Sen. Jude U. Hofschneider is demanding answers from the Department of Finance over the newly identified $7.2 million in funding for fiscal year 2027, questioning why the money was identified only after the Commonwealth budget became law while government employees, retirees, and public schools are being asked to shoulder significant financial sacrifices.
In a Nov. 7 letter to acting Finance secretary Natalia M. Sablan, the Senate Fiscal Affairs Committee chairman expressed serious concern over the timing of the disclosure, particularly since his committee had been working closely with Finance throughout the budget process.
The funding was identified in GOV2026-820, a communication recommending the appropriation of $7.2 million for FY2027 funding priorities.
"With only a month after the budget becoming law, it is difficult to understand how these substantial funding amounts were not identified earlier," Hofschneider wrote.
He questioned whether the funding sources were already known or reasonably identifiable during budget deliberations and, if so, why they were not disclosed to lawmakers before the budget was finalized.
The FY 2027 budget, enacted as Public Law 24-40 on Oct. 5, came amid serious financial constraints that have affected government operations and employees.
Hofschneider noted that government workers are already facing substantial reductions in their work hours, while retirees have seen the cessation of their 25% payments.
He also cited the Public School System's continuing funding difficulties, including the veto of its advance allotment and its subsequent lawsuit concerning the budget.
"It is therefore difficult to reconcile how PSS, government employees, and retirees are being asked to bear such substantial sacrifices while significant funding sources are only now coming to light," he wrote.
Hofschneider said the circumstances raise questions about the adequacy, transparency, and reliability of financial reporting during the budget process.
He asked Finance to explain why the four funding sources were not identified during deliberations, whether the amounts had been certified as available for appropriation, and whether the Medicaid and Federal Emergency Management Agency underruns were considered federal or general funds.
He also questioned whether the $7.2 million should be considered surplus funds from FY2026 or attributed to another fiscal year, and whether Finance had considered the 60-day rule governing the use of funds after the close of a fiscal year.
Beyond the newly identified funding, Hofschneider sought an update on Finance's compliance with several reporting requirements under Public Law 24-40.
He specifically cited Section 605, which required Finance to report 50% of the cumulative balances in revolving and special accounts as of Sept. 30, 2026, for possible legislative appropriation by Nov. 1.
According to Hofschneider, Finance had provided a schedule identifying the accounts but had not certified the funds as available for appropriation.
He requested that Finance obtain the necessary certification and submit the required report to the Legislature.
Hofschneider cautioned against allowing the budget controversy to become politicized at the expense of people already struggling financially.
"The livelihoods of employees, the financial security of retirees, and the educational needs of our children should never become casualties of inadequate reporting, poor coordination, or political maneuvering," he wrote.
He gave Finance until Nov. 12 to provide the requested information and proposed a meeting with Sablan and her team at 10am on Nov. 13 at the Senate chamber on Capitol Hill.
Marianas Press has not yet obtained a response from the Department of Finance regarding Hofschneider's concerns.
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