Austerity in effect, government adjusts budget

GOVERNOR David M. Apatang on Wednesday issued Directive 2026-8, imposing austerity measures to “navigate this challenging fiscal climate.” The goals, he said, are fiscal stability, streamlined government operations, and the maintenance of essential public services.

The directive follows the enactment of Public Law 24-14, the $179 million fiscal year 2026 budget, which the governor said will be revised soon to reflect lower revenue projections. Of this amount, lawmakers earmarked about $51.8 million for debt service and other obligations, leaving $127 million for government appropriation.

Reduced work hours
Under the new measures, all executive branch employees, including those in federal programs, will have modified work schedules from 8:30 a.m. to noon and 1 p.m. to 4:30 p.m., Monday to Friday. The government must remain open during regular working hours, including lunch, but department and agency heads may determine which offices remain open for public safety, health, and welfare. All modified schedules must stay within budget limits. No leave of absence will be authorized to supplement austerity hours.

Performance reviews and personnel actions
Department and agency heads are allowed to review employee performance, including absences without leave, leave without pay, and other adverse actions. These factors may be considered for terminations, furloughs, or reductions in force. The governor encouraged managers to maintain high performance while reducing personnel costs.

Unpaid holidays
Holidays will no longer be paid, including Commonwealth Cultural Day (Oct. 13, 2025), Citizenship Day (Nov. 4, 2025), Constitution Day (Dec. 8, 2025), Martin Luther King Day (Jan. 20, 2026), President’s Day (Feb. 16, 2026), Covenant Day (March 24, 2026), Good Friday (April 3, 2026), Juneteenth Day (June 19, 2026), and Independence Day (July 3, 2026).

Department-specific hours and travel
The directive limits working hours to 80 hours biweekly for Department of Public Safety and Department of Corrections officers, and 100 hours biweekly for Department of Fire and Emergency Medical Services officers. Administrative staff in these departments will also face reduced hours.

Locally funded travel is restricted to essential purposes, such as public health and welfare, public safety, fiscal recovery, or critical infrastructure needs. Federally funded travel requests require approval from the governor and the federal grantor.

Contracts, utilities, and government spending
The governor ordered the termination of non-essential locally funded contracts, subscriptions, and leases, including vehicle leases, cell phones, and landlines. All executive branch departments must transition to prepaid electric meters within 30 days, except for the Department of Corrections and streetlights. Water and sewer services will remain post-paid until pre-paid systems are in place. Gasoline usage for government vehicles via fleet cards will be subject to funding availability.

Citing Public Law 24-14, the governor also directed that revolving account funds may be expended for personnel, fuel, communications, office supplies, and inter-island travel for training purposes, all subject to funding availability.

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