Compact impact funds for NMC lowered

Officials of the Northern Marianas College were surprised after learning that the institution would get a lower share of Compact Impact funds this fiscal year, citing the absence of any formal notice from the Inos administration on the sudden change of allocation.

NMC was earlier allocated $167,000 in Compact Impact funds. It was learned during Friday’s budget hearing at the Legislature on Capitol Hill that the Office of Management and Budget had lowered this to $86,000.

Because of this revelation, NMC chief financial officer Tracy Guerrero said the college’s projected shortfall would increase as a result of the decline in Compact Impact appropriation.

“We’re very much counting on our Compact Impact funds…so we’re a bit surprised to learn that [the amount had dropped],” Guerrero said, responding to queries from lawmakers.

She said the “$100,000 difference” in the Compact Impact amount is a big deal for the college, which is in dire need of funds to meet all its obligation.

Of the $86,000 Compact Impact monies for the college, it was learned that $65,000 has already been transmitted to NMC.

NMC had asked the governor for a budget of $7.9 million for fiscal year 2015. The governor’s budget plan, however, lowered this to $4.7 million.

Guerrero disclosed that next year’s budget includes $6.2 million for personnel costs alone. The rest would go to utilities and the constitutionally required Public Auditor’s fee.

During the budget hearing, OMB’s Vicky Villagomez clarified that NMC is set to receive $5.03 million next fiscal year if the Legislature concurs with the governor’s proposal. She disclosed that from the general fund alone, NMC will get $3.9 million and $315,000 for the maintenance-of-effort requirement in fiscal year 2010. Additionally, the college will get $86,000 in Compact Impact funds and $700,000 from CW worker’s fees.

NMC president Dr. Sharon Y. Hart said the governor’s recommended budget is not enough. She revealed that in the absence of close to an $8-million budget, NMC will be forced to take drastic measures, including increasing the tuition of students, eliminating programs and services, and laying off personnel and staff.

Hart, along with Board of Regents fiscal committee chair William Torres, urged lawmakers to consider the plight of the only community college on island.

Both officials warned that once programs and services are reduced or stopped, most of its students will be impacted as 90 percent of enrollees are recipients of the Pell Grant, which requires the college to maintain certain standards.