SAIPAN – Senate Vice President Corina L. Magofna is urging the Department of Public Lands to prioritize and expedite action on pending public land lease applications, citing what she described as one of the most economically fragile periods in CNMI history.
In a letter dated May 25 to DPL Secretary Sixto K. Igisomar, Magofna, who chairs the Senate Committee on Resources, Economic Development, and Workforce, said the aftermath of Super Typhoon Sinlaku, the recent Fuel Adjustment Charge increase by the Commonwealth Utilities Corporation, and the Governor’s proposed Fiscal Year 2027 budget have converged to deepen the Commonwealth’s economic distress and made timely action on land leases more important than ever.
“Timely action is not merely an administrative matter — it is directly tied to the Commonwealth’s economic survival, fiscal recovery, workforce stability, and long-term sustainability,” Magofna wrote.
Magofna said the Commonwealth Government continues to face severe fiscal challenges, reflected in the Governor’s proposed Fiscal Year 2027 budget submission, which includes the implementation of a 20-hour work week for government employees due to ongoing revenue shortfalls and financial constraints.
She also pointed to the CUC Fuel Adjustment Charge increase, which she described as a roughly 100 percent rise. The Commonwealth Public Utilities Commission voted 3-1 on May 15 to lift the FAC cap from 24.5 cents to 44.489 cents per kilowatt-hour, an 82 percent increase, effective the same day.
“This substantial rise in utility costs will inevitably increase the cost of living for residents, increase operational expenses for businesses, discourage commercial expansion, and place additional financial pressure on families already struggling to recover from the economic impacts of the typhoon and the broader economic downturn,” Magofna wrote.
Magofna said the Commonwealth cannot afford unnecessary delays in moving forward with public land leases that have already satisfied all required legal, regulatory, and administrative requirements. She said there are industries and investors ready to move forward with projects that would inject substantial new capital into the local economy and create new economic ecosystems, including construction activity, employment, demand for local services, secondary business growth, and an expanded long-term revenue base.
“Without new industries and private sector investment, the CNMI’s economic recovery will continue to stall,” she wrote.
The Senator said every delay in processing and approving qualified land leases delays new revenue generation, job opportunities, business activity, consumer spending, and broader recovery for the Commonwealth.
“The government ultimately depends on a functioning and productive private sector to generate the revenues necessary to sustain government operations, public services, and critical programs,” Magofna wrote. “Without economic growth and investment, the government’s ability to fund education, healthcare, public safety, infrastructure, and social services will continue to deteriorate.”
Magofna requested an update from DPL on the status of pending lease applications, including anticipated timelines and any outstanding issues that may be preventing final disposition. The letter did not identify specific pending applications or named investors.
