Finance chief cites fund deficit in denying casino compensation payments

The CNMI government currently lacks sufficient funds to pay former Commonwealth Casino Commission members despite a legislative appropriation directing compensation payments, according to Finance Secretary Tracy B. Norita.

In a June 16 letter to Sen. Jude U. Hofschneider, Norita said a reconciliation of casino-related accounts found no available funds and a deficit in the account tied to retiree pension payments.

"While Public Law 24-20, Section 615 outlines the distribution of the $210,000 reserved from the $2.7 million, prudent fiscal management requires that we refrain from reallocating funds from an account currently in deficit. At this time, there are insufficient funds available to process the requested payments," Norita wrote.

Norita said the Department of Finance completed a reconciliation of the Casino Gross Revenue Tax account and the retiree pension account, finding a zero balance in one account and a deficit of $358,220 in the other.

"We remain committed to responsible stewardship of public resources and will continue to monitor the fund balances closely. Should conditions change, we will reassess our ability to proceed in accordance with the law," she added.

Meanwhile, former Commonwealth Casino Commission board chairman Edward C. Deleon Guerrero disagreed with the department's position, reiterating the payments are required by law.

"The Legislature authorized and appropriated funds in P.L. 24-20 to cover some of the Commonwealth's obligations to the casino commissioners for services already rendered. It is the law! The secretary of Finance does not have the authority to pick and choose which part of the law to enforce," Deleon Guerrero said.

He added: "The compensation authorized and appropriated by P.L. 24-20 are for partial payments for services already rendered and owed by the CNMI government since 2023. The CCC was terminated by the governor’s executive order in July 2025."

Norita's letter did not dispute the existence of the statutory authorization, but said the department could not process the payments because the relevant account currently lacks sufficient funds.

The exchange follows a June 5 letter from Hofschneider urging the Department of Finance to release compensation payments owed to former casino commissioners.

According to Hofschneider, Section 615 of Public Law 24-20 directs the secretary of finance to reserve $210,000 from the $2.7 million received through the Imperial Pacific International settlement agreement and distribute the money according to Schedule B of the law, which identifies eligible recipients and payment amounts.

Hofschneider said Section 615 was enacted to address concerns previously raised by the Office of the Attorney General regarding whether there was a sufficient nexus between the source of the funds and the intended payments. He argued that the law established that nexus by linking the settlement proceeds directly to compensation owed to former commission members.

He further noted that neither Section 615 nor Schedule B was vetoed and therefore remain valid provisions of Public Law 24-20.

"Absent a legal basis for delaying the payments, the authorized compensation should be distributed" to the former commission members identified in the law, Hofschneider wrote.

The senator said the former commissioners have been waiting several years for compensation and that both the funding source and payment authorization have already been approved by the Legislature.

Hofschneider also said the Senate Fiscal Affairs Committee wants assurance that obligations authorized under Public Law 24-20 are satisfied as lawmakers review the upcoming fiscal year budget.