Cruz criticizes PSS for ‘involving’ students in protests, questions $4.9M i

11/20/2025 - Sen. Francisco Q. Cruz pressed the Public School System, faulting the education district for supposedly allowing students to publicly protest the Legislature over budget cuts while PSS had $4.9 million in lapsed, unspent funds from fiscal year 2022.

During a Senate Fiscal Affairs Committee hearing last Nov. 19, Cruz said it was inappropriate for minors to be drawn into political pressure campaigns when the Legislature was being blamed for shortfalls that PSS had not formally disclosed.

“You’re making us look bad when you still have money left over unspent,” Cruz told PSS leadership, arguing that students would not have protested without influence from adults at PSS. He urged the district to talk as adults and leave minors out of budget disputes.

“I know that we're elected officials, but that's a threat to us. Like telling the parents, ‘if they don't give us the money, don't vote for this guy.’ We never go down to PSS and get you guys in trouble, because you're not giving the best education possible. You guys are getting 25 cents out of a dollar and still getting these kids involved. PSS has to be mindful that we have other critical areas as well,” he added.

PSS officials denied the suggestion that the funds were intentionally hidden. 

Acting commissioner Jacqueline Che and finance director Jonathan Aguon explained that delayed government appropriations forced PSS to rely heavily on federal American Rescue Plan Act funds to cover operations, leaving the $4.9 million in local appropriations untouched. 

“Because of the delay in the transmittal funding over to PSS, we have that $4.9 million sitting in that account. It was not intended to be hidden and not disclosed to people. It was part of the long-term sustainability plan,” she said.

Che acknowledged, however, that the funds should have been communicated to the administration and the Legislature earlier. She committed to memorializing the availability of the funds in writing so the Senate can move to reappropriate them.

“The $4.9 million is really needed by the district. And I hope that by it not being disclosed, it will not affect PSS. Because at the end of the day, we still need all of that money to be able to operate.”

The acting Education commissioner also defended students’ right to voice concerns, but agreed PSS must do more to ensure students understand the budget process rather than react to incomplete information.

“Unfortunately, with regard to students protesting, we cannot stop students from wanting to voice their concerns, right? But I understand what you're saying. We don't want our kids to think that the government is bad, that we're not on the same boat. Because the entire CNMI is suffering. I think the students were afraid that if we did not get the money that we needed, it would impact the school, right? They will not be able to go to college. So, they wanted to voice their concerns. We couldn't stop them,” said Che.

Senate Fiscal Affairs chair Donald Manglona asked the administration to confirm receipt of PSS’ certification so lawmakers can act on the $4.9 million when the committee reconvenes.

PSS said that even with the additional funds, the current $31.7-million appropriation remains far below the $40 million minimum needed to sustain 80 hours per pay period. The district is now operating at 64 hours and warned that furloughs could be required if no adjustment is made.

Sen. Manny Castro also pressed PSS about personnel costs and high compensation rates within its distance-learning program. Che and Aguon said those rates, funded with federal grants, are under review and will be reduced next year.

Meanwhile, the administration of Gov. David M. Apatang’s latest budget clock presentation shows that the amount available for FY 2026 appropriations has grown to $144.35 million as of Nov. 19—an increase from the revised budget submitted on Oct. 14—driven largely by additional lapse funds and remittances.

Apatang’s revised FY 2026 proposal pegs projected revenues at $158.02 million, with $134.69 million left for spending after subtracting $4.98 million in special earmarks and $18.35 million for debt service tied to the Marianas Public Land Trust pension loan.

The Apatang administration initially identified $138.44 million available for appropriation last October, which included $3.75 million in FY 2025 lapse funds. That figure rose by mid-November with the addition of two new revenue sources— $1 million in MPLT remittance interest to the general fund and $4.91 million from PSS’ FY 2022 year-end fund balance.

These increases pushed total available funding to $144.35 million with priority funding items largely unchanged, with wages and salaries ($54.3 million), PSS ($40.6 million), the Medicaid local match ($6.2 million), Marianas Visitors Authority ($8.5 million), Northern Marianas College ($5.8 million), retiree Group Health and Life Insurance ($7.2 million), and utilities ($2 million) ranking among the largest categories. 

It’s noteworthy that PSS and MVA were only supposed to get $37.7 million and $7.5 million under the original budget proposal submitted by the Executive Branch. 

The updated list also adds $1 million for the “Rainy Day Fund” and $1 million for Rota and Tinian.

The budget clock also issues a warning about the government’s GHLI program. The presentation notes that coverage for retirees—roughly 7,000 insured lives—will end on Dec. 31 unless the Legislature appropriates the required $7.2 million employer share for GHLI.

The revised budget proposal remains pending before the Legislature, with 35 days elapsed since its submission.

In response to the new budget submission, House Speaker Edmund S. Villagomez and Senate President Karl King-Nabors said their chambers’ appropriate committees will discuss the changes.

Report by Mark Rabago