Commerce proposes reduced FY25 budget

The Office of the Governor has proposed a reduced budget for the CNMI Department of Commerce for this coming fiscal year compared to fiscal year 2024 taking into account the CNMI’s current economic crisis.

Yesterday, CNMI Department of Commerce acting secretary Francisco Cabrera and Division of Alcoholic Beverage and Tobacco Control director Dave Maratita appeared before the House Standing Committee on Ways and Means for their budget hearing.

The hearing addressed the proposed budget submitted by the Office of the Governor for the Department of Commerce.

In an interview with Cabrera, the proposed budget for his department for FY2025 is $1.4 million, a reduction from its last fiscal year budget of $1.5 million.

“We had [to implement a] reduction because of our current economic situation. We need to live by our government’s means. We’re in favor of the governor’s proposed budget and we just need to live within our means,” he said.

Initially, the Department of Commerce submitted a budget of $2.8 million to the Office of Management and Budget under the Office of the Governor but does not object to the significant cut proposed.

During the hearing, committee members raised concerns about the department’s services. According to Cabrera, what needs to be addressed immediately is Commerce’s statistics information as well as filling vital positions like an administrative hearing officer.

“Two factors of concern were raised today; one was the information and statistics that needs to be opened and improved, second is hiring an administrative hearing officer. These are the things that need to be addressed right away,” he said.

In an interview with Way and Means committee chair Rep. Ralph Yumul (Ind-Saipan), he said the committee did not go into detail during its budget hearing for Commerce yesterday as there is still the possibility of a revision as the legislature awaits a revised budget from the Department of Finance.

Due to Hyatt Regency Saipan pulling out and the low tourist arrival projection, Finance is expected to submit a revised FY24 budget.

“We are expecting a revised budget so we are very careful of what we asked because there might be changes. There might be a drop in the next fiscal year, so we didn’t go into much detail with the department because we’re just waiting for the revised budget. With regards to Commerce’s budget, due to grants and revolving funds, they have enough to sustain their current operations. So, they can sustain themselves. It’s only the enforcement part, we aren’t sure if they’re going to hire to back up current enforcements. Moving forward, we are going to continue on with the budget hearings and then hope for the best while we wait for the revised budget from Department of Finance (if any),” he said.