NMC president delays austerity Fridays

A planned “austerity Friday” at the Northern Marianas College was temporarily put on hold by its new president, Dr. Sharon Hart, who said that further discussion and review is needed before it is implemented.

The college had announced early this month that it will implement an eight-hour work reduction among all employees effective tomorrow, July 15, due to an expected budget shortfall this fiscal year. The decision was made before Hart came to office on July 5.

In a statement to Saipan Tribune yesterday, the college announced that it plans to move forward with the reduction in work hours but enforcement will only be made once the necessary policy changes take effect.

According to the college, existing policies need to be amended in order to properly implement the change in work hours. And, as per board policy, any proposed policy or policy amendment needs to be discussed and reviewed through the appropriate NMC governance body prior its submission to the Board of Regents for consideration.

NMC’s Human Resources Office is now preparing the necessary policy changes that will give the college administration the flexibility needed to implement the work hour cuts.

The proposed policy change, NMC said, will be presented at the next College Council meeting. The College Council serves as the primary advisory body to the president on issues related to college operations. It is composed of representatives of all college constituencies. If approved, the amendment will be transmitted to the president and then to the Board of Regents.

More details about the reduction in work force will be announced after the policy changes have taken effect, according to the statement.

“To prepare for potential funding shortfalls in the next fiscal year, the college has refined its program review processes to link more clearly to planning, budgeting, and resource allocation,” said Hart, adding that “the refined processes will enable the college to strategically prioritize expenditures for the next year.”

Meanwhile, NMC will continue other cost-savings measures, including shortening the summer semester session, reducing utility use across campus, and restricting new hires.

The Office of Management and Budget earlier informed former interim president Lorraine Cabrera that NMC’s budget allotment for the remainder of the fiscal year would be cut by 7.58 percent, or about $340,000. Accordingly, the OMB office asked the college to adjust expenditure rates to ensure spending is within the adjusted allocation.

The move to reduce employees’ work hours by eight per pay period followed a series of campus-wide discussions that were facilitated through the college’s shared governance structure. The move was made to ensure that the college’s limited financial resources are enough to support student learning programs and services and to improve institutional effectiveness.