Gov. Palacios acknowledged the challenges CNMI is facing, such as decreased tourist arrivals, business closures, inflation, labor shortages, and construction delays. He also noted the trend of residents, including his own children, moving off-island for better opportunities.
But he said the Commonwealth's situation is improving due to a focus on long-term solutions over the past two years.
Governor Palacios said his administration developed and executed a very clear plan to stabilize CNMI's finances, make the community safer, healthier, and cleaner, rebuild the infrastructure, and revitalize the struggling economy.
For example, he said more than $500 million of deficit was inherited from the previous administration when Palacios took office. After implementing cost-cutting measures and aggressive tax collection, Palacios managed to have a balanced budget in Fiscal Year 2024.
“Instead of repeating the mistakes of the past with quick fixes, we have focused on long-term solutions that will benefit everyone, not just a select few,” Palacios said. “The State of the Commonwealth could be better, but it is also getting better because we are making it better.”
Palacios noted that while some well-known businesses have closed, for every one business that has shut down in the last two years, four new ones have opened. Critics, however, asked for proof in this regard.
He also called for a return to the values of sacrifice, public service, and hard work instead of looking for “quick fixes” to build a better future for generations to come.
