The CNMI is facing deep fiscal strain as Gov. David M. Apatang defended his line‑item vetoes in the newly signed fiscal 2027 budget, which is built on $100.7 million in projected General Fund revenues.
Apatang signed the budget Tuesday night, ending a five‑day partial shutdown that left non‑essential employees without pay.
Apatang said he vetoed several provisions he deemed unconstitutional or financially impossible, including a mandate requiring the administration to “front‑load” $16 million to the Public School System. He said the CNMI cannot afford the upfront payment and must instead fund PSS monthly. The Senate’s final budget version allocates $25 million for PSS—down from the $32 million proposed by both the governor and the House.
“It breaks my heart to reduce PSS funding,” Apatang said, adding that a three‑day school week would be unacceptable but may be unavoidable unless the PSS board finds operational efficiencies.
The governor said the administration is “scraping the bottom of the barrel,” warning that furloughs—estimated at up to 400 employees—may be necessary once Civil Service Commission regulations are finalized. He also confirmed retirees will lose their 25% government contribution after Oct. 15, though he is searching for funds to soften the impact.
Apatang defended his administration against criticism over the CNMI’s fiscal collapse, saying he inherited years of unresolved audit findings and depleted federal relief funds.
“I didn’t spend all this money,” he said. “We’re struggling to keep this government going.”
He urged agencies to tighten operations, reduce expenses, and avoid unnecessary vehicle use. He also asked Commonwealth Public Utilities Corp. to reconsider CUC’s proposed rate increase, calling it “a drastic burden” residents cannot afford.
On tourism and economic recovery, Apatang said federal immigration and travel policies continue to hinder the CNMI’s ability to rebuild air service and visitor arrivals. He said he has repeatedly asked federal officials to visit the Commonwealth and understand its strategic importance.
With three months left in his term, Apatang said the next administration will face a difficult road.
“Good luck,” he said. “I’ll pray for you. It’s going to be a tough one.”
