SESSION, 2025 H. L. I. 24- /
A HOUSE LEGISLATIVE INITIATIVE
To amend Article XV, Section 1 of the Constitution of the Commonwealth of the Northern Mariana Islands to define "General Revenues" and "Special Revenues" consistent with CNMI Supreme Court ruling, "In the Matter of a Petition for Certified Question," and to clarify that the Public School System's twenty-five percent guaranteed appropriation shall be calculated on the net General Revenues after crediting debt service and statutory obligations.
BE IT ENACTED BY THE 24TH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE:
1 SECTION 1. FINDINGS.
2 The Legislature finds that Article XV, section 1(e) of the Constitution
3 guarantees the CNMI Public School System (PSS) an annual budget of not less than
4 twenty-five percent of the general revenues of the commonwealth. The absence of
5 a constitutional definition of "general revenues" has produced disputes in both
6 budgetary practice and judicial interpretation, most notably in the CNMI Supreme
7 Court case of In the Matter of a Petition for Certified Question, 2020 MP 2.
8 The Legislature further finds that in its decision regarding the certified
9 questions, the CNMI Supreme Court recognized that "special revenues" are
10 excluded from general revenues where such funds are constitutionally, statutorily, HOUSE LEGISLATIVE INITIATIVE 24- 1
1 or contractually restricted for a specific purpose, including federal grants, bond
2 proceeds, trust fund earnings, earmarked taxes or fees, and mandatory payments to
3 the settlement fund. This legislative initiative remains consistent with In the Matter
4 of a Petition for Certified Question, 2020 MP 2, by incorporating that definition of
5 special revenues into the constitution without alteration.
6 The Legislature finds, however, that ambiguity persists in the method of
7 calculating the twenty-five percent appropriation. Under current practice, counting
8 debt service within general revenues without adjustment results in an inflated
9 obligation that can require the commonwealth to set aside the equivalent of more
10 than one hundred percent of available revenues when both PSS and debt service are
11 prioritized. Further, any amounts strictly needed to pay debt service must
12 themselves be increased by twenty-five percent in order to give PSS its share,
13 effectively forcing the Commonwealth to add an additional 25% to all of the
14 revenue necessary to meet its financial obligations.
15 The Legislature determines that the people, through constitutional
16 amendment, have the authority to clarify the calculation method while remaining
17 consistent with Supreme Court decision. This amendment does not redefine general
18 or special revenues, but rather specifies that, after identifying general revenues as
19 the certified question decision requires, the amount of legislatively mandated debt
20 service and statutory financial obligations shall be treated as a credit against general
21 revenues. The result is that the twenty-five percent guarantee will be based on the
Page 2 HOUSE LEGISLATIVE INITIATIVE 24- /
1 net general revenues, which are general revenues less debt service and statutory
2 obligations as set forth by the CNMI House and Senate via a concurrent resolution.
3 The purpose of this House Legislative Initiative is therefore to:
4 1. Affirm the decision rendered in the case of In the Matter of a Petition for
5 Certified Question, 2020 MP 2, particularly, the definition of special
6 revenues without change;
7 2. Clarify that debt service and statutory obligations are credited against
8 general revenues before calculating the twenty-five percent appropriation;
9 and
10 3. Ensure a sustainable, transparent, and constitutionally faithful method of
11 funding the public school system.
12 SECTION 2. LEGISLATIVE INITIATIVE.
13 The Twenty-Fourth Northern Marianas Commonwealth Legislature, by the
14 affirmative vote of three-fourths of the members of each House present and voting,
15 hereby proposes the following amendment to Article XV of the Constitution of the
16 Northern Mariana Islands to be placed before the people for ratification at the next
17 general election:
18 "A PROPOSED CONSTITUTIONAL AMENDMENT
19 "ARTICLE XV: EDUCATION
20 Section 1: Elementary and Secondary Education.
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