Senate reviews Department of Public Lands FY2026 plan as DPL seeks flexibility, grants and new leases

The Senate Fiscal Affairs Committee on Sept. 3 heard the Department of Public Lands’ (DPL) FY2026 budget submission and a detailed overview of the agency’s priorities, grants and revenue outlook.

DPL Secretary Sixto Igi Somer opened with a statement of strategy, saying, "The Department of Public Lands begins fiscal year 2026 with a clear mandate and sharpened focus." He told senators the department’s FY26 plan centers on five objectives: strengthen compliance and stewardship; expand homestead development; optimize land use and economic development; reinforce fiscal and administrative capacity; and deepen public trust through cultural stewardship and more accessible engagement.

The department asked the legislature to approve $4.8 million in DPL-restricted revenue for FY2026. Secretary Somer and DPL finance staff described that figure as conservative and asked the committee for an administrative provision allowing the department to request authority to spend additional revenues if collection exceeds the $4.8 million reservation.

Senators and DPL staff discussed recent collections and projections in detail. DPL reported that the approved FY2025 budget was $5,560,000 and year-to-date collections through July 31 were $5,340,000. DPL said it expects to collect additional revenue in August and September and estimated a cash balance of roughly $7 million in DPL accounts at the time of the hearing. Secretary Somer estimated that, if the FY2026 reservation remains $4.8 million, about $783,808 could be remitted to the MPOT account after obligations and reserves.

DPL identified several near-term revenue opportunities that are not in the $4.8 million baseline. The department said finalizing new or renegotiated leases for Kanoa Resort, a Rota resort and Managaha could generate approximately $1.6 million in annual revenue if all proceed. DPL said there are about 65 long-term leased properties included in the FY2026 revenue projection and separately listed quarry-related revenue (~$81,000) and temporary occupancy permits (TOAs).

Committee members pressed DPL on staffing and organizational changes. The Office of Management and Budget (OMB) representative, Jasmine Comacho, told the committee the governor’s submission moves four DPL finance-related positions to the Department of Finance and that the $153,000 personnel cost difference was shifted to DPL operating lines. Secretary Somer said DPL does not oppose centralizing fiscal control but asked that any transfer of positions be accompanied by a clear operational transition plan so DPL retains the in-house ability to monitor leases, receivables and compliance. Legal counsel for the Senate said he would review an AG opinion and the cited statute and provide a memorandum to the committee.

Senators and staff also reviewed multiple grants and projects. Eppy Cabrera, administrator for the Office of Grants Management, confirmed several federal awards and applications:

- A federal erosion-planning grant for Managaha is open and will fund an erosion assessment for the island. DPL said the lease negotiations or new vendor arrangements for Managaha are at the notice-of-intent stage and, if finalized, could add roughly $1.6 million annually (the department’s projection) though that outcome is contingent on negotiations and approval.

- A Northern Islands agricultural homestead grant (about $95,000–$97,000) is active; DPL said it was waiting on a small allocation for supplies but has recently received OIA approval to reallocate funds so fieldwork can resume.

- A $320,326 grant to assess abandoned quarries has begun; DPL reported about 5.7% of that award has been spent to fund initial inspections and that it plans RFPs for fencing at three quarry sites (Saipan, Tinian, Rota).

- DPL and OGM continue to pursue additional grants, including requests for ATVs/UTVs for planning in outer islands and a potential federal grant to repair or renovate the Garapan fishing base (DPL said it may close vehicle access at Garapan while it completes safety signage and awaits funding).

Cabrera and DPL also discussed a $1 million congressional appropriation intended as a cost-share for a larger infrastructure package for the Escono/Gona homestead area. Cabrera described the $1 million as approved (letter dated March 12, 2024) but said multiple federal forms and NEPA-like reviews are required before construction funds could be disbursed; the department and the grant manager said the $1 million would be used toward water, sewer and power construction and as part of a larger financing plan that could cost several million dollars.

Committee members asked about the department’s land use plan. Secretary Somer said an RFP to update the CNMI land use plan is estimated at over $800,000 and that DPL plans to release that RFP; one senator said DPL has already set aside $250,000 a year and proposed legislation to allow restricted, no-fiscal-year accumulation of those funds until the land-use RFP can be fully funded.

Senators pressed DPL on lingering land-compensation claims. Secretary Somer said DPL has settlement agreements ready to pay roughly $7.68 million but lacks a general-fund appropriation to complete payments; he also told the committee there is a larger set of pending claims the department has estimated at about $30 million that still require processing or funding.

Other topics covered included:

- Data-cable and data-center activity on Tinian: DPL described TOAs for cable landing zones and potential leases for solar farms to supply up to 4–5 megawatts for redundancy to planned data centers. DPL said TOAs for the cable landing are limited to the shoreline-to-road corridor and that DPW right-of-way processes govern road crossings and utilities.

- Private investment interest for industrial development: DPL said an investor identified as Zio Motors (referred to in testimony) has submitted a letter of intent for a site in the Escono/Gona area and that any large lease likely would require further negotiation and potentially require legislative concurrence if the parcel size or term exceeds statutory thresholds.

- IT and operations: DPL said it lacks a full-time in-house systems administrator and intends to pursue internal IT licensing and an in-house position so planning, homestead and real-estate mapping (GIS) can be linked. The secretary described a plan to modernize systems to reduce recurring contracting for software updates.

- Personnel and enforcement: DPL said it has filled surveyor staff positions but remains understaffed for the workload, with surveyors frequently traveling to outer islands and a backlog of on-island permitting. Senators raised concerns about ranger pay and staffing levels for enforcement on DPL-managed sites.

The committee did not act on the budget request during the hearing; members invited DPL to provide follow-up schedules and audit reports. The hearing recorded two procedural committee motions: adoption of the meeting agenda (moved by Sen. Manny Castro and seconded by Vice President Corina Magofna) and adjournment (moved by Sen. Cruz and seconded by Sen. Manny Castro). Both motions carried without recorded roll-call tallies.

DPL and the Office of Grants Management supplied multiple documents referenced during the hearing, and the committee asked the department to provide updated accounts-receivable schedules, a list of outstanding invoices and a copy of an AG opinion related to transfer of finance staff. The committee scheduled additional budget hearings for Sept. 9–10 for related agencies.

The hearing transcript and department submissions provide detailed line-item questions for legislators and indicate key follow-ups: a legal memorandum on the proposed personnel transfer, a revised revenue submission if new leases finalize, and procurement steps for the land-use RFP and quarry fencing.