Palacios: Torres gave Tinian extra $3.6M ARPA funds

Gov. Arnold I. Palacios said Thursday that he fully understands where Tinian and Aguiguan Mayor Edwin P. Aldan is coming from, that about 124 Tinian Mayor’s Office employees will be out of jobs come Oct. 1, 2023.

“At the end of the day, it’s not a hell of a lot of funding,” said Palacios in an interview.

Speaking before the House of Representatives Ways and Means Committee’s Fiscal 2024 budget hearing for the Tinian municipality, Aldan had described Palacios’ proposed budget as “unbalanced” and “frustrating” for the municipality.

Gov. Arnold I. Palacios

Aldan said he has been in politics for over 20 years and that he has never seen a budget proposal that excludes a mayor’s office from the general fund.

The mayor said the governor’s proposal intends to include $3 million in American Rescue Plan Act funds that is currently being held in the Tinian Municipal Treasury to cover the difference. He said these funds will not be available on Oct. 1, 2023, as most of the funds have already been allocated.

Palacios said Thursday that the recommendation of the Office of the Governor’s staff that was preparing the 2024 budget for Tinian and Aguiguan was that the $3.6 million in additional American Rescue Plan Act is not the municipality’s allocation. The governor said that money is additional ARPA that was given to Tinian before then-governor Ralph DLG Torres left office.

Palacios said he is glad that Aldan put together his spending plan for that money. He said Aldan could use that $3 million to take care of the employees.

The governor said they are trying to make sure that they balance this 2024 budget.

He said the Municipality of Rota and Saipan did not get any extra additional ARPA funding like the Municipality of Tinian.

Palacios pointed out that when he submitted his proposed budget to the Legislature, they certainly went through the process. He said the Legislature also has a process to go through.

“We’ll see where that comes out. We have to see hopefully before Oct. 1, where the process is, and then we can sit down and take a look at it,” the governor said.

Aldan submitted a budget request of $10.7 million, but Palacios’ budget proposal of $4.6 million reflects a significant cut of $6.1 million, equivalent to a cut of 57%.