Financial trials and tribulations

Soon after the departure of Kenneth Wright from the presidency of NMC, the college became financially unstable, leading to its poor standing with the Accrediting Association for Community and Junior Colleges. The college was only removed from the warning list for accreditation in January 2005. Shortly thereafter, the NMC president and BOR initiated the pursuit for a Management Desk Audit conducted by the Center for Pacific Studies/Interwork Institute at San Diego State University in August 2005. The purpose and intent of the audit was to provide a roadmap for action addressing the significant challenges facing the postsecondary education community throughout the Commonwealth, as well as assist the college in successfully meeting the accreditation standards of the AACJC.

One of the areas included in the scope of the audit involved the utilization of college resources to operate in an effective and efficient manner now and into the foreseeable future. One of the financial and policy recommendations made was to encourage NMC to work with the CNMI Legislative Branch and the Executive Branch to ensure full funding under Public Law 5-32 as amended by Public Law 10-66.

According to the audit, NMC has for many years been operating with less than adequate financial resources. The results have negatively impacted the physical facilities on Saipan and lack of raises granted to staff. The audit indicated that a lack of adequate resources can lead to an institution of higher education experiencing serious accreditation problems. In addition, the audit stated that financial resources are primarily a government responsibility. Yet, the college must take strong proactive steps to secure the additional funding necessary to meet the demands of the future.

The audit indicated that at least 21 administrative or support staff positions are unfilled or filled on an interim basis, e.g., deans, directors, and a vice president.

Because of the large number of vacancies, some of NMC’s essential business functions are not being accomplished. However, the audit stated that not all positions, as they presently exist, should be filled. Moreover, the suggested organizational charts provided for NMC included options that recommended the creation of a few new or reconfigured positions and the elimination of a number of present positions.

Recently, NMC president Tony Deleon Guerrero told the media that he hopes the lawmakers and the government would support NMC’s FY 2006 budgetary request and keep its funding at the continuing resolution level of $8,046,839.

Guerrero asked the Legislature to be mindful of NMC’s problems in meeting its required mandate at funding levels authorized under continuing resolution over the past two years.

Guerrero’s request for funding is appropriate in light of the recommendations made in the management desk audit conducted in August 2005. However, Guerrero needs to be reminded that Gov. Benigo Fitial is not a staunch proponent of “continuing resolutions” like the previous governor. Furthermore, Guerrero needs to get a grip on the present fiscal reality of the government and realize that trying to extract funds at the levels once enjoyed would be like trying to squeeze blood out of a turnip. And with cuts being issued by Governor Fitial across the board, the prospects to get the funding requested do not look promising.

And since any request for funding levels comparable to what was granted to NMC before might be difficult to get approved, it might be advisable for Guerrero to consider looking for and pursuing other sources of revenues, e.g., grants and outside sources. And if a grant writer has not been hired yet, then that responsibility might rest on the college president’s shoulders.

Dr. Jesus D. Camacho
Delano, California