Congressman reviews budget projections amid $600K revenue decrease from hotels

The Northern Marianas Commonwealth Legislature convened on July 7, 2025, to discuss the upcoming fiscal year's budget and revenue forecasts. A significant point of discussion was the projected revenue decrease of over $600,000, which raised concerns about the impact on manpower and financial reserves.

During the meeting, a congressman inquired about potential strategies to address the anticipated shortfall, particularly regarding revenue from local hotels. The Secretary clarified that the proposed budget for approval stands at $4.8 million, which includes a 1% allocation for the Office of Public Accountability (OPA). The Secretary emphasized that despite the potential for increased revenue from hotels, the budget would not exceed the $4.8 million limit.

The Secretary explained that even if additional revenue from hotels, such as Kanoa, comes online, the spending would remain capped at the proposed budget. Any excess revenue generated could be allocated for other qualified expenses, pending approval from the legislature. This approach aims to maintain fiscal responsibility while allowing for flexibility in utilizing any surplus funds.

The discussion also touched on the Homestead program, indicating ongoing considerations regarding its funding and management. Overall, the meeting highlighted the challenges of balancing budget constraints with the need for revenue generation in the face of projected decreases. The legislature will continue to explore options to ensure financial stability for the upcoming fiscal year.