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NMC to end the year in black
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Posted on May 04 1999
After years of financial shortfall, the Northern Marianas College is expecting to end the fiscal year within budget.
In a report prepared by the board’s Fiscal Committee, Chairman Ramon Villagomez said the latest numbers indicate a surplus in money from the appropriated budget to pay the teachers’ salaries.
“It looks like we are in the black all the way to the fiscal year,” he said during the recent Board of Regents meeting.
However, NMC President Agnes McPhetres reminded the board that the “potential” surplus did not take into account retirement and accrued credit leave payment for people who are leaving this fiscal year.
“All in all, it looks good but I think we will stay within budget,” she said.
Since the time when a salary increase for its personnel was approved without budget appropriation, the CNMI government yearly bailed out NMC from its payroll shortfall.
In an earlier interview with McPhetres, she said there was never enough money to carry its annual payroll since the time of former Gov. Larry Guerrero.
Early last year, NMC indicated $1 million deficit in payroll for operations and $500,000 short to pay its personnel under the Public Law 5-32 budget which included Business and Hospitality Management, Law Enforcement, Nursing, School of Education, Marine Technology and Technical Trades.
According to Special Adviser for Budget and Finance Mike Sablan, the government pumped in around $300,000 money in each pay day just to bail out NMC from its payroll shortfall.
This fiscal year, however, the Board called for restructuring amid mounting pressures for NMC to stay within budget.
Starting January, 19 FTEs were identified to be phased out and expected to realize $700,000 savings.
Last month, a new reorganizational chart was carried out eliminating two vice-president offices and 13 deans. Ninety-day notices were also sent out to key positions which were ungraded. The recent downsizing of its top officials is expected to bring savings to hire teachers for its critical programs.
