GOVERNOR Arnold I. Palacios has directed the departments, offices and activities of the executive branch to continue the cost-containment measures that he implemented in the previous fiscal year.
In his Directive 2025-1, the governor said “fiscal recovery is one of my administration’s highest priorities, and I ask for the full cooperation of all government employees and appointees to ensure that public resources are used conservatively and efficiently in the delivery of essential services.”
“We all play an important role in reducing government spending and realigning operations with available resources to avoid further, more drastic cuts. Our collective goals are fiscal stability, more efficient government operations, and improvements in the delivery and responsiveness of public services as efficiency measures are implemented,” he added.
He said that with the enactment of Public Law 23-26, or the fiscal year 2025 budget law, which appropriates $117 million for government personnel and operations, all departments, offices, and activities of the executive branch must continue cost-containment measures.
His directive requires all executive branch departments and agencies to observe austerity measures, with operation hours on Monday through Thursday from 7:30 a.m. to 4:30 p.m., and Friday from 8:30 a.m. to 4:30 p.m. On a Monday following payday, executive branch offices will be closed.
This reduction of work hours, which took effect on Oct. 1, 2024, will continue until lifted, Palacios said.
However, a department or agency will not be required to implement the shortened workday if the principal executive of such department or agency presents an expenditure plan for personnel that does not exceed the appropriation threshold established in the FY 2025 spending measure by non-renewal of contracts or identification of outside sources of funding.
Any such plan must be approved by the governor after review by the special assistant for management and budget, and the Finance secretary.
Palacios encourages all departments and agencies to continue to modify operation schedules.
His earlier directive imposing restrictions on personnel actions, overtime costs, travel and utility and fuel conservation will remain in effect until lifted.
For their part, law enforcement officers will be subject to a two-hour adjustment per pay period, as follows:
1) The biweekly pay period shall not exceed 84 hours for sworn Department of Public Safety and Department of Corrections officers.
2) The biweekly pay period shall not exceed 104 hours for sworn Department of Fire and Emergency Medical Services officers.
The monthly billing with the Commonwealth Utilities Corp. for all executive departments and agencies shall be applied to general revolving accounts until exhausted. The budget allocation for utilities will be provided from the general fund, as necessary.
The economy
The tourism-based local economy has yet to recover from the consequences of the Covid-19 restrictions.
The Hotel Association of the Northern Mariana Islands reported 44.6% average occupancy rate among 11 member hotels for August 2024, a 16% decrease compared to 52.8% average occupancy among 11 hotels in August 2023.
According to HANMI, hotels must have an occupancy rate of at least 70-80% to remain afloat.
As for the Marianas Visitors Authority, it said arrivals to Saipan, Tinian and Rota decreased 26% to 14,555 visitors in September 2024, compared to 19,566 visitors received in September 2023.
In addition, MVA said total FY 2024 arrivals were 44% lower than pre-pandemic arrivals of 424,838 in FY 2019.
Local business leaders said that for the local economy to recover, the CNMI must have at least 500,000 visitors each year.
