By Emmanuel T. Erediano
[email protected]
Variety News Staff
CITING Finance Secretary Tracy B. Norita’s report on a “steep revenue shortfall” for the month of April, Gov. David M. Apatang on Wednesday informed the Legislature that his administration would have to reduce the fiscal year 2026 revenue estimate by 10 %, or $13.081 million.
The CNMI government’s expenditure ceiling, previously set at $134.5 million as provided for in Public Law 24-20, has been reduced to $121.4 million, the governor told Speaker Edmund S. Villagomez and Senate President Karl King-Nabors in his revised budget submission on Wednesday.
Public Law 24-20 is a revision of the original FY2026 budget measure provided for in Public Law 24-14, which appropriated $127.7 million for government personnel and operations.
Prior to Apatang’s revised budget submission on Wednesday, June 17, 2026, the Finance secretary issued a memorandum informing him of a 32% revenue shortfall, or $3.93 million, for the month of April. She said the revenue estimate exceeded the 3% threshold with reasonable certainty due to the economic impacts of Super Typhoon Sinlaku, combined with continued tourism challenges.
The governor also told Villagomez and King-Nabors that revenue shortfalls in the first and second quarters of the fiscal year resulted in a cumulative deficit of 5%, or $4.65 million. This, combined with post-disaster economic conditions, necessitated adjustments to the revenue forecast for the remaining months of FY2026.
Work hour cut
The governor told the presiding officers that the proportional budget reduction would decrease the work hours of government employees from 70 to 64 hours per pay period. He has also directed the Civil Service Commission and the Office of Personnel Management to activate a furlough task force to develop a workable furlough framework that addresses the government’s need to operate within reduced revenues and a shortened fiscal timeline.
He said he and his administration will continue to monitor actual revenue collections and keep the Legislature informed of any notable fluctuations. He urged continued dialogue “to navigate these challenging fiscal circumstances as one Commonwealth.”
Adjustments
The governor said he submitted a proportional cut for the executive branch. In accordance with fiscal responsibilities and the commitment to transparency, the spending cap for the remainder of the fiscal year has been reduced from $134,509,728 to $121,428,348 to ensure appropriations remain fully supported by projected revenues.
He said the budget allocations were recalculated and adjusted, including previously issued allotments such as June releases to the Judicial and Legislative branches.
The adjustment excludes constitutional salaries and the allocation to the Public School System, anticipating that House Bill 24-70 will be passed to meet the constitutional requirement that no less than 25 % of general revenues be appropriated for public education.
Authored by Rep. Blas Jonathan Attao, H.B. 24-70 would allow the Public School System to utilize $4.9 million in unrestricted funds for FY2026. It passed the House in November last year.
As a result of the budget reduction, the remaining FY2026 allocations are $7.6 million for the executive branch, $1.9 million for the legislative branch, and $1.7 million for the judicial branch. The Office of the Governor’s budget is down to $46,230, while the Office of the Lieutenant Governor has $128,752 remaining.
The Department of Public Safety’s remaining budget is $956,747; the Department of Public Works, $541,802; the Department of Fire and Emergency Medical Services, $804,060; the Department of Finance, $1.5 million; the Department of Labor, $141,409; the Department of Lands and Natural Resources, $323,609; the Department of Corrections, $1 million; the Department of Community and Cultural Affairs, $344,552; and the Department of Commerce, $250,953.
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.
