By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
THE CNMI government’s $138.4 million spending plan for fiscal year 2026 hinges on the Marianas Public Land Trust’s approval of a $29 million loan for retirees’ pensions, Gov. David M. Apatang told the Legislature in his proposal to revise the budget.
In his revised budget submission to Speaker Edmund S. Villagomez and Senate President Karl King-Nabors on Tuesday, the governor identified $158 million in projected revenue. Of this, $138.4 million would be available for appropriation, provided the $29 million loan proposed by the government is approved by the MPLT board.
MPLT, however, requires authorization for its board to enter into a margin account transaction and a mandate that the Department of Public Lands remit all net income derived from public land leases.
The governor strongly encouraged “swift legislative action” to address MPLT’s requirements, describing the loan as “a vital fiscal mechanism to stabilize government operations and fulfill the CNMI’s legal and moral obligations to the retirees of the NMI Settlement Fund.”
He specifically asked lawmakers to pass a bill authorizing a margin account transaction and mandating that DPL remit reserve funds to MPLT.
“The inclusion of this pension funding in the FY2026 budget will safeguard essential services and position the Commonwealth for sustainable economic recovery,” the governor said.
Under a more favorable scenario presented to the Legislature, the MPLT board’s approval of the $29 million loan would “provide fiscal stability across critical agencies and support continuity of operations while maintaining a balanced expenditure framework under austerity conditions.”
The governor stressed that the MPLT loan would allow the CNMI government to impose only a 70-hour biweekly work reduction, grant government employees paid holidays, and allocate $37.7 million for the Public School System. If the loan is not approved, the work-hour reduction would be 58 hours per pay period, seven holidays would not be paid, and PSS would receive only $35.1 million.
In good faith, the governor said his administration is remitting $4 million in FY2025 lapsed funds from DPL to MPLT. He also asked the Legislature for 100% reprogramming authority.
