NMC enforces austerity Fridays

Employees of the Northern Marianas College are no longer exempted from the government-wide austerity Fridays with the enforcement of 10-percent salary cut effective July 15 this year. The austerity measure involves a reduction of eight hours per pay period and will be applied every other Friday.

Interim president Lorraine T. Cabrera, in a statement yesterday, said this step was a result of the anticipated budget shortfall for the remainder of the fiscal year.

Federally funded employees and offices at the college will be exempted from the austerity measure to comply with grant terms and conditions and approved plans.

It was earlier reported that NMC’s budget allotment through Sept. 30 will be reduced by $340,000—or 7.58 percent. Because of this, the college was asked to adjust its spending to sustain operations up to the end of the fiscal year, Sept. 30, 2011.

Despite the reduction in work hours, Cabrera assured that this will not affect the institution’s academic programs. Although some classes in the new semester may need to be rescheduled, she said there will be no cancellation of programs.

“It should be stressed that the reduction in work hours in no way affects the quality of academic instruction at the college. NMC is moving at full speed in preparation for the upcoming fall 2011 semester and, although some classes may need to be rescheduled, none will be canceled because of the new austerity measure,” she said in the statement.

Cabrera added that the action is to ensure that NMC’s limited financial resources are sufficient to support student learning programs and services.

Saipan Tribune learned that from the original earmark of $4.4 million in fiscal year 2011, NMC’s annual budget was cut to $4.1 million. Effective April 1, the projected monthly allotment for NMC is $315,593 for personnel cost and operation. Based on the adjusted allocation, NMC only has $1.8 million left until September.

Based on college record, NMC has over 200 personnel, including instructors, non-instructional faculty, staff, and administrators.

Cabrera said the cut in works hours is “not an easy decision” but assured that all affected parties were consulted before its implementation.

“Although it was not an easy decision to make, the austerity measures we’ve set in motion has the support of our students, staff, and faculty.”

This summer, NMC also shortened its summer sessions as part of austerity initiatives. It also enforced energy-conservation efforts to reduce power bills and restricted the hiring of new employees.

“We remain committed to ensuring that our financial resources continue to support our academic programs and student services and to improve institutional effectiveness. We will continue to use our comprehensive program review processes to guide and inform our planning and budgeting decisions,” said the interim president.