands, but did not require Congress to appropriate funds for that purpose. “So that’s not a debt,” Cohen said.
Cohen said Guam incurs costs just as other states do, but in return, there are benefits that come with the overall package.
“Guam is incurring expenses because of decisions that are made by the federal government, but all of us do. When we’re part of the American family we get benefits because the decisions by the federal government and we incur costs,” Cohen said.
“We get benefits like the military buildup will bring a lot of money here. And the federal government never says that we will indemnify you, in other words, we will make sure that you will incur no cost because of any decision we make,” Cohen said.
Cohen said that Guam could argue that because of the influx of migrants to Guam, that Guam should pursue the matter with the federal government using a moral argument.
“I do agree that Guam has a moral argument to make and I used to make that argument behind the scenes. I think it is a very legitimate argument to make,” he said.
He said the federal government’s role in fiscal policy has reached a new level of difficulty. But Guam, he added, should move forward in pursuing the feds help in shouldering some of the costs, not just Compact Impact funds, but the military buildup as well.
“It’s a difficult fiscal environment that’s just gotten a lot more difficult, so it’s a hard issue. The folks in DC, they don’t think they owe Guam the money as a legal matter, but we need to create more awareness of what Guam needs, not only because of Compact Impact and the impact of migration, but the civilian needs because of this buildup,” said Cohen.
Showing posts with label David Cohen. Show all posts
Showing posts with label David Cohen. Show all posts
Sunday, January 04, 2009
Friday, December 07, 2007
Cohen: High Cost of Living in Islands Caused by Limited Private Sector
Cohen says cost of living on islands high due to limited private sector participation
By Gemma Q. Casas
Variety News Staff
12/7/07
THE federal official in charge of overseeing assistance and programs for American insular areas says the cost of living in island communities is high due to limited private sector participation.
David Cohen, the U.S. Interior Department’s deputy assistant secretary for insular affairs, was the keynote speaker at the Annual Conference of the Island Government Finance Officers’ Association held on Tuesday in Honolulu, Hawaii.
He said “in most of the insular area economies, there is an unsustainable imbalance between the public and private sectors.”
A strong private sector propels a healthy economy, he said. This way “jobs are created and taxes are collected to fund essential services for the public.”
But many islands do not have economies dominated by the private sector. “In many island economies, this model is turned on its head: The economy is dominated by the public sector. Since the public sector generally is a consumer and not a producer of wealth, this type of economy can only be sustained with outside subsidies. I have referred to these island economies as being “upside down in the middle of the ocean.” They will have to get right-side up in order to get their heads above water,” said Cohen.
However, the odds are against the island communities because of their remote locations and susceptibility to extreme weather conditions. “These communities tend to have small populations, few resources and remote locations. That means they are heavily dependent upon transportation systems to bring people and goods to and from their islands, and that transportation is likely to be significantly more expensive than it is in more populated areas. This, in turn, tends to make everything else on the island more expensive. The cost of doing business is therefore high.”
By Gemma Q. Casas
Variety News Staff
12/7/07
THE federal official in charge of overseeing assistance and programs for American insular areas says the cost of living in island communities is high due to limited private sector participation.
David Cohen, the U.S. Interior Department’s deputy assistant secretary for insular affairs, was the keynote speaker at the Annual Conference of the Island Government Finance Officers’ Association held on Tuesday in Honolulu, Hawaii.
He said “in most of the insular area economies, there is an unsustainable imbalance between the public and private sectors.”
A strong private sector propels a healthy economy, he said. This way “jobs are created and taxes are collected to fund essential services for the public.”
But many islands do not have economies dominated by the private sector. “In many island economies, this model is turned on its head: The economy is dominated by the public sector. Since the public sector generally is a consumer and not a producer of wealth, this type of economy can only be sustained with outside subsidies. I have referred to these island economies as being “upside down in the middle of the ocean.” They will have to get right-side up in order to get their heads above water,” said Cohen.
However, the odds are against the island communities because of their remote locations and susceptibility to extreme weather conditions. “These communities tend to have small populations, few resources and remote locations. That means they are heavily dependent upon transportation systems to bring people and goods to and from their islands, and that transportation is likely to be significantly more expensive than it is in more populated areas. This, in turn, tends to make everything else on the island more expensive. The cost of doing business is therefore high.”
Friday, September 07, 2007
Real Estate Conference
Cohen to address real estate conference
By Gerardo R. Partido Variety News Staff
September 7, 2007
DEPUTY Assistant Secretary of the Interior for Insular Affairs David B. Cohen will be one of the keynote speakers in the upcoming 4th Micronesia Real Estate Investment Conference to be held on Sept. 28 and 29 at the Leo Palace Hotel.
Cohen will talk about issues facing investors in Micronesia real estate, including the Guam military buildup and other events, according to W. Nicholas Captain, organizer of the event.
“I expect that David Cohen will address issues of real interest to all our delegates. All of us want to know more about the huge opportunities the military buildup will offer investors. The $15 billion in military construction will bring a lot of people to Guam who are all going to have to live somewhere. And the whole Micronesia region is obviously ripe for more development,” Captain said.
Cohen is also expected to address what governments can do to maximize their lands and allow for economic development in his speech, “Unlocking the Value of Real Estate.” “The leaders of Micronesia have some issues before them concerning policy in their regions. I think David Cohen’s speech will lay all of this out,” Captain said.
Captain, who is the president of the Captain Real Estate Group of Companies, said this year’s conference is especially relevant because the expansion of the military on Guam brings along with it many opportunities for real estate investment.
“With the anticipation of about 8,000 U.S. Marines, their 10,000 dependents and an estimated support population of 24,000 coming to Guam, there are many important issues that will affect a wide range of industries in Micronesia. The general military buildup already begins to offer a myriad of opportunities in the real estate investment field,” Captain said.
The biennial real estate conference provides delegates and sponsors a unique opportunity to hear experts, peers and industry professionals speak and share information about real estate investment and development in the Pacific Rim.
Other featured speakers include David Dix, chief executive officer and managing director of Creed Capital Management Australia Ltd. in Australia; Douglas Smith, managing director and head of Commercial Real Estate for Deutsche Bank in Japan; David L. Wickline, managing partner of Pacific Holdings Trust LLC of California; John Baldwin, principal of Bridge Capital of Saipan; and W. Nicholas Captain.
Real estate transactions have already increased on Guam last year in anticipation of the military expansion, with land transactions rising by 6 percent, apartment sales increasing by 25 percent, and condominium sales increasing by 28.9 percent.
Analysts attributed the real estate market’s improvement to “bottom of cycle” prices that were too low, pent-up demand, and deferred “move-up” acquisitions.
During the event, Captain said he will release the latest real estate statistics for Guam.
By Gerardo R. Partido Variety News Staff
September 7, 2007
DEPUTY Assistant Secretary of the Interior for Insular Affairs David B. Cohen will be one of the keynote speakers in the upcoming 4th Micronesia Real Estate Investment Conference to be held on Sept. 28 and 29 at the Leo Palace Hotel.
Cohen will talk about issues facing investors in Micronesia real estate, including the Guam military buildup and other events, according to W. Nicholas Captain, organizer of the event.
“I expect that David Cohen will address issues of real interest to all our delegates. All of us want to know more about the huge opportunities the military buildup will offer investors. The $15 billion in military construction will bring a lot of people to Guam who are all going to have to live somewhere. And the whole Micronesia region is obviously ripe for more development,” Captain said.
Cohen is also expected to address what governments can do to maximize their lands and allow for economic development in his speech, “Unlocking the Value of Real Estate.” “The leaders of Micronesia have some issues before them concerning policy in their regions. I think David Cohen’s speech will lay all of this out,” Captain said.
Captain, who is the president of the Captain Real Estate Group of Companies, said this year’s conference is especially relevant because the expansion of the military on Guam brings along with it many opportunities for real estate investment.
“With the anticipation of about 8,000 U.S. Marines, their 10,000 dependents and an estimated support population of 24,000 coming to Guam, there are many important issues that will affect a wide range of industries in Micronesia. The general military buildup already begins to offer a myriad of opportunities in the real estate investment field,” Captain said.
The biennial real estate conference provides delegates and sponsors a unique opportunity to hear experts, peers and industry professionals speak and share information about real estate investment and development in the Pacific Rim.
Other featured speakers include David Dix, chief executive officer and managing director of Creed Capital Management Australia Ltd. in Australia; Douglas Smith, managing director and head of Commercial Real Estate for Deutsche Bank in Japan; David L. Wickline, managing partner of Pacific Holdings Trust LLC of California; John Baldwin, principal of Bridge Capital of Saipan; and W. Nicholas Captain.
Real estate transactions have already increased on Guam last year in anticipation of the military expansion, with land transactions rising by 6 percent, apartment sales increasing by 25 percent, and condominium sales increasing by 28.9 percent.
Analysts attributed the real estate market’s improvement to “bottom of cycle” prices that were too low, pent-up demand, and deferred “move-up” acquisitions.
During the event, Captain said he will release the latest real estate statistics for Guam.
Thursday, September 06, 2007
More on CNMI Federalization
Homeland Security involved in redrafting of federalization bill
By Gemma Q. Casas
Variety News Staff
September 6, 2007
THE August deadline for the revised version of S. 1634, the bill that will federalize the local immigration system, has been pushed back after the U.S. Interior Department asked the help of the U.S. Department of Security in drafting a new measure.
David Cohen, Interior’s deputy assistant secretary for insular affairs, hopes to submit the new draft of S. 1634 soon.
“We are still working with the Department of Homeland Security to finish up the draft,” said Cohen in an e-mail interview. “We hope to be able to submit it soon.”
Homeland Security will be among the five federal agencies to oversee the transition to a federal immigration system in the CNMI.
The department sent Philip B. Busch, one of its legal counsels, to Saipan to observe the Aug. 15 field hearing conducted by the U.S. House Subcommittee on Insular Affairs on H.R. 3079, the Northern Mariana Islands Immigration Security and Labor Act, which is similar to S.1634 but includes a provision for a CNMI nonvoting congressional delegate.
Busch is with the Office of the Chief Counsel of the department’s U.S. Citizenship and Immigration Services.
Cohen said once his office submits the second draft, the next step will be up to the U.S. Senate Committee on Energy and Natural Resources.
“Their next procedural step will be to report the bill out of the Senate committee and a similar process will be going on in the House,” he said.
S. 1634 and H.R. 3079 both propose that foreign workers in the Northern Marianas who have been legally employed for at least five years be given the opportunity to get nonimmigrant visas which will entitle them to freely travel, work and study anywhere in the United States and its possessions.
Gov. Benigno R. Fitial is strongly opposed to both bills citing their “negative economic impact.”
****************
Cohen: NMI situation has changed
By Haidee V. Eugenio
Variety Assistant Editor
Sept 5, 2007
DEPUTY Assistant Secretary of the Interior for Insular Affairs David Cohen says the federal government’s point back in 2004 was that it would not be willing to grant immigration status to nonresident workers “unless the entire CNMI immigration system were to be federalized” but, he said, the “situation has changed now.”
Cohen was responding to a statement from Covenant Party chairman Alvaro Santos who said “it is shameful and disgraceful for Cohen to be representing himself as the ‘savior’ of nonresident workers when you consider the fact that David Cohen strongly opposed the granting of permanent residency status to nonresident workers only a few years ago.”
Among the changes Cohen cited that were beyond the CNMI’s control were the U.S. Congress’ active consideration of federalizing CNMI immigration which is indeed supported by the Bush administration, and the changes in world trade that have contributed to sharp declines in CNMI revenue, depriving it of the resources it needs to properly administer its responsibilities.
“Now that we’re seriously considering immigration federalization, we have an opportunity to examine the situation of the long-term contract workers that have been so essential in building the CNMI economy,” he said. “We have the opportunity and the obligation to try to ensure that everyone — the indigenous community, the contract workers, the business community and others — is treated fairly.”
On Dec. 16, 2004, Cohen was quoted as saying that “there is virtually no hope of the Dekada movement succeeding in getting U.S. permanent residence for its members on the basis of their presence in the CNMI.”
Dekada is seeking permanent residence status for over 3,000 of its nonresident members who have been lawfully working in the CNMI for at least five years.
The movement, formed in September 2004, consists mostly of Filipinos, Koreans, Chinese, Nepalese, Bangladeshis, Thais and Burmese.
In a statement yesterday, Cohen said reasonable people can disagree about what is fair, and that’s why a healthy, respectful debate is essential at this time.
The Covenant Party chairman said he is “deeply offended” by and resents Cohen’s political behavior and unprecedented intrusion into the CNMI’s self-government and local politics.
“The way David Cohen has been carrying on when he visits the Commonwealth, you would think that the temporary alien contract workers negotiated and approved our Covenant agreement with the United States for their benefit, not the indigenous population. This was never the intention of our founding fathers or the great Americans who supported our Covenant agreement with the United States,” said Santos.
Cohen, for his part, said, “Our point back in 2004 was that the federal government would not be willing to grant status to contract workers unless the entire CNMI immigration system were to be federalized. The basic bargain was that the CNMI’s continued control over its own immigration was conditioned upon the federal government not having to bear the burden of immigration decisions made by the local CNMI government.”
He said if the federal government was going to have obligations to those who were admitted to the CNMI, then the federal government would insist upon controlling who is admitted to the CNMI.
“Our point back then was that granting status to the contract workers would bring about federalization. Not even the strongest proponents of federalization in Congress were pushing federalization with any sense of urgency at that time, perhaps because this was before changes in world trade rules helped to plunge the CNMI into the crisis that exists today,” he said.
According to Cohen, this was why they were concerned, back in 2004, about the possibility that contract workers would come to the CNMI, or attempt to extend their stay, on the belief that they would get green cards.
“We were concerned that their hopes would make them exploitable, and that the CNMI would become a magnet for those seeking green cards,” he said.
Cohen said he doesn’t blame people for having anxiety at this time, “because the CNMI is likely to change significantly, one way or another, in the foreseeable future.”
“We don’t yet fully know what that change will look like, and that naturally causes anxiety. Every segment of the community is experiencing anxiety — the Chamorros, the Carolinians, the guest workers, citizens of the freely associated states, business owners and everyone else,” he said.
But according to Cohen, much of this anxiety has nothing to do with the federalization debate.
He said people are worried about their ability to support their families, to pay their utility bills and to rely upon the most basic of public services, and these worries were in full swing long before immigration federalization legislation was introduced.
“We have to guard against this anxiety spilling over into anger that is misdirected at fellow members of the community, especially the most vulnerable members. I’ve said before that everyone in the CNMI is in the same boat, and that the community will sink or swim together,” Cohen said.
By Gemma Q. Casas
Variety News Staff
September 6, 2007
THE August deadline for the revised version of S. 1634, the bill that will federalize the local immigration system, has been pushed back after the U.S. Interior Department asked the help of the U.S. Department of Security in drafting a new measure.
David Cohen, Interior’s deputy assistant secretary for insular affairs, hopes to submit the new draft of S. 1634 soon.
“We are still working with the Department of Homeland Security to finish up the draft,” said Cohen in an e-mail interview. “We hope to be able to submit it soon.”
Homeland Security will be among the five federal agencies to oversee the transition to a federal immigration system in the CNMI.
The department sent Philip B. Busch, one of its legal counsels, to Saipan to observe the Aug. 15 field hearing conducted by the U.S. House Subcommittee on Insular Affairs on H.R. 3079, the Northern Mariana Islands Immigration Security and Labor Act, which is similar to S.1634 but includes a provision for a CNMI nonvoting congressional delegate.
Busch is with the Office of the Chief Counsel of the department’s U.S. Citizenship and Immigration Services.
Cohen said once his office submits the second draft, the next step will be up to the U.S. Senate Committee on Energy and Natural Resources.
“Their next procedural step will be to report the bill out of the Senate committee and a similar process will be going on in the House,” he said.
S. 1634 and H.R. 3079 both propose that foreign workers in the Northern Marianas who have been legally employed for at least five years be given the opportunity to get nonimmigrant visas which will entitle them to freely travel, work and study anywhere in the United States and its possessions.
Gov. Benigno R. Fitial is strongly opposed to both bills citing their “negative economic impact.”
****************
Cohen: NMI situation has changed
By Haidee V. Eugenio
Variety Assistant Editor
Sept 5, 2007
DEPUTY Assistant Secretary of the Interior for Insular Affairs David Cohen says the federal government’s point back in 2004 was that it would not be willing to grant immigration status to nonresident workers “unless the entire CNMI immigration system were to be federalized” but, he said, the “situation has changed now.”
Cohen was responding to a statement from Covenant Party chairman Alvaro Santos who said “it is shameful and disgraceful for Cohen to be representing himself as the ‘savior’ of nonresident workers when you consider the fact that David Cohen strongly opposed the granting of permanent residency status to nonresident workers only a few years ago.”
Among the changes Cohen cited that were beyond the CNMI’s control were the U.S. Congress’ active consideration of federalizing CNMI immigration which is indeed supported by the Bush administration, and the changes in world trade that have contributed to sharp declines in CNMI revenue, depriving it of the resources it needs to properly administer its responsibilities.
“Now that we’re seriously considering immigration federalization, we have an opportunity to examine the situation of the long-term contract workers that have been so essential in building the CNMI economy,” he said. “We have the opportunity and the obligation to try to ensure that everyone — the indigenous community, the contract workers, the business community and others — is treated fairly.”
On Dec. 16, 2004, Cohen was quoted as saying that “there is virtually no hope of the Dekada movement succeeding in getting U.S. permanent residence for its members on the basis of their presence in the CNMI.”
Dekada is seeking permanent residence status for over 3,000 of its nonresident members who have been lawfully working in the CNMI for at least five years.
The movement, formed in September 2004, consists mostly of Filipinos, Koreans, Chinese, Nepalese, Bangladeshis, Thais and Burmese.
In a statement yesterday, Cohen said reasonable people can disagree about what is fair, and that’s why a healthy, respectful debate is essential at this time.
The Covenant Party chairman said he is “deeply offended” by and resents Cohen’s political behavior and unprecedented intrusion into the CNMI’s self-government and local politics.
“The way David Cohen has been carrying on when he visits the Commonwealth, you would think that the temporary alien contract workers negotiated and approved our Covenant agreement with the United States for their benefit, not the indigenous population. This was never the intention of our founding fathers or the great Americans who supported our Covenant agreement with the United States,” said Santos.
Cohen, for his part, said, “Our point back in 2004 was that the federal government would not be willing to grant status to contract workers unless the entire CNMI immigration system were to be federalized. The basic bargain was that the CNMI’s continued control over its own immigration was conditioned upon the federal government not having to bear the burden of immigration decisions made by the local CNMI government.”
He said if the federal government was going to have obligations to those who were admitted to the CNMI, then the federal government would insist upon controlling who is admitted to the CNMI.
“Our point back then was that granting status to the contract workers would bring about federalization. Not even the strongest proponents of federalization in Congress were pushing federalization with any sense of urgency at that time, perhaps because this was before changes in world trade rules helped to plunge the CNMI into the crisis that exists today,” he said.
According to Cohen, this was why they were concerned, back in 2004, about the possibility that contract workers would come to the CNMI, or attempt to extend their stay, on the belief that they would get green cards.
“We were concerned that their hopes would make them exploitable, and that the CNMI would become a magnet for those seeking green cards,” he said.
Cohen said he doesn’t blame people for having anxiety at this time, “because the CNMI is likely to change significantly, one way or another, in the foreseeable future.”
“We don’t yet fully know what that change will look like, and that naturally causes anxiety. Every segment of the community is experiencing anxiety — the Chamorros, the Carolinians, the guest workers, citizens of the freely associated states, business owners and everyone else,” he said.
But according to Cohen, much of this anxiety has nothing to do with the federalization debate.
He said people are worried about their ability to support their families, to pay their utility bills and to rely upon the most basic of public services, and these worries were in full swing long before immigration federalization legislation was introduced.
“We have to guard against this anxiety spilling over into anger that is misdirected at fellow members of the community, especially the most vulnerable members. I’ve said before that everyone in the CNMI is in the same boat, and that the community will sink or swim together,” Cohen said.
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