Northern Marianas Commonwealth Legislature. 26 April 2022 Photo: Facebook / Northern Marianas Commonwealth Legislature
With the government still struggling from depressed revenue collections, Gov. David M. Apatang last week signed the Fiscal Year 2026 Appropriations Act into law-but only after vetoing line items he said would have pushed the budget out of balance.
Overall spending was set at $134.5 million, a level the administration said reflects the ongoing reality of declining general fund revenues. To keep the budget in the black, Apatang struck a US$4.43-million general fund adjustment that lawmakers approved without identifying where the money would come from.
"Our revenues continue to fall short of where they once were," Apatang said in his transmittal. "We must govern with discipline."
The governor also rejected several other provisions he deemed unconstitutional or inconsistent with federal grant rules.
Even with the tight fiscal picture, the administration moved to avoid disruption to the Group Health and Life Insurance program. Through Public Law 24-19, Apatang authorized US$3.75 million in additional revenue-with US$2.81 million earmarked for retiree premiums-bringing total GHLI support for FY 2026 to about US$7.2 million for more than 7,000 beneficiaries.
Still, cuts hit key recovery sectors. The Marianas Visitors Authority budget was reduced to US$3.5 million, a level Apatang warned could hamper tourism's rebound. Public School System funding came in at US$36.2 million-$1.5 million less than the administration's proposal and well below the $41.1 million consolidated level Apatang continues to push.
"These decisions protect healthcare and keep the budget constitutional," he said. "They also underscore the need to rebuild our revenue base so we can restore critical services."
Apatang and Lt. Gov. Dennis J.C. Mendiola thanked lawmakers for advancing the spending plan and wished the community a safe holiday season, even as the Commonwealth enters the new fiscal year with continued financial headwinds.