As many as 400 government employees could eventually face furloughs as the CNMI struggles to operate under a sharply reduced fiscal year 2027 budget, according to Gov. David M. Apatang.
Asked how many employees could be affected if proposed furlough regulations are adopted during an Oct. 6 press conference at the Governor’s Office on Capitol Hill, Apatang said the administration does not yet have a firm number.
“We don't know yet. Estimate, maybe 400,” he said.
Apatang's estimate came a day after he signed the FY 2027 budget into law at 7:30pm, formally ending the partial government shutdown that began after the previous fiscal year expired without an enacted spending plan.
The governor said furloughs cannot immediately be implemented because the administration is still waiting for regulations being developed by the Civil Service Commission.
Once those regulations go through the required public comment and adoption process, Apatang said the administration will review them and follow the guidelines.
For now, government operations remain under austerity measures.
The FY 2027 spending plan provides for 26.5 work hours per week, or 53 hours every two weeks, for central government employees. The administration said central government has about 2,051 positions.
Apatang said department and agency heads will have to adjust schedules and operations to remain within their allocations while continuing to provide public services.
“If I have to take the burden, I would take it,” Apatang said while discussing staffing reductions within his own office.
He said agencies will have to “sharpen the pencils” and find ways to operate with fewer resources.
Apatang also defended his decision to line-item veto a provision requiring the government to front-load $16 million for the Public School System.
He said the government does not have enough available cash to provide that amount upfront without affecting other departments and agencies.
“That I cannot do. We cannot afford that at all, especially with the situation that we have right now,” Apatang said.
He warned that complying with the front-loading requirement could have severe consequences.
“I will probably have to close down the government again,” he said.
Under the enacted budget, PSS is allocated about $25.1 million.
Apatang said he remains concerned about the school system's financial situation and does not want students limited to only two-and-a-half or three days of classes per week.
“If there are three days, I think we're denying our kids five days a week,” he said.
He urged PSS and the Board of Education to examine their operations and determine how to maintain a five-day school week despite the reduced funding.
The governor repeatedly emphasized that the problem is not a lack of support for public education, but the government's limited resources.
“We're scraping the [the bottom of the] barrel. As much as I want to give PSS $32 million, $37 million, we can't right now,” Apatang said.
Apatang also expressed concern about retirees who are expected to stop receiving an additional 25% payment after Oct. 15.
The governor said funding for the additional 25% was not included in the FY 2027 budget.
“I know some of the retirees after Oct, 15, they won't be receiving their 25%,” he said. “But we haven't given up.”
Apatang said the administration will continue looking for another source of funding.
“Hopefully, we can come up with a way to help those people,” he said.
He said many retirees are already struggling with the high cost of living, including utility bills and other basic expenses.
Asked whether retirees should expect the 25% payment to continue, Apatang said the Oct. 15 payment is expected to be the last under the current funding arrangement while the administration searches for money.
Apatang confirmed that the partial government shutdown officially ended when he signed the budget Monday night.
Administration officials said employees designated as critical or essential who worked during the shutdown will be compensated, while employees who were not authorized to work during the shutdown period will be without compensation for those days.
Apatang also criticized the timing of the Legislature's submission of the budget, saying it reached his office at about 10:30am Sept. 30, leaving little time for review before the new fiscal year.
He said the administration nevertheless assembled Finance, budget, and legal officials to scrutinize the measure before he signed it.
The FY 2027 spending plan is based on estimated gross revenue of about $152.8 million.
After approximately $52.18 million in statutory earmarks, debt service, and minimum annual payments to the Northern Mariana Islands Settlement Fund, about $100.7 million remains available for appropriation.
The executive branch is allocated approximately $33.9 million, while the judicial branch receives about $4.48 million, and the legislative branch about $5.98 million.
Apatang said the administration will now focus on controlling expenditures and increasing revenue collections.
The Department of Finance said it plans to strengthen enforcement through its Revenue Collection Task Force to help meet FY 2027 revenue targets, with additional collections potentially providing more resources for PSS and other needs.
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