Gov. David M. Apatang has outlined how a 10% reduction in the Commonwealth's fiscal year 2026 revenue forecast will affect government operations, ordering reduced work hours for most executive branch employees through the end of the fiscal year as part of expanded austerity measures.
The governor also warned that employee schedules could fluctuate between 64- and 72-hour pay periods depending on actual revenue collections, available funding, budget authority, and operational needs.
In Directive 2026-005 issued last June 24, Apatang said the administration was forced to implement additional spending cuts after projected revenues fell by approximately 10% following the economic impacts of Super Typhoon Sinlaku.
“As indicated in my Notice to the Presiding Officers of the Legislature, estimated revenues for Fiscal Year 2026 have been reduced by approximately 10% due to the devastating impact of Super Typhoon Sinlaku,” Apatang wrote.
“As a result, further reduction in working hours for government employees has become an unfortunate necessity.”
Under the directive, executive branch departments and agencies will operate on a Tuesday-through-Friday schedule from 7:30am to 4:30pm, while remaining open during lunch hours. Civil Service employees will move to the reduced schedule beginning July 12, while Excepted Service employees will follow on July 26. Employees in positions that are 100% federally funded are exempt from the directive.
The directive states that work hours may fluctuate between 64 and 72 hours per pay period based on available funding, actual collections and operational requirements.
Apatang said the latest directive supplements austerity measures already imposed under previous executive directives.
The CNMI’s FY 2026 revenue forecast declined approximately $13.08 million, or 10%, after revenue collections fell sharply in the wake of Super Typhoon Sinlaku and amid continuing tourism challenges.
According to the governor, April revenues came in nearly $3.93 million below projections, contributing to a cumulative shortfall of about $4.65 million for the fiscal year. The revised forecast reduced the government's expenditure ceiling from about $134.5 million to $121.4 million and was based on updated revenue data, ongoing airline service disruptions, slow business recovery, and continued utility restoration efforts.
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