By Emmanuel T. Erediano
[email protected]
Variety News Staff
CITING the fiscal impacts of Super Typhoon Sinlaku, “already evident in actual revenue collections through April and May 2026,” Gov. David M. Apatang on Wednesday transmitted to the Legislature a proposed revision of his earlier budget submission, reducing the fiscal year 2027 allocation from $101.8 million to $97.2 million — the lowest level since the early 1980s.
In his transmission letter to Speaker Edmund S. Villagomez and Senate President Karl King-Nabors, the governor said, “To date, this has been the lowest expenditure ceiling the government has experienced in more than two and a half decades.”
For FY 2001, the CNMI’s total identified budgetary resources amounted to $211 million.
It was in 2011 when the CNMI government passed an operating budget of $102 million for FY 2012.
Apatang said the revised revenue forecast submitted by Finance Secretary Tracy B. Norita reduced FY 2027 projected gross revenue by approximately 3%, or $4.8 million. This resulted in a 4.5% budgetary impact, or about $4.6 million.
The governor said declining revenue collections substantiate the forecast revision and underscore Super Typhoon Sinlaku’s continuing effect on the CNMI economy. He added that revenue shortfalls are expected to place additional strain on the Commonwealth’s fiscal condition at a time when financial resources are already constrained, reinforcing the need for prudent fiscal management and responsible legislative action.
The governor cited the following conditions contributing to the “economic uncertainty” behind the revenue shortfall:
• T’Way Airlines’ indefinite suspension of flights to the CNMI.
• Philippine Airlines’ suspension of service through October 2026.
• Ongoing Commonwealth Utilities Corporation water and power restoration efforts, which continue to affect business activity and household spending.
• The conclusion of federal emergency response personnel assistance.
But he also cited several favorable developments:
• The Commonwealth Ports Authority’s reopening of night flight operations after June 20, 2026.
• Anticipated expenditures associated with Small Business Administration and Federal Emergency Management Agency individual assistance programs, as well as the expected implementation of the Disaster Unemployment Assistance Program.
The governor said he recognizes that reduced budget allocations will have a significant impact on government operations and the delivery of public services. Nevertheless, he said, the CNMI’s current financial condition requires prompt realignment of spending to ensure expenditures remain within available resources and to support a stable and sustainable fiscal future for the Commonwealth.
He also informed lawmakers of the implementation of a 64-hour biweekly work schedule for government employees, without furloughs or layoffs.
The governor stressed that the revised FY 2027 budget proposal maintains a balanced fiscal framework, ensuring projected revenues are fully aligned with anticipated expenditures. Achieving this balance, he said, requires disciplined and careful review of government programs and services, guided by a priority-based budgeting approach.
He urged the Legislature to support necessary reforms, which he said are critical to restoring fiscal discipline, improving operational efficiency, and building a stronger foundation for the CNMI’s future.
“Together we can make the difficult but necessary decisions that will safeguard essential services and promote economic stability for our people,” 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.
