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Lack of funds delays EAG payment
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Posted on Jan 04 1999
The continuing deterioration of collected revenues for the CNMI government has delayed the payment of the Educational Assistance Grant for students enrolled at the Northern Marianas College.
The CNMI Scholarship Office will still have to settle the $127,000 bill from NMC to cover EAG incurred in the last semester while registration for spring is already due to start.
The delay is primarily attributed to cash flow problem after the Department of Finance had temporarily suspended the grant money intended for high school students enrolled at NMC.
“The Office of Management and Budget is trying to find money for the college at least next week to pay the partial amount,” special consultant for education Dan Nielsen told members of the Board of Regents last Thursday.
School president Agnes McPhetres appealed to key officials to reserve the educational assistance funding of $575,000 exclusively earmarked for NMC and to refrain from using the money to finance students who went off-island.
“We are addressing this problem to make sure that in the future no one will use the money earmarked for NMC,” Nielsen responded.
On the start of the first semester, the CNMI Scholarship Office has disbursed half a million dollars to send full scholars abroad and educational grants for the regular students. Educational loans were likewise extended to off-island students.
The committee led by BOR member Ramon Villagomez had set forth a procedure to facilitate EAG collection starting this spring that promises only 15 days of processing provided money is available.
