From left, Gov. David M. Apatang, Lt. Gov. Dennis Mendiola, U.S. Congresswoman Kimberlyn King-Hinds, Finance Secretary Tracy Norita, and Special Assistant for Management and Budget Vicky Villagomez conduct a media conference Monday at the governor’s office.
Photo by Emmanuel T. Erediano
GOVERNOR David M. Apatang on Monday announced that the CNMI government will have to implement austerity measures due to decreased revenue projections for fiscal year 2026.
The governor made the announcement in a press conference following a meeting with the Senate and House leadership regarding House Bill 24-46, or the FY 2026 spending bill.
Joining him at the press conference were U.S. Congresswoman Kimberlyn King-Hinds, Lt. Gov. Dennis James Mendiola, Finance Secretary Tracy B. Norita, Special Assistant for Management and Budget Vicky Villagomez, and lawmakers.
King-Hinds, who attended meetings with federal officials in Washington, D.C., last week, said CNMI officials made several major “asks” during those discussions as she emphasized the need for unity at home.
“In order to move these asks forward, we all have to be on the same page with regard to our current financial situation,” she said, adding that federal officials made it very clear the CNMI is in a severe budget crisis. “The house is on fire.”
She also noted that the CNMI government has incurred $103 million in unfunded obligations.
The governor thanked King-Hinds for her support in Washington and then asked Finance Secretary Norita to present “the real picture” of the Commonwealth’s budget.
Apatang noted that while the administration had submitted a proposed spending plan based on $179 million in projected revenue, that figure has since been revised downward.
“The FY 2026 budget projection is now $156 million,” he said. “That’s kind of shocking. We are planning and preparing for the worst-case scenario. We’re now looking at how to cut government expenditures, so we are looking into austerity measures.”
Norita said earlier projections were supported by growth in tourism, new tax measures, and infrastructure activity, but recent economic shifts forced the revision.
“Declining tourist arrivals, reduced airline services, and slowing tax collections are clear signals of an economic downturn,” she said.
She confirmed that the revenue forecast has been revised downward by $22.9 million, bringing the total projection to $156.7 million.
House Ways and Means Chair Rep. John Paul Sablan said that with revenues at $156 million, minus $53 million for debt service, only $103 million will be available for appropriation.
Norita outlined the following recommended austerity measures:
• Immediate work-hour reduction to 64 hours per pay period.
• Reduction in force.
• Furloughs.
She added that duplicative positions will be eliminated, hiring will be frozen except for critical jobs, salary increases will be frozen, overtime will be suspended, and a travel freeze will be imposed regardless of funding source.
Senate President Karl King-Nabors said, “We have to deal with what is in front of us,” referring to the budget bill, which must be enacted into law by Oct. 1, 2025, to avoid a partial government shutdown.
“What is clear is, cuts need to be made,” King-Nabors added.
The governor concluded: “We have to make sure that we are fiscally responsible in what we are doing.”
