Chamber: CNMI faces ‘all-hands-on-deck moment’ as budget shortfall looms

10/02/2025 - Saipan Chamber of Commerce president Joe C. Guerrero said the Commonwealth is facing an “all-hands-on-deck moment” as government austerity measures threaten to squeeze not only public employees but also the private sector that depends on their spending power.

Speaking at the Chamber’s general membership meeting at the Kensington Hotel last Oct. 1, Guerrero said the administration of Gov. David M. Apatang and Lt. Gov. Dennis C. Mendiola has moved swiftly to involve the business community in charting a path forward after Apatang signed a $179-million budget for fiscal year 2026. 

But with only $156 million actually available, the gap between paper appropriations and real resources has already forced leaders to prepare for cutbacks.

“There are talks about reducing hours. Payroll is the biggest expense of the government, so one of the first things that they are looking at is reducing hours and going back into austerity for government employees, which is a difficult thing to support, because less people with smaller paychecks, there's going to be less spending within the community,” Guerrero told Marianas Press during an interview before the Chamber meeting. 

The specter of reduced work hours—a throwback to past austerity periods in the CNMI—would hit government employees hardest, but Guerrero stressed that the impact won’t stop there. 

With the government remaining the territory’s single largest employer, pay cuts in that workforce translates to fewer dollars circulating in local shops, restaurants, and service providers.

“I think this situation reminds us of how interconnected we are—the business community and the government. And, you know, any chance we can to work together, to share ideas, and to collaborate to move us forward, that's what the Chamber always seeks. We've been working with many governors in the past, and currently with the administration of Apatang and Mendiola.”

Despite the strain, Guerrero said there are reasons for cautious optimism. He praised Apatang and Mendiola for reaching out quickly to the private sector and the Chamber in particular. 

The administration has also re-established the Governor’s Council of Economic Advisors, where business leaders form the majority of members. Guerrero sits on the body, which will hold its first organizational meeting on Oct. 6, but has already been working informally behind the scenes.

“We're here to help and collaborate. We have no choice but to work together, put politics aside, and just get the people's work done. This is, I like to say, an all-hands-on-deck moment,” he said.

GCEA is expected to revisit proposals from the 2020 Department of the Interior-led fiscal summit, which generated dozens of recommendations ranging from tax reforms to federal policy adjustments. Guerrero said some of the ideas are “fairly radical,” but the crisis demands creativity and execution.

Alongside budget tightening, Guerrero pointed to the importance of nurturing new investment. The Commonwealth Economic Development Authority has been tasked with shifting its focus from lending to spearheading economic development projects, and has already attracted interest from ventures like Zo Motors and other emerging businesses.

For public employees, the looming cuts are admittedly painful, but Guerrero framed them as an investment in the territory’s future.

“Everyone is going to play a part in this, whether it's that government employee that's going to take a pay cut, they need to know that this is not just to cut, but to re-prioritize, and basically, how I see it, their pay cut is an investment in the CNMI, and they need to believe in the leadership that their sacrifice is going to yield a much better future for everyone.”

He also underscored the community’s track record of weathering crises—from the devastation of super typhoons Soudelor and Yutu to the pandemic shutdowns that crippled tourism.

“I can't think of a better word to say that we're resilient, but I often think, why are we resilient? It's because we love the CNMI, we love to be here, many of us can easily move and relocate to other places, but those that are digging their heels here, and have made the CNMI home, we're so entrenched and committed to seeing ourselves pull through this, so let's hang in there and work together, things will get better, it might be a little bumpy in the coming months, but it will get better, and we'll have plans to support why things will get better.”

Over the coming weeks, GCEA is expected to present a set of proposals for stabilizing the government’s finances and positioning the private sector to grow. Guerrero said transparency and community input will be central to that process.

During the Chamber meeting itself, Guerrero and Dave Berger introduced Marianas USA LLC, a new entity that would advocate on CNMI issues, including the CW labor program, EB-5 travel authorization, and air service, in Washington, D.C.

True Beep, Inc. was also welcomed as the Chamber’s newest member. The company offers a digital marketing platform that integrates email, WhatsApp, social media, and customer rewards cards to improve efficiency, boost sales, and cut costs.

The meeting also saw Marianas Variety unveil its redesigned website, featuring a community calendar, digital classifieds, access to archives dating back to 1972, and an upgraded e-edition with interactive and mobile-friendly features.

Lastly, the U.S. Marine Corps launched the 2025 Toys for Tots campaign in the CNMI at the Chamber meeting. Last year’s drive collected 1,688 toys, supplemented by 271 toys shipped from the foundation. This year’s goal is to expand outreach to remote areas with continued support from the Chamber, the Commonwealth Bureau of Military Affairs, and local businesses.

Report by Mark Rabago