NMC budget request for FY-01 slashed

The Northern Marianas College is faced with another year marred with financial constraints after the Office of Management and Budget slashed its budget request for fiscal year 2001 by $1.5 million.

The OMB has given the college a $6.8 million budget ceiling for general operations. Majority of the amount will go to teaching and non-teaching personnel cost.

The governor’s budget office also capped the amount that can be allocated to the college under the Nonresident Workers Fund. Only about 15-20 percent of the total fund, or at least $1.17 million had been allotted to NMC.

Allotment to the college from Public Law 10-66 will fund its vocational programs. NMC originally requested $1.57 million for the program.

However, citing the need to pay its annual leave and retirement bonus obligation to personnel, the NMC administration is asking $364,000 in additional funding for its general operations.

The college is asking for higher budget allocation in order to fill in vacant positions for at least three of the 18 full-time employees needed by NMC.

The major cut in budget allocation will apparently force NMC to put in place more belt-tightening measures that may include reduction in the number of non-teaching employees.

In an earlier interview, Regent Manuel C. Sablan disclosed that some of the functions may have to be consolidated which could result to cutback in manpower.

Since last year, NMC has been confronted with problems of paying its more than 100 employees whose combined salaries cost the cash-strapped government some $300,000 every pay period.

Almost 87 percent of the $7.4 million earmarked for the college in fiscal year 1998 went to personnel cost alone. Overall, the commonwealth spent about 75 percent of its last year’s budget under the continuing resolution to salaries and benefits of its employees.

Due to the dramatic drop in government revenues spawned by the Asian currency crisis, Gov. Pedro P. Tenorio has called on government offices to explore ways to trim down expenditures like reduction in overtime and work hours.

Mr. Tenorio also called for the strict monitoring of government resources as he urged cabinet secretaries and activity heads to submit alternatives or other options which could help arrest the possibility of “payless paydays.”