Making the right choice to enable NMC to move away from instability

The recent decision by the NMC BOR to rid themselves of the menacing fiscal responsibility of maintaining the La Fiesta Mall on a monthly basis to the tune of $120,000, as well as the annual leasehold payment of $200,000 plus interest, was very prudent and timely considering the new fiscal year is rapidly approaching (Oct. 1) and the institution will be evaluated prior to the end of this year by the Western Association of Schools and Colleges. Removing the onus of having the responsibility of monthly operating expenses, as well as annual lease payments, will enable the college to move toward the important task of eradicating the current budgetary deficit of nearly $2 million that has besieged the institution for several years and work on restoring the accreditation status and credibility with the Western Association of Schools and Colleges.

The memorandum of agreement for transfer between NMC officials and the governor’s office mentioned by NMC president Antonio Deleon Guerrero apparently did not include any involvement of both houses of the Legislature. In light of the fact that the transfer will effectively move the obligation of nearly $1 million annual payments for the operations and leasing of the facility, as well as the total outstanding debt which is approximately $4 million, then the issue of whether the obligation should shift to the CNMI government needs to be deliberated by representatives and senators of the Legislature. Deliberations must take place simply because it is a “public debt” that must be passed by two-thirds of both houses in order for it to remain intact, according to the Commonwealth Constitution. And since both houses of the Legislature were never given the opportunity to deliberate and vote on the original $4 million debt established between the BOR and governor, then it would be appropriate for a discussion and formal vote on allowing the debt to exist and maintaining the fiscal responsibility on a monthly and annual basis.

The two key issues regarding the ownership transfer of La Fiesta Mall from under the auspices of NMC and officially handing over to the Executive Branch the responsibility of assuming the operation of the facility involves the continuance of a debt that, according to the Commonwealth Constitution, must be approved by the CNMI Legislature; and the question about whether there is any conflict of interest because the proprietors of the property are the governor’s family members.

If Gov. Juan N. Babauta is truly an “education governor” that he touted himself to be during the campaign prior to his gubernatorial victory in November 2001, then he will ask both houses of the Legislature to deliberate on the issue of accepting the transfer and establishment of $4 million in public debt.

Should both houses of the CNMI 14th Legislature decide to reject maintaining the transfer of the current outstanding debt of $4 million plus interest to the CMNI government, then the only rational option to take in order for it to be a “win-win” situation, would be to seek a prospective buyer for the facility and try and recoup the $4.6 million of federal and CMNI funding expended during 2003.

Should the 14th Legislature concur with the proposal to place the complex on the market and a buyer steps forward, then the proceeds that are taken in from the sale should go toward repairing the As Terlaje campus, eradicating the menacing budgetary deficit of nearly $2 million, restoring important academic programs like elementary and vocational education, and begin a systematic plan to grant salary increases to faculty and staff members who have been patiently waiting to get “cost of living” increases, as well as “merit” increases for over a period of 10 years. Taking care of the areas mentioned will allow the college to become stable once again and perhaps the “morale problem” will dissipate and no longer plague the academe and entire island community.

Should the 14th Legislature make the decision to hold on to the La Fiesta Mall and take full responsibility for nearly $1 million annual obligation to run and lease it ($600,000 for operations and $200,000 + interest for the leasehold), then the question that must be placed before the CNMI lawmakers is: Where will the funds come from to maintain a facility that is currently not very productive and has been construed to be more of a “liability” than an “asset” for NMC.

Politicians who tout themselves to be involved with “education” substantiate it with demonstrative actions that will move institutions forward and not backward. The only way that NMC will be able to move forward is to receive “approved appropriations” from the sale of the La Fiesta Mall and take care of the business of becoming a stable and progressive institution of higher education in the Pacific Rim. Since majority of the funding that was appropriated for the $7.5 million transaction in 2003 between the BOR, the governor’s office, and the La Fiesta Mall proprietors came from the federal coffers, then there would be a huge benefit due to the fact that most of the money did not come from the tax revenues generated by the residents of the entire island community.

Now is the time for the governor to step forward and show the electorate his “true colors” in terms of supporting higher education with sincere and genuine compassion. Going public with supporting the sale of the La Fiesta and using the proceeds to pull NMC out of an extremely precarious situation and delegating to those subordinates who report to him to exert effort into locating and persuading potential buyers for the mall will substantiate that the governor is truly “an education governor.”

On the other hand, if the governor refuses to change the current arrangement of the Executive Branch maintaining responsibility to run and fund the La Fiesta Mall and discourage any involvement on the part of both houses of the Legislature, then the mindset he might have to face from the CNMI taxpayers who are not convinced and /or certain that La Fiesta Mall is good for the islands and higher education, may not be mollifying, and could very well end up being unsettling.

Dr. Jesus D. Camacho
Delano, California