Saipan — In a pointed floor speech that balanced gratitude with sharp criticism, CNMI Senator Celina Babauta cast a dissenting vote on the budget bill, warning that the Commonwealth cannot continue governing with “fantasy budgets” while federal oversight looms.
The senator opened her remarks with acknowledgment of the difficult work done by legislative committees to stretch limited resources toward critical needs, including a 25% payment for retirees, $7.2 million for the Group Health and Life Insurance program, and funding for public schools. But her praise ended there.
“I want to make it clear that my action today is not to be construed as being in opposition of passing a budget to fund the GHLI and other programs currently at risk,” Babauta said. “However, we cannot, with a straight face, continue to ask government employees to tighten their belts while expanding government payroll elsewhere.”
At the heart of her objection: three new full-time positions added to the municipality of Tinian alone, at a time when government workers across the Commonwealth are being asked to endure austerity measures. “That sends the wrong message to our workforce and to the public,” she said. “It is completely irresponsible.”
Even more troubling to the senator was the budget’s second attempt to allocate $210,000 in back pay for casino commissioners, a provision the Attorney General has already determined to be illegal. “Casino commissioners are not government employees,” Babauta emphasized. “The issue is simple: using public funds to compensate non-government employees violates the law.”
She noted with evident frustration that the House of Representatives had just voted unanimously to approve the budget bill, with not a single member opposing the contested section. “This body has already been warned,” she said. “Proceeding again, after legal guidance has been issued, places this Legislature in direct conflict with the law and undermines public trust.”
The senator connected the territory’s budgetary practices to its deteriorating relationship with federal partners, particularly the Office of Insular Affairs. “This is precisely why our credibility with the Office of Insular Affairs continues to erode,” Babauta said, while carefully noting she placed no blame on federal officials attempting to help the Commonwealth recover from what she called “the most blatant, reckless and wasteful spending perpetrated under former Governor Ralph Torres’ administration.”
Federal partners have made their position clear, she said: additional financial assistance depends on the CNMI demonstrating good-faith fiscal discipline. “When we pass budgets built on fantasies and wish lists instead of reality, we signal that we are unwilling to live within our means,” the senator warned. “And it should come as no surprise when federal oversight tightens and trust and financial assistance is withheld.”
Babauta concluded her remarks by framing fiscal responsibility as more than a constitutional obligation. “The CNMI must learn to live within a real budget, and if necessary, to make the hard choices that come with a realistic budget,” she said. “Fiscal responsibility and passing a budget under pressure is not just about a constitutional responsibility; it is about respecting the law and exercising discipline in times of hardship.”
“For these reasons,” she declared, “I dissent.”
The budget bill’s fate in the Senate remains uncertain as lawmakers navigate the tension between urgent funding needs and growing concerns over fiscal accountability.
Read the full statement below:
Mr President, members of the Senate and the viewing public:
Before explaining my concerns, I want to recognize both committees, the House Ways & Means Committee and the Senate Fiscal Affairs Committee for their effort under extremely difficult circumstances. They have worked to stretch scarce financial resources to address some of our most urgent obligations—the 25% payment for our retirees, the $7.2 million allocation for the Group Health and Life Insurance program, and funding for our public-school students. That effort is not lost on me, and on behalf of the people of the Commonwealth, especially, the senatorial district that I represent, Saipan & the Northern Islands, it is appreciated.
However, I want to make it clear that my action today is not to be construed as being in opposition of passing a budget to fund the GHLI and other programs currently at risk.
At a time when every government employee is being asked to endure austerity, the problem has been compounded by adding three new full-time positions to the municipality of Tinian alone. That sends the wrong message to our workforce and to the public. It is completely irresponsible.
We cannot, with a straight face, continue to ask government employees to tighten their belts while expanding government payroll elsewhere.
We cannot continue to govern with fantasy budgets—budgets built on wish list instead of what we can actually afford. The CNMI must learn to live within a real budget, and if necessary, to make the hard choices that come with a realistic budget.
Equally troubling is the second attempt to include back pay for casino commissioners, totaling $210,000, under Section 615, entitled Commonwealth Casino Members. Despite the Attorney General’s clear determination that this payment is illegal. It is apparent that the Attorney General’s determination has fallen on deaf ears to the Legislature. The House of Representative just finished voting unanimously to approve this budget bill before us now, on first and final reading. Not a single vote in opposition of this illegal section of this Act. Casino commissioners are not government employees.
The issue is simple, using public funds to compensate non-government employees violates the law.
This body has already been warned. Proceeding again—after legal guidance has been issued—places this Legislature in direct conflict with the law and undermines public trust.
This is precisely why our credibility with the Office of Insular Affairs continues to erode—and I place no blame on our federal partners who are trying to help our struggling government due to the most blatant, reckless and wasteful spending perpetrated under former Governor Ralph Torres’ administration — Federal partners have made it crystal clear; the additional financial assistance is contingent upon good faith fiscal discipline.
When we pass budgets built on fantasies and wish lists instead of reality, we signal that we are unwilling to live within our means, and it should come as no surprise when federal oversight tightens and trust and financial assistance is withheld.
Fiscal responsibility and passing a budget under pressure is not just about a constitutional responsibility; it is about respecting the law and exercising discipline in times of hardship and for these reasons, I dissent.
