Arbitrary cut in scholarship grants hit

Senate Floor Leader Pete P. Reyes has criticized the administration for its handling of the scholarship program as he noted the arbitrary cut in the amount granted to students despite appropriation by lawmakers of the necessary funding.

He said this move is sending a wrong signal to local scholars who have signed an agreement with the government to comply with the terms of the grant, including the amount they are to receive.

The cut implemented in recent months by the Scholarship’s Office is tantamount to a violation of that contract since students were not given prior notice, according to the senator.

Reyes, along with Senate President Paul A. Manglona, met last week with about 40 CNMI scholars attending the University of Guam to hear their concerns regarding these decisions by the Tenorio administration.

Dan Nielsen, the governor’s special assistant for education, and Scholarship Administrator Hilaria K. Santos also took part in the discussion held on Guam.

According to Reyes, the students complained against implementation of scholarship laws, claiming that the agreements they signed with the government were changed in the middle of their college term, particularly the amount of the grants.

“If the government is observant of the conditions that the students are in, it must comply with the terms of the contract,” he said in an interview.

“Is the government too involved on its own problems that students are no longer a factor in the equation when they arbitrarily cut the grants?” asked Reyes.

The cut of up to 50 percent was imposed last August in the wake of the reduction in the budget earmarked for the scholarship program — from $4.4 million in FY 1999 to $2.3 million this fiscal year.

Without this drastic measure, several government scholars are facing zero financial aid during this schoolyear as finance officials have projected at least $1.2 million deficit in the scholarship funds in light of the continuous economic difficulties besetting the island.

More than 1,000 students attending universities in the mainland as well as the Northern Marianas College are recipients of this assistance.

But Reyes lamented the abrupt change in the policy, saying the administration should have sought approval by legislators. He added that he would press for reinstatement of the original grants.

“It is the responsibility of the executive branch. We appropriated the money but it was not delivered to students,” Reyes said.

To dramatize the serious cash-flow problems confronting the CNMI, Reyes claimed that Nielsen flashed during the Guam meeting headline of newspapers that reported the $80 million deficit incurred by the government.

The senator said this is “unfair” for the students who have nothing to do with the deficit, adding that the government can still cut back on non-essential services in order to meet more pressing financial obligations.

He cited the austerity measures implemented by the governor which could result to bigger savings if other unnecessary expenditures are sacrificed to benefit the students.

“We have $206 million and I have made a commitment to the students that if the budget reaches the Senate, I will propose several changes,” said the senator.

Among the cuts to be approved by the upper house include closure of the CNMI liaison office in Manila, shifting of about half-a-million dollars earmarked for computer purchase as well as elimination of housing allowance and office lease to boost funding for the scholarship program.