Tracy Norita
THE CNMI government collected a total of $44.4 million in the second quarter of fiscal year 2025, exceeding the $37.9 million forecast by $6.5 million, according to a report submitted to the Legislature’s presiding officers by Finance Secretary Tracy B. Norita.
The second quarter of the fiscal year spanned from January to March 2025.
Norita said that as of March 31, 2015, the cumulative tax and fees collections of the CNMI government reached $86.8 million, outperforming the projection of $82.3 million by $4.4 million.
Norita said the $6.5 million Q2 gain “mitigated the shortfall in Q1 collections, culminating in a net positive variance of $4.4 million.”
The income taxes collected amounted to $29.6 million, exceeding the projection by $7.5 million, which, Norita said, was “primarily driven by strong income tax collections” on business gross revenue taxes of $18.8 million, exceeding the $14.3 million forecast; the $9 million wage and salary tax collections, exceeding the $6.5 million forecast; and the $1.25 million territorial income tax collections that exceeded the $387,358 forecast in the second quarter.
Norita said non-aviation fuel taxes amounted to $771,000, exceeding the $199,821 cumulative forecast, while fees, services and other revenue collections significantly exceeded the target by 136%.
She said the charges for services amounted to $2.1 million, exceeding the $212,674 forecast, while other revenues reached $1.3 million, exceeding the $1.2 million forecast.
She attributed the increase in other revenue collections to the one-time Settlement Fund overpayment in FY 2024 and FY 2025 that was reported under the miscellaneous revenue collections for the second quarter.
Revenue shortfalls
There were revenue shortfalls, too, Norita said.
The net total excise tax collections of $4.9 million on imported goods reflected a 44% shortfall from the forecast, while the beverage container taxes on soft drinks and alcoholic beverages amounting to $263,122 was 26% less than the forecast.
As for government expenditures, Norita said of the $66.7 million appropriated for the second quarter of the fiscal year, the government spent $61.2 million, leaving a balance of $5.4 million.
She also mentioned the cumulative payment of $458,000 to the Commonwealth Healthcare Network for the Health Network Program (medical referrals), the $16.7 million total allotment for the Public School System, and the $5.7 million in cumulative payments to the Settlement Fund.
Norita said that although “revenues showed strong performance in the second quarter, the remaining third and fourth quarters must be monitored closely to assess the impact of the reduction in flights, recent business closures and reduction in employment from closed businesses.”
She said these “developments may contribute to financial fluctuations during the coming periods, requiring ongoing evaluation to determine the broader economic effects and impacts to the current budget forecast.”
