‘NMC will lose $6M in critical federal grants’

If the House-adopted budget bill for fiscal year 2012 is enacted into law, hundreds of students will be deprived of assistance and services at the Northern Marianas College because it will not qualify for critical federal grants, according to Board of Regents chair Juan T. Lizama yesterday.

The $102 million spending plan, which the House passed last week, proposes to give NMC just $4 million in fiscal year 2012. The measure is now with the Senate, pending action this week.

Lizama said the $4 million budget is $1.2 million short of the maintenance-of-effort requirement for the College Access Challenge Grant program, which help students enroll, remain, and succeed in college. It targets native Pacific Islanders and those who come from low-income families.

According to the chairman, if the MOE is not met, the grant will not be funded. The cumulative effect of not receiving the grant award is a loss of $6 million–$1.5M for four years–in sorely needed federal funds and the loss of services and assistance provided to about 8,000 students, or 2,000 students a year over a four-year period.

“In order to meet the MOE requirement for the CACG award, the current fiscal year appropriation must equal or exceed the average of the preceding five fiscal years’ level of support,” said Lizama.  

He disclosed that the average appropriation to NMC from 2007 to 2011 is about $5.2 million.

“We understand and appreciate the difficult task that legislators have in preparing a budget in light of diminishing revenues. At the same time, more than ever, we want to stress that an investment in higher education directly impacts the CNMI’s workforce development and economic growth,” said Lizama.

Prior to the passage of the budget bill in the House, NMC president Dr. Sharon Hart appealed to the lawmakers to give the institution $5.2 million, emphasizing the critical need to maintain programs for students.

The limited budget and further cuts for the college may also threaten its accreditation efforts because commission standards require adequate funding for the college.

Hart disclosed that accreditation qualifies NMC and its students for $7.8 million each year in federal financial aid and federal program. Further cuts in the college’s budget would mean jeopardizing the ability of students and the college to avail of these funds.