Budget cuts forced NMC to streamline

The Tenorio Administration’s move to make significant cuts in the spending ceiling of government agencies is forcing the Northern Marianas College to streamline its operations in order to curb potential distraction in its delivery of education.

NMC President Jack Sablan said the College had to clamp down on every expense including reorganization of the institution’s operations in order to consolidate functions and personnel.

Mr. Sablan said the Commonwealth’s lone higher learning institution is also obligated to achieve greater efficiency and effectiveness while streamlining its operations.

He added that changes in budget allocation and government financial assistance to students had put a strain on all college functions and caused confusion but “everyone pitched in and we survived.”

“The need to cut expenses and comply with reorganization plan shook up the structure of college management; deans became directors and vice presidents became deans,” the newly-appointed NMC chief said.

The sizable cut in its budget request for Fiscal Year 2000 has driven the College to put in place additional belt-tightening measures in order to stretch its House of Representatives-approved $6.8 million allocation.

However, Mr. Sablan said the College could operate well within the boundaries of its budget allocation for FY-2000 although some programs may be streamlined primarily because of the reduction.

“Preliminary discussions with the people who handles the budget and finance matters at the College showed that we are okay with that ($6.8 million) budget,” Mr. Sablan said.

Under the FY-2000 budget of the College, the institution has a total of 134 full-time employees ceiling.

Majority of the amount will go to teaching and non-teaching personnel cost. The governor’s budget office also capped the amount that can be allocated to the college under the Nonresident Workers Fund.

Only about 15-20 percent of the total fund, or at least $1.17 million had been allotted to NMC. Allotment to the college from Public Law 10-66 will fund its vocational programs. NMC originally requested $1.57 million for the program.

The college is asking for higher budget allocation in order to fill in vacant positions for at least three of the 18 full-time employees needed by NMC.

Since last year, NMC has been confronted with problems of paying its more than 100 employees whose combined salaries cost the cash-strapped government some $300,000 every pay period.

Almost 87 percent of the $7.4 million earmarked for the college in fiscal year 1998 went to personnel cost alone. Overall, the Commonwealth spent about 75 percent of its last year’s budget under the continuing resolution to salaries and benefits of its employees.

Due to the dramatic drop in government revenues spawned by the Asian currency crisis, Gov. Pedro P. Tenorio has called on government offices to explore ways to trim down expenditures like reduction in overtime and work hours.