House Ways and Means reviews Department of Public Lands $4.89 million FY2026 budget; officials outline vacancies, land-compensation backlog and Managaha RFP

SAIPAN — The House Committee on Ways and Means on Tuesday examined the Department of Public Lands’ (DPL) fiscal year 2026 budget proposal and pressed agency leaders on staffing gaps, outside professional fees, a backlog of land-compensation claims and the status of a request for proposals (RFP) for Managaha Island.

The committee, chaired by Representative JP Sablan, opened the public hearing by noting a quorum and adopted the day’s agenda. The session focused on DPL’s budget submission of about $4,892,000, the agency’s available internal fund balance and a list of operational pressures that committee members said must be addressed before final appropriation.

Why it matters: DPL manages island public lands that generate revenue used for maintenance, concessions and land claims. Lawmakers sought detail on where the agency will spend the governor’s proposed funds, what revenue the department already holds, and how outstanding land claims and maintenance obligations will be resolved.

Secretary, Department of Public Lands, who led the DPL delegation, told the committee the department is seeking support for the governor’s package while answering detailed questions from committee members about personnel, contracts and program priorities. “That appraiser job should be filled within a week or 2 weeks from today as soon as all the signatories are complete,” the secretary said when asked about a longstanding vacancy in the appraiser position.

Committee members pressed the agency on the $526,062 listed for professional services in the governor’s proposal. The secretary described how that total breaks down in the agency’s internal listing: roughly $150,000 proposed in the executive division (including legal services), about $60,000 for finance (single-audit work), $8,000 for the homestead database, $25,000 for land-claims contract work, $50,000 for compliance services and about $90,000 earmarked for Managaha-related services. The agency estimated it would pay approximately $120,000 to the Attorney General’s office under the current arrangement, and the secretary stated a minimum annual MOU charge of $80,000 to the AG’s office.

On outside appraisals, the secretary said DPL hires licensed appraisers in the CNMI when internal capacity is lacking and that outside appraisal reports typically range from “$700 at the lowest up to about thousand dollars plus per appraisal report.” He added that if staff are not comfortable with an appraisal’s assumptions, DPL may commission an additional report.

Fund balances and revenue: The secretary told the committee DPL’s public-lands fund in the Bank of Guam is “about $16,000,000” in gross balance, and that approximately $6,000,000 is available for use this fiscal year after excluding restricted funds. He described restricted funds as security deposits for lessees and estimated the restricted portion at “about 2 point some million dollars.” The agency’s FY2026 revenue projection embedded in the governor’s proposal is $4,892,000; the secretary said that projection is based on expected collections and upcoming leases coming online.

Managaha RFP and concessions: The secretary said the Managaha RFP review committee had completed its work and that the acting real-estate director was preparing the evaluation paperwork. “By this week, we should know who the winner is,” he told the committee. He also acknowledged prior proposed regulatory amendments related to concessions on Managaha, saying the amendments had received public comment and were not finalized; the agency will “revisit” the proposals before deciding whether to proceed.

Several members raised concerns about prior concession agreements and whether regulatory changes had been used to accommodate individual lessees. The secretary responded that past Managaha negotiations were completed “as is per regulations” and that exclusivity granted in any lease applies only to a clearly defined zone on the island and does not extend to adjacent waters.

Rota, Kanoa and maintenance costs: Members asked about maintenance and security at island properties DPL currently manages. The secretary estimated that maintaining multiple island properties could cost roughly “$50, about a $100,000 plus” (he later described security services costs of $3,000–$5,000 every two to three weeks per location and potential monthly security costs close to $10,000 per site). He said DPL is soliciting proposals for security services at Kanoa Resort and that a review committee had completed an RFP for a concession at Managaha. DPL is also pursuing MOUs with mayors and local agencies to assist with cleaning and monitoring of resort properties such as Rota Resort.

Land compensation backlog and judgments: Lawmakers pressed the agency about outstanding land-compensation claims. The secretary described a large set of judgments and compensation exposures that he had summarized for top government leaders: “We have about $9,000,000 of judgments… then another 1 some million dollars” and said he had recently provided a supplemental list that together amounts to roughly $11,000,000 to the governor, the speaker and the senate president for consideration. He also told the committee that unpaid claims accrue interest; “they're gaining 3% interest [on a] daily basis,” he said, noting the total will change until payments are appropriated and certified.

Homestead program and staffing: Representatives asked about homestead permitting, survey capacity and the agency’s field presence. The secretary and the director for planning (Pat) told lawmakers DPL’s homestead unit is small — around three employees plus a director on Saipan, with smaller teams on Tinian and Rota — and that planning/survey work is supported from Saipan by a planning team of about seven survey staff who rotate to other islands as project needs demand. The secretary said infrastructure costs to bring homestead areas online are large, recalling prior ARPA plans that would have funded water and sewer connections. He estimated past, multi-year estimates for all homesteads at “about $50 to $80 million” and said a single area’s earlier estimate (discussed several years ago) was in the range of $11 million but would now be higher because of inflation and phasing.

Quarry royalty and material donations: The secretary told the committee that quarry operators provide an in-kind public benefit of roughly 100 cubic yards of raw aggregate per quarry unit (a figure he said is established in practice). He said DPL is preparing an internal SOP to better document requests and distributions for aggregate during emergencies and regular public works needs, including a chain-of-custody and accounting approach for agencies requesting material.

MOUs and invoices for parks and rec services: The secretary confirmed there is an executed MOU between DPL and the Division of Parks and Recreation (DLNR) under which DLNR provided maintenance services and had submitted invoices; he said he has held invoices pending review to ensure conformity with AG opinions and to confirm DPL has authority to pay DLNR payroll costs under the MOU.

Transparency and records: Members asked whether DPL can provide lists of leased public land. The secretary said DPL maintains records and a land-use plan and that staff will work with the office of the Attorney General to determine which data can be released publicly.

Closing and next steps: The secretary told lawmakers DPL will provide the committee with documents requested during the hearing and asked for the committee’s support for the FY2026 budget. Representative JP Sablan closed the hearing after the department’s remarks.

Notes: The committee adopted the meeting agenda at the start of the hearing (motion moved and seconded; outcome: adopted).