Governor: Further austerity measures may be unavoidable 

By Emmanuel T. Erediano
Variety News Staff

GOVERNOR David M. Apatang warned that “further austerity measures may be unavoidable if the Commonwealth’s fiscal position deteriorates further.”

On Wednesday, he issued a memorandum asking all department and agency heads to circulate work-hour notices among their respective staff no later than Oct. 31, 2025.

The governor reiterated that, consistent with austerity measures enumerated in his Directive 2026-8, executive branch employees are subject to reduced work hours.

However, as advised by the attorney general, the governor acknowledged that some employees may have been subject to reduced hours without adequate advance notice as required by law. Accordingly, he asked department heads to circulate the notices to all employees no later than Oct. 31, 2025.

“Any reduction in work hours and pay to date that was implemented without applicable notice requirements will be corrected by future payroll adjustments,” the governor said.

He also reiterated that “further austerity measures may be unavoidable” if the CNMI’s fiscal position takes a turn for the worse. Given the reduced forecast revenues, Apatang said that two budgetary scenarios are possible for a revised Fiscal Year 2026 appropriation bill.

If the Legislature and the Marianas Public Land Trust fail to reach an agreement on securing such a loan, he said, “the consequences could include a 58-hour pay period or termination of the government’s Group Health & Life Insurance program.”

He implored all stakeholders to take the necessary steps so that a revised budget can be passed without requiring such drastic measures.

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