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NMC to get more money from endowment
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Posted on Dec 22 1998
The Post Secondary Education Amendment Act of 1998 which allows the Northern Marianas College to invest Land Grant Endowment Funds is expected to augment its financial resources.
Close to $20,000 annual revenues will be realized from interest of its $500,000 investment in assisting the college finance some of it programs.
“This is money which the college doesn’t have at this time. It will probably help NMC hire three part-time teachers or see the cost of a summer program,” said Rep. Karl T. Reyes, who estimated this annual income using a 3.5 percent interest rate.
However, its board of trustees, who will oversee this endowment funding, can seek higher investment package for NMC.
“The bill relieves the restrictive language in the original endowment statute which prevents NMC from investing,” said Rep. Heinz Hofschneider, who re-introduced the bill and was passed at the lower house last month.
In addition, the bill gives NMC the authority to negotiate for loans and bonds provided such transactions will go through the Commonwealth Development Authority as required by law.
In an earlier interview, NMC President Agnes McPhetres said this bill will provide funding for the School of Education to offer a baccalaureate program.
The recent visit of the team from the Western Association of School and College supported its plans to pursue the four-year program but NMC will need this bill to show fiscal commitment from the CNMI government.
