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🇳🇿 New Zealand /Economy & Trade

CNMI government weighs furloughing upto 400 employees as budget crunch deepens

From RNZ Pacific · () English

Summarized and contextualized by DistantNews.

At a glance

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  • The CNMI government is considering furloughing up to 400 employees due to a severe budget shortfall.
  • Lawmakers are presented with two scenarios for the 2027 fiscal year, one involving furloughs and a 64-hour fortnight.
  • The government also faces a deficit in funding retiree pension payments, highlighting ongoing financial challenges.

The Commonwealth of the Northern Mariana Islands (CNMI) government is grappling with a significant budget crunch, leading to consideration of furloughing up to 400 workers. Governor David Apatang stated that the administration has presented lawmakers with two potential scenarios for the 2027 fiscal year.

We have to do furlough, but the Secretary of Finance and our Budget Office Director says that there's two scenarios, so it's one or the other.

— David ApatangCNMI Governor David Apatang explained the difficult choices facing the government regarding employee work schedules and potential furloughs.

The first scenario involves retaining workers on a 40-hour fortnight without furloughs. The alternative, however, proposes maintaining a 64-hour fortnight while furloughing an estimated 200 to 400 employees. Governor Apatang indicated that the government is awaiting emergency regulations from the Civil Service Commission to outline the implementation of any potential furloughs.

Chair, based on FY26 payments, our projected amount that's needed for the 25 percent is $11.8 million.

— Tracy NoritaFinance Secretary Tracy Norita informed lawmakers about the projected costs for retiree pension payments.

Beyond employee compensation, the CNMI government is also facing financial pressure concerning retiree pensions. Finance Secretary Tracy Norita informed lawmakers that the government projects a need of $11.8 million for the next fiscal year to cover the additional 25 percent pension payments for retirees. The administration is also seeking to cover a shortfall of nearly $1 million to fund these payments through the end of the current fiscal year.

We have been dependent on government employment. Our private sector economy has not been attractive to most.

— Jane MackA resident commented on the CNMI's economic structure and reliance on public sector jobs.

The prospect of furloughs has sparked concern among residents, with some advocating for reductions in political and administrative positions before other workers are affected. Many residents view the situation as a reflection of the Commonwealth's deep reliance on public-sector employment, with a less attractive private sector economy. Governor Apatang acknowledged that the CNMI has faced economic and financial challenges for several years.

I'm not sure how we fix the situation except to build our economy.

— Jane MackA resident expressed a view on how to address the CNMI's economic challenges.
DistantNews Editorial

Originally published by RNZ Pacific. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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