NMC threatens tuition hike, scrapping of business degree

Northern Marianas College president Dr. Sharon Hart told senators yesterday afternoon that NMC might increase students’ tuition by at least 30 percent and cancel the new bachelor’s degree in business management program as early as Monday, among other things, should the Legislature fail to give the college at least $5.152 million to meet federal maintenance-of-efforts requirements.

NMC is asking for a budget of $7.858 million for fiscal year 2015.

The House of Representatives gave NMC $4.934 million in its version of the fiscal year 2015 CNMI government budget bill. The $134.33 million budget bill is now under Senate review.

Of the amount given by the House to NMC, $4.248 million is direct appropriations, while $600,000 is from CW fees and $86,000 is from Compact impact funds.

Lawmakers said the $7.858 million that NMC is asking for is almost double what it had in previous years and is unattainable at this time given other program needs.

Senate and House of Representatives members also said while they understand NMC’s frustrations, they were taken aback by the tone of NMC’s statements at yesterday’s Senate budget hearing, describing them as “threatening.”

“I’m just quite surprised that from $4.2 million, NMC is asking $7.8 million. To say things in a threatening manner is quite alarming especially because it’s asking for almost double the budget. However, I sympathize with NMC’s concerns about the need for more funds. For me we should at least meet the MOE requirements,” Manglona later said.

Senate Fiscal Affairs Committee chair Sen. Jovita Taimanao (Ind-Rota) said the committee will review NMC’s request.

Nothing was promised to NMC yesterday.

NMC officials said the minimum appropriation needed for NMC to meet the MOE requirement for the College Access Challenge Grant for 2015 is $5,152,207.

This, however, assumes that the CNMI Scholarship allotment is maintained at the same level for 2015 as in 2014.

This figure is also subject to change if there is any variation in NMC’s appropriation level as stated in Public Law 18-18 or in the CNMI’s Scholarship allotments.

Hart told senators yesterday that by not giving more funds to NMC, lawmakers “are putting all of this on the back of students.”

“And it is either time that the NMC receives the appropriations we need or I am serious, it is time that this college gets out of the business of being a college because we need these funds. And this is being serious, we need to know. If we’re not going to have these funds, I am going to say to the dean we do not enroll these students in business starting next Monday. And we will cancel that business degree. Do you want us to meet this workforce needs or do you not?” Hart asked members of the Senate Committees on Fiscal Affairs and Education.

Manglona asked Hart whether NMC also shared their plans with the House of Representatives.

“You bet,” Hart responded. “And we can see right now where education stands in the CNMI and I am extremely disappointed as every citizen in the CNMI should be disappointed in the lack of support that goes to education.”

Hart said this comes at a time when NMC expects 1,300 students or an additional 14 percent growth in enrollment this fall.

“When we tell these students in a few weeks that they will be expecting a 30-percent if not more growth in their tuition dollars, I hope that they come forward,” Hart added.

Manglona asked Hart once again whether NMC explained their plan to the governor.

Hart said Board of Regents members have been talking to the governor and the House.

“We were up here two months ago. We told the House what we’re going to do,” Hart said.

Lawmakers also asked NMC about the whereabouts of the $3 million it collected in student tuition, which is not counted toward the college’s budget.

Rep. Roman Benavente (Ind-Saipan), chairman of the House Committee on Education, said the House continues to find sources of additional funding for NMC but it is impossible to give NMC almost $4 million more.

The House and Senate are expected to form a conference committee to come up with a compromise version of the government’s 2015 spending plan.

Benavente also noted Hart’s statement about considering to cancel the new four-year degree in business management program.

“If she knew from the beginning there would be problems with funding, she shouldn’t have pushed for it this year. It’s holding the budget situation hostage. …The $3 million tuition collection is also questionable issue. I believe they use it as ‘cushion’ fund but they have to disclose that,” he added.

Besides Hart, other NMC officials were also at the Senate budget hearing including NMC chief financial officer Tracy Guerrero.

Hart also enumerated NMC’s accomplishments and successes.

“We do achieve what we set out to do,” she said.

The Senate leadership, meanwhile, is poised to give the Public School System an additional $1.6 million, on top of what the House gave it under the 2015 budget bill, to be able to meet the MOE requirement.