Ways and Means hears CNMI Public School System FY2026 request; officials warn of federal hold and budget shortfall

The House Ways and Means Committee heard a fiscal-year 2026 budget presentation from the Commonwealth of the Northern Mariana Islands Public School System (PSS) during a standing committee budget hearing called by Representative J.P. Sablan, chair of the committee. Commissioner Camacho asked legislators to consider a PSS request that totals about $49 million, and he warned that the system faces an uncertain funding picture because a portion of a $19 million federal consolidated grant is still under review.

PSS officials told the committee that their proposed FY2026 local request would fund 942 locally supported full‑time equivalents (FTEs) and that the system also operates about 304 federally funded positions. Commissioner Camacho said personnel — including administrators, teachers, librarians, counselors and program staff — account for roughly $42 million in the request, with about $7.2 million budgeted for other operating needs and $500,000 proposed for capital improvement project emergency work.

Why it matters: Committee members repeatedly raised that a constitutional 25% local‑funding expectation for education and the end of federal ARPA one‑time funding create a high risk of cuts. Committee members and PSS leaders said falling short on required local matches or losing more federal grant dollars could force reductions in services, staff or instructional days and would require notifying federal grantors and, potentially, declaring an emergency.

PSS and board updates: Ashumar Kodep Ogunura Oludong, chair of the CNMI State Board of Education, gave a six‑month update about board work including policy ratifications, an adopted artificial intelligence responsible‑use plan, principal rotations (a phased approach endorsed by the board), and an ad hoc committee on constitutional and budget questions. He said the board has begun requiring written justification when employees are not renewed.

Commissioner Camacho reported program outcomes and risks. He told the committee that PSS proficiency and graduation ratings improved this year — for example, the district goal was 58% and students scored 62%–65% in math and reading on recent measures, with early literacy at 71% — and that 19 of 20 school buildings have current occupancy, fire and sanitation permits. He said the system serves roughly 9,000 students across 20 schools and 10 Head Start centers on three islands and employs more than 1,000 staff. "With everything we do, students first and educators always," Camacho said.

Federal grant hold and what PSS said it means: PSS applied for a consolidated federal grant that covers 13 programs (including after‑school, college and career readiness, professional development and supports for English learners and students with disabilities). The system said it was awarded most of its requested $19 million but remains short about $4.5 million while some line items are under federal review. PSS staff told the committee they have reallocated internally where possible to continue services, but the missing $4.5 million increases pressure on local funds and complicates matching requirements.

Vacancies, hiring and program staffing: PSS and board staff reported 74 locally funded vacancies in the vacancy summary the system provided to the committee. The system said it intentionally limited opening new FTEs while budgets were constrained and is using transfers between schools to reduce service disruption. PSS said about 10 federal‑funded positions remain to be filled (some in Head Start, child nutrition and special education), and the system emphasized the local importance of filling those federal positions quickly because they bring outside dollars and program capacity.

Language and cultural curriculum, partnerships and grants: Committee members pressed PSS and the board about the Chamoru and Carolinian Language and Heritage Studies (CCLHS) program. The board and commissioner said they are expanding CCLHS staffing and asked for additional Carolinian instructors; currently the system reported 45 Chamoru content staff and 23 Carolinian content staff. Members discussed leveraging local nonprofit and other government funding, and board chair Oludong said early, exploratory conversations had taken place with community partners and the Marianas Public Land Trust about possible support for culturally focused programs.

Operations and cost savings: PSS said solar installations on 19 of 20 campuses are producing recurring savings and estimated cost reductions of up to about $1,000,000 per year from those installations. The system also described cost‑saving measures including suspending most travel and shifting to more local professional development, clustering contracts (for example, cleaning services) across nearby schools, and other operational efficiencies.

Matching obligations called out by committee members: Committee members emphasized that several federal awards carry local match obligations. PSS listed specific local match amounts including the JROTC local share (about 50% of instructor cost, with reimbursement of roughly 50% used for program operations), an Early Head Start local match cited around $792,000 (the commissioner said the system has requested a waiver and is seeking confirmation), and an AmeriCorps local match (about $144,681) that the system said it must fund in the coming year if awarded.

Scenarios and risks: Commissioner Camacho presented fiscal scenarios tied to different appropriation levels. He told the panel that in a worst‑case scenario the system would be forced to merge schools and consider reducing the instructional calendar below 180 days — a legally significant threshold — which would require notifying federal partners and could jeopardize portion(s) of federal funding. PSS emphasized it is preparing contingency plans and said it is communicating with federal grant officers about impacts.

Committee action and next steps: The committee adopted its hearing agenda by voice vote before the PSS presentation (ayes recorded; no roll call tally provided). Committee members asked PSS and the board to return follow‑up information on vacancy fill plans, detailed matching liabilities, the federal grant review status, and any possible partnerships (including with the Department of Community and Cultural Affairs, Mangó/NGO partners and the Marianas Public Land Trust) that could leverage funds for language and cultural programs. Secretary of Finance Tracy Bridal told the committee that the administration had made a July payment and will send a letter documenting transfers and timing.

Votes at a glance: A motion to adopt the committee agenda was seconded and approved by voice vote; no formal votes on the PSS FY2026 appropriation were taken at the hearing.

The committee scheduled follow‑up hearings (Department of Community and Cultural Affairs and Marianas Visitors Authority) and requested additional budget detail and matching analyses from PSS and board leadership.