Administration says budget revision resolves CSC’s austerity issues

By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff

 

THE proposal to revise the fiscal year 2026 budget addresses the concerns of the Civil Service Commission about the austerity measures, the administration said on Thursday.

In a letter to Gov. David M. Apatang on Oct. 10, 2025, CSC Chair Raymond Muna raised legal issues regarding Directive 2026-8, which implements austerity measures in the CNMI government.

Muna said the terminations, furloughs, and reductions in force, for example, face legal risks of “improper procedures” that could result in “successful employee appeals, reinstatement orders, back pay awards, and potential damages for constitutional due process violations.”

The commission recommended that, in the interim, appointing authorities must:

• Consult with the Office of Personnel Management before initiating any action.

• Follow all existing adverse action procedures for terminations.

• Use objective, documented criteria for personnel decisions.

• Obtain legal review before implementation.

CSC, Muna said, recognizes the urgent fiscal pressures facing the Commonwealth and supports the administration’s goal of achieving financial stability. However, he said, the means by which these goals are achieved must comply with the law. Failure to do so, he warned, will result in costly litigation, back pay awards, and further strain on limited resources.

He added that CSC’s recommendations will allow the administration to achieve its fiscal objectives while ensuring compliance with constitutional, statutory, and federal requirements.

“These are not obstacles to austerity — they are the legal framework within which austerity must operate. The Commission remains committed to working collaboratively with your administration and the Legislature to develop solutions that uphold both fiscal responsibility and the integrity of the Commonwealth’s merit-based civil service system. We respectfully request a meeting to discuss these concerns and work together on compliant implementation strategies,” Muna said.

According to the administration, the governor’s revised budget submission on Oct. 14, 2025, addresses CSC’s concerns.

In his budget revision proposal, the governor told Senate President Kar King-Nabors and Speaker Edmund S. Villagomez that “granting authority in the administrative provisions of the budget bill to suspend regulations at the governor’s discretion will allow flexibility to implement austerity measures as appropriate and necessary.”

“These include the temporary suspension of furlough and reduction-in-force provisions of the Personnel Service System Rules and Regulations to facilitate the implementation of austerity measures. These adjustments aim to support the strategic downsizing of government programs, ensure the continuity and stability of essential public services, and address concerns raised by the Civil Service Commission,” the governor said.

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.

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