CNMI public schools warn $31.7M appropriation would force cuts to staff, days and services

Commissioner Lawrence Camacho told the Senate Fiscal Affairs Committee on Oct. 9 that the CNMI Public School System needs a substantially larger FY2026 appropriation than the $31.7 million in the bill before the legislature, saying the system is asking the legislature to fund at least $40 million and that "$31,700,000 will not cut it for PSS." Camacho made the remarks during the department's budget hearing before senators, PSS staff and dozens of public commenters.

The public school system presented enrollment and staffing numbers, a multi-scenario budget model and the consequences of smaller appropriations. The department said it serves about 8,092 students across 20 schools and 10 Head Start centers on three islands and currently staffs roughly 1,276 employees (972 local FTEs and about 304 federally funded positions). The FY2026 personnel request is $42 million and an additional $7 million was budgeted for other operating costs; PSS also identified $500,000 for capital improvements.

Why this matters: PSS leaders told senators that losing federal ARPA cushions and reverting to a $31.7 million local appropriation would force personnel reductions and operational cuts that the department says would reduce instructional time, jeopardize district accreditation and reverse recent gains in reading and math achievement. Students, principals and Board of Education members pressed the committee to preserve funding and to follow the CNMI constitutional guarantee that education receive not less than 25% of general revenues.

Camacho and board members described four funding scenarios and the programmatic impacts for each. The department said it had asked for $49 million as a baseline revenue estimate, sought $44 million as a constitutional 25% calculation, accepted an administration proposal of $40 million as a compromise, and warned that a $31.7 million allocation would create a nearly $8 million shortfall relative to a $40 million baseline.

"This will take some measurable time," Board member Andrew Luhan Orsini told the committee during opening remarks, and then asked the body to "commit at least the $40,000,000 to our to sustain our public school system." Orsini said recent assessments show rising proficiency, and warned that funding reductions would risk school closures, staff departures and lost accreditation.

PSS finance staff gave senators a line-by-line picture of where money flows in the system. Acting finance staff described a distribution model that directs a large share of funds to school-level instruction and operations: "86.46% go directly to our schools," a finance speaker said, while PSS officials explained that local funding also supports central office functions the district says are necessary to maintain districtwide accreditation.

The department detailed measures it has already taken to reduce costs, including a district solar program that PSS says is saving about $1 million per year across 19 school campuses, suspension of travel and other austerity steps implemented after 2019. PSS officials said those measures are not enough to cover a $31.7 million allocation without additional personnel actions.

If the legislature adopts the $31.7 million figure, PSS officials outlined concrete actions they say would be required: central-office furloughs, possible school consolidations or campus closures, elimination of intersession days, and a reduction in staff hours that PSS estimated could translate to a 64-hour biweekly work schedule and as few as 150 instructional days (the department said the statutory requirement is 180 days). PSS warned that those steps would risk violating accreditation standards and could force a state of emergency declaration to avoid breaking the law on required instructional days.

Public comment at the hearing featured students, principals and Board of Education members who urged the legislature to meet the constitutional funding standard. Student speakers cited Article XV, Section E and a 2020 CNMI Supreme Court slip opinion about the definition of "general revenues." Ainsley Parnes Anchetta, a high school senior, told the committee: "The constitution was amended to guarantee an annual budget of not less than 25% of the general revenues of the Commonwealth." Board member Macy Bichinario urged senators to reexamine earmarks in the draft budget so the calculation of "general revenue" follows the court's test for special revenue.

Senators pressed PSS officials on details: how ARPA and other federal funds were used, per-student operating allocations for Saipan, Tinian and Rota, and what programs or positions would be affected under each scenario. PSS supplied several clarifying numbers during the hearing: an approximate student population of 8,092; staffing of about 1,276 total employees; a personnel request of $42,000,000 and $7,000,000 for other operations in the FY2026 proposal; and $500,000 earmarked for CIP repairs.

Where things stand: The budget bill with the $31.7 million figure was described at the hearing as the House-passed version that the Senate must now review. Senators and PSS officials said the appropriation is not final; committee members signaled they would continue to examine revenue estimates (including debt and retiree obligations) and consider supplemental measures the House has proposed, including loan or MPOT options, before finalizing FY2026 allocations.

What PSS will do next: PSS officials said they will share additional data requested by senators, including historical appropriations and ARPA spending details, and continue discussions with the Board and the legislature about trade-offs and implementation strategies. Commissioner Camacho urged collaboration while repeating the department's core request: that the legislature fund PSS at a level that prevents backsliding on recent student achievement gains.

Ending: The hearing closed after several hours of testimony and questions; senators said they will continue budget deliberations and examine revenue sources and legal definitions before taking final action on the FY2026 appropriation.