Senate fiscal committee presses finance, grants office on large revenue variances and indirect-cost reimbursements

Saipan, Sept. 15 — At a Senate Fiscal Affairs Committee hearing on Sept. 15, senators raised repeated concerns about large variances between revenue projections used in the FY2026 budget product and actual collections, and they pressed the Department of Finance and the Office of Grants Management (OGM) for clearer accounting of indirect-cost reimbursements (IDCs).

The committee convened to consider House Bill 24-46, HD1, the FY2026 budget concurrent resolution. Committee leaders said the concurrent resolution lists identified budgetary resources for FY2026 and asked the Secretary of Finance and OGM officials to explain several line items and reporting variances during the hearing.

Why it matters: The committee said it uses revenue projections to decide appropriations across agencies, and wide differences between projected and realized revenues complicate funding decisions for education, public safety and other services. Senators singled out IDCs — reimbursements from federal grants that are split between OGM (35%) and the general fund (65%) under existing law — as a recurring source of variance the Legislature needs better information on before finalizing FY2026 appropriations.

Discussion highlights

Dan Alvarez, Director, Revenue and Tax, told the committee the FY2026 IDC…