School money cut •Governor says changes ensure a wider spread of limited funds

Gov. Pedro P. Tenorio has moved closer to overhauling the government’s scholarship program after he signed a law imposing a cap on the financial aid that will be granted to on and off-island students for post secondary education.

Under Public Law 11-77, which amends the scholarship act put in place in 1990, financial assistance to students enrolled in Northern Marianas College or in universities in the United States or its territories will be pegged at $15,000 annually per student.

The amount will cover expenses for tuition, textbooks, board and lodging, transportation and other school fees for a period of up to five consecutive years.

The government spends as much as $30,000 in public funds for the education of each student per year, a practice that has strained the local coffers. Some students enjoy unlimited reimbursements even without being required to produce receipts.

The governor has been pushing for changes in the scholarship regulations to resolve recurring problems, particularly funding shortage, which impedes implementation of the educational aid program.

Complaints regarding delays in scholarship grants have prompted the House of Representatives to conduct an oversight hearing into allegations of mismanagement at NMC which is being blamed for the mess.

Tenorio also hoped that the ceiling would stretch the limited cash resources of the government to meet the growing needs of the college scholarship program.

“During this time of declining revenue collections, this measure is needed to ensure certain continuity of financial assistance to the maximum number of students who are already enrolled in various post secondary education institutions and currently receiving financial assistance in the CNMI,” the governor said after approving the law.

There are 530 students under the government scholarship program, and for the spring semester alone, the financially-troubled NMC needs to come up with additional funding of $575,000 to cover tuition and other expenses.

Close to $4 million, including more than $500,000 intended for medical referral program, had been set side by the administration last September for financial assistance provided to both on and off-island students.

But the initial appropriation had been wiped out during the fall semester, leaving no reserve for the next semester.

With cash collections continue to drop as a result of the economic slowdown, Tenorio said students have to “understand that the money is not there and everybody has to sacrifice otherwise the community will not be served” if the government continues to bail them out.

“We have a very limited funding and we should come up with revised scholarship rules and regulations so it will be fair to everybody,” the CNMI leader said earlier.

Finance officials are pushing for the suspension of financial assistance to students attending NMC or off-island universities for the summer semester to prevent the college from further bleeding.

Officials also are weighing the possibility of amending existing laws that provide scholarships to off-island students in order to cut down NMC’s expenses.

Combined savings from these proposals would amount to $342,000 for the fall semester alone.