The House Ways and Means Committee chair, Rep. John Paul Sablan, speaks during a budget hearing for the Public School System in the House chamber on July 16, 2025.
Photo by Emmanuel T. Erediano
FACING the end of federal funding under the American Rescue Plan Act, the Public School System is requesting a $49.2 million appropriation from the CNMI government for fiscal year 2026.
During a House Ways and Means Committee budget hearing on Wednesday, Commissioner of Education Dr. Lawrence F. Camacho told lawmakers that the start of FY2026 on Oct. 1, 2025, “marks the beginning of the post-ARPA period.”
For the current fiscal year, PSS received $33.6 million. Gov. Arnold I. Palacios, in his FY 2026 budget submission, proposed $40 million for PSS.
Rep. John Paul Sablan, chairman of the Ways and Means Committee, noted, “We see that there is a variance of close to $9 million.”
In his opening remarks, Camacho thanked the committee for the opportunity to present PSS’s FY 2026 budget proposal, which he delivered “with optimism and cooperation as we plan for the upcoming fiscal year.”
Camacho reported that PSS students are thriving in schools across the islands. He said PSS employs high-quality teachers and implements a high-standard curriculum — both made possible through policy and oversight by the Board of Education.
He noted that over the past three years, ARPA funds helped PSS mitigate funding shortfalls, preventing learning loss, and instead contributing to improved student proficiency.
Camacho highlighted academic gains in his report, stating that nearly 90% of public schools met or exceeded district goals this year. For instance, while the district’s goal was 58%, students achieved 62% proficiency in math, 65% in reading, and 71% in early literacy. This represents a 17% increase in reading and a 7% increase in math scores compared to the previous year.
“We thank our educators and students for their hard work and excellent performances — especially in supporting our at-risk students through targeted intervention,” he said.
Camacho acknowledged that without ARPA, PSS will no longer have a financial cushion to offset gaps in local funding.
“We present our FY 2026 budget with a proposed allocation of $42 million for personnel,” he said, adding that the funding will cover 942 employees. This includes administrators, administrative staff, teachers, teacher aides, instructors, librarians, counselors, program managers, and state and district-level support staff.
These personnel serve 20 public schools and 10 Head Start centers across Saipan, Tinian, and Rota.
Article XV, Section 1(e) of the CNMI Constitution mandates the Commonwealth government to guarantee 25% of its general revenue for the public education system.
In his proposed FY 2026 budget, the governor said the total identified projected revenue is $179.7 million, of which $40 million would be allotted to PSS. However, 25% of $179.7 million is $44.925 million.
