SHEFA incentive grants program faces termination

The incentive awards for scholars of the Saipan Higher Education Financial Assistance will likely to be stopped this new semester, according to SHEFA officials.

Board chair Jose Mafnas and board member John Tenorio told Saipan Tribune that the government’s poker fee collections continue to decline and may not be able to sustain all the scholarship programs being offered by the government.

Poker license fees and related revenues are the primary sources of funding for SHEFA programs, which get $3 million each fiscal year.

In July alone, the licenses for 10 poker machines were not renewed, which means a further reduction in projected revenues, said Mafnas, who is also the director of the Finance Department’s Administrative Services Division.

“Based on records, we’re not expecting the money allocated for SHEFA because we’re seeing a steady decline in poker machines. Just for this month alone, 10 units did not renew licenses. Poker revenues are the only source of our scholarship programs and we are convinced that we need to make more adjustments,” said Mafnas after Friday’s board meeting.

Mafnas and Tenorio believe that, of SHEFA’s three major scholarship programs, the incentive grant will likely be the first to be terminated or suspended because this is provided to recipients on top of their grant-in-aid assistance.

The incentive program gives cash awards to students who maintain a 2.5 GPA and above. This program’s beneficiaries used to get $2,000 per semester. This was reduced in spring 2011 to $1,000 per semester for on-island recipients and $1,500 per semester for off-island scholars.

Tenorio and Mafnas said that terminating or suspending this program will boost the sustainability of the SHEFA program.

Tenorio expressed confidence that the community and the scholars would understand the necessity of whatever decision the board will make for the program. He is convinced that the program will have more problems if no action is taken now.

SHEFA administrator Henry Hofschneider confirmed yesterday the idea of suspending or terminating the incentive awards. He said a full report is still up for review by board members.

Besides undergraduate scholars, some master’s students also receive incentive awards for maintaining the required GPA. Once a decision is made, Hofschneider said that the suspension will be across-the-board.

Mafnas and Tenorio also hinted that the board is assessing whether to continue assisting online students.

Saipan Tribune learned that there are only over 500 active poker machines at present. This is only 41 percent of the total active poker machines in 2004, which was over 1,400 units. In fiscal year 2010, the government recorded 579 poker machines on island.

Poker operators pay a $12,000 annual license fee for each machine on Saipan and $10,000 for each machine on Rota and Tinian.