Gov. Arnold I. Palacios signs the government’s fiscal year 2025 budget measure as Lt. Gov. David M. Apatang, Finance Secretary Tracy B. Norita, Special Assistant for Management and Budget Vicky Villagomez and OMB Budget Officer Edward Tenorio look on in the governor’s conference room on Capital Hill, Monday.
GOVERNOR Arnold I. Palacios on Monday signed into law House Bill 23-115, which appropriates $117 million for the operations and activities of the CNMI government in fiscal year 2025, which starts today, Oct. 1.
The governor, at the same time, vetoed several line items in the budget.
Authored by Rep. Ralph N. Yumul, H.B. 23-115 is now Public Law 23-26.
In his transmittal letter to Speaker Edmund S. Villagomez and Senate President Edith Deleon Guerrero, the governor acknowledged the “hard work, diligence, and spirit of cooperation of the 23rd Legislature in timely passing the budget to maintain continuity of government operations.”
He said that “the goal of this budget is to maintain fiscal stability at a time when resources are scarce, meet government obligations and ensure public safety and welfare in our community.”
However, the governor said that although the Legislature provided him with 100% reprogramming authority, lawmakers did not provide funding for the retirees’ 25% benefit.
He urged the lawmakers to address this funding shortfall for retirees as soon as possible.
The retirees’ 25% benefit — which is not required by the settlement agreement — costs about $13 million a year.
Palacios also vetoed the provision that would remit the $5.5 million allotted for the Department of Public Lands to the Marianas Public Land Trust
The other provisions vetoed included a proposal to “close out” vacant positions and transfer the unused funds to operational expenses within 30 days upon vacancy, unless a request is made to the Legislature. Palacios said he disapproved this provision because its implementation would “pose practical problems.”
He also “disapproved the requirement in Subsection (e) that the CNMI Medical Referral Program/Health Network Program will include stipends, airfare, and lodging for patients and escorts in inter-island medical referral services. The appropriation for the Health Network Program is insufficient to cover such costs. CHCC should have the flexibility to identify outside sources to address the budget gap,” he said.
The new budget includes a provision that raises the salary of the secretary of the Department of Lands and Natural Resources “from $48,000 to $54,000 to be more horizontally equitable across Cabinet-level appointees.”
In a separate statement on Monday, the governor said that, in conjunction with other measures adopted in recent weeks, including the agreement to offset arrears between the Commonwealth Utilities Corp. and the Office of Public Auditor, as well as federal legislation backed by U.S. Congressman Gregorio Kilili Camacho Sablan to increase funding for CNMI Medicaid, “the FY 2025 budget represents another major step in further stabilizing the Commonwealth’s finances.”
He said that going forward, the central government, CUC and the Commonwealth Healthcare Corp. “will all be on more robust fiscal footing, allowing the government to maintain essential services, keep current with utilities payments, and facilitate compliance with CUC’s stipulated orders.”
