NMC proposes $16.7M budget for FY2005

The Northern Marianas College administration has proposed a $16.77-million budget for fiscal year 2005, hoping that the college would get at least $9.66 million in appropriations from the CNMI government.

But in a recent meeting, the NMC Board of Regents asked the college management to come up with another budget proposal based on the assumption that the CNMI government would continue operating under Public Law 13-24.

P.L. 13-24 detailed the CNMI’s budget for fiscal year 2003. The Legislature failed to pass a budget bill for FY2004, which meant that the government had to operate on a continuing resolution basis, i.e., based on the last approved budget, which was for fiscal year 2003.

With only three days left in the current fiscal year, there is little possibility that a new budget would be passed before FY2005 begins on Friday.

NMC’s proposed FY 2005 budget named appropriations as the main funding source, with $8.06 million under general operations and $1.6 million under Public Law 10-66, which provides funding for NMC’s vocational education program.

Under P.L. 13-24, NMC got only $8 million in appropriations—or $6.8 million under general operation and $1.2 million under P.L. 10-66.

Other funding sources identified by the college are federal monies, projected at $4.11 million, and tuition and fees at $3 million.

Personnel expenses make up 71 percent, or $11.85 million, of the proposed budget, while the remaining $4.92 million will be spent for all other purposes.

NMC has allocated $1.19 million for contractual employees; $459,170 for supplies; $419,667 for travel; $307.622 for student expenses; $170,987 for equipment; and $158,171 for construction.

Some $2.21 million was set aside for “other” expenses.

The NMC administration noted that this is the first time that the college has come up with a consolidated budget, or a budget that was not focused on tuition and fees alone. The budget includes indirect cost revenues, rental and program revenues, radio station fees and dues, educational tax credit and other donations, among others.

As a result, NMC’s projected revenues increased from $2.5 million to $3 million.

“It is the goal of the college to include the appropriations and auxiliary services into the consolidated budget in the next fiscal years’ budget cycle in an effort to complete the budget consolidation process,” the administration said.

Further, the college management noted that certain factors specific to FY2004 played a material role in the development of the FY2005 budget. Among these factors are the federal government’s placement of NMC under Pell grant reimbursement status; the cash flow challenges of FY2004; and the budget cuts made in FY2004 to accommodate overruns as a result of unbudgeted obligations made during the fiscal year.