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Mayor warns of job losses amid budget crisis

August 04, 2024 | Fiscal Affairs, Senate, Northern Mariana Legislative Sessions, Northern Mariana Islands


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Mayor warns of job losses amid budget crisis
During a recent government meeting, Tinian Mayor Adrian Piaudon presented a critical budget request for the municipality, highlighting significant funding shortfalls that could lead to the termination of 31 full-time employees (FTEs) in his office. The municipality submitted a budget request of $12.03 million to cover 288 FTEs, with $2.2 million earmarked for operational costs, including utilities, office rentals, and essential supplies. However, the governor's proposal allocated only $6.7 million for 281 FTEs, which includes just $250,000 for utilities.

Mayor Piaudon emphasized the urgent need for reinstating funding for the 31 FTEs, which were previously removed from the budget and funded through American Rescue Plan Act (ARPA) funds. He expressed concern that Tinian is the only municipality facing such drastic cuts, particularly as the island experiences a population increase of nearly 25% due to Department of Defense (DoD) activities. The mayor argued that adequate staffing is essential for enforcing local laws and protecting the island from invasive species, which pose a threat to its ecosystem.

The mayor also pointed out that the fiscal year 2025 budget proposal reduces Tinian's personnel budget by nearly $500,000, which he deemed unfair given the ongoing DoD construction activities on the island. He noted that tax revenues from Tinian have significantly increased in recent years, suggesting that the Department of Finance may not have accurately projected the potential tax income stemming from the DoD buildup.

In addition to personnel funding, Mayor Piaudon called for adequate financial support for various departments, including solid waste management, to ensure compliance with environmental regulations amid increased construction activity. He highlighted the administrative challenges faced by the municipality, including delays in processing payments for essential services, which have resulted in power outages and disruptions in communication.

The mayor concluded his testimony by urging the committee to consider the pressing financial needs of Tinian, emphasizing the importance of immediate action to secure funding and maintain essential services for the community.

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