NMI Gov. David Apatang, signed the Fiscal Year 2027 Appropriations and Budget Authority Act into law on Oct. 6, exercising line-item vetoes and establishing reduced work hours for government employees to maintain fiscal stability.
The signing ends a temporary suspension of non-essential General Fund operations across the NMI. Apatang noted that while the executive branch submitted its proposed spending plan on July 1, the NMI Legislature delivered the final budget on Sept. 30, only hours before the new fiscal year began. Given severe weather recovery demands and ongoing infrastructure needs, Apatang delayed approval to conduct a legal and fiscal review.
Among the rejected provisions was a mandate requiring most government employees to be compensated for a minimum of 60 hours per pay period, which would have increased the existing budget deficit by approximately $3.3 million. "These are not ordinary circumstances," Apatang said. "We have a responsibility to look at every dollar available to the Commonwealth and determine what we can realistically sustain. We cannot make permanent or recurring financial commitments based solely on projected collections when those collections have not yet materialized."
Apatang also vetoed measures related to leave accrual, furlough restrictions, executive compensation, vacant positions, and the treatment of revolving and special account balances.
To align government expenditures with available resources, Apatang instituted a revised work schedule for most executive branch employees, limiting affected personnel to 53 hours per biweekly pay period, or approximately 26.5 hours per week. "I recognize that reducing work hours is difficult for our employees and their families," Apatang said. "These are not decisions that I take lightly. But responsible government means making difficult decisions today so that we do not create an even greater financial crisis tomorrow."
While education remains an administration priority, funding for the Public School System and Northern Marianas College will be restricted to levels the NMI can sustain. Apatang added that if actual tax collections exceed expectations during the fiscal year, the administration will evaluate whether work hours or operations can be restored. "This was not a matter of delay; it was a matter of due diligence," Apatang said. "It was about taking the time that was necessary to understand what had been placed before us and to make sure that the budget we signed is one that the Commonwealth can actually carry." mbj
