By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
THE House of Representatives and the Senate held back-to-back sessions on Monday to pass the revised fiscal year 2026 budget bill, which appropriates $138.9 million for government operations and personnel.
The measure now goes to the governor.
House Bill 24-80, which passed the House unanimously, amends the FY 2026 appropriation measure by reducing total budgetary resources to $158 million from $179.7 million and reducing the funds available for appropriation to $138.9 million from $152.2 million in the original version of the bill.
Only 16 House members were present. Reps. Ralph N. Yumul, Raymond U. Palacios, Thomas John Manglona, and Patrick San Nicolas were excused.
Prior to passing the spending plan, the House adopted an amended House Concurrent Resolution 24-3, which identifies $158 million in total projected revenue as indicated in Gov. David M. Apatang’s revised budget submission on Oct. 14, 2025, and identifies $138.9 million as available for appropriation.
House Ways and Means Chairman John Paul Sablan, who had earlier introduced a bill proposing higher revenue projections, offered a substitute bill on Monday that aligned with the governor’s revised budget submission.
The Senate passed H.B. 24-80 on a 7-1 vote. Sen. Paul A. Manglona was excused.
Sen. Celina Babauta cast the lone dissenting vote. She acknowledged the efforts of the House Ways and Means Committee and the Senate Fiscal Affairs Committee, noting the difficulty of stretching limited resources to address urgent obligations, including the retirees’ 25% pension payment, the $7.2 million allocation for the Group Health and Life Insurance program, and funding for public-school students.
H.B. 24-80 includes $34.5 million for the Public School System, $4.3 million for group health and life insurance for retirees and active government employees, $210,000 for members of the disbanded Commonwealth Casino Commission, and $5.3 million for the 25% payment to CNMI retirees.
Babauta said the bicameral committee’s efforts were not lost on her and were appreciated on behalf of the people of the Commonwealth. However, she stressed that her dissent should not be interpreted as opposition to funding GHLI or other at-risk programs.
She objected to certain expenditures in the bill, including the creation of three new full-time positions in the municipality of Tinian.
“At a time when every government employee is being asked to endure austerity, adding new positions sends the wrong message,” Babauta said. “We cannot continue to ask employees to tighten their belts while expanding government payroll elsewhere. We must stop governing with fantasy budgets built on wish lists instead of what we can actually afford.”
Babauta also raised concerns over the inclusion of $210,000 in back pay for casino commissioners, despite the attorney general’s determination that such payments are illegal.
“Casino commissioners are not government employees,” she said. “Using public funds to compensate non-government employees violates the law.”
She warned that ignoring legal guidance undermines public trust and contributes to strained relations with federal partners.
“When we pass budgets built on fantasies instead of reality, we signal that we are unwilling to live within our means,” Babauta said. “It should come as no surprise when federal oversight tightens and financial assistance is withheld.”
She emphasized that fiscal responsibility is not only a constitutional duty but a matter of legal compliance and discipline, adding, “For these reasons, I dissent.”
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
